Legislature(2015 - 2016)SENATE FINANCE 532

04/18/2015 09:00 AM Senate FINANCE

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09:10:45 AM Start
09:11:47 AM HB105
09:19:00 AM HB41
09:51:24 AM Committee Contract: Bill Streur
09:54:21 AM HB41
01:36:30 PM HB105
01:45:08 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 105 Presentation: Overview FY17 Operating Budget TELECONFERENCED
Moved SCS CSHB 105(FIN) Out of Committee
Committee Contracts: Bill Streur
+ Bills Previously Heard/Scheduled TELECONFERENCED
Heard & Held
Scheduled but Not Heard
CS FOR HOUSE BILL NO. 41(FIN) am                                                                                              
     "An Act relating to sport fishing services, sport                                                                          
     fishing operators, and sport fishing guides; and                                                                           
     providing for an effective date."                                                                                          
9:19:00 AM                                                                                                                    
CRYSTAL   KOENEMAN,  STAFF,   REPRESENTATIVE  CATHY   MUNOZ,                                                                    
explained  the  legislation.  The sport  fishing  guide  and                                                                    
operator   licenses   were   originally   adopted   by   the                                                                    
legislature  in 2004  and implemented  by the  Department of                                                                    
Fish and  Game (ADF&G)  for the  2005 fishing  season. These                                                                    
licenses  have  proven useful  and  valuable  both to  sport                                                                    
fishing businesses and the  recreational anglers they serve.                                                                    
The  guide and  operator  licenses  help mitigate  unmanaged                                                                    
growth of the charter fishing  sector while ensuring a basic                                                                    
level  of  professional  certification for  individuals  who                                                                    
serve  the guided  recreational  fishing public.  HB 41  re-                                                                    
establishes the  sport fishing  guide and  operator licenses                                                                    
which had  sunset on December  31, 2014.  In re-establishing                                                                    
this licensing  program for recreational fishing  guides, it                                                                    
also amends the previously  existing fee structure to double                                                                    
licensing  fees necessary  to ensure  the program  is budget                                                                    
neutral.  The  2014 sunset  was  not  an intentional  policy                                                                    
decision by  the 28th Alaska  State Legislature,  but rather                                                                    
an unintentional oversight arising from  a failure to act on                                                                    
a piece  of legislation that contained  the re-authorization                                                                    
language. It is  the intent of the  sponsors to re-establish                                                                    
these  licenses  that  have   benefitted  the  guided  sport                                                                    
fishing industry and the general public.                                                                                        
Co-Chair MacKinnon requested a sectional analysis. Ms.                                                                          
Koeneman explained the Sectional Analysis (copy on file):                                                                       
     Section  1 -  Effective  January  1, 2016;  establishes                                                                    
     license fees  at the rate  of $200 for  operators, $100                                                                    
     for guides, and $200 combined.                                                                                             
Co-Chair MacKinnon wondered if the operator fee was $200 or                                                                     
$20. Ms. Koeneman stated that the fee was $200.                                                                                 
Ms. Koeneman continued with the Sectional Analysis:                                                                             
     Section  2   -  Effective   January  1,   2016;  Amends                                                                    
     16.05.395  Sport fishing  vessel registration;  updates                                                                    
     the  statute  references   to  reflect  the  reinstated                                                                    
     Section  3 -  Effective  January 1,  2026; removes  the                                                                    
     language in  Section 4  to reflect  the 10  year sunset                                                                    
Vice-Chair Micciche wondered if the committee had the                                                                           
correct sectional analysis.                                                                                                     
9:21:58 AM                                                                                                                    
AT EASE                                                                                                                         
9:24:34 AM                                                                                                                    
9:24:39 AM                                                                                                                    
Ms. Koeneman continued to discuss the Sectional Analysis.                                                                       
     Section 4  - Effective  January 1,  2016; Reestablishes                                                                    
     the Sport  fishing operator  license, Sport  fish guide                                                                    
     license,   reporting   requirements,   penalties,   and                                                                    
     definitions; only  change to original  statute language                                                                    
     is to reflect the updated statute citations.                                                                               
     Section 5  - Effective  January 1,  2016; Reestablishes                                                                    
     language  in AS  25.27.244(s)(2) as  this language  was                                                                    
     repealed December  31, 2014;  cleanup of  statute since                                                                    
     (ii) was repealed in 2005.                                                                                                 
     Section  6  -  Effective  January  1,  2016;  Reinserts                                                                    
     language  into  AS 41.21.506  Comprehensive  Management                                                                    
     Plan,  Regulations that  was repealed  with the  sunset                                                                    
     provision; This language  requires the DNR Commissioner                                                                    
     to develop  and adopt a  management plan for  the Kenai                                                                    
     River Special  Management Area in conjunction  with the                                                                    
     Section  7 -  Effective  January 1,  2026; removes  the                                                                    
     language in  Section 8  to reflect  the 10  year sunset                                                                    
     Section 8  - Effective  January 1, 2026;  Repealers for                                                                    
     the 10 year sunset provision.                                                                                              
     Sections  9   and  10  -  Transitional   provision  for                                                                    
     regulations with an immediate effective date.                                                                              
     Section 11  - Section 3,  7, and 8 take  effect January                                                                    
     1, 2021.                                                                                                                   
     Section 12 - Effective date of January 1, 2016.                                                                            
Senator Hoffman  looked at  Section 1,  and wondered  why an                                                                    
operator would  not obtain a  combined license for  the same                                                                    
fee.  He  specifically  queried  the  reasoning  behind  the                                                                    
identical  price  for  an operator's  license  and  combined                                                                    
license.  Ms.   Koeneman  deferred  to  Mr.   Mulligan.  She                                                                    
furthered that the operator oversaw  the entire program, and                                                                    
the guides worked for the operator.                                                                                             
9:28:18 AM                                                                                                                    
BEN  MULLIGAN, SPECIAL  ASSISTANT,  DEPARTMENT  OF FISH  AND                                                                    
GAME, introduced himself.                                                                                                       
Senator Dunleavy  wondered if  there should  be a  sunset of                                                                    
two years,  because the fee  increases may not  be necessary                                                                    
due to the transfer of  written logs to electronic logs. Mr.                                                                    
Mulligan responded  that the plan  was to administer  a beta                                                                    
test on  the Kenai River  in the  current year. There  was a                                                                    
hope that the  program would be electronic in  two years. He                                                                    
furthered that five years was a conservative timeframe.                                                                         
Co-Chair MacKinnon  shared that she was  planning to propose                                                                    
an amendment that would reduce the timeframe to two years.                                                                      
Senator Dunleavy surmised that two  years was enough time to                                                                    
transfer to  an electronic  log, but  five years  gave ample                                                                    
time  for   the  transfer.  Mr.  Mulligan   replied  in  the                                                                    
9:30:07 AM                                                                                                                    
AT EASE                                                                                                                         
9:30:27 AM                                                                                                                    
9:31:24 AM                                                                                                                    
AT EASE                                                                                                                         
9:38:45 AM                                                                                                                    
9:39:02 AM                                                                                                                    
Vice-Chair  Micciche  explained  that a  possible  amendment                                                                    
would adjust Section 6, subsection  (g). He hoped that there                                                                    
would  be an  addition of  the  word, "shall",  in order  to                                                                    
provide an online course.                                                                                                       
Co-Chair  MacKinnon   shared  that   she  would   propose  a                                                                    
conceptual amendment  later that would reduce  the extension                                                                    
from five years to two years.                                                                                                   
ALPHEUS  BULLARD,  STAFF,  LEGISLATIVE  LEGAL,  JUNEAU  (via                                                                    
teleconference), introduced himself.                                                                                            
Co-Chair  MacKinnon asked  for an  explanation of  the draft                                                                    
amendment A.5 (copy  on file). Mr. Bullard  replied that the                                                                    
required  course  for guides  to  work  in the  Kenai  River                                                                    
Special  Management Area  would  require  the department  to                                                                    
offer  the  course  online,  in  addition  to  other  course                                                                    
Co-Chair MacKinnon wondered if  there would be an additional                                                                    
expense to  develop an online  course. Mr.  Mulligan replied                                                                    
that the  program was in  Title 41. The Kenai  River Special                                                                    
Management  Area  was  managed   by  Department  of  Natural                                                                    
Resources (DNR), so he could not answer the question.                                                                           
Co-Chair MacKinnon  stated that  there may  be a  new fiscal                                                                    
DICK  ROHRER, SELF,  KODIAK (via  teleconference), expressed                                                                    
concern on  line 22,  page 5.  He would  like to  change the                                                                    
word  "knowingly" to  "intentionally."  He  shared that  the                                                                    
change would refer to untimely  reporting of log books and a                                                                    
violation for not keeping the license on their purpose.                                                                         
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
Co-Chair MacKinnon stated that  the committee was attempting                                                                    
to contact  DNR regarding  the possibility  of a  new fiscal                                                                    
note related to the amendment.                                                                                                  
9:45:16 AM                                                                                                                    
AT EASE                                                                                                                         
9:49:38 AM                                                                                                                    
9:49:44 AM                                                                                                                    
Co-Chair  MacKinnon  remarked  that she  closed  the  public                                                                    
testimony for the legislation.                                                                                                  
Co-Chair MacKinnon MOVED to ADOPT Conceptual Amendment 1:                                                                       
     page 2: decrease the five year sunset to a two year                                                                        
Vice-Chair Micciche OBJECTED for discussion.                                                                                    
Co-Chair MacKinnon stated  that she wanted to  keep the bill                                                                    
until the  following year. The decreased  sunset would bring                                                                    
the bill back to the committee at a sooner date.                                                                                
Vice-Chair Micciche  REMOVED his  OBJECTION. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
CSHB 41(FIN)am was  HEARD and HELD in  committee for further                                                                    
^COMMITTEE CONTRACT: BILL STREUR                                                                                              
9:51:24 AM                                                                                                                    
Co-Chair Kelly MOVED  to extend the contract  of Mr. Streur.                                                                    
The contract would extend over the course of the year.                                                                          
Vice-Chair  Micciche  MOVED  to   authorize  the  chairs  as                                                                    
procurement  officers  to  extend   the  contract  with  Mr.                                                                    
William  Streur  for  consulting services  relating  to  the                                                                    
Department of  Health and Social Services  and Medicaid, not                                                                    
to  exceed  a  total   contract  extension  of  $60,000  for                                                                    
professional services provided through December 31, 2015.                                                                       
9:52:44 AM                                                                                                                    
AT EASE                                                                                                                         
9:53:43 AM                                                                                                                    
CS FOR HOUSE BILL NO. 41(FIN) am                                                                                              
     "An Act relating to sport fishing services, sport                                                                          
     fishing operators, and sport fishing guides; and                                                                           
     providing for an effective date."                                                                                          
9:54:21 AM                                                                                                                    
Co-Chair  MacKinnon  explained  that there  was  a  proposed                                                                    
conceptual  amendment had  the  word  "shall" included.  She                                                                    
wondered  if  there  would be  additional  cost  to  provide                                                                    
online training as related to the word, "shall."                                                                                
BEN  ELLIS, DIRECTOR,  PARKS AND  RECREATION, DEPARTMENT  OF                                                                    
NATURAL RESOURCES, explained  that typically the requirement                                                                    
to take a guide academy class  to qualify to receive a guide                                                                    
permit  was a  one  week in-person  class  conducted by  the                                                                    
Kenai Peninsula College. The  college created the curriculum                                                                    
and collected  the fees.  The division  had not  examined an                                                                    
online class, nor  the technical ability to  offer the class                                                                    
online. He  stated that  the draft  language would  give the                                                                    
commissioner the  ability to offer  an online class.  He was                                                                    
comfortable  with  that  language,   because  there  was  no                                                                    
requirement.  He  felt  that  the  Kenai  Peninsula  College                                                                    
should  be approached  to  see if  they  were interested  in                                                                    
offering an online class.                                                                                                       
Senator Bishop wondered if there  was a guide program at the                                                                    
college. Mr. Ellis replied in  the affirmative. He explained                                                                    
that the  offered class qualified  for the  guide education,                                                                    
as part of the Kenai  River Guide stipulation permit through                                                                    
the division.                                                                                                                   
Senator Bishop surmised that there  may be a discussion with                                                                    
the  college to  help  set  up an  online  class. Mr.  Ellis                                                                    
replied in  the affirmative.  He stated  that the  topic had                                                                    
catalyzed a  conversation regarding  the concerns of  the in                                                                    
person and online class options.                                                                                                
9:59:11 AM                                                                                                                    
Vice-Chair Micciche queried some  history on the Kenai River                                                                    
professional guides  and other  guide members on  the river.                                                                    
Mr.  Ellis explained  that  there was  a  growing number  of                                                                    
guides, and  it was  extremely busy at  the time  before the                                                                    
recent  decrease in  salmon population.  Many  of the  newer                                                                    
guides  had no  river  experience and  how  the fishery  was                                                                    
prosecuted. The  Professional Guides  Association encouraged                                                                    
the college to offer a class  to train the guides. There was                                                                    
a five year period where  current guides could take a class,                                                                    
and continue as  a professional guide. The  five year period                                                                    
had since expired,  and the new guides were  now required to                                                                    
attend the class.                                                                                                               
Co-Chair MacKinnon  clarified that the  conceptual amendment                                                                    
referred to the entire bill.                                                                                                    
CSHB  41  was  HEARD  and  HELD  in  committee  for  further                                                                    
10:02:06 AM                                                                                                                   
1:35:34 PM                                                                                                                    

Document Name Date/Time Subjects
HB 105 Work Draft Version F.pdf SFIN 4/18/2015 9:00:00 AM
HB 105