CS FOR HOUSE BILL NO. 79(FIN) "An Act relating to sport fishing operators and sport fishing guides; requiring the Department of Fish and Game to prepare and submit a report; and providing for an effective date." 10:05:02 AM Co-Chair Bishop relayed that it was the first hearing for HB 79. The committee intend to hear a bill introduction and sectional analysis, take public testimony, and set the bill aside. 10:05:32 AM DOUGLAS VINCENT-LANG, COMMISSIONER, DEPARTMENT OF FISH AND GAME, spoke to the bill. He noted that the legislation was introduced by the governor and was a department priority. He shared that with the bill, the department wanted to reinstate the saltwater licensing and reporting requirements. He continued that the sport fish guide and operators license were first adopted during the 2003-2004 legislative session and took effect in 2005, and remained in effect through December 31, 2014, when they expired due to a sunset clause. The legislation had been passed based on the urging of freshwater and saltwater guides who were looking to professionalize the industry. Commissioner Vincent-Lang recounted that during 2015-2016 legislative session, only the saltwater licensing and reporting requirements were reinstated with a sunset of 2018. The legislation stripped the freshwater provisions from the bill, which the department supported as it was not using the freshwater information for in-season assessment of fisheries. He mentioned minor logbook violations and used the example of an error in the reporting of the number of graylings released. He mentioned loss of concession programs, notably on federal lands. After the legislation sunset in 2018, the legislature had provided some bridge funding through UGF, which had since ceased. There was no legislation in place to pay for the marine logbook program. Commissioner Vincent-Lang mentioned that logbook data had been collected by the department from saltwater sportfishing businesses and guides since 1998. He emphasized the importance of the data as utilized by the state for Pacific Salmon Treaty obligations, the International Pacific Halibut Commission (IPHC), and the North Pacific Fishery Management Council. He mentioned the importance of avoiding duplicative reporting mechanisms and undue burden on the charter fishing industry. He cited that logbook data also supported a myriad of critical uses, including but not limited to state fishery monitoring and management, advisory announcements and emergency orders, the Alaska Board of Fisheries advisory committees, external communications, and other applications. He referenced the logbook use summary included in members bill packets (copy on file). Commissioner Vincent-Lang discussed use of logbook data that resulted in relaxing regulations enacted by IPHC, which resulted additional opportunity and participation in halibut charter fisheries. Fees collected as part of the bill would provide the data necessary to manage marine charter fisheries, which contributed over $1.5 million to the states economy. He reiterated that the bill had been introduced by the governor, who saw it as a necessary tool in managing saltwater charter fisheries. 10:09:20 AM Co-Chair Stedman agreed with the commissioner and thought it was critical that the department understood the pressure on all the states fisheries. He was concerned that management was not possible without understanding, and the state would lose its fisheries. He asked with help in understanding the effect of lack of logbook data due to the program sunset in the past. Commissioner Vincent-Lang relayed that the department had continued the logbook program under a registration program adopted by the Alaska Board of Fisheries. The registration program did not have an associated fee to pay for the logbook program. The department had absorbed the costs into its operation budget and had worked with the industry to find ways to recover some of the costs. He thought there would be letters of support and testimony in support of funding the program. Co-Chair Stedman saw there was some data in the packet in a letter of written testimony (copy on file). He asked if the department could provide information on registered sportfishing guides around the state so the committee could get an idea of regional impact. He thought the guided and unguided sportfishing number was significant in his region. Commissioner Vincent-Lang agreed to provide the information. Co-Chair Bishop asked for the information to be distributed to his office for dissemination to the members. 10:11:35 AM RACHEL HANKE, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND GAME, addressed a Sectional Analysis (copy on file): Section 1 Establishes license fees for resident saltwater sport fishing guides and operators. • Resident guide license - $100 • Resident operator license - $200 • Resident operator and guide combined license - $200 Establishes license fees for nonresident saltwater sport fishing guides and operators. • Nonresident guide license - $200 • Nonresident operator license - $400 • Nonresident operator and guide combined license - $400 Section 2 Adds new Article to AS 16.40 that • AS 16.40.262 provides stipulations for the saltwater sport fishing operator license and defines the license type o Includes requirements such as a business license and general liability insurance • AS 16.40.272 provides stipulations for the saltwater sport fishing guide license and combined operator guide license, defines both license types o Includes requirements such as a current sport fishing license and first aid certification • AS 16.40.282 establishes the logbook reporting requirements for saltwater guides and operators. Allows the department to collect freshwater logbook information if the departments deems the information necessary. • AS 16.40.292 establishes penalties for violations the of the chapter • AS 16.40.301 defines "saltwater sport fishing guide" and "saltwater sport fishing guide services". Section 3 Adds saltwater sport fishing operator and guide license to AS 25.27.244(s)(2) which defines "license" in statutes regarding the Child Support Services Agency. Section 4 Uncodified law directing the Department of Fish and Game to prepare a report for the legislature proposing solutions to gathering harvest data for the saltwater rental and unguided fishing industry, due December 1, 2023. Section 5 Effective date of January 1, 2023 Senator Wilson understood that currently, logbooks were issued, and data gathering was required. He asked if the bill requested funding for processing the information. Commissioner Vincent-Lang affirmed that the bill sought funding to implement the program and ensure it could be continued into the future. He noted that the department was collecting logbook information but sought to make the program electronic. The department was struggling to find the funds to modernize the logbook. Additionally, the department was seeking federal funds but had thus far been unsuccessful. Senator Wilson understood that the department was requesting approximately $1 million per year to manage an ongoing database. Commissioner Vincent-Lang explained that the requested funds would be spent to license guides and business, issue logbooks, and make the information available to the entities that the department reported to. 10:14:27 AM Co-Chair Stedman thought his district was one of the top guided areas of the state including Price of Wales Island, Baranof Island, Chichagof Island, and other inland areas. He noted his district also had a lot of non-residents coming to the area with significantly sized boats and sometimes fished all summer long cycling guests in and out of the area while doing a lot of fishing. He likened the practice to much like a fishing lodge. He wondered how to differentiate the issue from other fishing guide operations. Commissioner Vincent-Lang stated that the program operated by defining a guide as compensation for services. If there was compensation involved in the scenario described by Co- Chair Stedman, there would be a requirement for the vessel to obtain a guide license and have a logbook on board. If there was no compensation, the harvest would be captured through the state harvest survey as an unguided harvest. Co-Chair Stedman asked if compensation included groceries and fuel. He described a scenario with payment in-kind. Commissioner Vincent-Lang relayed that guiding involved direct compensation to assist an angler in catching fish. He thought if an individual provided fuel to a guide that was taking someone to a fishing spot to harvest, it would require a guide license. Senator Hoffman mentioned people providing indirect services and personal use fishing with family and friends. He thought indirect use by those from out of state needed to be addressed. He wondered if the commissioner could comment on modifying the bill to stipulate that out of state residents that took indirect compensation needed to have guide licenses. Commissioner Vincent-Lang had not given a great deal of thought to the subject. He wanted to check with Department of Law to see how the commerce clause might come into play. He agreed to look into the matter and get back to Senator Hoffman with more information. Senator Wilson mentioned the bill previously heard in the meeting and asked if the regulations were written for the change proposed in the bill. Commissioner Vincent-Lang affirmed that the bill proposed to restore a program for which the regulations were already largely written. 10:19:15 AM Co-Chair Bishop OPENED public testimony. 10:19:26 AM Co-Chair Bishop CLOSED public testimony. HB 79 was HEARD and HELD in committee for further consideration.