02/13/1995 05:05 PM House FSH

 HFSH - 02/13/95                                                               
 HB 116 - EXEMPT ASMI FROM PROCUREMENT CODE                                
                                                                               
 Number 035                                                                    
                                                                               
 MR. SCHEUNEMANN testified, "ASMI needs to be removed from the state           
 procurement codes, because ASMI is not a state government                     
 organization in the sense of the word that those codes were                   
 originally designed and enacted for.  The codes were designed to              
 prevent conflict of interest and abuse of competing interests or              
 services, not a market-orientated type of program ASMI is moving              
 forward with.  The process to place two field representatives in              
 the Midwest was encumbered for months by the procurement codes.               
 The procurement system has also been a hindrance in the area of               
 bringing media agencies on line.  Many varied promotional programs            
 are made difficult by all the legal aspects of the procurement                
 codes."                                                                       
                                                                               
 Number 236                                                                    
                                                                               
 REPRESENTATIVE OGAN asked, "Is ASMI an administrative unit of the             
 Executive Branch of state government or a public corporation?"                
                                                                               
 MR. SCHEUNEMANN responded, "We are tied administratively with the             
 Department of Commerce and Economic Development."                             
                                                                               
 Number 263                                                                    
                                                                               
 REPRESENTATIVE OGAN followed up by asking, "Why should we grant               
 ASMI an exemption to the procurement codes?"                                  
                                                                               
 MR. SCHEUNEMANN responded, "ASMI is not a typical state agency,               
 that do business with the same types of private sector individuals,           
 corporations or providers.  We are a market-orientated business and           
 for all intents and purposes, a private organization working in a             
 governmental environment."                                                    
                                                                               
 Number 329                                                                    
                                                                               
 REPRESENTATIVE ELTON stated, "First of all, in marketing, you want            
 the best bidder, not necessarily the lowest bidder.  Secondly, HB
 doesn't remove the state oversight of the procurement                     
 procedures.  And last, by making the process a little quicker, we             
 are more responsible to industry."                                            
                                                                               
 Number 377                                                                    
                                                                               
 JERRY McCUNE, President, United Fishermen of Alaska, testified in             
 support of HB 116.  He further stated, "ASMI is hampered by the               
 states' procurement codes and additionally, more of the dedicated             
 funds could be used for advertising and promotional activities if             
 this bill passes."                                                            
                                                                               
 Number 406                                                                    
                                                                               
 REPRESENTATIVE GARY DAVIS commented, "Representative Ogan is not              
 off target, when he questions, what is in the states' procurement             
 codes and how they relate to ASMI."                                           
                                                                               
 REPRESENTATIVE OGAN added, "I applaud the efforts of ASMI's                   
 marketing program.  I have a fundamental problem with the                     
 government taxing people, to fund a private corporation.  For that            
 reason, I am going to vote against HB 116."                                   
                                                                               
 Number 437                                                                    
                                                                               
 REPRESENTATIVE CARL MOSES motioned to moved HB 116 out of committee           
 with individual recommendations and a zero fiscal note.                       
                                                                               
 REPRESENTATIVE OGAN registered an objection.                                  
                                                                               
 Number 452                                                                    
                                                                               
 CHAIRMAN AUSTERMAN called for a roll call vote.  Those voting in              
 favor of the motion were Representatives Davis, Elton, Moses and              
 Austerman.  Representative Ogan voted against the motion.  CHAIRMAN           
 AUSTERMAN announced that HB 116 passed out of the House Special               
 Committee on Fisheries with a zero fiscal note.