SB 189-SPORT FISHING ENHANCEMENT SURCHARGE  4:52:21 PM CHAIR MICCICHE announced that the next order of business would be SENATE BILL NO. 189, "An Act relating to the fish and game fund; establishing the sport fishing enhancement surcharge; relating to the repeal of the sport fishing facility surcharge; providing for an effective date by amending the effective date of sec. 21, ch. 18, SLA 2016; and providing for an effective date." He noted that the bill was previously heard on 2/28/20 and public testimony was heard. He asked Mr. Rutz to briefly summarize the bill. 4:52:55 PM DAVID RUTZ, Director, Division of Sport Fisheries, Alaska Department of Fish and Game, Palmer, Alaska, explained that the bill would allow the department to keep a portion of the $9 surcharge added to the sportfish license fee implemented in 2005 to repay the bonds for building two sport fish hatcheries and Southeast King salmon enhancements. The surcharge will disappear when the surcharge pays off the bonds in December 2020. MR. RUTZ said the intent of the bill is to maintain a portion of the surcharge. The surcharge for residents would be $4 and a little higher for nonresidents. The surcharge would help to continue funding for hatcheries and King salmon enhancement in Southeast Alaska. 4:54:00 PM CHAIR MICCICHE turned to public testimony. 4:54:29 PM FORREST BRADEN, Executive Director, Southeast Alaska Guides Organization, Ketchikan, Alaska, testified in support of SB 189. He said approximately 50 percent of King salmon harvested in Southeast Alaska are hatchery produced. King salmon enhancement is a substantial benefit to both residents and nonresidents that fish the inside waters in Southeast Alaska. 4:56:08 PM DAVID LANDIS, General Manager, Southern Southeast Regional Aquaculture Association, Ketchikan, Alaska, testified in support of SB 189. He stated that most fee revenue will go to the two large hatcheries in Anchorage and Fairbanks that the State built under the bond. However, the State has three designated sport fishing hatcheries, including the Crystal Lake Hatchery in Petersburg. He explained that the Southern Southeast Regional Aquaculture Association (SSRAA) operates the Crystal Lake Hatchery under contract with the State. A portion of the operational funding for Crystal Lake is through the surcharge. Continued surcharge funding is critical to the operation of the Crystal Lake Hatchery, especially for upgrading hatchery raceways. MR. LANDIS pointed out that the Crystal Lake Hatchery provides an impressive amount of King salmon in Southeast Alaska. Enhanced King salmon account for half of King salmon harvested in Southeast Alaska and the Crystal Lake Hatchery produces half of those enhanced fish. The hatchery is an important facility when accounting for the Pacific Salmon Treaty between the United States and Canada. The hatchery is critical for sport, commercial, and charter operators. MR. LANDIS concluded his comments saying that the State's user- pays system is fair and appropriate. 4:59:06 PM MELVIN GROVE, Member, Prince William Sound Charter Boat Association, Wasilla, Alaska, testified in support of SB 189. He stated that the average angler does not know that there is a fee added to their fishing license and would not know unless the State takes the fee away. He said the association is not surprised that the fee revenue will continue to support hatchery enhancement and other possible hatchery uses. He suggested that the bill include funds for data collection to verify enhanced fish harvest. CHAIR MICCICHE turned to the consideration of amendments. 5:03:20 PM SENATOR COGHILL moved Amendment 1, A.2. 31-GS2165\A.2 Klein 3/9/20 AMENDMENT 1  OFFERED IN THE SENATE BY SENATOR MICICHE TO: SB 189 Page 1, lines 11 - 12: Delete "to sport fishing facilities for maintenance and enhancement of sport fisheries" Insert "for [TO] sport fishing stock enhancement and ongoing maintenance and operation of the department's sport fish hatchery facilities" Page 2, lines 9 - 10: Delete "to [FOR] sport fishing facilities for maintenance and enhancement of sport fisheries" Insert "for sport fishing stock enhancement and ongoing maintenance and operation of the department's sport fish hatchery facilities" 5:04:05 PM At ease. 5:04:46 PM CHAIR MICCICHE called the committee back to order and confirmed that the version for Amendment 1 is A.2. 5:05:01 PM CHAIR MICCICHE objected for discussion purposes. 5:05:05 PM KONRAD JACKSON, Staff, Senator Peter Micciche, Alaska State Legislature, Juneau, Alaska, explained that Amendment 1 makes two changes. On page 1, lines 11-12, it deletes the phrase "to sport fishing facilities for maintenance and enhancement of sport fisheries" and inserts the phrase "for sport fishing stock enhancement and ongoing maintenance and operation of the department's sport fish hatchery facilities." He detailed that the second change on page 2, lines 9-10, deletes the phrase "to sport fishing facilities for maintenance and enhancement of sport fisheries" and inserts, the phrase "for sport fishing stock enhancement and ongoing maintenance and operation of the department's sport fish hatchery" facilities. MR. JACKSON explained that Amendment 1 would focus surcharge funds more closely to the original purpose as expressed by the department at the previous hearing. CHAIR MICCICHE maintained his objection to explain that he felt that the language was a little loose. The department talked about the promise of the funding remaining with enhancement, yet the language allowed other spending. He said the promise of the original fee on sport fishing licenses was in fact for enhancement and tightening the language was important. 5:06:32 PM CHAIR MICCICHE removed his objection and announced that without further objection, Amendment 1 is adopted. 5:06:43 PM SENATOR COGHILL moved Amendment 2, A.3. 31-GS2165\A.3 Klein 3/2/20 AMENDMENT 2  OFFERED IN THE SENATE BY SENATOR MICCICHE TO: SB 189 Page 1, line 2, following the first occurrence of "surcharge;": Insert "relating to personal use fishing permits  and fees;" Page 2, following line 4: Insert a new bill section to read:  "* Sec. 2. AS 16.05.340(a) is amended by adding a new paragraph to read: (28) Personal use fishing permit .......... 5 A recipient of a $5 resident hunting, trapping, and sport fishing license under (6)(A) of this subsection may obtain this permit for $5." Renumber the following bill sections accordingly.   Page 3, following line 5: Insert new bill sections to read:  "* Sec. 4. AS 16.05.340 is amended by adding a new subsection to read: (l) The commissioner shall charge the fee in (a)(28) of this section for personal use fishing not otherwise licensed or permitted under (a) of this section. Receipts from personal use fishing permit fees shall be accounted for separately under AS 37.05.146(c). The legislature may appropriate money in the account to the department to support personal use fisheries, and to a municipality to support personal use fisheries based on the total number of days fished in all personal use fisheries divided by the number of personal use days fished within the municipality. * Sec. 5. AS 37.05.146(c) is amended by adding a new paragraph to read: (80) receipts of the Department of Fish and Game from personal use fishing permit fees under AS 16.05.340." Renumber the following bill sections accordingly. Page 3, line 20: Delete "2" Insert "3" Page 3, line 23: Delete "2" Insert "3" Page 3, line 29: Delete "sec. 7" Insert "sec. 10" Page 3, line 30: Delete "sec. 7" Insert "sec. 10" Page 3, line 31: Delete "sec. 9" Insert "sec. 12" 5:06:50 PM CHAIR MICCICHE objected for discussion purposes. MR. JACKSON explained that Amendment 2 inserts a $5 fee on all personal use salmon fishing permits statewide. That was not the intent so the amendment requires a conceptual amendment to limit the $5 fee specifically to Upper Cook Inlet personal use salmon fishing permits. CHAIR MICCICHE maintained his objection to allow a motion for a conceptual amendment to Amendment 2. 5:08:02 PM SENATOR COGHILL moved conceptual amendment 1 to Amendment 2. CHAIR MICCICHE objected for purposes of an explanation. MR. JACKSON explained that conceptual amendment 1 to Amendment 2, would focus the personal use fishing permit fee strictly on the Upper Cook Inlet personal use fisheries. He detailed the following changes: • Page 1, line 7 Insert "Upper Cook Inlet" before the word "personal" • Page 1, line 7 Insert "salmon" following the word "use" • Page 1, lines 16-17 Delete the two lines except for the subsection letter "(l)" • Page 1, line 18 Insert "Upper Cook Inlet" following the word "from" • Page 1, line 18 Insert "salmon" following the word "use" • Page 1, line 20 Insert "Upper Cook Inlet" following [the first occurrence of] the word "support" • Page 1, line 20 Insert "salmon" following the word "use" • Page 1, line 20 Insert "Upper Cook Inlet" following [the second occurrence of] the word "support" • Page 1, line 21 Insert "salmon" • Page 2, line 1 Insert "Upper Cook Inlet" following the word "from" • Page 2, line 1 Insert the word "salmon" following the word "use" MR. JACKSON summarized that the conceptual amendment would achieve the original intent of Amendment 2, which is to add a $5 per permit fee for Upper Cook Inlet personal use salmon fishing. 5:10:14 PM CHAIR MICCICHE removed his objection to the conceptual amendment to Amendment 2. CHAIR MICCICHE related that the only opposition his office had heard to the fee was that it would apply to all personal use fisheries, which was not the intent. Individuals from Chitina expressed concern that the fee would be added to the existing fee for Chitina but that is not the case. It is strictly a $5 Upper Cook Inlet personal salmon fishery fee. 5:11:05 PM CHAIR MICCICHE found no further objection to Amendment 2, as amended, and stated that Amendment 2, [as amended], is adopted. 5:11:14 PM SENATOR COGHILL moved to report CSSB 189, work order 31-GS2165\A as amended, from committee with individual recommendations and the attached fiscal note(s). 5:11:28 PM CHAIR MICCICHE found no objection and CSSB 189(RES) was reported from the Senate Resources Standing Committee.