ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 30, 2011                                                                                         
                           1:07 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Paul Seaton, Co-Chair                                                                                            
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Alan Dick                                                                                                        
Representative Neal Foster                                                                                                      
Representative Bob Herron                                                                                                       
Representative Cathy Engstrom Munoz                                                                                             
Representative Berta Gardner                                                                                                    
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S):  COMMERCIAL FISHERIES ENTRY COMMISSION                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
CONFIRMATION HEARING(S):  BIG GAME COMMERCIAL SERVICES BOARD                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 173                                                                                                              
"An Act amending  the termination date of the  licensing of sport                                                               
fishing operators and sport fishing  guides; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED OUT OF COMMITTEE                                                                                                   
                                                                                                                                
HOUSE BILL NO. 106                                                                                                              
"An  Act extending  the termination  date of  the Alaska  coastal                                                               
management  program and  relating to  the extension;  relating to                                                               
the  review  of  activities  of  the  Alaska  coastal  management                                                               
program;  providing  for  an  effective   date  by  amending  the                                                               
effective date  of sec. 22, ch.  31, SLA 2005; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 173                                                                                                                  
SHORT TITLE: SPORT FISHING GUIDING SERVICES                                                                                     
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
02/25/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/25/11       (H)       FSH, RES                                                                                               
03/08/11       (H)       FSH AT 5:00 PM CAPITOL 120                                                                             
03/08/11       (H)       Moved Out of Committee                                                                                 
03/08/11       (H)       MINUTE(FSH)                                                                                            
03/09/11       (H)       FSH RPT 2DP 2NR                                                                                        
03/09/11       (H)       DP: AUSTERMAN, THOMPSON                                                                                
03/09/11       (H)       NR: MILLER, PRUITT                                                                                     
03/09/11       (H)       FIN REFERRAL ADDED AFTER RES                                                                           
03/25/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/25/11       (H)       Heard & Held                                                                                           
03/25/11       (H)       MINUTE(RES)                                                                                            
03/30/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 106                                                                                                                  
SHORT TITLE: COASTAL MANAGEMENT PROGRAM                                                                                         
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/11       (H)       RES, FIN                                                                                               
03/07/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/07/11       (H)       Heard & Held                                                                                           
03/07/11       (H)       MINUTE(RES)                                                                                            
03/11/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/11/11       (H)       Heard & Held                                                                                           
03/11/11       (H)       MINUTE(RES)                                                                                            
03/16/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/16/11       (H)       Heard & Held                                                                                           
03/16/11       (H)       MINUTE(RES)                                                                                            
03/18/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/18/11       (H)       Heard & Held                                                                                           
03/18/11       (H)       MINUTE(RES)                                                                                            
03/23/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/23/11       (H)       Heard & Held                                                                                           
03/23/11       (H)       MINUTE(RES)                                                                                            
03/25/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/25/11       (H)       Heard & Held                                                                                           
03/25/11       (H)       MINUTE(RES)                                                                                            
03/28/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/28/11       (H)       Heard & Held                                                                                           
03/28/11       (H)       MINUTE(RES)                                                                                            
03/30/11       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BEN BROWN, Appointee                                                                                                            
Commercial Fisheries Entry Commission (CFEC)                                                                                    
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Testified  during  the  discussion of  the                                                             
confirmation   hearing  for   the   Commercial  Fisheries   Entry                                                               
Commission (CFEC).                                                                                                              
                                                                                                                                
KELLY VREM, Master Guide Number 102                                                                                             
Sutton, Alaska                                                                                                                  
POSITION STATEMENT:   Answered questions during  the confirmation                                                             
hearing.                                                                                                                        
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as  prime sponsor and recapped the                                                             
provisions of HB 173.                                                                                                           
                                                                                                                                
CHARLES SWANTON, Director                                                                                                       
Division of Sport Fish (DSF)                                                                                                    
Alaska Department of Fish & Game (ADFG)                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
HB 106.                                                                                                                         
                                                                                                                                
JOE BALASH, Deputy Commissioner                                                                                                 
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
HB 106.                                                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:07:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  PAUL   SEATON  called  the  House   Resources  Standing                                                             
Committee meeting to order at  1:07 p.m.  Representatives Seaton,                                                               
P. Wilson,  Kawasaki, Munoz,  Foster, and  Feige were  present at                                                               
the call  to order.   Representatives  Dick, Herron,  and Gardner                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^CONFIRMATION HEARING(S):  Commercial Fisheries Entry Commission                                                                
CONFIRMATION HEARING(S):  Commercial Fisheries Entry Commission                                                               
                                                                                                                                
1:07:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON announced that the  first order of business would                                                               
be  the  confirmation hearing  on  Ben  Brown, Appointee  to  the                                                               
Commercial Fisheries Entry Commission (CFEC).                                                                                   
                                                                                                                                
1:08:44 PM                                                                                                                    
                                                                                                                                
BEN  BROWN,  Appointee,  Commercial  Fisheries  Entry  Commission                                                               
(CFEC), stated that  he has been appointed  by the administration                                                               
to serve  on the  CFEC.  He  said he born  in Anchorage,  went to                                                               
school  in Alaska,  and graduated  from Palmer  High School.   He                                                               
then attended  Georgetown University's School of  Foreign Service                                                               
and came back  to Alaska.  He worked for  Senator Curt Menard and                                                               
moved  to  Anchorage and  for  the  Alaska Public  Radio  Network                                                               
(APRN)  prior  to  his  staff  work  for  Representative  Cynthia                                                               
Toohey, Senators  Drue Pearce,  and Tim  Kelly.   He said  at the                                                               
late  Senator  Kelly  urging  to  get  additional  education,  he                                                               
attended  Northeastern  University  Law  School in  Boston.    He                                                               
pointed  out  that  Northeastern  University  mandates  that  its                                                               
students  work  three  months  in  alternating  three-month  coop                                                               
blocks.    His first  coop  was  spent  working for  Senator  Ted                                                               
Stevens in  Washington D.C.,  his next for  the Office  of Public                                                               
Advocacy (OPA) as a criminal  defense intern, and finally working                                                               
for a private firm.  He  then wrapped up his law school education                                                               
in New York City.                                                                                                               
                                                                                                                                
1:11:30 PM                                                                                                                    
                                                                                                                                
MR. BROWN  related that he  returned to  Juneau ten years  ago to                                                               
clerk for  Judge Larry Weeks, who  at the time was  the presiding                                                               
judge  for  the  First  Judicial District.    He  described  this                                                               
experience  as   an  outstanding  one.     He  related   that  he                                                               
subsequently held a position with  the Department of Revenue as a                                                               
hearing  officer  working  on  appeals   for  the  Child  Support                                                               
Enforcement office.                                                                                                             
                                                                                                                                
MR. BROWN  stated that  since then  he has  lived in  Juneau year                                                               
round.   He has been a  lobbyist for the Alaska  State Chamber of                                                               
Commerce  for  one  legislative  session.    He  worked  on  Lisa                                                               
Murkowski's election during  her first campaign.   He also worked                                                               
as the  Legislative Liaison for  the Department  of Environmental                                                               
Conservation (DEC),  lobbying from the state's  perspective.  The                                                               
department  had  a  host  of  things  it  wished  to  accomplish,                                                               
including working to  have permits issued in the  state under the                                                               
Clean Water Act (CWA).  The DEC  was able to get the initial bill                                                               
through the  legislature that year.   He  noted that the  work on                                                               
the CWA has not yet been completed.                                                                                             
                                                                                                                                
1:14:08 PM                                                                                                                    
                                                                                                                                
MR.  BROWN explained  for  the past  four years  he  has been  in                                                               
private practice  in Juneau, first  with Choate Law Firm  and for                                                               
the past three years with Baxter,  Bruce, & Sullivan.  He learned                                                               
Frank  Homan  was  leaving  his  position with  the  CFEC  so  he                                                               
discussed the CFEC  with people, including Judge  Weeks and Judge                                                               
Froehlich before deciding  to pursue the job.   Subsequently, the                                                               
Governor appointed him to the CFEC position.                                                                                    
                                                                                                                                
1:15:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON noticed he  does not have  a background                                                               
in fishing and inquired as to why he was pursuing this position.                                                                
                                                                                                                                
MR.  BROWN answered  that he  reviewed the  CFEC's statutes.   At                                                               
statehood language  written in the state's  constitution strongly                                                               
prevented  limitation of  access to  Alaska's natural  resources.                                                               
The  "common use  clause" applies  to all  resources and  the "no                                                               
exclusive  right  of  fisheries   clause"  is  very  specific  to                                                               
fisheries.     He   emphasized  some   felt  the   constitutional                                                               
provisions were  not working so  voters amended  the constitution                                                               
in 1972 and by  a three to one ratio to create  an exception.  In                                                               
1973, the  legislature wrote the  Limited Entry Act,  which calls                                                               
for Alaskans  with a  broad range  of interests  and professional                                                               
experience to  sit as commissioners.   However, commissioners are                                                               
not allowed  to have any  vested financial interest in  a limited                                                               
fishery  for the  obvious reason  of conflicts  of interest.   He                                                               
offered   his  belief   that  he   possesses   a  wide-range   of                                                               
professional experience.  He has  known many commercial fishermen                                                               
since he was  raised in Alaska, although he  acknowledged that he                                                               
did not have any personal experience  with fisheries.  He said he                                                               
discovered  from speaking  with Judge  Froehlich and  others that                                                               
much  of the  CFEC's work  was law-related  work.   He elaborated                                                               
that  the  CFEC  is  a   quasi-judicial  agency  and  often  must                                                               
interpret its  statutes and adopt regulations  which comport with                                                               
the statutes.   This agency has  done a pretty good  job in doing                                                               
so, since  it has  been overturned a  relatively small  number of                                                               
times by  the Alaska Supreme  Court.   He recalled one  member of                                                               
the court has  referred to the CFEC's statutes as  an arcane area                                                               
of law  which requires expertise.   That  interpretation appealed                                                               
to  him, as  an  attorney,  to find  a  focused  area and  become                                                               
somewhat of an expert at it.   He found it more difficult for him                                                               
to  gain   expertise  in  one   area  in  private   practice,  in                                                               
particular, since he  worked in general practice on  a wide range                                                               
of activities.                                                                                                                  
                                                                                                                                
1:18:04 PM                                                                                                                    
                                                                                                                                
MR. BROWN  related another attractive attribute  of this position                                                               
was the narrow  statutes and regulations.  He  thought the CFEC's                                                               
work would  be intellectually challenging,  but at the  same time                                                               
is very important to the economic  and social health of the State                                                               
of  Alaska.   He  remarked that  he has  a  tremendous amount  of                                                               
respect  for Chair  Bruce Twomley,  who  has served  on the  CFEC                                                               
since 1982 since he was appointed  by Governor Hammond.  He added                                                               
that he  has immensely enjoyed  the CFEC's work during  this past                                                               
month.                                                                                                                          
                                                                                                                                
1:19:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ pointed  out  that  certain fisheries  have                                                               
been dominated  by nonresidents  of Alaska.   She inquired  as to                                                               
whether  he  had  any  ideas  for local  people  to  become  more                                                               
involved.                                                                                                                       
                                                                                                                                
MR. BROWN responded  that Representative Munoz raises  one of the                                                               
balancing acts,  not only for  the CFEC, but for  the legislature                                                               
as a whole.  He acknowledged  that it is important to Alaskans to                                                               
have  the  fruits of  the  natural  resources enjoyed  mostly  by                                                               
Alaskans.    However,  the country's  founders  framed  the  U.S.                                                               
Constitution to  include the "privileges and  immunities clause,"                                                               
which sharply  curtails actions  any state can  take to  help its                                                               
own  residents while  it diminishes  or harms  nonresidents.   He                                                               
related a scenario in which vessel  license fees were issued on a                                                               
three to one  ratio, so non-Alaskans were charged  three times as                                                               
much  as  Alaska's  residents.    The  Carlson  case  ensued  and                                                               
addressed  the issue,  he said,  noting that  this case  has been                                                               
before  the  Alaska  Supreme  Court on  several  occasions.    He                                                               
acknowledged that it is not easy  to craft a regulatory regime to                                                               
be more  beneficial to Alaskans  as opposed to non-Alaskans.   He                                                               
reported that about  75 percent of the current  permit owners are                                                               
Alaskans and  this has remained  fairly constant over  the years.                                                               
He recalled a study done  that indicated the biggest migration in                                                               
permits  has  been  from  rural to  urban  Alaskans  rather  than                                                               
Alaskans versus those  residing outside of Alaska.   He indicated                                                               
that the permit  ownership is somewhat difficult to  tie down, so                                                               
it  is  somewhat  based  on the  honor  system  although  penalty                                                               
provisions do apply.  He offered  his view that the vast majority                                                               
of  the method  in which  permits are  issued encourages  Alaskan                                                               
citizens since  the farther a  person lives from the  fishery the                                                               
less likely  it is that  a person can  use the permit  to his/her                                                               
advantage.   He  was unsure  of whether  the CFEC  can solve  the                                                               
resident  versus non-resident  problem, but  the CFEC  could help                                                               
the legislature  and other solve  it through other means  such as                                                               
enacting loan programs to encourage  Alaskans to be more involved                                                               
in the fisheries.                                                                                                               
                                                                                                                                
1:22:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  recalled reading  an op-ed in  "The Alaska                                                               
Observer" on  Sarah Palin written by  Mr. Brown.  He  inquired as                                                               
to why Mr. Brown had selected  the obscure paper and what type of                                                               
reaction had he received from his column.                                                                                       
                                                                                                                                
MR. BROWN responded  that he has written a column  for the Juneau                                                               
Empire for  about five  years.   He related  that his  column has                                                               
been referred to as "The  Alaska Observer." He said the newspaper                                                               
changed hands several  times and a few editors  ago the newspaper                                                               
quit  referring to  his  column  as "The  Alaska  Observer."   He                                                               
indicated he  had selected  the name from  the New  York Observer                                                             
which was a weekly paper he read  when he lived in New York while                                                               
attending law school.   He reflected on his role  as a columnist,                                                               
noting  it brings  up the  dilemma  of the  columnist wanting  to                                                               
write something that  people will read and be  interested in, but                                                               
it also  means the  content will also  make some  people unhappy.                                                               
He  mentioned he  previously  had written  columns  prior to  law                                                               
school.   Out  of  all  the columns  he's  written, "Saying  nice                                                               
things about  Sarah Palin was  a surefire  way to get  a response                                                               
from Republicans and from Democrats,"  he said.  He recalled that                                                               
his family knew her parents, the  Heaths, in Palmer but Ms. Palin                                                               
was a few  years ahead of him  in school so he did  not know her.                                                               
He learned about Ms. Palin once  she became part of the political                                                               
process and he  offered that she did some good  things for Alaska                                                               
while she was  governor.  He has stopped writing  about her since                                                               
she has moved on  to other things.  He also  remarked that he has                                                               
never written anything he did not believe to be true.                                                                           
                                                                                                                                
1:25:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON asked whether  he holds a proprietary title                                                               
to "The Alaska  Observer" since World News  Network, wn.com, also                                                               
has a subtitle called "Alaska Observer."                                                                                        
                                                                                                                                
MR. BROWN answered  that has never had  any proprietary ownership                                                               
to the specific name.                                                                                                           
                                                                                                                                
1:26:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ commented  that she has known  Mr. Brown for                                                               
many years and has been  impressed by his intellect and community                                                               
service in public radio and theatre.   She said she is pleased to                                                               
have him step forward for this position.                                                                                        
                                                                                                                                
CO-CHAIR   SEATON  noted   that   many   legislators  have   held                                                               
conversations with Mr. Brown regarding  various theatre groups or                                                               
during his  previous lobbying efforts.   He recalled the  lack of                                                               
Alaskans  participating  in  the   scallop  fishery  due  to  the                                                               
structure of the  fishery.  He thought that  the discussions were                                                               
in line with how to get  more Alaskans involved in the fisheries.                                                               
He  looked forward  to ongoing  investigations to  encourage more                                                               
Alaskans to participate in all fisheries in Alaska.                                                                             
                                                                                                                                
1:27:45 PM                                                                                                                    
                                                                                                                                
MR. BROWN  clarified that Alaska's  statutory authority  to issue                                                               
vessel-based permits for the weathervane  scallops will sunset on                                                               
December 30,  2013.  He  acknowledged the deadline  will probably                                                               
be  coming back  before  the body  before the  sunset  date.   He                                                               
pointed out that the ADF&G would also be reviewing this matter.                                                                 
                                                                                                                                
CO-CHAIR SEATON  said he  thought everyone  could agree  that the                                                               
legislature would  like to  see the ability  of more  Alaskans to                                                               
participate.                                                                                                                    
                                                                                                                                
1:28:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DICK indicated  that he  was impressed  Mr. Brown                                                               
has asked  others for wisdom,  which speaks to  him.  He  said he                                                               
liked his  willingness to speak  to others  which seems to  be an                                                               
indicator that Mr. Brown has an open mind.                                                                                      
                                                                                                                                
CO-CHAIR  FEIGE   stated  that   the  House   Resources  Standing                                                               
Committee has  reviewed the qualifications  of Ben Brown  for the                                                               
Alaska Commercial  Fisheries Entry  Commission (CFEC).   He moved                                                               
to forward his name to the  joint session of the House and Senate                                                               
for confirmation.   There  being no  objection, Mr.  Brown's name                                                               
was advanced from the House Resources Standing Committee.                                                                       
                                                                                                                                
CO-CHAIR  SEATON  noted  that  each  member's  signature  on  the                                                               
committee's report  in no way  reflects the member's  vote during                                                               
the joint floor session.                                                                                                        
                                                                                                                                
1:30:05 PM                                                                                                                    
                                                                                                                                
^CONFIRMATION HEARING(S):  Big Game Commercial Services Board                                                                   
  CONFIRMATION HEARING(S):  Big Game Commercial Services Board                                                              
                                                                                                                              
1:30:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON announced  that the next order  of business would                                                               
be the confirmation  hearing on Kelly Vrem, appointee  to the Big                                                               
Game Commercial Services Board.                                                                                                 
                                                                                                                                
1:30:42 PM                                                                                                                    
                                                                                                                                
KELLY VREM, Master  Guide Number 102, stated that he  was born in                                                               
Anchorage and  was raised in  Eagle River,  Alaska.  He  moved to                                                               
Bethel in 1979  for Chugach Aviation.  He  graduated from Chugiak                                                               
High School  and attended  college in Colorado  but quit  to come                                                               
back to  Alaska to guide.   He became an assistant  guide in 1972                                                               
and a  registered guide in 1977.   He has been  actively involved                                                               
in  guiding since  1972,  but has  also been  a  pilot and  heavy                                                               
equipment operator.  He moved from  Bethel to Chugiak in 1982 and                                                               
in 2009 relocated to Sutton.                                                                                                    
                                                                                                                                
MR. VREM said  he has attended the majority of  the Guide Board's                                                               
meetings  since 1974  and has  seen various  permutations of  the                                                               
board.  He  emphasized that he has an active  interest in guiding                                                               
regulations and has been a  strong advocate of regulating guides.                                                               
He  offered  his  belief  that   the  legislature  has  far  more                                                               
important things  to do and  this board serves a  useful function                                                               
by regulating  the guiding activities in  Alaska and adjudicating                                                               
any problems or correctional activities.                                                                                        
                                                                                                                                
1:33:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  asked  whether  Mr.  Vrem  still  had  an                                                               
airstrip on the Salmon River off the Aniak.                                                                                     
                                                                                                                                
MR. VREN  answered no, that he  left that specific area  in 1984.                                                               
He offered his belief that another guide, Bob Adams has it now.                                                                 
                                                                                                                                
1:33:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON inquired  about guiding  sheep in  McGrath                                                               
area.   He said  he has  heard complaints  that the  state should                                                               
return  to guides  having  an area  rather  than outfitters  come                                                               
through to vacuum  up all the sheep before moving  on to the next                                                               
area.                                                                                                                           
                                                                                                                                
MR. VREN  answered that  he supports  guide-use areas  because it                                                               
has many  benefits.   He characterized it  as similar  to limited                                                               
entry in  some respects  since the  areas provide  guiding rights                                                               
but not  exclusive use of  game.  The  guide can "farm  the area"                                                               
and  work with  ADF&G to  determine optimum  harvest levels.   It                                                               
would also  provide resident hunters  a change  to go to  an area                                                               
with known  hunting pressure.   He reiterated that  without guide                                                               
areas some  people will work an  area for two weeks  then move on                                                               
to another  area for moose season  and on to yet  another unit to                                                               
hunt for  brown bear.  He  offered his belief that  without guide                                                               
areas the game units are  subject to wide fluctuations of hunting                                                               
pressure.  He elaborated that some areas of the state are under-                                                                
utilized by  guides and  other areas  have been  over-utilized by                                                               
guides.                                                                                                                         
                                                                                                                                
1:36:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  advised members that  he used to do  business for                                                               
Mr.  Vrem by  hauling clients  to his  camp from  1997-1999.   He                                                               
stated that Mr.  Vrem "runs a good operation"  and maintains high                                                               
standards.   He  said  he believe  Mr. Vrem's  heart  is in  this                                                               
position.    He asked  him  to  discuss  the letter  in  members'                                                               
packets that outline  three main events which  changed guiding in                                                               
Alaska.   He further asked him  to elaborate on the  second point                                                               
by  describing how  Alaska National  Interest Lands  Conservation                                                               
Act (ANILCA) changed guiding.                                                                                                   
                                                                                                                                
MR.  VREN answered  that he  had been  guiding on  the Andreafsky                                                               
River  and  on  the  Kawalik River  when  the  national  wildlife                                                               
refuges came  into being.   He related  that the  progression was                                                               
not  too bad  although  it was  under the  U.S.  Fish &  Wildlife                                                               
Service  (USFWS),   which  had  stringent  rules   and  operating                                                               
parameters.  Since  ANILCA passed he has sensed  that the federal                                                               
agencies  are  increasingly  managing   the  wildlife,  which  he                                                               
thought should be reserved to  the ADF&G.  The federal government                                                               
started regulating guides after  the Owsichek decision was issued                                                             
and  the  state  delayed implementing  re-implementing  guide-use                                                               
areas to  accommodate the  Alaska Supreme  Court's decision.   He                                                               
offered his belief  that the state could be "stuck"  with a dual-                                                               
guide system with both the federal and state involvement.                                                                       
                                                                                                                                
1:38:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON related  his  understanding  that the  exclusive                                                               
guiding area  were thrown out  by a  court decision.   He further                                                               
understood that  Mr. Vrem supports exclusive  guide-use areas but                                                               
he assumed  Mr. Vrem was not  in favor of trying  to override the                                                               
Owsichek decision.                                                                                                            
                                                                                                                                
MR. VREN  agreed.  He  pointed out  the Owsichek decision  by the                                                             
Alaska  Supreme Court  stipulated  three things.   It  stipulated                                                               
that the guide-use areas did not  expire.  It identified that the                                                               
state  did  not receive  any  financial  remuneration from  guide                                                               
activities.   Finally,  it identified  that the  initial criteria                                                               
had been based  on prior occupancy.  Essentially,  the judge said                                                               
the state  could resume using  guide areas if it  addressed those                                                               
three issues but  the state did not  do so.  The  DNR Division of                                                               
Mining,  Land  and  Water have  been  developing  guide-use  area                                                               
concepts  but  the  BGCSB  has  not  participated  except  in  an                                                               
advisory capacity.  He related  that public comment will be taken                                                               
to determine what,  if any, system should be in  place for guide-                                                               
use areas  on state lands.   He did not think  many exclusive use                                                               
areas, if  any, would be established.   He related a  scenario in                                                               
which  one of  the areas  he was  assigned sole  use of  has been                                                               
divided into  three parts  and each of  the three  parts contains                                                               
three guide-use  areas.   Thus, instead of  one guide  there will                                                               
now be guides operating in the same land area.                                                                                  
                                                                                                                                
1:41:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  inquired  as  to  the size  of  the  moose  rack                                                               
pictured on his website.                                                                                                        
                                                                                                                                
MR. VREN answered  the one he thinks he is  referring to is about                                                               
62 inches but he has taken a couple of 65 inch moose last year.                                                                 
                                                                                                                                
1:42:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE   stated  that   the  House   Resources  Standing                                                               
Committee has reviewed  the qualifications of Mr.  Kelly Vrem for                                                               
the Big  Game Commercial Services  Board (BGCSB).  He  moved that                                                               
Mr. Kelly  Vrem's name be forwarded  to the joint session  of the                                                               
House and  Senate for  confirmation.   There being  no objection,                                                               
Mr. Vrem's  name was advanced  from the House  Resources Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
CO-CHAIR  SEATON  noted  that  each  member's  signature  on  the                                                               
committee's report  in no way  reflects the member's  vote during                                                               
the joint floor session.                                                                                                        
                                                                                                                                
1:43:06 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:43 p.m. to 1:44 p.m.                                                                       
                                                                                                                                
             HB 173-SPORT FISHING GUIDING SERVICES                                                                          
                                                                                                                                
1:44:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON announced  that the  next order  of business  is                                                               
HOUSE BILL NO. 173, "An Act  amending the termination date of the                                                               
licensing of  sport fishing operators  and sport  fishing guides;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
1:44:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STEVE  THOMPSON, Alaska State  Legislature, stated                                                               
that HB  173 would  provide a one-year  extension of  an existing                                                               
program for  sport fishing  guides, fishing  operators' licensing                                                               
and log  book.  He  offered that  this program benefits  both the                                                               
state and industry.  The  program provides valuable economic data                                                               
on sport fishing industry and  critical harvest data for resource                                                               
managers and  also provides  recognition and  professionalism for                                                               
sport fish guides and operators.   This bill has a companion bill                                                               
in the  other body.  The  ADF&G supports the bill  in its current                                                               
form.   He  reiterated that  this bill  would provide  a one-year                                                               
extension of an  existing program that is good for  the state and                                                               
the industry.                                                                                                                   
                                                                                                                                
1:46:22 PM                                                                                                                    
                                                                                                                                
CHARLES SWANTON,  Director, Division of Sport  Fish (DSF), Alaska                                                               
Department of  Fish &  Game (ADFG), referred  to the  fiscal note                                                               
and  explained that  the change  would truncate  the fiscal  year                                                               
2013 to  reflect the  program's sunset date  of January  1, 2013.                                                               
The  problem  identified  at  the  last  hearing  indicated  that                                                               
although  the  program  operates  on a  fiscal  year  the  actual                                                               
program  begins  on  January  with the  issuance  of  log  books,                                                               
licensing, and updating information for the upcoming season.                                                                    
                                                                                                                                
1:48:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON offered  her  belief  that sport  fish                                                               
guiding  is needed.    She  inquired as  to  the  reason for  the                                                               
legislature taking this action for only one year at a time.                                                                     
                                                                                                                                
CO-CHAIR SEATON related  that over the interim a  panel will meet                                                               
to work  out details  on this program.   Additionally,  this bill                                                               
coincides with  a bill in  the other  body to avoid  a conference                                                               
committee.                                                                                                                      
                                                                                                                                
1:49:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ   said  she  hoped  the   task  force  will                                                               
recommend  extending this  program  beyond one  year because  she                                                               
thinks  it is  effective.   She  asked  about previous  testimony                                                               
about a duplication of data.                                                                                                    
                                                                                                                                
1:50:21 PM                                                                                                                    
                                                                                                                                
MR. SWANTON  answered that  the division  has three  primary data                                                               
collection  programs,   including  the   comprehensive  statewide                                                               
harvest survey  which has  been conducted  since 1977,  the creel                                                               
programs focused  on certain fisheries, and  the logbook program.                                                               
He pointed  out that  there is some  redundancy since  anyone who                                                               
buys a license  is eligible to receive a survey  so the chance of                                                               
someone  going  out  on  a  boat  receiving  a  survey  is  high.                                                               
Additionally,  some   redundancy  exists  since   the  department                                                               
compares  estimates using  data  from a  subset  of charter  boat                                                               
fishermen logbook  reports as  a verification  tool.   He offered                                                               
his  belief that  the  ADF&G's  methods as  well  as the  logbook                                                               
program provide more than adequate data.                                                                                        
                                                                                                                                
1:52:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  referred  to   the  fiscal  note  which                                                               
includes funds  from the sport  fish license sales.   He inquired                                                               
as to whether the sport fish license fee use is appropriate.                                                                    
                                                                                                                                
MR. SWANTON responded that the  program was originally instituted                                                               
in 2004.   At  that time  sport fish guiding  was voluntary.   As                                                               
soon  as  the program  had  fees  the ADF&G  saw  a  drop off  of                                                               
registered guides.   The fees  the department was  collecting did                                                               
not  cover  the   cost  of  the  entire  program   so  the  ADF&G                                                               
supplemented  the  program costs  from  license  fees, which  are                                                               
derived from  resident and  nonresident sport  fishing licensees.                                                               
He  offered his  belief the  source represents  a perfectly  fine                                                               
source of revenue to support this program.                                                                                      
                                                                                                                                
1:55:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  recalled  the original  program  sunset                                                               
date  was 2009,  based  on the  program  becoming digitized  with                                                               
fewer costs.   Costs have not  been reduced so he  inquired as to                                                               
whether progress has been made.                                                                                                 
                                                                                                                                
MR. SWANTON responded in 2011  the ADF&G reduced the logbook size                                                               
and instituted  scannable technology.   He reported that  some of                                                               
the "bugs"  still need to  be worked  out with the  new reporting                                                               
methods.   He  recalled any  pencil  marks that  fall inside  the                                                               
information box  negate or "kick  out" the data.   The department                                                               
has   been   working   to    address   the   technology   issues.                                                               
Additionally, the  department anticipates the  saltwater logbooks                                                               
will  tabulate  the timely  and  sensitive  data input  currently                                                               
required.  The cost savings are difficult to project.                                                                           
                                                                                                                                
1:56:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON referred  to the fiscal note  label on page                                                               
one is different from the information on page two.                                                                              
                                                                                                                                
MR. SWANTON offered his belief that the label was a mistake.                                                                    
                                                                                                                                
1:57:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON asked for further clarification.                                                                                
                                                                                                                                
MR.  SWANTON  answered  that  the  information  should  read  3.7                                                               
fulltime positions  in 2012 and  2.1 in  2013.  He  explained the                                                               
division  took  a  percentage  calculation of  half  a  year  and                                                               
reduced the fulltime equivalents by that figure.                                                                                
                                                                                                                                
REPRESENTATIVE HERRON said he is fine with that.                                                                                
                                                                                                                                
1:58:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ moved  to report  HB 173  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes. There  being no  objection, HB 173  was reported  from the                                                               
House Resources Standing Committee.                                                                                             
                                                                                                                                
1:59:34 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:59 p.m. to 2:08 p.m.                                                                       
                                                                                                                                
               HB 106-COASTAL MANAGEMENT PROGRAM                                                                            
                                                                                                                                
2:08:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  announced that  the final  order of  business is                                                               
HOUSE BILL  NO. 106,  "An Act extending  the termination  date of                                                               
the  Alaska  coastal  management  program  and  relating  to  the                                                               
extension; relating  to the  review of  activities of  the Alaska                                                               
coastal management  program; providing  for an effective  date by                                                               
amending the  effective date of  sec. 22,  ch. 31, SLA  2005; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
2:08:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON made  a motion to adopt Amendment  6, labeled 27-                                                               
GH1965\A.16, Bullard, 3/30/11, which read as follows:                                                                           
                                                                                                                                
     Page 2, line 11, of the amendment:                                                                                         
          Delete "are"                                                                                                      
                                                                                                                                
     Page 2, lines 12 - 17, of the amendment:                                                                                   
          Delete all material and insert:                                                                                       
               "(1)  are clear and concise as to the                                                                        
     activities and persons affected by the policies;                                                                       
               (2)  use prescriptive or performance-based                                                                   
     standards that are written in precise and enforceable                                                                  
     language; and                                                                                                          
               (3)  address a coastal use or resource of                                                                    
        concern to the residents of the coastal resource                                                                    
         district as demonstrated by local knowledge or                                                                     
     supported by scientific evidence"                                                                                      
                                                                                                                                
     Page 4, line 6, of the amendment:                                                                                          
          Delete "board's"                                                                                                      
          Insert "department's"                                                                                                 
                                                                                                                                
     Page 4, line 21, of the amendment:                                                                                         
          Delete the quotation mark.                                                                                            
                                                                                                                                
     Page 4, following line 21, of the amendment:                                                                               
          Insert new material to read:                                                                                          
        "* Sec. 6. AS 46.40.210(1) is repealed.""                                                                             
                                                                                                                                
CO-CHAIR  SEATON  explained  that  Amendment 6  would  amend  the                                                               
language  in  a previous  amendment,  Amendment  2, labeled  A.2,                                                               
which  was previously  adopted  by the  committee  at an  earlier                                                               
meeting.                                                                                                                        
                                                                                                                                
REPRESENTATIVE HERRON objected for the purpose of discussion.                                                                   
                                                                                                                                
2:09:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  explained  the  purpose of  Amendment  6.    He                                                               
referred to page 2, lines  12-17, the department wished to modify                                                               
the three  criteria laid  out.   Additionally, Amendment  6 would                                                               
change the  definition previously  adopted by deleting  the word,                                                               
"board's"  on page  4, lines  6, and  substituting "department's"                                                               
since  the   policy  board  has   not  yet  been  adopted.     He                                                               
characterized this as a technical  change.  Section 6 repeals the                                                               
definition that is adopted in Section 5.                                                                                        
                                                                                                                                
2:11:31 PM                                                                                                                    
                                                                                                                                
JOE BALASH, Deputy Commissioner,  Department of Natural Resources                                                               
(DNR), introduced himself.                                                                                                      
                                                                                                                                
CO-CHAIR  SEATON  asked Mr.  Balash  whether  the department  was                                                               
comfortable with the amendment offered.                                                                                         
                                                                                                                                
MR.  BALASH   asked  for  whether  adopting   Amendment  6  would                                                               
effectively  amend  the  previous  amendment  that  was  adopted,                                                               
labeled A.2.                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON answered yes.                                                                                                   
                                                                                                                                
MR.  BALASH  answered yes  the  department  was comfortable  with                                                               
Amendment 6.                                                                                                                    
                                                                                                                                
2:11:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  asked to speak  to the  language previously                                                               
adopted.   She  referred  to  page 2,  line  18  of the  previous                                                               
Amendment 2, labeled A.2.  She  noted that Amendment 6 appears to                                                               
have deleted  language which would  have required  no duplication                                                               
or restatement  of effort  could be  taken.   She inquired  as to                                                               
whether that  language has  been preserved  in other  portions of                                                               
the statute.                                                                                                                    
                                                                                                                                
MR. BALASH  agreed that she  was correct.  However,  he indicated                                                               
the department  has been willing to  take a leap of  faith that a                                                               
subsequent amendment  would subsequently  be adopted  which would                                                               
insert this language in another section of the bill.                                                                            
                                                                                                                                
REPRESENTATIVE MUNOZ asked for a specific reference.                                                                            
                                                                                                                                
MR. BALASH  answered that  a proposed amendment  would be  in the                                                               
form of an amendment labeled A.4.                                                                                               
                                                                                                                                
CO-CHAIR  SEATON clarified  that an  amendment labeled  A.4 would                                                               
not  be offered  because  the  language would  be  modified.   He                                                               
assured  members the  language Representative  Munoz referred  to                                                               
would be offered under a new amendment.                                                                                         
                                                                                                                                
REPRESENTATIVE  MUNOZ emphasized  that  the  deleted language  is                                                               
very important language.                                                                                                        
                                                                                                                                
CO-CHAIR  SEATON   signaled  his   intention  to   maintain  that                                                               
language.                                                                                                                       
                                                                                                                                
REPRESENTATIVE HERRON removed his objection.                                                                                    
                                                                                                                                
2:14:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  objected  to  comment.   He  noted  the                                                               
awkward mechanics  involved to amend  an amendment.   He deferred                                                               
to  the committee  for  its  preference.   He  then withdrew  his                                                               
objection.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  HERRON clarified  that  Amendment  6 was  labeled                                                               
A.16.                                                                                                                           
                                                                                                                                
CO-CHAIR  SEATON explained  that  Amendment 6,  which is  labeled                                                               
A.16, would amend language the  committee previously adopted when                                                               
it  passed Amendment  2  at  a prior  meeting.    There being  no                                                               
further objection, Amendment 6 was adopted.                                                                                     
                                                                                                                                
2:15:44 PM                                                                                                                    
                                                                                                                                
[HB 106 was held over.]                                                                                                         
                                                                                                                                
2:16:35 PM                                                                                                                    
                                                                                                                              
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:16 p.m.