03/19/2001 01:05 PM House RES

HB 63 - ELECTRONIC FISH & GAME LICENSURE                                                                                      
                                                                                                                                
[Taping   difficulties   continued,   and   the   following   was                                                               
reconstructed from the log notes.]                                                                                              
                                                                                                                                
CO-CHAIR SCALZI announced that the  first order of business would                                                               
be HOUSE BILL NO. 63,  "An Act relating to electronic application                                                               
for and  issuance of  licenses, permits, and  tags issued  by the                                                               
Department of Fish  and Game; relating to  violations regarding a                                                               
license,  permit, or  tag applied  for or  issued electronically;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
KEVIN  BROOKS,  Director,  Division of  Administrative  Services,                                                               
Alaska  Department  of  Fish  &  Game  (ADF&G)  came  before  the                                                               
committee  to discuss  the  proposed  committee substitute  (CS),                                                               
Version C.                                                                                                                      
                                                                                                                                
[The tape recording begins at this point.]                                                                                      
                                                                                                                                
TAPE 01-21, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MR. BROOKS  mentioned working with Representative  Masek's office                                                               
[on  the  new language  of  Version  C],  which  he said  was  an                                                               
improvement.  Mr. Brooks explained:                                                                                             
                                                                                                                                
     The  concern was  that  we have  a  situation with  our                                                                    
     vendors that  they're either going to  get a commission                                                                    
     under the provisions set forth  in statute now, or else                                                                    
     they would  get a ...  per-transaction fee, but  not be                                                                    
     able to  get both.   And  I think  the new  language is                                                                    
     very clear in that manner.                                                                                                 
                                                                                                                                
Number 0098                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  made a  motion  to  adopt the  proposed  CS                                                               
[Version  C, 22-GH1070\C,  Utermohle,  3/7/01] as  a work  draft.                                                               
There being no objection, Version C was before the committee.                                                                   
                                                                                                                                
Number 0123                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS mentioned  a friend  in Kodiak  who sells                                                               
licenses; the friend  had said he would not be  selling the high-                                                               
end  licenses  such as  for  bear  hunts,  but only  the  fishing                                                               
licenses.  Representative Stevens asked  Mr. Brooks if he thought                                                               
[the language  in Version C]  would be a disincentive  to vendors                                                               
to stay in the business.                                                                                                        
                                                                                                                                
MR. BROOKS  replied that  out of an  estimated 600,000  pieces of                                                               
stock sold, 8,000 pieces were  sold [electronically].  Therefore,                                                               
he did not foresee a  significant loss of vendor business because                                                               
of electronic  licensing; instead, electronic licensing  would be                                                               
a  complement  to it.    In  regard  to speculating  whether  the                                                               
higher-end  sales   would  be  predominately  by   vendor  or  by                                                               
electronic  means,  Mr. Brooks  said  it  would  be a  matter  of                                                               
customer  preference.   He stated  that there  are 1,500  vendors                                                               
statewide,  and  20  percent  of those  are  responsible  for  80                                                               
percent of the sales.                                                                                                           
                                                                                                                                
REPRESENTATIVE  STEVENS   asked  Mr.   Brooks  to   describe  the                                                               
incentives to the vendors.                                                                                                      
                                                                                                                                
MR.  BROOKS   answered  that  the  current   vendor  compensation                                                               
provisions are 5 percent of the  receipts, plus $1 per item sold.                                                               
He  said  there  were  approximately "$1.2  million  in  retained                                                               
commissions  to  5   percent."    He  recalled   that  there  was                                                               
approximately $700,000  in additional  vendor compensation  of $1                                                               
per item.   Mr. Brooks said  ADF&G paid out nearly  $2 million in                                                               
vendor commissions.  He added  that the vendors were making money                                                               
by outfitting  the people  buying the  licenses in  their stores,                                                               
not from the sale of the licenses themselves.                                                                                   
                                                                                                                                
Number 0435                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE asked Mr. Brooks  if Version C would put some                                                               
of the  vendors in a  "no man's land," trying  to do it,  but not                                                               
making the  5 percent, so that  it just becomes a  service, and a                                                               
nuisance, at that.                                                                                                              
                                                                                                                                
MR.  BROOKS responded  that it  was  that type  of analysis  that                                                               
brought ADF&G  to [electronic licensing], because  there are many                                                               
"marginal"  vendors who  don't sell  much.   He pointed  out that                                                               
many of those vendors are in  remote areas, so ADF&G figured that                                                               
if the information is put out  on the Internet, more people would                                                               
have access to a license.                                                                                                       
                                                                                                                                
Number 0539                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS asked  Mr. Brooks how much 5  percent of a                                                               
high-end license would equal.                                                                                                   
                                                                                                                                
MR. BROOKS  offered an example of  a person from Europe  buying a                                                               
license for $1,000, 5 percent of which would equal $50.                                                                         
                                                                                                                                
REPRESENTATIVE  FATE  moved  to   report  CSHB  63  [version  22-                                                               
GH1070\C,  Utermohle, 3/7/01]  out of  committee with  individual                                                               
recommendations [and  the accompanying zero fiscal  note].  There                                                               
being  no objection,  CSHB 63(RES)  was  moved out  of the  House                                                               
Resources Standing Committee.