CSHB 452(FIN)AM-GUIDED SPORT FISHING/ ADFG & CFEC RECORDS    CHAIR OGAN announced HB 452 to be up for consideration. MR. JOHN BITHNER, staff to Representative Cheryll Heinze, sponsor, said HB 452 is a sport guide licensing bill that creates two new licenses - a sports operators license ($100) and a sports guide license ($50). Purchasing both of them together would cost $100. The licensing requires liability insurance, Red Cross or comparable first aid training and reporting requirements for the areas being fished. He offered to answer questions. SENATOR WAGONER moved to adopt SCS CSHB 452(RES)AM, version \V. CHAIR OGAN objected for discussion purposes and asked Mr. Bittner to go over the changes. MR. BITTNER said the changes could be found on the second page, which is almost entirely new. Currently, sport fish guides must register their vessels with the Commercial Fisheries Entry Commission (CFEC) and there is a fee involved depending on the size of the vessel. This bill takes the category of sport fish guides out of the CFEC's jurisdiction and puts it in ADF&G's jurisdiction. ADF&G would use the fees it generated to pay for the vessel registration instead of having it be a separate fee. The information collected would be the same as it is now, but would be consolidated more efficiently in the Department of Fish and Game. SENATOR WAGONER asked why the fee is $100 for buying both licenses. No other fee structure gives a break for combining licenses. MR. BITTNER answered that the only reason he could see is to make it easier for small business operators where one person is the entire business. CHAIR OGAN said he thought this was a good approach, because he objects to creating more layers of bureaucracy. His sportfishing guide friend needs over 60 permits. He felt the change was also beneficial because it would give the sport fishing industry a better position at the table with the Board of Fisheries. SENATOR WAGONER held up his sportfishing guide license and said he doesn't pay $50 a year for it; in fact, he pays nothing for it. He asked how the price structure was developed. REPRESENTATIVE CHERYLL HEINZE replied that the whole reason for this bill is because the constant stream of sport fishermen on the inside waters is a huge problem that is developing throughout the state. The reports will provide useful information to the division for river management. SENATOR WAGONER interrupted to say that his question about his license was still not addressed. MR. KELLY HEPLER, Director, Division of Sport Fish, Alaska Department of Fish and Game (ADF&G), explained that Senator Wagoner is holding a registration card that provides information to the division on salt water and it is free. However, the division currently has no reporting requirements in fresh water and this bill now requires that. He is not trying to make money off of the program and the fee structure was developed to mirror the additional work that would be needed to accurately and timely compile information for management decisions. SENATOR SEEKINS asked regarding page 5, line 24, why a sport fishing guide license is restricted to citizens of Mexico and Canada and resident aliens, as well as citizens of the United States. MR. DOUG VINCENT-LANG, Assistant Director, Division of Sport Fish, Alaska Department of Fish and Game (ADF&G), explained that the Attorney General's office said that the recently passed NAFTA legislation does not allow the department to discriminate against business practices conducted within the United States, Canada and Mexico. This U.S. treaty obligates everyone to treat all citizens equally. SENATOR SEEKINS asked if sport fishing is considered to be regulated under the commerce clause. MR. LANG replied yes; the business activity associated with the license of a sportfishing guide is what's at issue. CHAIR OGAN asked why there isn't a resident/non-resident classification in this area. MR. HEPLER replied that because the recent Carlson decision ruled that the state would not be able to justify a differential fee structure for residents and non-residents. CHAIR OGAN asked if that ratio was 3:1. MR. HEPLER elaborated that it's the ratio alone is not anymore the basis of the fee, but how much more it costs the state to administer licensing of non-residents than for residents. He added that this bill also requires guides to have a fishing license. 5:18 - 5:19 - at ease SENATOR SEEKINS asked how the fee structure was established for the liability insurance. MR. HEPLER said the department consulted with a number of insurance firms and the least amount for a liability package that they came up with was $300,000. CHAIR OGAN asked if the division provides a vessel sticker to be displayed at all times. MR. HEPLER said the amendment intends to do that. Presently, people get a triangle for registration. He wants to offer something that is distinctly different from commercial fishing boats so that there is no difficulty in identifying a boat as a guide boat. CHAIR OGAN asked what happens if a guide has 10 boats. MR. HEPLER replied that he would need 10 stickers. MR. LANG added that this bill requires businesses to register their vessels with the division. The fee is for the business registration and the division would provide a sticker for each of the 10 boats. CHAIR OGAN asked if there was potential for fraud. MR. LANG replied that sticker would be modeled after CFEC's program that asks for unique identifiers for each boat. SENATOR SEEKINS said he thought that section meant the sticker could be on or in the boat (line 4). MR. HEPLER added that he is trying to accommodate people by including small vessels like zodiacs. CHAIR OGAN said that section needed more clarification. He personally thought that guide boats needed to be identified. CHAIR OGAN recessed the meeting at 5:31 p.m. He called the meeting back to order at 2:25 p.m. on May 6, 2004. SENATOR SEEKINS moved to adopt conceptual Amendment 1 [discussed at the May 5 meeting]. There were no objections and it was so ordered. SENATOR SEEKINS moved to pass SCS CSHB 452(RES)am from committee with individual recommendations and new fiscal note. There were no objections and it was so ordered.