SB 177-NO REPEAL OF SPORT FISH GUIDE LICENSING  3:42:08 PM CO-CO-CHAIR MCGUIREI announced the consideration of SB 177. SENATOR KEVIN MEYER, Alaska State Legislature, sponsor of SB 177, said this legislation provides continued oversight of sport fishing operators and guides. The licensing and reporting program has proven beneficial to the sport fishing industry and those who manage fishing resources. Legislation authorizing this program started in 2004 for the following reasons: 1) Alaska Department of Fish and Game (ADF&G) sought more credible information on guide numbers and activities; 2) to create basic standards for sport fish business operators and guides including liability insurance, first aid certification, and USGS vessel licensing if applicable; and 3) to increase the level of professionalism in the sport fish industry statewide. Many former skeptics now acknowledge the role these measures have played in advancing the guiding profession, which has helped raise the standard of the sport fish industry statewide. SENATOR MEYER concluded that SB 177 will permit ADF&G to continue to foster the high standards in sport fishing and guiding that everyone expects. 3:45:17 PM CHARLES SWANTON, Director, Division of Sport Fish, Alaska Department of Fish and Game (ADF&G), said the data that ADF&G collects in its logbook program has allowed it to seek exemption from the national saltwater registry, which tries to get that same information. Other states do not have a similar logbook program and the information is difficult to collect from anglers. He reported that ADF&G issues about 1,670 sport fishing business licenses and 1,981 sport fishing guide licenses that are issued annually. The logbook data comprises about 1.8 million clients taken out over the course of the last three years. He noted that ADF&G hopes to markedly reduce the amount of paper used in the program over the next two years. CO-CHAIR WIELECHOWSKI asked if the administration supports SB 177. MR. SWANTON answered yes. JACK CADIGAN, Juneau, said he is representing himself, but he feels he can speak for many other saltwater charter operators who are against SB 177. He is a retired Coast Guard captain and a licensed charter fishing operator. He doesn't object to the state requiring licensing and regulating of various industries and occupations, but it seems that charter fishing in navigable waters within Alaska is already heavily regulated. The competency and integrity of the operators is therefore ensured at a substantial cost in user fees and licenses. He submitted that it doesn't cost the state anywhere near $100 to annually provide a charter applicant with a license and sticker. Indeed, in 2010 the annual fee for many Alaska business licenses will be half that or less. In addition to an Alaska fishing guide license, the charter operator and crew must purchase a sport fishing license, even though prohibited from fishing while on a charter. Charter operators must also purchase a state business license. Depending on location, operators must also possess a local sales tax license. The federal government requires a Coast Guard license, a transportation worker identification certificate (TWIC), enrollment in a drug testing program, and current certificates in first aid and CPR. The aggregate cost to the charter operator is $1,100 over a five-year period or $1,600 if SB 177 is enacted. This is exclusive of keeping first aid and CPR certifications current. The charter industry is rigidly controlled and receives random inspections by state and federal authorities to ensure compliance. 3:50:02 PM MR. CADIGAN said that in addition to money what the state gets in return for its licensing program is a detailed log sheet for analysis of every charter. The logs list rod hours and dates, the name and license number of the fisher, the fish species and where it was caught. If halibut are caught, the fisher must certify that by signing on the back of the log sheet. Failure to submit the log sheet on time results in a hefty fine to the charter operator. MR. CADIGAN suggested that rather than charging for licenses, it would be more reasonable for the state to pay a modest stipend to those who submit the logs. It takes considerable time and effort for charter operators to deliver for analysis this apparently important information. He submitted that it would be most reasonable to allow this program to sunset by not passing SB 177. 3:51:07 PM SENATOR HUGGINS asked how these requirements have accumulated over the years. MR. CADIGAN said the Coast Guard has for some time required all charter operators in the navigable waters of the U.S. to be appropriately licensed. He first received his license in 1952. The TWIC is a recent requirement by the Department of Homeland Security to ensure that people working on the waterfront have undergone background checks. He isn't sure when the requirements for CPR and first aid were instituted. The random drug testing program probably came in 15-20 years ago. SENATOR WAGONER asked if drug tests are required more frequently than when renewing a license. MR. CADIGAN said charter operators [and their crew] must enroll in an annual random drug testing program or have had a drug test within six months of a random test. This is a Coast Guard requirement. Responding to questions from Senator Wagoner he added that this is a requirement for operators that carry passengers. 3:54:06 PM ROBERT L. JANES, representing himself, Valdez, said he is a licensed charter captain and he opposes SB 177. His view is that the program instituted in 2004 is discriminatory and was justified by inherently erroneous testimony from Rob Bentz, [the former Deputy Director, Division of Sport Fish, Alaska Department of Fish & Game]. He pointed out that sport fishing operators are required to pay a number of fees and acquire certifications that the commercial longline fisherman isn't required to pay. 3:58:14 PM MELVIN GROVE, representing himself, Mat-Su, said he opposes SB 177. He provides a service transporting Alaskans from the dock to a fishing boat so that people can harvest their own resource. He understands that he must pay the government to operate his business, but when the state instituted a new $100 sport fish guide license it seemed to break with its past licensing policy, which is that fees cover only the cost of issuance. He pointed out that it only costs the commercial halibut fisherman $25 to harvest a public resource yet the halibut charter guide must pay $100 to provide a service so the public can harvest their own resource. He questions how this can be justified. In 2004 ADF&G testified that the reporting requirements would provide comprehensive information on the impact of guided sport fishing activities. This will lead to better regulations to protect the states sport fishing resources. None of this happened and nothing has improved. Even after the guides submit detailed reports ADF&G contacts the fishers to verify their success. He asked why guides should be put to the trouble if the department is going to do that. 4:01:34 PM ROD ARNO, Executive Director, Alaska Outdoor Council, said this 10,000 member statewide organization continues to support the legislation originally passed in 2004. The only concern relates to some of the intent of the legislation. In particular, the data has not been used to legitimize the allocation process. Also, AOC was told that information on the economic impacts and contribution of sport fish in Alaska still can't be used when looking at the economic importance of the resource. This legislation won't change that, but in order for it to be effective the Board of Fisheries needs to see this information as being legitimate. 4:04:10 PM RON RAINEY, Kenai River Sportfishing Association (KRSA), said he is speaking in support of SB 177. The log book program has not been successful because data compilation and reporting is difficult. If the reports were in digital format the information would be readily available for allocation decisions the next day. He lives at mile 10 of the Kenai River and the fishing pressure on the lower end of the river has increased tenfold in the last 20 years. Clearly there is a need for daily reports on fish catches so ADF&G can use that information in their decision making. He won't argue with the assertion that the $100 fee is probably too much, but digital reporting would be an invaluable aid in managing the resource. KRSA hardily endorses passage of SB 177, he said. SENATOR WAGONER said he will support the bill. 4:06:29 PM PATRICK BOOKEY, Luck of the Irish, North Pole, said this is nothing but a big tax on charter operators. His documentation fees for life rafts, drug testing, and various other fees cost nearly $3,000 per year and the log book program consumes about 30 minutes of his time each day. For years ADF&G touted the best creel surveys in the nation and he questions what happened to that. This appears to be nothing more than a tax on the public users of this resource and he would like the program to sunset. SENATOR WAGONER pointed out that life rafts have nothing to do with this fee. MR. BOOKEY said it's just another requirement and fee by the U.S. Coast Guard to maintain and operate a business. No other water-based business is required to have them and have them inspected yearly. SENATOR WAGONER clarified that commercial fishermen that fish past three miles are required to carry an inspected life raft. Responding to an assertion that Prince William Sound fishermen don't carry inspected life rafts, he pointed out that they are not outside of state waters. MR. BOOKEY said he sees them fishing outside the three-mile limit all the time. GEORGE WIESE, Leisure Charters, Valdez, said he too objects to the sport fishing guide fee. It's excessive compared to what commercial fishers pay. Acknowledging that it's not part of the bill, he said he also objects to having to get a sportfishing license only to be told he can't fish. CO-CHAIR MCGUIRE closed public testimony. 4:10:02 PM SENATOR WAGONER observed that the difference in requirements between commercial and sportfishing doesn't have a lot to do with this. However, just today he checked and found that in Cook Inlet a commercial vessel license to fish for salmon costs $60 per year and a permit card costs $75. In Prince William Sound a vessel license costs $375 per year and the permit card costs $370. The point is that commercial fishers pay much more than $25 to fish halibut or salmon, he said. He understands that the guide fee is expensive, but he believes that there are good reasons for that expense. SENATOR HUGGINS said he is not familiar with the whole concept, but he is surprised that this fee was excluded when the administration pushed to lower licensing fees. He asked if anyone knows why. 4:12:39 PM MR. SWANTON said he believes that the difference stems from the fact that the fees are not housed in the same area. Commercial licensing is occupational while the sportfishing guide fee resides within the codified regulations of ADF&G. SENATOR HUGGINS asked if the department supports equal opportunity to pay. MR. SWANTON said he is not prepared to discuss the actual fees. "Right now, they are what they are." The program isn't completely solvent right now and to a certain extent ADF&G would like to address that internally while the program is updated. SENATOR HUGGINS said the administration owes it to the citizens to coordinate among the departments. CO-CHAIR MCGUIREI announced she would hold SB 177 in committee.