03/02/1993 03:00 PM House L&C

  CSHB 115(ITT):  "An act deleting a requirement that certain                  
  members of the board of directors of the Alaska Tourism                      
  Marketing Council be substantially involved in a visitor or                  
  recreation industry business; relating to the selection of a                 
  presiding officer for the Alaska Tourism Marketing Council:                  
  and providing for an effective date."                                        
                                                                               
  Number 639                                                                   
                                                                               
  REP. HUDSON gave a brief overview and explained that HB 115                  
  was amended in the House International Tourism and Trade                     
  committee to conform to changes made in the Senate companion                 
  bill.                                                                        
                                                                               
  Number 645                                                                   
                                                                               
  REP. HUDSON then expressed the following:  "I must mention                   
  there is some contention in this field as it relates to the                  
  Commissioner of the Department of Commerce and Economic                      
  Development.  He has approached me directly suggesting that                  
  they would like to have the legislation entertain a shift in                 
  the administrative overhead of the Alaska Tourism and                        
  Marketing Council (ATMC) and to essentially do away with the                 
  industries separate administrative escholon and place the                    
  administration of this into the hands of the director of the                 
  Division of Tourism.  What that would do if we adopt this                    
  bill in its current form would potentially put that at odds.                 
  I don't believe we would necessarily have to change this law                 
  in order to permit them to do that, and if that is going to                  
  occur, it will occur at the budgeting end where they                         
  literally take the administrative funds away from the ATMC.                  
  The Finance Committee can modify the management of the ATMC                  
  by simply budgeting the money into the Department of Tourism                 
  rather than into the ATMC."                                                  
                                                                               
  Number 680                                                                   
                                                                               
  REP. HUDSON continued:  "We can do one of two things.  We                    
  can either sit on this or we can pass it and it can be dealt                 
  with in the Finance Committee or State Affairs Committee.                    
  We introduced this legislation in substantially the form                     
  that the industry wants; the industry contributes heavily                    
  towards this whole program here.  As the chairman of this                    
  committee, I suggest that we pass it out and let it be dealt                 
  with ultimately in the Finance committee.  It will be a                      
  policy call that may involve a caucus decision."                             
                                                                               
  Number 780                                                                   
                                                                               
  VICE CHAIRMAN GREEN asked for questions from the committee.                  
                                                                               
  Number 785                                                                   
                                                                               
  REP. PORTER asked if the committee should send a letter of                   
  concern.  Rep. Porter aired a concern about the transferring                 
  of administrative functions.                                                 
                                                                               
  Number 801                                                                   
                                                                               
  In answer to Rep. Porter's question, REP. MULDER said that                   
  there are a number of concerns regarding funding and                         
  administrative functions by and for the tourism industry.                    
  He further speculated on the concern of the commissioner of                  
  the Department of Commerce and Economic Development.                         
                                                                               
  Number 835                                                                   
                                                                               
  WENDY MULDER, LEGISLATIVE LIAISON FOR THE DEPARTMENT OF                      
  COMMERCE, testified on behalf of the commissioner and made                   
  note that the commissioner was unable to join the Labor &                    
  Commerce Committee.  She clarified the concern of the                        
  commissioner by saying that the commissioner wanted the                      
  committee to know that it was a budgetary matter and felt                    
  that the committee should be aware of that.  She further                     
  stated that the department is willing to go any direction                    
  the legislature wishes the ATMC or the Division of Tourism                   
  to go.                                                                       
                                                                               
  Number 864                                                                   
                                                                               
  REP. GREEN asked if funding was the driving force behind                     
  what happens with the ATMC.  He asked if it would create                     
  confusion, and shouldn't there be an established place for                   
  it.                                                                          
                                                                               
  Number 867                                                                   
                                                                               
  MS. MULDER explained that for budgetary reasons they would                   
  bring the staff of the ATMC back into the Division of                        
  Tourism.  The ATMC would still have voting power over the                    
  contracts, but administratively it would be handled in the                   
  Division of Tourism.                                                         
                                                                               
  Number 900                                                                   
                                                                               
  REP. HUDSON explained that because of the above stated                       
  reasons, this bill should be moved on to the Finance                         
  Committee.                                                                   
                                                                               
  Number 906                                                                   
                                                                               
  REP. PORTER aired a concern regarding the moving of                          
  administrative functions of the ATMC to the Division of                      
  Tourism.  He further stated that he did not think that was a                 
  good idea.                                                                   
                                                                               
  Number 926                                                                   
                                                                               
  JOHN LITTON, MEMBER OF THE TOURISM MARKETING COUNCIL,                        
  testified in support of HB 112.                                              
                                                                               
  Number 937                                                                   
                                                                               
  REP. MULDER moved and asked unanimous consent that CSHB
(ITT) move from committee with individual recommendations                 
  and a zero fiscal note.  There being no objections, it was                   
  so ordered.                                                                  
                                                                               
  VICE CHAIRMAN GREEN adjourned the House Labor & Commerce                     
  Committee meeting at 4:16 p.m.