Legislature(2015 - 2016)SENATE FINANCE 532

03/17/2016 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 101 STATE PARKS FEES & SALES OF MERCHANDISE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 170 DNR FEES FOR GEOLOGICAL SERVICES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 124 EXTEND SUNSET ON AK COMMISSION ON AGING TELECONFERENCED
Heard & Held
SENATE BILL NO. 101                                                                                                           
                                                                                                                                
     "An Act relating to fees for use of state park system                                                                      
     facilities; and relating to the sale of merchandise by                                                                     
     the Department of Natural Resources."                                                                                      
                                                                                                                                
9:30:23 AM                                                                                                                    
                                                                                                                                
BEN ELLIS,  DIRECTOR, ALASKA DIVISION  OF PARKS  AND OUTDOOR                                                                    
RECREATION, DEPARTMENT OF  NATURAL RESOURCES, explained that                                                                    
the bill would remove  language that required all authorized                                                                    
fees to be  collected in a park unit, making  clear that the                                                                    
Department  of  Natural  Resources   (DNR)  would  have  the                                                                    
authority to collect fees online  or in locations outside of                                                                    
a park unit.                                                                                                                    
                                                                                                                                
9:31:29 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy  understood that  there were drop  box fees                                                                    
at state parks.                                                                                                                 
                                                                                                                                
Mr. Ellis replied  that there were drop boxes  for user fees                                                                    
at developed facilities, and that passes were available.                                                                        
                                                                                                                                
9:32:23 AM                                                                                                                    
                                                                                                                                
Senator Olson  queried the  reasoning behind  the clarifying                                                                    
language related to  fees being collected outside  of a park                                                                    
unit.                                                                                                                           
                                                                                                                                
Mr. Ellis stated that the  original intent of the governor's                                                                    
bill had been  to allow state parks to  sell merchandise for                                                                    
a  profit,  in  order  to decrease  the  dependence  on  the                                                                    
General Fund.  He said that the  bill had been modeled  on a                                                                    
survey that was conducted over  20 states, with the original                                                                    
concept  to  provide  an  opportunity   for  state  to  sell                                                                    
merchandise for  profit. He said  that current  statute only                                                                    
allowed for the sale of items for cost.                                                                                         
                                                                                                                                
9:35:07 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  directed  committee  attention  to  the                                                                    
original draft  of the legislation. She  queried the removal                                                                    
of Section 2 from the original bill.                                                                                            
                                                                                                                                
Mr. Ellis  responded that the  language had been  removed by                                                                    
the  Senate Resources  Committee. He  said that  concern had                                                                    
been expressed during  the bill hearing that  the bill could                                                                    
be in competition with the private sector.                                                                                      
                                                                                                                                
9:35:57 AM                                                                                                                    
                                                                                                                                
Senator Bishop  wondered whether the bill  would benefit the                                                                    
division.                                                                                                                       
                                                                                                                                
Mr. Ellis  responded that  the current  version of  the bill                                                                    
would  alleviate  a  technical   issue  that  some  had  not                                                                    
believed was a serious issue.                                                                                                   
                                                                                                                                
9:37:04 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  stressed that the  bill was an  issue of                                                                    
public  policy.  She  said  that  the  government  generally                                                                    
avoided competition  with the private sector.  She said that                                                                    
her office would take amendments  until Wednesday, March 23,                                                                    
2016.                                                                                                                           
                                                                                                                                
9:37:42 AM                                                                                                                    
                                                                                                                                
Senator Olson  wondered whether there were  private entities                                                                    
that sold comparable items to those sold by the division.                                                                       
                                                                                                                                
Mr.  Ellis responded  that the  division  was not  currently                                                                    
selling any products. He added  that he did not believe that                                                                    
any company  was selling Alaska  State Park  merchandise. He                                                                    
stated that there  was an internet based  company in Seattle                                                                    
that was  could create  merchandise using  any names  in the                                                                    
public domain.                                                                                                                  
                                                                                                                                
9:38:56 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  remarked that  the bill was  similar to                                                                    
SB 101,  as it  was an  attempt for  a department  to offset                                                                    
costs. He appreciated the proposed bill.                                                                                        
                                                                                                                                
9:39:42 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon   shared  that  she  had   served  as  a                                                                    
department  manager at  JC Penney,  which  sold millions  in                                                                    
Alaskan merchandise. She felt that  it would be nice for the                                                                    
state  to get  credit for  distributing state  products. She                                                                    
suggested that the  state could be a  wholesaler of original                                                                    
Alaska brand merchandise.                                                                                                       
                                                                                                                                
Mr.  Ellis  concurred.  He stressed  that  the  state  would                                                                    
create the  merchandise, and would  sell it to  a wholesaler                                                                    
or retailer at a marked up cost.                                                                                                
                                                                                                                                
Co-Chair MacKinnon  reiterated that amendments were  due the                                                                    
following Wednesday.                                                                                                            
                                                                                                                                
9:42:12 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy spoke in support of the legislation.                                                                           
                                                                                                                                
Mr. Ellis quoted a parks director in New Hampshire:                                                                             
                                                                                                                                
     "We're fairly passionate about  our retail operation in                                                                    
     the  Hampshire   State  Parks.  When  you   change  the                                                                    
     dialogue   from  cost   control,   to  revenue   growth                                                                    
     opportunities,  all  of  the  sudden  new  doors  open,                                                                    
     employees  attitudes  shift,  and we  build  a  broader                                                                    
     customer  base of  support, loyalty,  and advocacy  for                                                                    
     the states park system."                                                                                                   
                                                                                                                                
9:43:43 AM                                                                                                                    
                                                                                                                                
Senator Bishop agreed  that the bill was a  good concept. He                                                                    
stressed that Alaska was a tourism destination.                                                                                 
9:44:37 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon hoped that  the merchandise would be made                                                                    
in America, possibly in partnership with the prison system.                                                                     
                                                                                                                                
9:45:07 AM                                                                                                                    
                                                                                                                                
Senator Olson spoke to Section  2 of the original version of                                                                    
the  legislation. He  understood  that this  portion of  the                                                                    
bill had been removed from  the current version. He wondered                                                                    
whether the  change had altered  the original intent  of the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Mr. Ellis responded  that the current bill  version from the                                                                    
Senate  Resources Committee  did  not  achieve the  original                                                                    
intent of the bill.                                                                                                             
                                                                                                                                
9:45:58 AM                                                                                                                    
                                                                                                                                
Senator  Olson wondered  why the  committee was  hearing the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Mr. Ellis  responded that in  April 2015, the bill  had been                                                                    
amended to  eliminate the part  that related to the  sale of                                                                    
merchandise, and  move forward the section  that offered the                                                                    
technical amendment pertaining to online payments.                                                                              
                                                                                                                                
9:46:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  clarified  that   Section  2  had  been                                                                    
removed from the  original bill, but could be  offered as an                                                                    
amendment.                                                                                                                      
                                                                                                                                
9:48:07 AM                                                                                                                    
                                                                                                                                
Senator Olson  wondered whether the department  was in favor                                                                    
of the current version of the legislation.                                                                                      
                                                                                                                                
Mr. Ellis  responded that the  department was  supportive of                                                                    
clarifying the revenue stream. He  repeated that the current                                                                    
version  of  the  bill  did  not  speak  to  the  governor's                                                                    
original intent.                                                                                                                
                                                                                                                                
9:48:52 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:49:02 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:49:05 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche revealed that  there had been concern in                                                                    
the Senate Resources Committee  about state competition with                                                                    
the  private  sector,  as  well as  the  cost  of  employing                                                                    
additional state employees. He hoped  that the bill could be                                                                    
amended to  require that Alaskan  businesses be used  in the                                                                    
production of merchandise.                                                                                                      
                                                                                                                                
9:50:25 AM                                                                                                                    
                                                                                                                                
Mr. Ellis  remarked that the  division was sensitive  to the                                                                    
competition with  the private sector, and  shared that there                                                                    
was a constant search for balance.                                                                                              
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
SB  101  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 101 Briefing Paper.pdf SFIN 3/17/2016 9:00:00 AM
SB 101
SB 101 Transmittal Letter.pdf SFIN 3/17/2016 9:00:00 AM
SB 101
SB0170-Explanation of Changes-Version A to Version W.pdf SFIN 3/17/2016 9:00:00 AM
SB 170
SB0170-Sectional Analysis-Version W.pdf SFIN 3/17/2016 9:00:00 AM
SB 170
SB0170-Sponsor Statement.pdf SFIN 3/17/2016 9:00:00 AM
SB 170
SB0170-Supporting Document-FAQs from DNR-DGGS.pdf SFIN 3/17/2016 9:00:00 AM
SB 170
SB0170-Supporting Document-Letter-DNR-DGGS.pdf SFIN 3/17/2016 9:00:00 AM
SB 170