SB 204-HUNTING PERMIT/TAG AUCTIONS/RAFFLES  3:50:10 PM CHAIR REVAK reconvened the meeting and announced the consideration of SENATE BILL NO. 204 "An Act relating to auctions or raffles for hunting harvest permits and big game tags; and providing for an effective date." CHAIR REVAK noted that this was the first hearing for SB 204 in this committee. 3:50:35 PM EMMA TORKELSON, Staff, Senator Joshua Revak, Alaska State Legislature, Juneau, Alaska, introduced SB 204 on behalf the sponsor, speaking to the following sponsor statement: [Original punctuation provided.] Since its passage in the 1997, the Governor's Auction and Raffle Tag program has successfully and substantially increased funding for the Alaska Department of Fish and Game (ADF&G). In 2021, gross revenue was just over $1.2 million. SB 204 seeks to build on this success and expand the department's ability to bring in revenue, which will support wildlife conservation and protection programs and education across Alaska. Foundationally, Senate Bill 204 adds three species to the available harvest permit list and standardizes the number of game harvest permits that ADF&G grants each year to qualified organizations for fundraising auctions or raffles. By doing so, the department will have the flexibility to issue up to four permits for each species, taking into account the health of the game population and recommendations of department biologists when determining the actual number that will be issued each year. The increased revenue from this moderate expansion of available harvest permits will ensure two important outcomes. First, it allows the department to maintain sufficient funds to continue critical conservation and wildlife protection measures that have been the mainstay of wildlife management for decades. Second, with the large increase in firearms and ammunition sales and approximately $18 million in new Pittman- Robertson (PR) grants coming our way, ADF&G will need sufficient matching dollars to prevent these new PR funds from reverting back to the federal government. Modern, effective wildlife management is becoming more expensive. For example, an increase of a couple of dollars to aviation fuel has a major impact on survey and inventory operations which, in turn, are a key element in setting game population and harvest objectives. Without accurate objectives, for instance, the Board of Game cannot make well-informed decisions on yearly hunting seasons and bag limits. In sum, SB 204 will allow more federal revenue to be leveraged for critical sustainable wildlife education and management programs and the proactive work needed to prevent new listings under the Endangered Species Act. Senate Bill 204 directly supports sustainable wildlife populations, outdoor traditions, hunters, and outdoor recreation users. 3:53:20 PM CHAIR REVAK asked Ms. Torkelson to proceed with the sectional analysis. MS. TORKELSON reviewed the following sectional analysis for SB 204. [Original punctuation provided.] Senate Bill 204 Sectional Analysis  "An Act relating to auctions or raffles for hunting  harvest permits and big game tags; and providing for  an effective date."  Section 1. Amends AS 16.05.343(a): Page 1 Lines 6-7: Adds Afognak and Raspberry Island Herds to the type of Elk harvest permits that can be donated by the department to be auctioned or raffled. Page 1 Line 6: Changes the number of harvest permits that can be donated for Etolin, Afognak, or Raspberry Elk herds from four to two. Page 1 Line 9: Adds the word "wildlife" in front of "conservation" to clarify that the nonprofits who qualify to receive these donated harvest permits must be established to promote education in outdoor traditions and "wildlife" conservation and wildlife protection programs in partnership with the department. Section 2. Amends 16.05.343(c): Page 1 Line 14 Page 2 Line 4: Removes differing tag limits for individual species and allows up to  four harvest permits to be issued for all the listed species. Page 2 Line 1: Adds "emperor goose" to the list of available species harvest permits. Page 2 Lines 5-8: Adds four McNeil River State Game Sanctuary bear-viewing permits to be auctioned or raffled through the same process. Page 2 Lines 13-30: Removes language and replaces it later in a new subsection (1) outlining a 70/30 revenue split between the Department of Fish and Game and the qualified organization putting on the auction or raffle and (2) limiting use of the funds by the organization to approved programs and prohibiting use of the funds for any political campaign or candidate. This language is put back into statute in Section 4 as  subsections (f) & (g) of AS 16.05.343. Page 2 Lines 12 & 13, Page 3 Lines 1, 2, & 5: Removes "big game" from any mention of "big game harvest permit" so that all the permits are referred to consistently by the broader "harvest permit." Page 3 Lines 3 & 4: Changes the inscription on the hunting license issued under this subsection from "Governor's license" to "Commissioner's license" Section 3. Amends AS 16.05.343(e): Page 3 Line 11: Adds that a nonprofit must promote education in "wildlife conservation" and conduct "wildlife" conservation programs in order to qualify as an organization that can conduct auctions or raffles for the department. The new requirement sentence reads: "The department may select a nonprofit organization that promotes education in outdoor traditions and wildlife conservation and that conducts wildlife conservation and wildlife protection programs Section 4. Amends AS 16.05.343 by adding new subsections: Page 3 Lines 19-25: Reinserts the language removed in Section 2 to create a new subsection (f) that requires that all revenue earned from an auction or raffle of harvest permits be paid to the Department of Fish and Game EXCEPT an amount not to exceed 30%, which the qualified organization putting on the auction or raffle can retain for the administrative costs of holding the auction/raffle and approved projects and educational programs that support outdoor tradition, wildlife conservation, and wildlife protection. Page 3 Lines 26 Page 4 Line 4: Reinserts the language removed in Section 2 to create a new subsection (g) explicitly limiting use of the funds by the organization to approved programs listed in (f) and prohibiting use of the funds for any "candidate for political office," "organization supporting or opposing ballot propositions," and "expenses associated with lobbying the legislature or administration." Page 4 Lines 3-7: Creates a new subsection (h) which allows winners of brown bear and Dall sheep harvest permits to engage in the hunt even if they have successfully taken a brown bear or Dall sheep in the state in the four years preceding. Section 5. Sets an effective date January 1, 2023 3:59:56 PM CHAIR REVAK stated that he worked closely with the department, stakeholders, and user groups on this bill. The intent of SB 204 is to find reasonable improvements to a very successful program that earns ADF&G a lot of revenue and benefits wildlife conservation studies, education, and nonprofits. Seventy percent of program revenues directly benefit ADF&G. The intent is to get through public testimony, then hold and fine-tune SB 204 in committee. 4:01:01 PM SENATOR BISHOP asked what prompted the change in designation from "Governor's license" to the "Commissioner's license." MS. TORKELSON answered that all raffle or auction permits bearing the inscription "Governor's license" currently require the governor's signature. Winners are often given a short timeframe to complete hunts. Couple this with permits often issued collectively in batches, and processing time becomes critical. The commissioner is already involved with the licensing process, so shifting responsibility would relieve the governor of quick-turnaround time pressure. SENATOR BISHOP asked whether the department should be specified to differentiate it, even though it is understood SB 204 proposes that the ADF&G commissioner issue the licenses. MS. TORKELSON answered that this statute is under the Alaska Department of Fish and Game domain, so the department is implied. 4:02:44 PM EDDIE GRASSER, Director, Division of Wildlife Conservation, Alaska Department of Fish and Game, Palmer, Alaska, pointed out that many statute titles reference the commissioner without specifying the department; this is how most other permits like this are written. CHAIR REVAK stated that the question would be reviewed. 4:03:18 PM SENATOR KIEHL sought confirmation that the department could donate two elk tags and one bison tag under [subsection] (a) [in bill Section 1]; and an additional four elk tags and four bison tags with the revenue share program under [subsection (c) in bill Section 2]. MS. TORKELSON answered yes, the programs are separate. The organization that raffles the tags under [subsection (a)] gets 100 percent of the proceeds. The department and organization split the revenue under [subsection] (c); ultimately, the department may issue up to four elk tags and four bison tags. If the herds cannot sustain that, the department may issue fewer. SENATOR KIEHL sought confirmation that SB 204 reduces the elk cap to six total permits and increases the bison permit cap by one. MS. TORKELSON expressed her belief that the bison cap increased by one and the elk cap decreased by two. SENATOR KIEHL expressed curiosity about the language in Section 1 that refers to the Etolin, Afognak, and Raspberry Island elk herds, inquiring whether there were other herds. MR. GRASSER answered that elk inhabit other islands in Southeast Alaska too, like Zarembo Island. 4:05:37 PM At ease. 4:06:04 PM CHAIR REVAK reconvened the meeting, found no further questions, and opened public testimony on SB 204. 4:06:36 PM KEVIN KEHOE, President, Alaska Wild Sheep Foundation, Anchorage, Alaska, testified in support of SB 204. He stated the foundation has approximately 700 members and has been in operation since 2014. This is an excellent program and has been successful in the past. SB 204 appears to improve the program. He expressed his belief that the Foundation participated in this program more than other organizations, contributing almost $2.5 million to ADF&G. Based on the Pittman-Roberston Wildlife Restoration Act match, this equates to almost $10 million for conservation. The foundation strongly supports SB 204, the program should continue, and the changes in the bill will help improve the program. 4:08:09 PM JANET PASTERNAK, Representing Self, Anchorage, Alaska, testified in support of SB 204 as an avid hunter and fisherman. She is a proud graduate of the Becoming an Outdoors Woman (BOW) Program and has attended numerous nonprofit-supported outdoor classes. These educational programs were funded and supported by nonprofit organizations such as the Outdoor Heritage Foundation of Alaska and the Safari Club International. As a woman from a non-hunting family, she learned the traditions and ethics of hunting in Alaska. She could never have participated in the life she now leads without the support from these programs. SB 204 allows nonprofit organizations to raise tremendous money for conservation and education. In addition, it offers resident hunters another opportunity to win a coveted tag they might have missed in the state lottery. One year as a volunteer at the Outdoor Heritage Foundation table selling bison tags, people plunked down hundreds of dollars to buy tickets for a bison tag. At that time, ADF&G said 36,000 hunters applied for 35 to 45 annually available bison tags. Not very good odds for winning. Providing raffles at auctions for some of these tags gives hunters more chance of hitting the jackpot. This is a win-win for education, conservation, and hunters alike. She urged the passage of SB 204 as it will help improve and support the cherished Alaska tradition of hunter education and ethics. 4:10:33 PM MARK RICHARDS, Executive Director, Resident Hunters of Alaska (RHAK), Fairbanks, Alaska, testified in tentative support of SB 204, withholding written support or comments until the organization reviews fiscal notes and other documentation. RHAK supports ways to generate revenue for wildlife conservation as long as they do not negatively impact resident hunter opportunities. He stressed that RHAK does not want this to extend beyond four tags per species. Some states are pushing for more Governor's tags to increase department revenues, decreasing resident hunting opportunities. The North American model of a user-paid wildlife conservation system equalizes license, tag fees, and hunting opportunities. Governor's tags do not fall within the scope of this model; typically, the wealthier nonresident hunter is able to bid on and win these tags. RHAK would prefer SB 204 to state an intent to stop asking for more Governor tag allocations in the future. RHAK has discussed other options for raising revenues with the commissioner and Director Grasser. RHAK has participated in the Governor's tag program for several years, and he was happy to answer questions about what they do with their 30 percent of the revenue. RHAK typically applies for the most coveted sheep tag, but because RHAK is based solely in Alaska and focuses on resident hunting opportunities it will probably never get a coveted sheep tag. The organization is unable to compete with the dollars generated on the national level in the Lower 48. He expressed gratitude for the resident-only Kodiak brown bear Governor's tag, which RHAK received for the past two years. Resident Hunters of Alaska wants to see parity in how tags are awarded and allocated to organizations. While the benefit passes mainly to the department, the boon to the organizations awarded coveted tags is the big crowds attending banquets and fundraisers where tables, tickets, and other auctioned items bring in additional dollars. In this respect, RHAK does not benefit. Although RHAK supports increasing department revenues, there are better methods. He said he will forward written comments on the bill after further review. 4:13:53 PM TED SPRAKER, President, Kenai Peninsula Chapter of Safari Club International, Soldotna, Alaska, testified in support of the amended language in SB 204 on behalf of the Alaska Chapter and the Kenai Peninsula Chapter of the Safari Club International. The Kenai Peninsula Chapter has about 150 members, and the Alaska Chapter has about 600 members. He encouraged the committee to review a letter submitted by Mr. John Sturgeon, the president of the Alaska Chapter. The letter contains good information, especially about Governor's tags. He highlighted the success of a recent sheep tag that netted a little over $400,000. The interesting detail about this sheep tag and the funds it generated is that 53 percent of the funds came from out of state. He pointed out that these are new dollars that can be used for conservation, not just recirculated Alaska dollars. ADF&G can use these dollars for game management. He expressed satisfaction that SB 204 added emperor goose harvest permits. He was uncertain how many people applied for the McNeil River State Game Sanctuary bear viewing permits, noting that 25 nonresident emperor goose tags were available last year, and 2,721 people applied. This draw was specifically for nonresidents. Again, this is all new money entering the state for wildlife conservation. 4:16:51 PM SAM ROHRER, President, Alaska Professional Hunters Association (APHA), Kodiak, Alaska, stated that APHA strongly supports the proposed changes to the Governor's tag program. The program has been effective at raising millions of dollars for wildlife conservation in Alaska. It is an excellent example of the benefits Alaskans receive when the state partners with Alaska's own conservation-based nongovernmental organizations (NGOs) like APHA. The association supports a user-pay funding management model for Alaska wildlife. SB 204 is part of the suite of possibilities that keep wildlife management funding in Alaska robust. Alaska's hunting guides are deeply vested in supporting wildlife conservation in Alaska, and APHA's support of SB 204 is an expression of those values. 4:18:22 PM CHAIR REVAK closed public testimony on SB 204. He asked whether SB 204 affects the regular draw program by reducing opportunities for Alaskan hunters. 4:18:57 PM RACHEL HANKE, Legislative Liaison, Alaska Department of Fish and Game, Juneau, Alaska, replied that is correct. 4:19:10 PM SENATOR KIEHL sought confirmation that if the department were to issue all of the bison permits under the cap, that would be one more than allowed under existing law. He also asked if that additional bison permit would come out of the draw for the area for which the tag was issued. MS. HANKE deferred the questions to Director Grasser. MR. GRASSER answered that the regular draw tags are allotted through the drawing program that starts in November. The department works closely with area biologists to ascertain whether adding one more bison outside of the general draw would be detrimental to the overall health of the bison herd. If biologists determine the overall health would not be affected, that permit is generally used in the governor's auction tag program. Some years a tag is withdrawn. This year for example, the Tok sheep tag was withdrawn because the department had to reduce the number of resident tags available due to winter die offs of that sheep herd. SENATOR KIEHL said that answered his question. SENATOR KIEHL recalled that during public testimony, there was some discussion that only nonresidents could draw for emperor geese and that emperor geese would be in this program. He sought clarification that there is also a resident harvest available for emperor geese. MR. GRASSER answered that is correct. Residents can hunt without having to draw a permit. 4:21:40 PM CHAIR REVAK held SB 204 in committee for future discussion.