Legislature(1993 - 1994)

04/13/1994 08:30 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         April 13, 1994                                        
                            8:30 A.M.                                          
                                                                               
                                                                               
  TAPE HFC 94 - 122, Side 2, #000 - end.                                       
  TAPE HFC 94 - 123, Side 1, #000 - #671.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Pete Kott; Joe Swanson, Director, Division of                 
  Elections,  Office  of   the  Lieutenant  Governor;  Jeannie                 
  Larson,  Staff,  Representative  Terry  Martin; Jay  Dulany,                 
  (Testified via teleconference), Director, Division of  Motor                 
  Vehicles, Department  of  Public Safety;  Ron King,  Project                 
  Manager,   Mobil   Sources,   Department  of   Environmental                 
  Conservation;   Paul   Fuhs,  Commissioner,   Department  of                 
  Commerce  and Economic  Development;  Brad Phillips,  Alaska                 
  Tourism Marketing Council (ATMC),  Anchorage; Tina Lindgren,                 
  (ATMC),   Anchorage;   John   Binkley,  Representing   Self,                 
  Fairbanks.                                                                   
                                                                               
  SUMMARY                                                                      
  HB 47     An Act  relating to  the delivery  of the  primary                 
            ballots  to persons  making  application for  them                 
            when, by operation of political party rule, two or                 
            more  primary ballots  must  be  provided  to  the                 
            public.                                                            
                                                                               
            CS HB 47  (FIN) was reported out of Committee with                 
            "no recommendations"  and with a zero  fiscal note                 
            by the Office of the Governor.                                     
  HB 328    An Act  relating to motor vehicle registration and                 
            registration fees;  to fees for  drivers' licenses                 
            and permits; and providing for an effective date.                  
                                                                               
                                1                                              
                                                                               
                                                                               
            HB   328  was   placed   into  Subcommittee   with                 
            Representative  Martin  as   Chair  and  held  for                 
            further consideration.                                             
  HB 342    An Act  extending  the  termination  date  of  the                 
            Alaska Tourism Marketing Council.                                  
                                                                               
            HB   342  was  HELD   in  Committee   for  further                 
            consideration.                                                     
  HOUSE BILL 47                                                                
                                                                               
       "An Act relating to the delivery of the primary ballots                 
       to  persons   making  application  for  them  when,  by                 
       operation of political party rule,  two or more primary                 
       ballots must be provided to the public."                                
                                                                               
  Representative  Martin  noted that  HB  47 had  been drafted                 
  following the  1992 Primary  Election in  which an  absentee                 
  ballot  applicant  had not  indicated  a  ballot preference.                 
  Through this legislation, the  absentee voter would  receive                 
  the  appropriate primary election  ballot, as  determined by                 
  their  political affiliation  on  record.   The  legislation                 
  would  create  a  30  day  limitation on  party  affiliation                 
  changes to facilitate the election process.                                  
                                                                               
  JOE SWANSON, DIRECTOR, DIVISION OF  ELECTIONS, OFFICE OF THE                 
  LIEUTENANT GOVERNOR, commented that the fiscal note had been                 
  zeroed out.                                                                  
                                                                               
  Representative  Brown  noted  her  preference  of  an "open"                 
  primary and asked  the legal options  for that choice.   Mr.                 
  Swanson advised it would not be optional due to a mandate by                 
  the  Supreme  Court.   Currently  there  are  regulations in                 
  effect which are based on that court order and which are not                 
  in statute.  The proposed legislation clarifies regulations.                 
                                                                               
                                                                               
  Co-Chair  Larson asked  if the bill  would change  the court                 
  ruling which would  specify that each party  make individual                 
  determinations whether to open or close the primary.                         
                                                                               
  Representative  Brown  asked if  Section  #6, Page  5, would                 
  annul a  regulation.   Mr. Swanson replied  that Section  #6                 
  would provide a cost savings measure and would automatically                 
  take the regulations off of  the books.  Discussion followed                 
  between Committee members and Mr. Swanson regarding the open                 
  and primary ballot systems.                                                  
                                                                               
  Representative Brown MOVED to amend Page 4, Line 16 and Line                 
  17,    deleting    "statutory"    and   inserting    "open".                 
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Therriault OBJECTED.   Representative Parnell                 
  stated  that  the   language  would  be  too   broad  and  a                 
  mischaracterization of the intention.                                        
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Hoffman,  Brown,  Foster,   Grussendorf,                 
                      Larson.                                                  
       OPPOSED:       Martin, Parnell, Therriault, Hanley.                     
                                                                               
  Representative Navarre and MacLean were  not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (5-4).                                                     
                                                                               
  Representative Hanley MOVED to report CS  HB 47 (FIN) out of                 
  Committee with  individual recommendations  and with  a zero                 
  fiscal note.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  CS  HB  47 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with a zero  fiscal note by the  Office                 
  of the Governor.                                                             
  HOUSE BILL 328                                                               
                                                                               
       "An  Act relating  to  motor  vehicle registration  and                 
       registration  fees; to  fees for drivers'  licenses and                 
       permits; and providing for an effective date."                          
                                                                               
  Representative  Martin noted  that the  proposed legislation                 
  would  establish  a  biennial   motor  vehicle  registration                 
  effective  January  1,   1995.     The  fees  for   biennial                 
  registration would be reduced to  one and one-half times the                 
  current one year rate and would  result in an annual savings                 
  to motor  vehicle  owners  of  $4.6 million  dollars.    The                 
  legislation  would  also  reduce   the  Division  of   Motor                 
  Vehicle's  (DMV)  workload  by  10% annually,  significantly                 
  reducing the rate of new hires.                                              
                                                                               
  JAY  DULANY,  (TESTIFIED   VIA  TELECONFERENCE),   DIRECTOR,                 
  DIVISION OF  MOTOR VEHICLES,  DEPARTMENT  OF PUBLIC  SAFETY,                 
  testified that the Department of  Public Safety supports the                 
  concept of  the legislation, however, indicated concern with                 
  the potential loss in revenue.                                               
                                                                               
  JEANNE LARSON, STAFF, REPRESENTATIVE TERRY MARTIN, explained                 
  that in establishing the  biennial registration, there would                 
  be  annual  inspections for  vehicle  emissions in  order to                 
  comply with the federal clean air act.                                       
                                                                               
  RON KING,  PROJECT  MANAGER, MOBIL  SOURCES,  DEPARTMENT  OF                 
  ENVIRONMENTAL CONSERVATION, expounded  that the  legislation                 
                                                                               
                                3                                              
                                                                               
                                                                               
  would  provide three proposals.   Option #1 would employee a                 
  sticker program utilizing on street  enforcement.  Option #2                 
  would  become  available  if statute  changes  had  not been                 
  enforced, including  more staff, adding  penalties under the                 
  existing  statutes.    Option #3  would  alter  the existing                 
  programs,   returning  to   the   Anchorage  and   Fairbanks                 
  communities and pursuing  options which had previously  been                 
  excluded.                                                                    
                                                                               
  Mr. King indicated that Option #1  would be the least costly                 
  to  the  State.   He  noted  that  DEC  maintains a  neutral                 
  position on the bill.                                                        
                                                                               
  Representative  Brown   asked  the   changes  necessary   to                 
  implement Option #1.   Mr. King  stated that a violation  or                 
  bailable offense would need to be established by statute and                 
  would  create  a  fine for  operation  without  the required                 
  window sticker.  The second change would clarify whether the                 
  revocation of registration  would be  possible.  Ms.  Larson                 
  noted that all fees charged result from program receipts.                    
                                                                               
  Representative Brown inquired how  the annual emission  test                 
  would be  enacted.   Mr. King  stated that  Option #1  would                 
  establish a system in  which a sticker would be  required on                 
  the  vehicle in  addition  to the  registration  enforcement                 
  date.                                                                        
                                                                               
  Co-Chair  Larson  placed  HB  328   into  Subcommittee  with                 
  Representative Martin as Chair.                                              
                                                                               
       1.   Provide for a biennial license.                                    
       2.   Address concerns of the emission testing.                          
       3.   Do away with any changes that would effect vehicle                 
            registration fees.                                                 
                                                                               
  HB 328 was HELD in Committee for further consideration.                      
  HOUSE BILL 342                                                               
                                                                               
       "An Act extending  the termination  date of the  Alaska                 
       Tourism Marketing Council."                                             
                                                                               
  REPRESENTATIVE PETE KOTT noted that HB  342 would extend the                 
  life  of  the  Alaska Tourism  Marketing  Council  (ATMC) to                 
  December  30, 1998.   He  added  that the  legislation would                 
  conform to the  recommendations of the 1993 Budget and Audit                 
  report.                                                                      
                                                                               
  ATMC falls  under the  Department of  Commerce and  Economic                 
  Development (DEC), Division of Tourism.   ATMC contributes a                 
  substantial  amount  to  the  State  by providing  over  $52                 
  million dollars each year.                                                   
                                                                               
                                4                                              
                                                                               
                                                                               
  Co-Chair MacLean provided  the Committee  with a work  draft                 
  Revenues  to the  State of Alaska  Generated by  the Visitor                 
  Industry".  [Copy on file].                                                  
                                                                               
  She noted that the committee substitute  for HB 342 proposed                 
  an increase to  the industry  contribution inline with  what                 
  the Governor intended in the proposed operating budget.  The                 
  committee  substitute  would   also  increase  the   minimum                 
  industry contribution in  statute from 15% to  38% for FY95.                 
  Thereafter,  there  would be  a  graduation of  the industry                 
  contribution structured in the bill.                                         
                                                                               
  Co-Chair  MacLean  added  that  ATMC  would  need  increased                 
  program  receipt authority to  accommodate the  increases in                 
  industry contribution.   The draft  would not allow  for the                 
  industry contribution to be in-kind.                                         
                                                                               
  (Tape Change, HFC 94-123, Side 1).                                           
                                                                               
  Co-Chair MacLean MOVED to adopt  the committee substitute as                 
  the  version before the  Committee.   Representative Parnell                 
  OBJECTED  stressing  the  damage the  harsh  measures  would                 
  inflict   to  small   tour   operators  by   increasing  the                 
  contributing  to  50%.   Co-Chair  MacLean replied  that the                 
  small tour operators had agreed to pay a dedicated fund.                     
                                                                               
  PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC                 
  DEVELOPMENT,  pointed  out  that  if  the  Alaska  Visitor's                 
  Association (AVA) was  not able to  meet the match, the  law                 
  states that the  decision of  action should be  made by  the                 
  Commissioner of Commerce,  the Director  of the Division  of                 
  Tourism and another commissioner designated by the Governor.                 
  He added  that a marketing  program would continue  to exist                 
  although it would not be provided by AMTC and if that should                 
  happen, an advisory committee would be established.                          
                                                                               
  Commissioner Fuhs stated  his support  for the extension  of                 
  the  Alaska  Tourism Marketing  Council.   The  Governor has                 
  requested a  more substantial  match.   He  noted that  ASMI                 
  currently  provides  85%  of  their  funding source.    ATMC                 
  contributes a 15% match  which the Department thinks  is too                 
  low.                                                                         
                                                                               
  Representative Kott remarked  that the in-kind  contribution                 
  should be  considered as  an essential  element provided  by                 
  tourism pointing out that last  year $5 million dollars  has                 
  made available.                                                              
                                                                               
  BRAD  PHILLIPS,  ALASKA  TOURISM MARKETING  COUNCIL  (ATMC),                 
  ANCHORAGE, discussed  the in-kind  contributions.   He added                 
                                                                               
                                5                                              
                                                                               
                                                                               
  that he was discouraged  by the impact which the  work draft                 
  submitted by  Representative  MacLean would  make  on  small                 
  Alaskan operators.  He indicated  that ATMC has two  sources                 
  of revenue:                                                                  
                                                                               
       1.   Sales of ads.                                                      
       2.   Sale of the mailing list.                                          
                                                                               
  Mr.  Phillips  explained  that  people  do not  realize  the                 
  economic  contribution  made to  the  State as  a  result of                 
  tourism.   This  enterprise  covers multiple  processes  and                 
  hires over twenty  thousand people in  the State.  He  urged                 
  the Committee to  create a  mechanism which would  guarantee                 
  that money  raised by  AMTC be  used  for tourism  marketing                 
  rather  than placed  into the  general fund.   Mr.  Phillips                 
  noted that the group  has not been opposed  to a broad  base                 
  tax in order to  provide revenues but asks that  those funds                 
  be used for tourism marketing only.                                          
                                                                               
  Discussion followed among Committee members and Mr. Phillips                 
  regarding  the delegation of  taxing power  and the  need to                 
  create a constitutional amendment for a dedicated fund.                      
                                                                               
  JOHN BINKLEY,  REPRESENTING SELF, FAIRBANKS,  explained that                 
  the  Alaska  Tourism Council  would  like to  have  the same                 
  status as ASMI by paying for  half their share and providing                 
  for the same  mechanism to  generate funds.   He added  that                 
  ASMI has the power of taxation and has the authority to veto                 
  any  tax  which   the  legislature  implements.     ATMC  is                 
  requesting that the same authorization of assessment be made                 
  available.  He pointed out that the tourism industry  relies                 
  on marketing and they are willing  to participate in a joint                 
  marketing program.  The tourism commodity would be difficult                 
  to tax.  Consequently, ATMC requests that the constitutional                 
  amendment  be  considered  for  implementation  of   tourism                 
  marketing for Alaska.                                                        
                                                                               
  Co-Chair  MacLean  remarked  that   three  taxes  have  been                 
  suggested to the tourism council although not well received:                 
                                                                               
                                                                               
       1.   Bed tax;                                                           
       2.   Crew ship head tax; and                                            
       3.   Motor vehicle rental tax.                                          
                                                                               
  Mr. Binkley reiterated  that the  tourism industry wants  to                 
  guarantee  that  the  funds  generated  from  the  taxes  be                 
  returned to marketing.                                                       
                                                                               
  Representative  Brown recommended  enacting taxes  on  a two                 
  year basis in order to fund the programs  for a short period                 
  of time while further  work is done in consideration  of the                 
                                                                               
                                6                                              
                                                                               
                                                                               
  constitutional amendment.  She observed that the function of                 
  the  State and  the  joint partnership  in  tourism is  well                 
  exampled by the public-private partnership.                                  
                                                                               
  HB 342 was HELD in Committee for further discussion.                         
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:10 A.M.                                          
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         April 13, 1994                                        
                            8:30 A.M.                                          
                                                                               
                                                                               
  TAPE HFC 94 - 122, Side 2, #000 - end.                                       
  TAPE HFC 94 - 123, Side 1, #000 - #671.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called  the House Finance Committee  meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Pete Kott; Joe Swanson, Director, Division of                 
  Elections,  Office  of  the   Lieutenant  Governor;  Jeannie                 
  Larson, Staff,  Representative  Terry  Martin;  Jay  Dulany,                 
  (Testified v***FIN103AM                                                      
   0AAHFIN    0413940830                                                       
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         April 13, 1994                                        
                            8:30 A.M.                                          
                                                                               
                                                                               
  TAPE HFC 94 - 122, Side 2, #000 - end.                                       
  TAPE HFC 94 - 123, Side 1, #000 - #671.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Pete Kott; Joe Swanson, Director, Division of                 
  Elections,  Office  of   the  Lieutenant  Governor;  Jeannie                 
  Larson,  Staff,  Representative  Terry  Martin; Jay  Dulany,                 
  (Testified via teleconference), Director, Division of  Motor                 
  Vehicles, Department  of  Public Safety;  Ron King,  Project                 
  Manager,   Mobil   Sources,   Department  of   Environmental                 
  Conservation;   Paul   Fuhs,  Commissioner,   Department  of                 
  Commerce  and Economic  Development;  Brad Phillips,  Alaska                 
  Tourism Marketing Council (ATMC),  Anchorage; Tina Lindgren,                 
  (ATMC),   Anchorage;   John   Binkley,  Representing   Self,                 
  Fairbanks.                                                                   
                                                                               
  SUMMARY                                                                      
  HB 47     An Act  relating to  the delivery  of the  primary                 
            ballots  to persons  making  application for  them                 
            when, by operation of political party rule, two or                 
            more  primary ballots  must  be  provided  to  the                 
            public.                                                            
                                                                               
            CS HB 47  (FIN) was reported out of Committee with                 
            "no recommendations"  and with a zero  fiscal note                 
            by the Office of the Governor.                                     
  HB 328    An Act  relating to motor vehicle registration and                 
            registration fees;  to fees for  drivers' licenses                 
            and permits; and providing for an effective date.                  
                                                                               
                                1                                              
                                                                               
                                                                               
            HB   328  was   placed   into  Subcommittee   with                 
            Representative  Martin  as   Chair  and  held  for                 
            further consideration.                                             
  HB 342    An Act  extending  the  termination  date  of  the                 
            Alaska Tourism Marketing Council.                                  
                                                                               
            HB   342  was  HELD   in  Committee   for  further                 
            consideration.                                                     
  HOUSE BILL 47                                                                
                                                                               
       "An Act relating to the delivery of the primary ballots                 
       to  persons   making  application  for  them  when,  by                 
       operation of political party rule,  two or more primary                 
       ballots must be provided to the public."                                
                                                                               
  Representative  Martin  noted that  HB  47 had  been drafted                 
  following the  1992 Primary  Election in  which an  absentee                 
  ballot  applicant  had not  indicated  a  ballot preference.                 
  Through this legislation, the  absentee voter would  receive                 
  the  appropriate primary election  ballot, as  determined by                 
  their  political affiliation  on  record.   The  legislation                 
  would  create  a  30  day  limitation on  party  affiliation                 
  changes to facilitate the election process.                                  
                                                                               
  JOE SWANSON, DIRECTOR, DIVISION OF  ELECTIONS, OFFICE OF THE                 
  LIEUTENANT GOVERNOR, commented that the fiscal note had been                 
  zeroed out.                                                                  
                                                                               
  Representative  Brown  noted  her  preference  of  an "open"                 
  primary and asked  the legal options  for that choice.   Mr.                 
  Swanson advised it would not be optional due to a mandate by                 
  the  Supreme  Court.   Currently  there  are  regulations in                 
  effect which are based on that court order and which are not                 
  in statute.  The proposed legislation clarifies regulations.                 
                                                                               
                                                                               
  Co-Chair  Larson asked  if the bill  would change  the court                 
  ruling which would  specify that each party  make individual                 
  determinations whether to open or close the primary.                         
                                                                               
  Representative  Brown  asked if  Section  #6, Page  5, would                 
  annul a  regulation.   Mr. Swanson replied  that Section  #6                 
  would provide a cost savings measure and would automatically                 
  take the regulations off of  the books.  Discussion followed                 
  between Committee members and Mr. Swanson regarding the open                 
  and primary ballot systems.                                                  
                                                                               
  Representative Brown MOVED to amend Page 4, Line 16 and Line                 
  17,    deleting    "statutory"    and   inserting    "open".                 
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Therriault OBJECTED.   Representative Parnell                 
  stated  that  the   language  would  be  too   broad  and  a                 
  mischaracterization of the intention.                                        
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Hoffman,  Brown,  Foster,   Grussendorf,                 
                      Larson.                                                  
       OPPOSED:       Martin, Parnell, Therriault, Hanley.                     
                                                                               
  Representative Navarre and MacLean were  not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (5-4).                                                     
                                                                               
  Representative Hanley MOVED to report CS  HB 47 (FIN) out of                 
  Committee with  individual recommendations  and with  a zero                 
  fiscal note.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  CS  HB  47 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with a zero  fiscal note by the  Office                 
  of the Governor.                                                             
  HOUSE BILL 328                                                               
                                                                               
       "An  Act relating  to  motor  vehicle registration  and                 
       registration  fees; to  fees for drivers'  licenses and                 
       permits; and providing for an effective date."                          
                                                                               
  Representative  Martin noted  that the  proposed legislation                 
  would  establish  a  biennial   motor  vehicle  registration                 
  effective  January  1,   1995.     The  fees  for   biennial                 
  registration would be reduced to  one and one-half times the                 
  current one year rate and would  result in an annual savings                 
  to motor  vehicle  owners  of  $4.6 million  dollars.    The                 
  legislation  would  also  reduce   the  Division  of   Motor                 
  Vehicle's  (DMV)  workload  by  10% annually,  significantly                 
  reducing the rate of new hires.                                              
                                                                               
  JAY  DULANY,  (TESTIFIED   VIA  TELECONFERENCE),   DIRECTOR,                 
  DIVISION OF  MOTOR VEHICLES,  DEPARTMENT  OF PUBLIC  SAFETY,                 
  testified that the Department of  Public Safety supports the                 
  concept of  the legislation, however, indicated concern with                 
  the potential loss in revenue.                                               
                                                                               
  JEANNE LARSON, STAFF, REPRESENTATIVE TERRY MARTIN, explained                 
  that in establishing the  biennial registration, there would                 
  be  annual  inspections for  vehicle  emissions in  order to                 
  comply with the federal clean air act.                                       
                                                                               
  RON KING,  PROJECT  MANAGER, MOBIL  SOURCES,  DEPARTMENT  OF                 
  ENVIRONMENTAL CONSERVATION, expounded  that the  legislation                 
                                                                               
                                3                                              
                                                                               
                                                                               
  would  provide three proposals.   Option #1 would employee a                 
  sticker program utilizing on street  enforcement.  Option #2                 
  would  become  available  if statute  changes  had  not been                 
  enforced, including  more staff, adding  penalties under the                 
  existing  statutes.    Option #3  would  alter  the existing                 
  programs,   returning  to   the   Anchorage  and   Fairbanks                 
  communities and pursuing  options which had previously  been                 
  excluded.                                                                    
                                                                               
  Mr. King indicated that Option #1  would be the least costly                 
  to  the  State.   He  noted  that  DEC  maintains a  neutral                 
  position on the bill.                                                        
                                                                               
  Representative  Brown   asked  the   changes  necessary   to                 
  implement Option #1.   Mr. King  stated that a violation  or                 
  bailable offense would need to be established by statute and                 
  would  create  a  fine for  operation  without  the required                 
  window sticker.  The second change would clarify whether the                 
  revocation of registration  would be  possible.  Ms.  Larson                 
  noted that all fees charged result from program receipts.                    
                                                                               
  Representative Brown inquired how  the annual emission  test                 
  would be  enacted.   Mr. King  stated that  Option #1  would                 
  establish a system in  which a sticker would be  required on                 
  the  vehicle in  addition  to the  registration  enforcement                 
  date.                                                                        
                                                                               
  Co-Chair  Larson  placed  HB  328   into  Subcommittee  with                 
  Representative Martin as Chair.                                              
                                                                               
       1.   Provide for a biennial license.                                    
       2.   Address concerns of the emission testing.                          
       3.   Do away with any changes that would effect vehicle                 
            registration fees.                                                 
                                                                               
  HB 328 was HELD in Committee for further consideration.                      
  HOUSE BILL 342                                                               
                                                                               
       "An Act extending  the termination  date of the  Alaska                 
       Tourism Marketing Council."                                             
                                                                               
  REPRESENTATIVE PETE KOTT noted that HB  342 would extend the                 
  life  of  the  Alaska Tourism  Marketing  Council  (ATMC) to                 
  December  30, 1998.   He  added  that the  legislation would                 
  conform to the  recommendations of the 1993 Budget and Audit                 
  report.                                                                      
                                                                               
  ATMC falls  under the  Department of  Commerce and  Economic                 
  Development (DEC), Division of Tourism.   ATMC contributes a                 
  substantial  amount  to  the  State  by providing  over  $52                 
  million dollars each year.                                                   
                                                                               
                                4                                              
                                                                               
                                                                               
  Co-Chair MacLean provided  the Committee  with a work  draft                 
  Revenues  to the  State of Alaska  Generated by  the Visitor                 
  Industry".  [Copy on file].                                                  
                                                                               
  She noted that the committee substitute  for HB 342 proposed                 
  an increase to  the industry  contribution inline with  what                 
  the Governor intended in the proposed operating budget.  The                 
  committee  substitute  would   also  increase  the   minimum                 
  industry contribution in  statute from 15% to  38% for FY95.                 
  Thereafter,  there  would be  a  graduation of  the industry                 
  contribution structured in the bill.                                         
                                                                               
  Co-Chair  MacLean  added  that  ATMC  would  need  increased                 
  program  receipt authority to  accommodate the  increases in                 
  industry contribution.   The draft  would not allow  for the                 
  industry contribution to be in-kind.                                         
                                                                               
  (Tape Change, HFC 94-123, Side 1).                                           
                                                                               
  Co-Chair MacLean MOVED to adopt  the committee substitute as                 
  the  version before the  Committee.   Representative Parnell                 
  OBJECTED  stressing  the  damage the  harsh  measures  would                 
  inflict   to  small   tour   operators  by   increasing  the                 
  contributing  to  50%.   Co-Chair  MacLean replied  that the                 
  small tour operators had agreed to pay a dedicated fund.                     
                                                                               
  PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC                 
  DEVELOPMENT,  pointed  out  that  if  the  Alaska  Visitor's                 
  Association (AVA) was  not able to  meet the match, the  law                 
  states that the  decision of  action should be  made by  the                 
  Commissioner of Commerce,  the Director  of the Division  of                 
  Tourism and another commissioner designated by the Governor.                 
  He added  that a marketing  program would continue  to exist                 
  although it would not be provided by AMTC and if that should                 
  happen, an advisory committee would be established.                          
                                                                               
  Commissioner Fuhs stated  his support  for the extension  of                 
  the  Alaska  Tourism Marketing  Council.   The  Governor has                 
  requested a  more substantial  match.   He  noted that  ASMI                 
  currently  provides  85%  of  their  funding source.    ATMC                 
  contributes a 15% match  which the Department thinks  is too                 
  low.                                                                         
                                                                               
  Representative Kott remarked  that the in-kind  contribution                 
  should be  considered as  an essential  element provided  by                 
  tourism pointing out that last  year $5 million dollars  has                 
  made available.                                                              
                                                                               
  BRAD  PHILLIPS,  ALASKA  TOURISM MARKETING  COUNCIL  (ATMC),                 
  ANCHORAGE, discussed  the in-kind  contributions.   He added                 
                                                                               
                                5                                              
                                                                               
                                                                               
  that he was discouraged  by the impact which the  work draft                 
  submitted by  Representative  MacLean would  make  on  small                 
  Alaskan operators.  He indicated  that ATMC has two  sources                 
  of revenue:                                                                  
                                                                               
       1.   Sales of ads.                                                      
       2.   Sale of the mailing list.                                          
                                                                               
  Mr.  Phillips  explained  that  people  do not  realize  the                 
  economic  contribution  made to  the  State as  a  result of                 
  tourism.   This  enterprise  covers multiple  processes  and                 
  hires over twenty  thousand people in  the State.  He  urged                 
  the Committee to  create a  mechanism which would  guarantee                 
  that money  raised by  AMTC be  used  for tourism  marketing                 
  rather  than placed  into the  general fund.   Mr.  Phillips                 
  noted that the group  has not been opposed  to a broad  base                 
  tax in order to  provide revenues but asks that  those funds                 
  be used for tourism marketing only.                                          
                                                                               
  Discussion followed among Committee members and Mr. Phillips                 
  regarding  the delegation of  taxing power  and the  need to                 
  create a constitutional amendment for a dedicated fund.                      
                                                                               
  JOHN BINKLEY,  REPRESENTING SELF, FAIRBANKS,  explained that                 
  the  Alaska  Tourism Council  would  like to  have  the same                 
  status as ASMI by paying for  half their share and providing                 
  for the same  mechanism to  generate funds.   He added  that                 
  ASMI has the power of taxation and has the authority to veto                 
  any  tax  which   the  legislature  implements.     ATMC  is                 
  requesting that the same authorization of assessment be made                 
  available.  He pointed out that the tourism industry  relies                 
  on marketing and they are willing  to participate in a joint                 
  marketing program.  The tourism commodity would be difficult                 
  to tax.  Consequently, ATMC requests that the constitutional                 
  amendment  be  considered  for  implementation  of   tourism                 
  marketing for Alaska.                                                        
                                                                               
  Co-Chair  MacLean  remarked  that   three  taxes  have  been                 
  suggested to the tourism council although not well received:                 
                                                                               
                                                                               
       1.   Bed tax;                                                           
       2.   Crew ship head tax; and                                            
       3.   Motor vehicle rental tax.                                          
                                                                               
  Mr. Binkley reiterated  that the  tourism industry wants  to                 
  guarantee  that  the  funds  generated  from  the  taxes  be                 
  returned to marketing.                                                       
                                                                               
  Representative  Brown recommended  enacting taxes  on  a two                 
  year basis in order to fund the programs  for a short period                 
  of time while further  work is done in consideration  of the                 
                                                                               
                                6                                              
                                                                               
                                                                               
  constitutional amendment.  She observed that the function of                 
  the  State and  the  joint partnership  in  tourism is  well                 
  exampled by the public-private partnership.                                  
                                                                               
  HB 342 was HELD in Committee for further discussion.                         
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:10 A.M.                                          
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         April 13, 1994                                        
                            8:30 A.M.                                          
                                                                               
                                                                               
  TAPE HFC 94 - 122, Side 2, #000 - end.                                       
  TAPE HFC 94 - 123, Side 1, #000 - #671.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called  the House Finance Committee  meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Pete Kott; Joe Swanson, Director, Division of                 
  Elections,  Office  of  the   Lieutenant  Governor;  Jeannie                 
  Larson, Staff,  Representative  Terry  Martin;  Jay  Dulany,                 
  (Testified via teleconference),  Director, Division of Motor                 
  Vehicles,  Department of  Public Safety;  Ron King,  Project                 
  Manager,   Mobil   Sources,   Department  of   Environmental                 
  Conservation;   Paul   Fuhs,  Commissioner,   Department  of                 
  Commerce  and  Economic Development;  Brad  Phillips, Alaska                 
  Tourism Marketing Council (ATMC), Anchorage; Tina  Lindgren,                 
  (ATMC),   Anchorage;   John   Binkley,  Representing   Self,                 
  Fairbanks.                                                                   
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 47     An Act  relating to  the delivery  of the  primary                 
            ballots  to persons  making  application for  them                 
            when, by operation of political party rule, two or                 
                                                                               
                                7                                              
                                                                               
                                                                               
            more  primary ballots  must  be  provided  to  the                 
            public.                                                            
                                                                               
            CS HB 47 (FIN) was reported out of Committee  with                 
            "no recommendations"  and with a zero  fiscal note                 
            by the Office of the Governor.                                     
                                                                               
  HB 328    An Act  relating to motor vehicle registration and                 
            registration fees;  to fees for  drivers' licenses                 
            and permits; and providing for an effective date.                  
                                                                               
            HB   328  was   placed   into  Subcommittee   with                 
            Representative  Martin  as  Chair   and  held  for                 
            further consideration.                                             
                                                                               
  HB 342    An  Act  extending  the  termination  date of  the                 
            Alaska Tourism Marketing Council.                                  
                                                                               
            HB  342   was  HELD   in  Committee   for  further                 
            consideration.                                                     
                                                                               
  HOUSE BILL 47                                                                
                                                                               
       "An Act relating to the delivery of the primary ballots                 
       to  persons  making  application  for  them  when,   by                 
       operation of political party rule,  two or more primary                 
       ballots must be provided to the public."                                
                                                                               
  Representative  Martin  noted that  HB  47 had  been drafted                 
  following the  1992 Primary  Election in  which an  absentee                 
  ballot  applicant had  not  indicated  a ballot  preference.                 
  Through this  legislation, the absentee  voter would receive                 
  the appropriate  primary election  ballot, as  determined by                 
  their  political  affiliation on  record.   The  legislation                 
  would  create  a  30  day  limitation on  party  affiliation                 
  changes to facilitate the election process.                                  
                                                                               
  JOE SWANSON, DIRECTOR, DIVISION OF  ELECTIONS, OFFICE OF THE                 
  LIEUTENANT GOVERNOR, commented that the fiscal note had been                 
  zeroed out.                                                                  
                                                                               
  Representative  Brown  noted  her  preference of  an  "open"                 
  primary and asked  the legal options  for that choice.   Mr.                 
  Swanson advised it would not be optional due to a mandate by                 
  the  Supreme  Court.   Currently  there  are  regulations in                 
  effect which are based on that court order and which are not                 
  in statute.  The proposed legislation clarifies regulations.                 
                                                                               
                                                                               
  Co-Chair  Larson asked  if the  bill would change  the court                 
  ruling which would  specify that each party  make individual                 
  determinations whether to open or close the primary.                         
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative  Brown  asked if  Section  #6, Page  5, would                 
  annul  a regulation.   Mr. Swanson  replied that  Section #6                 
  would provide a cost savings measure and would automatically                 
  take the  regulations off of the books.  Discussion followed                 
  between Committee members and Mr. Swanson regarding the open                 
  and primary ballot systems.                                                  
                                                                               
  Representative Brown MOVED to amend Page 4, Line 16 and Line                 
  17,    deleting    "statutory"    and   inserting    "open".                 
  Representative Therriault OBJECTED.   Representative Parnell                 
  stated  that  the  language  would   be  too  broad  and   a                 
  mischaracterization of the intention.                                        
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Hoffman,  Brown,   Foster,  Grussendorf,                 
                      Larson.                                                  
       OPPOSED:       Martin, Parnell, Therriault, Hanley.                     
                                                                               
  Representative Navarre and MacLean were  not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (5-4).                                                     
                                                                               
  Representative Hanley MOVED to report CS  HB 47 (FIN) out of                 
  Committee  with individual  recommendations and with  a zero                 
  fiscal note.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  CS  HB  47 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and  with a zero fiscal note  by the Office                 
  of the Governor.                                                             
                                                                               
  HOUSE BILL 328                                                               
                                                                               
       "An  Act  relating  to motor  vehicle  registration and                 
       registration  fees; to fees  for drivers'  licenses and                 
       permits; and providing for an effective date."                          
                                                                               
  Representative Martin  noted that  the proposed  legislation                 
  would  establish  a  biennial  motor  vehicle   registration                 
  effective  January  1,   1995.     The  fees  for   biennial                 
  registration would be reduced to one  and one-half times the                 
  current one year rate and would  result in an annual savings                 
  to  motor  vehicle owners  of  $4.6  million  dollars.   The                 
  legislation  would   also  reduce  the   Division  of  Motor                 
  Vehicle's (DMV)  workload  by  10%  annually,  significantly                 
  reducing the rate of new hires.                                              
                                                                               
  JAY  DULANY,  (TESTIFIED   VIA  TELECONFERENCE),   DIRECTOR,                 
  DIVISION OF  MOTOR  VEHICLES, DEPARTMENT  OF PUBLIC  SAFETY,                 
  testified that the Department of  Public Safety supports the                 
                                                                               
                                9                                              
                                                                               
                                                                               
  concept of  the legislation, however, indicated concern with                 
  the potential loss in revenue.                                               
                                                                               
  JEANNE LARSON, STAFF, REPRESENTATIVE TERRY MARTIN, explained                 
  that in establishing the  biennial registration, there would                 
  be  annual  inspections for  vehicle  emissions in  order to                 
  comply with the federal clean air act.                                       
                                                                               
  RON KING,  PROJECT  MANAGER, MOBIL  SOURCES,  DEPARTMENT  OF                 
  ENVIRONMENTAL CONSERVATION, expounded  that the  legislation                 
  would provide three  proposals.  Option #1  would employee a                 
  sticker program utilizing on street  enforcement.  Option #2                 
  would  become  available  if statute  changes  had  not been                 
  enforced, including more  staff, adding penalties under  the                 
  existing  statutes.    Option #3  would  alter  the existing                 
  programs,   returning   to  the   Anchorage   and  Fairbanks                 
  communities and  pursuing options which had  previously been                 
  excluded.                                                                    
                                                                               
  Mr. King indicated that Option #1  would be the least costly                 
  to  the  State.   He  noted  that  DEC  maintains a  neutral                 
  position on the bill.                                                        
                                                                               
  Representative   Brown  asked   the  changes   necessary  to                 
  implement Option #1.   Mr. King  stated that a violation  or                 
  bailable offense would need to be established by statute and                 
  would  create  a  fine for  operation  without  the required                 
  window sticker.  The second change would clarify whether the                 
  revocation of registration  would be  possible.  Ms.  Larson                 
  noted that all fees charged result from program receipts.                    
                                                                               
  Representative Brown  inquired how the  annual emission test                 
  would be  enacted.   Mr. King  stated that  Option #1  would                 
  establish a system in  which a sticker would be  required on                 
  the  vehicle  in addition  to  the  registration enforcement                 
  date.                                                                        
                                                                               
  Co-Chair  Larson  placed  HB   328  into  Subcommittee  with                 
  Representative Martin as Chair.                                              
                                                                               
       1.   Provide for a biennial license.                                    
       2.   Address concerns of the emission testing.                          
       3.   Do away with any changes that would effect vehicle                 
            registration fees.                                                 
                                                                               
  HB 328 was HELD in Committee for further consideration.                      
                                                                               
  HOUSE BILL 342                                                               
                                                                               
       "An Act extending  the termination  date of the  Alaska                 
       Tourism Marketing Council."                                             
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  REPRESENTATIVE PETE KOTT  noted that HB 342 would extend the                 
  life  of  the  Alaska Tourism  Marketing  Council  (ATMC) to                 
  December 30,  1998.   He  added that  the legislation  would                 
  conform to the recommendations of the 1993 Budget and  Audit                 
  report.                                                                      
                                                                               
  ATMC falls  under the  Department of  Commerce and  Economic                 
  Development (DEC), Division of Tourism.   ATMC contributes a                 
  substantial  amount  to  the  State  by providing  over  $52                 
  million dollars each year.                                                   
                                                                               
  Co-Chair MacLean provided  the Committee  with a work  draft                 
  Revenues  to the  State of  Alaska Generated by  the Visitor                 
  Industry".  [Copy on file].                                                  
                                                                               
  She noted that the committee substitute for HB  342 proposed                 
  an increase to  the industry  contribution inline with  what                 
  the Governor intended in the proposed operating budget.  The                 
  committee  substitute   would  also  increase   the  minimum                 
  industry contribution in statute from  15% to 38% for  FY95.                 
  Thereafter,  there  would be  a  graduation of  the industry                 
  contribution structured in the bill.                                         
                                                                               
  Co-Chair  MacLean  added  that  ATMC  would  need  increased                 
  program receipt  authority to  accommodate the  increases in                 
  industry  contribution.  The  draft would not  allow for the                 
  industry contribution to be in-kind.                                         
                                                                               
  (Tape Change, HFC 94-123, Side 1).                                           
                                                                               
  Co-Chair MacLean MOVED to adopt  the committee substitute as                 
  the version  before the  Committee.   Representative Parnell                 
  OBJECTED stressing  the  damage  the  harsh  measures  would                 
  inflict   to   small  tour   operators  by   increasing  the                 
  contributing  to  50%.   Co-Chair  MacLean replied  that the                 
  small tour operators had agreed to pay a dedicated fund.                     
                                                                               
  PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC                 
  DEVELOPMENT,  pointed  out  that  if  the  Alaska  Visitor's                 
  Association (AVA) was  not able to  meet the match, the  law                 
  states that the  decision of  action should be  made by  the                 
  Commissioner of Commerce,  the Director  of the Division  of                 
  Tourism and another commissioner designated by the Governor.                 
  He  added that a  marketing program would  continue to exist                 
  although it would not be provided by AMTC and if that should                 
  happen, an advisory committee would be established.                          
                                                                               
  Commissioner Fuhs stated  his support  for the extension  of                 
  the  Alaska  Tourism Marketing  Council.   The  Governor has                 
  requested  a more  substantial match.   He  noted that  ASMI                 
  currently  provides  85%  of  their  funding source.    ATMC                 
                                                                               
                               11                                              
                                                                               
                                                                               
  contributes  a 15% match which  the Department thinks is too                 
  low.                                                                         
                                                                               
  Representative Kott remarked  that the in-kind  contribution                 
  should be  considered as  an essential  element provided  by                 
  tourism pointing out  that last year $5  million dollars has                 
  made available.                                                              
                                                                               
  BRAD  PHILLIPS,  ALASKA  TOURISM MARKETING  COUNCIL  (ATMC),                 
  ANCHORAGE, discussed  the in-kind  contributions.   He added                 
  that he was discouraged  by the impact which the  work draft                 
  submitted  by Representative  MacLean  would  make on  small                 
  Alaskan operators.   He indicated that ATMC  has two sources                 
  of revenue:                                                                  
                                                                               
       1.   Sales of ads.                                                      
       2.   Sale of the mailing list.                                          
                                                                               
  Mr.  Phillips  explained  that  people  do not  realize  the                 
  economic  contribution made  to  the State  as  a result  of                 
  tourism.    This enterprise  covers  multiple  processes and                 
  hires over twenty  thousand people in  the State.  He  urged                 
  the Committee to  create a  mechanism which would  guarantee                 
  that  money raised  by AMTC  be used  for tourism  marketing                 
  rather  than  placed into  the general  fund.   Mr. Phillips                 
  noted that  the group has not  been opposed to  a broad base                 
  tax in order to  provide revenues but asks that  those funds                 
  be used for tourism marketing only.                                          
                                                                               
  Discussion followed among Committee members and Mr. Phillips                 
  regarding  the delegation  of taxing power  and the  need to                 
  create a constitutional amendment for a dedicated fund.                      
                                                                               
  JOHN BINKLEY, REPRESENTING  SELF, FAIRBANKS, explained  that                 
  the  Alaska Tourism  Council  would like  to  have the  same                 
  status as ASMI by paying for  half their share and providing                 
  for the same  mechanism to  generate funds.   He added  that                 
  ASMI has the power of taxation and has the authority to veto                 
  any  tax  which   the  legislature  implements.     ATMC  is                 
  requesting that the same authorization of assessment be made                 
  available.   He pointed out that the tourism industry relies                 
  on marketing and they are willing  to participate in a joint                 
  marketing program.  The tourism commodity would be difficult                 
  to tax.  Consequently, ATMC requests that the constitutional                 
  amendment  be  considered   for  implementation  of  tourism                 
  marketing for Alaska.                                                        
                                                                               
  Co-Chair   MacLean  remarked  that  three  taxes  have  been                 
  suggested to the tourism council although not well received:                 
                                                                               
                                                                               
       1.   Bed tax;                                                           
                                                                               
                               12                                              
                                                                               
                                                                               
       2.   Crew ship head tax; and                                            
       3.   Motor vehicle rental tax.                                          
                                                                               
  Mr. Binkley reiterated  that the  tourism industry wants  to                 
  guarantee  that  the  funds  generated  from  the  taxes  be                 
  returned to marketing.                                                       
                                                                               
  Representative  Brown recommended  enacting taxes  on  a two                 
  year  basis in order to fund the programs for a short period                 
  of time while further  work is done in consideration  of the                 
  constitutional amendment.  She observed that the function of                 
  the State  and  the joint  partnership  in tourism  is  well                 
  exampled by the public-private partnership.                                  
                                                                               
  HB 342 was HELD in Committee for further discussion.                         
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:10 A.M.                                          
                                                                               
                                                                               
                               13                                              

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