CSHB 198(FIN) DIVE FISHERY MANAGEMENT ASSN. & ASSESSMNT CHAIRMAN HALFORD brought CSHB 198(FIN) before the committee as the next order of business. REPRESENTATIVE BILL WILLIAMS, prime sponsor of HB 198, said the legislation is a jobs bill supported by the southeast communities. For the past decade Southeast Alaska has been attempting to establish a orderly, consistent and stable fishery but the problem has always been a long-term funding mechanism for the merging fishery. HB 198 provides the divers with the ability to assess themselves to pay for the management of the dive fishery. Divers would be able to organize associations, to assess themselves and to work with the Department of Fish and Game in a cooperative manner to solve the management problems and reduce management costs. Representative Williams pointed out that timing is an important factor in this legislation. There is some money in the operating budget to operate a small portion of the fisheries in FY 98, but in order to have a fishery in FY 99 and develop more jobs, the divers must start assessing themselves as soon as possible, and passage of HB 198 this session will allow this to happen. Number 085 GERON BRUCE, Legislative Liaison, Department of Fish and Game, addressing the funding of the legislation, said right now it would be general fund program receipts. The impression by supporters of the bill is that it would provide new funding to the Department of Fish & Game to develop these new fisheries, but the passage of this bill alone will not accomplish that unless the revenue was classified as designated program receipts under SB 55. However, the current version of SB 55 will not include this kind of revenue as a designated program receipt, so the department is concerned that in order to develop this new fishery, funding will have to be taken from some existing fishery management program. He noted the department has worked with the sponsor on a number of issues in the bill and has been able resolve them, but the funding issue remains an outstanding issue and a concern to the department. CHAIRMAN HALFORD asked what happens if the Finance Committee adopts the fiscal note for the bill in general funds. MR. BRUCE responded there wouldn't be a cost until FY 99, but if the Legislature continues to reduce the department's total overall budget, there would have to be cuts someplace else to go forward with this. CHAIRMAN HALFORD commented that the program costs $302,000 and it generates $302,000. SENATOR LEMAN suggested the program receipts legislation has already passed this session, but it may be something that can be dealt with next year because he thinks it is something completely contrary to what he thinks the intent of the bill is which is to provide an alternative funding mechanism for the program. Number 145 SENATOR TAYLOR asked if Mr. Bruce was saying the department supports the legislation. MR. BRUCE replied that he was not saying the department supports the legislation. He said they've worked to resolve a number of issues, but they have not taken a position of support because of their concern with the impact of this one issue on the department's overall budget. Number 160 SENATOR TORGERSON said he thinks HB 198 would fall under SB 55 if it meets the criteria of that bill because SB 55 didn't set out a laundry list of different programs that would be considered to be designated program receipts. One of the criteria is to enter into a contract with another entity where the funds would come in as a result of entering into that contract, and he thinks that it would qualify under the designated program receipts if they entered into a contract. Number 225 SENATOR LINCOLN said there is no question that this a good piece of legislation, but she has heard concern that the money from the assessments might be used for other than what it is intended for. She asked Representative Williams if that was of concern to him and how he proposes preventing that from happening. REPRESENTATIVE WILLIAMS acknowledged that it is a concern, but he is optimistic that these monies will go where they are supposed to go. Number 260 SENATOR TAYLOR moved CSHB 198(FIN) and the accompanying fiscal note be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.