Legislature(1997 - 1998)

05/06/1998 04:35 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE FINANCE COMMITTEE                                           
    May 6, 1998                                                                
                           4:35 P.M.                                           
                                                                               
TAPE HFC 98 - 159, Side 1.                                                     
TAPE HFC 98 - 159, Side 2.                                                     
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Therriault called the House Finance Committee                         
meeting to order at 4:35 P.M.                                                  
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Hanley   Representative Kelly                                         
Co-Chair Therriault   Representative Kohring                                   
Representative J. Davies  Representative Martin                                
Representative G. Davis  Representative Moses                                  
Representative Grussendorf Representative Mulder                               
                                                                               
Representative Foster was not present for the meeting.                         
                                                                               
ALSO PRESENT                                                                   
                                                                               
Jeffrey Bush, Deputy Commissioner, Department of Commerce                      
and Economic Development; Kristie Tibbles, Staff, Senator                      
Drue Pearce; Anne Carpeneti, Assistant Attorney General,                       
Department of Law; Tina Lindgren, Executive Director, Alaska                   
Visitors Association, Anchorage; Alan Lemaster, (Testified                     
via Teleconference), Gakona; Officer Glen Klinkhard,                           
(Testified via Teleconference), Anchorage Police Department,                   
Anchorage; David Lee, (Testified via Teleconference),                          
Valdez.                                                                        
                                                                               
SUMMARY                                                                        
                                                                               
SB 323 An Act relating to sexual offenses, to those who                        
commit sexual offenses, and to registration of                                 
sex offenders; amending Rule 6(r)(2), Alaska                                   
Rules of Criminal Procedure; and providing for an                              
effective date.                                                                
                                                                               
 HCS CSSB 323 (FIN) was reported out of Committee                              
with a "do pass" recommendation and with fiscal                                
notes by the Department of Corrections and a zero                              
note by the Department of Administration dated                                 
3/12/98.                                                                       
                                                                               
SB 231 An Act making and amending capital appropriations                       
and reappropriations and capitalizing funds; and                               
providing for an effective date.                                               
                                                                               
SB 231 was HELD in Committee for further                                       
consideration.                                                                 
                                                                               
SB 350 An Act relating to tourism; relating to grants                          
for tourism marketing; eliminating the division                                
of tourism and the Alaska Tourism Marketing                                    
Council; and providing for an effective date.                                  
                                                                               
 HCS CS SB 350 (FIN) was reported out of Committee                             
with a "do pass" recommendation and with a fiscal                              
note by the Department of Commerce and Economic                                
Development dated 5/2/98.                                                      
SENATE BILL NO. 350                                                            
                                                                               
"An Act relating to tourism; relating to grants for                            
tourism marketing; eliminating the division of tourism                         
and the Alaska Tourism Marketing Council; and                                  
providing for an effective date."                                              
                                                                               
JEFFREY BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE                      
AND ECONOMIC DEVELOPMENT explained that CS SB 350 (FIN)                        
would provide an exemption from the procurement code for                       
the tourism marketing contracts.  He noted that a prior                        
version of the legislation was HB 478.  In the Senate                          
Finance Committee, a comfortable compromise with the Alaska                    
Visitors Association (AVA) and the Administration was                          
worked out.                                                                    
                                                                               
Mr. Bush explained that the legislation would eliminate the                    
Alaska Tourism Marketing Council and would provide                             
marketing for Alaska tourism through private industry.                         
This industry would be called a "qualified trade                               
association" and would be responsible for broadly                              
representing the tourism industry and which would include                      
specific sectors listed within the bill.                                       
                                                                               
Mr. Bush noted that the legislation would provide marketing                    
dollars, appropriated on an annual basis to the Division of                    
Tourism.  The Division must then define what the tourism-                      
marketing program is.  All funding would be placed on a                        
contractual line in order to decide what should be matched.                    
The bill requires a 30% match in the first year, that would                    
escalate to a 60% private section match by the third year.                     
Assuming that private industry contributes sixty cents on                      
the dollar, would give them the right to represent any                         
available program.                                                             
                                                                               
Co-Chair Therriault asked if the language was always the                       
"first right of refusal".  Mr. Bush explained that language                    
had been added in the Senate Finance Committee on Page 3,                      
Lines 21-25.                                                                   
                                                                               
Co-Chair Therriault MOVED that the work draft 0-LS1695\P,                      
Cook, 5/6/98, be the version before the Committee.                             
Representative Martin OBJECTED.  He stated that he did not                     
"like" the title and questioned if the Alaska Tourism                          
Marketing Council was being eliminated.  Co-Chair                              
Therriault commented that was the intent.  Representative                      
Martin noted that he disagreed with private industry                           
receiving money from the State and then using it to benefit                    
the small businessperson.                                                      
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Moses, J. Davies, G. Davis, Grussendorf,                             
Kelly, Therriault                                                              
OPPOSED:  Kohring, Martin                                                      
                                                                               
Representatives Foster, Mulder and Hanley were not present                     
for the vote.                                                                  
                                                                               
The MOTION PASSED (6-2).                                                       
                                                                               
In response to Co-Chair Therriault's concern, Mr. Bush                         
explained, originally, the bill was structured so that it                      
would take State money and put give it to the private                          
sector for a match.  There was concern within the                              
Administration that some important elements would be                           
removed from the program, in particular, that small                            
business representation would be lost in the marketplace.                      
                                                                               
Consequently, the bill was structured so that the State                        
would define what elements must go into a tourism program.                     
At this time, it has been established that entire amount is                    
not provided up front, but that instead, the State retains                     
enough control to define the elements necessary in a                           
tourism program.                                                               
                                                                               
Mr. Bush elaborated on the Alaska Visitors Association's                       
perspective of the bill.  The legislation would create an                      
incentive for the trade association to make sure that all                      
elements are represented in the industry.  The only way to                     
make money is to represent the entire piece of the                             
industry.  The income of the association would be dependent                    
upon membership fees, dues and voluntary contributions.                        
                                                                               
Representative Martin asked how the legislation would                          
protect the small "mom and pop" type business enterprise.                      
                                                                               
TINA LINDGREN, EXECUTIVE DIRECTOR, ALASKA VISITORS                             
ASSOCIATION, ANCHORAGE, acknowledged that Representative                       
Martin's concerns were shared throughout the industry.  She                    
cited that the proposed work draft was sent to 3,000                           
businesses around the State before it came before the                          
Legislature.  Many of those businesses shared the same                         
concern, although, in the end, 85% requested that it be                        
brought before the Legislature.                                                
                                                                               
Ms. Lindgren continued, pointing out that State funds for                      
promotion and advertising are declining.  The point of the                     
legislation is addressed toward small business, because                        
without increased marketing, they can not survive on their                     
own.  She added, the plan calls for Alaska Visitors                            
Association to be dismantled.  At that time, each business                     
will be allowed one vote, so that everyone in the program                      
will have equal power.                                                         
                                                                               
Co-Chair Therriault asked who would control access to the                      
information.  Mr. Bush responded that at this time, it is                      
written that the State and the trade association will                          
jointly own the information.  Co-Chair Therriault advised                      
that there is a prohibition on using those funds for                           
lobbying municipality or State agencies.  Mr. Bush noted                       
that there is a restriction included in the legislation                        
which would limit access to the mailing lists.                                 
                                                                               
Ms. Lindgren pointed out that Section #8 repealed ATMC and                     
purposes related to ATMC.  Mr. Bush explained the                              
difference between Sections #9 & #10; Section #9 adopts the                    
substantive bill with a 30% match requirement effective                        
July 1, 1999; Section #10 adopts an increase private                           
industry match requirement from 30% to 60% effective July                      
1, 2001.                                                                       
                                                                               
Co-Chair Therriault asked if the FY99 budget would continue                    
to operate at status quo.  Mr. Bush replied that the fiscal                    
note assumes the status quo budget, although,in fiscal year                    
2000, it would include adjustments to the match                                
requirements.  The note would eliminate personnel services                     
from ATMC and the contractual difference would be the                          
elimination of the program receipts.                                           
                                                                               
Representative J. Davies spoke to Amendment #1.  [Copy on                      
File].  He explained that the amendment would clarify the                      
intent, implied in Section #(c).  Mr. Bush stated that the                     
only problem the State would have with the amendment would                     
be inclusion of the 30% match requirement.  He believed                        
that there could be contracts with the qualified trade                         
associations in which a match would not be feasible.                           
                                                                               
Representative J. Davies offered a technical change to                         
Amendment #1, placing a period after "contract" and                            
deleting the material: "Provided that each contract be                         
matched by 30% by the successful applicant".  Mr. Bush                         
believed such action would solve the problem.                                  
                                                                               
Representative J. Davies commented that the reason the                         
language had been included was to stipulate the right of                       
first refusal.  Mr. Bush explained that there was a right                      
of first refusal provided that there was a match for all                       
contracts.  If there is no match, then the contract is free                    
to go to anyone else.  Essentially, whenever a contract is                     
entered into with the trade association, they will be                          
required to match.                                                             
                                                                               
Ms. Lindgren spoke to Amendment #1.  The amendment would                       
not preclude another contract.  She noted for the record                       
that AVA would not want to see this dilute the idea of                         
putting the majority of destination marketing to a single                      
contract with the State.                                                       
                                                                               
Representative Mulder believed that the amendment would put                    
the Director of Tourism in a strong position for marketing                     
and dealing with the agency.  Co-Chair Therriault advised                      
that the proposed amendment would amend section (b),                           
clarifying that the contract would be with a single trade                      
association.  He commented that the information specifies                      
that there could be multiple contracts and that each agency                    
has the first right of refusal.  Mr. Bush interjected that                     
there is no way that the Director of Tourism would have the                    
power to "chop it up" and deny it to a trade association.                      
                                                                               
Representative J. Davies MOVED to adopt the amended                            
Amendment #1.  There being NO OBJECTION, it was adopted.                       
                                                                               
In response to concerns by Representative Martin, Mr. Bush                     
remarked that the State has considered the possibility of                      
the association not meeting the match.  That concern will                      
be addressed in the contract process to assure that the                        
match money is there.  Ms. Lendgren advised that AVA has                       
had a contractual arrangement with the Department since                        
1989, and that meeting a match has never been an issue.                        
She emphasized that the Department has a lot of leeway in                      
writing the contract document and did not foresee that                         
being a problem.                                                               
                                                                               
DAVID LEE, (TESTIFIED VIA TELECONFERENCE), VALDEZ,                             
testified in support of the legislation.  He noted that                        
there was tremendous interest for the bill in rural Alaska.                    
He added that the most important aspect of the legislation                     
for the rural area, would be the independent traveler and                      
the international marketing.  Mr. Lee wanted assurence that                    
those efforts would continue to be supported.                                  
                                                                               
ALAN LEMASTER, (TESTIFIED VIA TELECONFERENCE), GAKONA,                         
commented that he is a small business person who supports                      
the bill 100%.                                                                 
                                                                               
Representative Mulder MOVED to report HCS CS SB 305 (FIN)                      
out of Committee with individual recommendations and with                      
the accompany fiscal note.  There being NO OBJECTION, it                       
was so ordered.                                                                
                                                                               
HCS CS SB 350 (FIN) was reported out of Committee with a                       
"do pass" recommendation and with a fiscal note by the                         
Department of Commerce and Economic Development dated                          
5/2/98.                                                                        
                                                                               
(Tape Change HFC 98- 159, Side 2).                                             
SENATE BILL NO. 323                                                            
                                                                               
"An Act relating to sexual offenses, to those who                              
commit sexual offenses, and to registration of sex                             
offenders; amending Rule 6(r)(2), Alaska Rules of                              
Criminal Procedure; and providing for an effective                             
date."                                                                         
                                                                               
OFFICIER GLEN KLINKHARD, (TESTIFIED VIA TELECONFERENCE),                       
ANCHORAGE POLICE DEPARTMENT, ANCHORAGE, testified in                           
support of the legislation.  He commented that in the last                     
year, the Anchorage Police Department has found many people                    
participating in child pornography on Internet.  The                           
legislation has been written to address the experiences of                     
the law enforcement and police officers throughout the                         
State.  Officer Klinkhard stressed that the penalties are                      
not keeping up with the technology.                                            
                                                                               
Representative Martin questioned why the State should                          
address a federal government responsibility.  Mr. Klinkhard                    
replied that many Alaskans and citizens of other states                        
have realized that this is "child abuse" and that the                          
penalties should be more severe.  He pointed out that the                      
proposed legislation would put Alaska in line with what is                     
occurring throughout the rest of the country.  The federal                     
government is not willing or able to address all the cases                     
which exist.                                                                   
                                                                               
Representative Martin asked if there were other states                         
which do not have laws covering the distribution of child                      
pornography.  Mr. Klinkhard replied that most fall under                       
the decency act which would range from a misdemeanor to a                      
felony depending on the criteria.                                              
                                                                               
Representative Mulder reiterated that the proposed law                         
would more clearly define the "intent to distribute" than                      
what currently exists in federal law.  Mr. Klinkhard                           
agreed, pointing out that State law more clearly defines                       
the difference between "for personal use" and "for                             
distribution".  Mr. Klinkhard noted that now there is                          
access to large quantities, which are being traded.  In                        
summary, he stated that stopping child pornography in some                     
cases has accomplished stopping sexual abuse of children.                      
                                                                               
Representative Mulder spoke to the large number of pieces                      
collected and the degree of "unbalance" that trends                            
indicates.  Mr. Klinkhard added, the larger the number of                      
materials collected, often indicates that the "collecting"                     
no longer brings "joy" for the perpetrator.  Representative                    
J. Davies inquired as to the prevention effort of child                        
pornographic materials distributed on the Internet.  Mr.                       
Klinkhard remarked that officers now are trying to track                       
the details of supply and demand.                                              
                                                                               
Representative G. Davis asked when "possession" would be                       
classified as a felony.  Mr. Klinkhard explained that the                      
classification would change if a person was knowingly                          
keeping and accumulating material.  The unwritten rule is                      
that more than 3 pieces of material must exist to show a                       
jury.                                                                          
                                                                               
KRISTIE TIBBLES, STAFF, SENATOR DRUE PEARCE, commented that                    
Senator Pearce had requested consideration of Amendment #3.                    
[Copy on File].  The language of the amendment conforms to                     
language contained in HB 375.  Co-Chair Therriault MOVED to                    
adopt Amendment #3.  There being NO OBJECTION, it was                          
adopted.                                                                       
                                                                               
ANNE CARPENETI, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                      
LAW, spoke to Amendment #2, previously adopted in Committee                    
on Page 3, Line 2, the insertion of "knowingly", which                         
describes the level of crime.  Ms. Carpeneti pointed out                       
that the substantive section already includes the "knowing"                    
and would not be necessary in Section #7.  The other                           
statutory location of the language is AS 11.61.127, the                        
Possession of Child Pornography.  She stated that to place                     
"knowingly" in that section was not helpful.                                   
                                                                               
Representative J. Davies stated that he would support                          
changing it to a conceptual amendment and placing it in the                    
proper section.  Representative Kelly understood that                          
possession equaled "knowingly".  Ms. Carpeneti replied that                    
was not necessarily true.  Representative J. Davies                            
indicated that he would be more comfortable including                          
language to address that specific concern.  Ms. Carpeneti                      
recommended that the proper placement would be AS                              
11.61.127(a), a provision which is not included in the                         
bill.                                                                          
                                                                               
Co-Chair Therriault MOVED to RESCIND action on Amendment                       
Representative J. Davies WITHDREW Amendment #2.  There                         
being NO OBJECTION, it was withdrawn.                                          
                                                                               
Representative J. Davies MOVED the new version of Amendment                    
new statute referenced by Ms. Carpeneti.  There being NO                       
OBJECTION, the amendment was adopted.                                          
                                                                               
Representative Martin MOVED to report HCS CS SB 323 (FIN)                      
out of Committee with individual recommendations and with                      
the accompanying fiscal notes.  There being NO OBJECTION,                      
it was so ordered.                                                             
                                                                               
HCS CS SB 323 (FIN) was reported out of Committee with a                       
"do pass" recommendation and with a fiscal note by the                         
Department of Corrections and a note by the Department of                      
Administration dated 3/12/98.                                                  
SENATE BILL NO. 231                                                            
                                                                               
"An Act making and amending capital appropriations and                         
reappropriations and capitalizing funds; and providing                         
for an effective date."                                                        
                                                                               
Co-Chair Hanley provided members with a copy of the                            
proposed bill and amendments which were passed on the                          
Senate floor.  The spreadsheet provides a comparison of the                    
slow track supplemental.  He added that the latest draft of                    
the reappropriation bill was available, as was a sectional                     
analysis for that legislation.                                                 
                                                                               
SB 231 was HELD in Committee for further consideration.                        
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 5:50 P.M.                                             
H.F.C. 9 5/06/98 p.m.                                                          

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