Legislature(1995 - 1996)

02/27/1995 03:02 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
           HOUSE LABOR & COMMERCE STANDING COMMITTEE                           
                       February 27, 1995                                       
                           3:02 p.m.                                           
 MEMBERS PRESENT                                                               
 Representative Pete Kott, Chairman                                            
 Representative Kim Elton                                                      
 MEMBERS ABSENT                                                                
 Representative Norman Rokeberg, Vice Chairman                                 
 Representative Jerry Sanders                                                  
 Representative Beverly Masek                                                  
 Representative Gene Kubina                                                    
 Representative Brian Porter                                                   
 COMMITTEE CALENDAR                                                            
 HB 116:    "An Act exempting the Alaska Seafood Marketing                     
            Institute from the State Procurement Code."                        
            PASSED OUT OF COMMITTEE                                            
 SB 55:    "An Act repealing the sunset of the enhanced 911                    
           emergency reporting systems."                                       
           PASSED OUT OF COMMITTEE                                             
 HB 146:   "An Act relating to sled dog race classics."                        
           HEARD AND HELD                                                      
 WITNESS REGISTER                                                              
 REPRESENTATIVE ALAN AUSTERMAN                                                 
 Alaska State Legislature                                                      
 Capitol Building, Room 434                                                    
 Juneau, AK  99801                                                             
 Telephone (907) 465-2487                                                      
 POSITION STATEMENT:  Prime Sponsor of HB 116                                  
 JERRY MCCUNE, President                                                       
 United Fishermen of Alaska                                                    
 211 4th St., Ste. 211                                                         
 Juneau, AK  99801                                                             
 Telephone: (907) 586-2820                                                     
 POSITION STATEMENT:  Testified in favor of HB 116                             
 DEAN WILDER, Chairman of the Board                                            
 Alaska Seafood Marketing Institute                                            
 3323 Dry Cook                                                                 
 Port Alsworth, AK  99653                                                      
 Telephone:  Not Available                                                     
 POSITION STATEMENT:  Testified in favor of HB 116                             
 ART SCHHEUNEMANN, Executive Director                                          
 Alaska Seafood Marketing Institute                                            
 1111 W. 8th St., Ste. 100                                                     
 Juneau, AK  99801                                                             
 Telephone (907) 465-2250                                                      
 POSITION STATEMENT:  Testified in favor of HB 116                             
 SENATOR JOHN TORGERSON                                                        
 Alaska State Legislature                                                      
 Capitol Building, Room 427                                                    
 Juneau, AK  99801-1182                                                        
 Telephone (907) 465-2828                                                      
 POSITION STATEMENT:  Prime Sponsor of SB 55                                   
 MARK JOHNSON, Chief                                                           
 Emergency Medical Section                                                     
 Department of Health & Social Services                                        
 P.O. Box 240249                                                               
 Anchorage, AK  99524-0249                                                     
 Telephone (907) 561-4406                                                      
 POSITION STATEMENT:  Testified in favor of SB 55                              
 KEVIN O'LEARY, Chief of Police                                                
 Anchorage Police Department                                                   
 4501 S. Bragaw                                                                
 Anchorage, AK  99507                                                          
 Telephone:  (907) 786-8595                                                    
 POSITION STATEMENT:  Testified in favor of SB 55                              
 JEFF MORRISON, Director                                                       
 Administrative Services Division                                              
 Legislative Liaison                                                           
 Department of Military & Veterans Affairs                                     
 P.O. Box 110900                                                               
 Juneau, AK  99801-0900                                                        
 Telephone (907) 564-4600                                                      
 POSITION STATEMENT:  Testified in favor of SB 55                              
 KEVIN KOCHLEIN, Emergency Services Coordinator                                
 Mat-Su Borough                                                                
 Cottonwood Public Safety Building                                             
 680 N. Seward Meridian Pkwy                                                   
 Wasilla, AK  99654                                                            
 Telephone (907) 373-8800                                                      
 POSITION STATEMENT:  Testified in support of SB 55                            
 LARRY TEAGUE, Building Inspector & Zoning Officer                             
 City of Palmer                                                                
 231 W. Evergreen                                                              
 Palmer, AK  99645                                                             
 Telephone (907) 745-3271                                                      
 POSITION STATEMENT:  Testified in favor of SB 55                              
 BRYCE EDGMON, Legislative Assistant                                           
 Representative Richard Foster                                                 
 Capitol Building, Room 410                                                    
 Juneau, AK  99801-1182                                                        
 Telephone (907) 465-3789                                                      
 POSITION STATEMENT:  Provided sponsor statement for HB 146                    
 SAM HOOLEY, Executive Director                                                
 Iditarod Trail Committee                                                      
 P.O. Box 870800                                                               
 Wasilla, AK  99687-0800                                                       
 Telephone (907) 376-5155                                                      
 POSITION STATEMENT:  Testified in favor of HB 146                             
 DAVE LAMBERT, President                                                       
 Alaska Dog Musher's Association                                               
 P.O. Box 1243                                                                 
 Fairbanks, AK  99707                                                          
 Telephone:  Not Available                                                     
 POSITION STATEMENT:  Testified against HB 146                                 
 JOHN K. HANDELAND, Mayor                                                      
 City of Nome; and                                                             
 Vice President, Iditarod Trail Committee                                      
 P.O. Box 291                                                                  
 Nome, AK  99762                                                               
 Telephone (907) 443-6663                                                      
 POSITION STATEMENT:  Testified in favor of HB 146                             
 EARL NORRIS                                                                   
 P.O. Box 33                                                                   
 Willow, AK  99688                                                             
 Telephone:  (907) 495-6346                                                    
 POSITION STATEMENT:  Testified against HB 146                                 
 NATALIE NORRIS                                                                
 P.O. Box 33                                                                   
 Willow, AK  99688                                                             
 Telephone (907) 495-6346                                                      
 POSITIONS STATEMENT:  Testified against HB 146                                
 PREVIOUS ACTION                                                               
 BILL:  HB 116                                                               
 SHORT TITLE: EXEMPT ASMI FROM PROCUREMENT CODE                                
 SPONSOR(S): SPECIAL COMMITTEE ON FISHERIES                                    
 JRN-DATE     JRN-PG               ACTION                                      
 01/25/95       131    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/25/95       131    (H)   FSH, L&C, FIN                                     
 02/13/95              (H)   FSH AT 05:00 PM CAPITOL 124                       
 02/13/95              (H)   MINUTE(FSH)                                       
 02/15/95       367    (H)   FSH RPT 2DP  3NR                                  
 02/15/95       367    (H)   DP: MOSES, ELTON                                  
 02/15/95       367    (H)   NR: G.DAVIS, OGAN, AUSTERMAN                      
 02/15/95       367    (H)   2 ZERO FISCAL NOTES (ADM, DCED)                   
 02/27/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 BILL:  SB  55                                                                
 JRN-DATE     JRN-PG               ACTION                                      
 01/26/95              (S)   READ THE FIRST TIME - REFERRAL(S)                 
 01/26/95              (S)   LABOR & COMMERCE                                  
 02/02/95              (S)   L&C AT 01:30 PM FAHRENKAMP RM 203                 
 02/02/95              (S)   MINUTE(L&C)                                       
 02/03/95       162    (S)   L&C RPT  4DP                                      
 02/03/95       162    (S)   ZERO FISCAL NOTES (DHSS, DPS, DCED)               
 02/07/95              (S)   RLS AT 11:40 AM FAHRENKAMP ROOM 203               
 02/07/95              (S)   MINUTE(RLS)                                       
 02/08/95       205    (S)   RULES TO CALENDAR  2/8/95                         
 02/08/95       207    (S)   READ THE SECOND TIME                              
 02/08/95       207    (S)   ADVANCED TO THIRD READING UNAN CONSENT            
 02/08/95       207    (S)   READ THE THIRD TIME  SB 55                        
 02/08/95       208    (S)   PASSED Y17 N1 E2                                  
 02/08/95       208    (S)   Adams  NOTICE OF RECONSIDERATION                  
 02/09/95       219    (S)   RECON TAKEN UP - IN THIRD READING                 
 02/09/95       220    (S)   RECONSIDERATION HELD TO END OF CALENDAR           
 02/09/95       223    (S)   PASSED ON RECONSIDERATION Y19 N- E1               
 02/09/95       226    (S)   TRANSMITTED TO (H)                                
 02/10/95       291    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/10/95       291    (H)   L&C                                               
 02/10/95       323    (H)   CROSS SPONSOR(S): NAVARRE                         
 02/20/95       426    (H)   CROSS SPONSOR(S): PHILLIPS                        
 02/22/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 02/22/95       453    (H)   FIN REFERRAL ADDED                                
 02/27/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 BILL:  HB 146                                                                
 SHORT TITLE: SLED DOG RACE CLASSIC                                            
 SPONSOR(S): REPRESENTATIVE(S) FOSTER,Phillips,Mulder,Navarre,Brice            
 JRN-DATE     JRN-PG               ACTION                                      
 02/03/95       235    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/03/95       235    (H)   CRA, L&C                                          
 02/13/95       343    (H)   COSPONSOR(S): IVAN                                
 02/14/95              (H)   CRA AT 01:00 PM CAPITOL 124                       
 02/14/95              (H)   MINUTE(CRA)                                       
 02/15/95       365    (H)   CRA RPT  4DP  1NR                                 
 02/15/95       366    (H)   DP: MACKIE, ELTON, IVAN, NICHOLIA                 
 02/15/95       366    (H)   NR: AUSTERMAN                                     
 02/15/95       366    (H)   ZERO FISCAL NOTE (REV) 2/15/95                    
 02/27/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 ACTION NARRATIVE                                                              
 TAPE 95-10, SIDE A                                                            
 Number 000                                                                    
 The House Labor & Commerce Standing Committee was called to order             
 by Chairman Pete Kott at 3:02 p.m.  Members present at the call to            
 order were Representatives Kott and Elton.  Members absent were               
 Representatives Rokeberg, Porter, Kubina, Masek and Sanders.                  
 CHAIRMAN PETE KOTT stated there was not a quorum present.  He                 
 announced that the meeting was on teleconference with Anchorage and           
 REPRESENTATIVE MASEK arrived at 3:03 p.m.                                     
 HL&C - 02/27/95                                                               
 HB 116 - EXEMPT ASMI FROM PROCUREMENT CODE                                  
 Number 021                                                                    
 REPRESENTATIVE ALAN AUSTERMAN, Prime Sponsor of HB 116, stated that           
 this bill was introduced to exempt the Alaska Seafood Marketing               
 Institute (ASMI) from the procurement codes.  It seeks to eliminate           
 the restrictive requirements of the state procurement code in                 
 marketing Alaskan products in the United States.  He pointed out              
 there was also an amendment to add to the original bill.                      
 REPRESENTATIVES ROKEBERG, KUBINA & SANDERS arrived at 3:05 p.m.               
 REPRESENTATIVE NORMAN ROKEBERG asked if they had any communications           
 with other entities that were exempt under this statute.                      
 REPRESENTATIVE AUSTERMAN pointed out that if they were exempt, they           
 wouldn't have any problems.                                                   
 CHAIRMAN KOTT noted that ASMI had been operating since 1981.  He              
 asked how, up until this time, they had been able to operate under            
 the confines of this statute as it currently exists.                          
 Number 100                                                                    
 REPRESENTATIVE KIM ELTON stated that changing this procurement code           
 had been a priority of the ASMI board for the past several years.             
 The problem was that the ASMI board had received a significant                
 amount of money from the state, especially in the domestic market             
 place, but within the last two years there has been a transition              
 away from this funding.  He stated that ASMI domestic marketing is            
 now completely funded by the industry.  The board recognized that             
 there might have been a problem asking to get rid of state                    
 procurement, when state general fund dollars were going into it at            
 that time.                                                                    
 REPRESENTATIVE ROKEBERG asked if the funding for ASMI was entirely            
 self-generated and whether there is anything on the horizon for               
 which they expect to ask for additional funding.                              
 REPRESENTATIVE AUSTERMAN replied that he wasn't aware of anything             
 of that nature.  He explained that the amendment to HB 116 directs            
 the ASMI board to create within themselves a procurement policy of            
 their own.                                                                    
 Number 149                                                                    
 they support HB 116.  Most of the members pay their taxes to the              
 domestic market and feel it very cumbersome to have this code                 
 restricting the way they do business.  He stated the procurement              
 code restricts actions ASMI can do under contracts.                           
 Number 173                                                                    
 DAVE WILDER, CHAIRMAN OF THE BOARD, ASMI, explained that the                  
 situation at ASMI had changed over the past two years.  It went               
 from an 18-member board to a 25-member board, made up of 12                   
 fishermen, 12 processors and 1 member of the public.  Their                   
 committee structure, which was put in place by the legislature,               
 includes a salmon marketing committee designated by the legislature           
 to oversee the moneys collected from the salmon fisheries and make            
 recommendations to the board on their behalf.  He stated the salmon           
 industry in Alaska was in a crisis.  The encroachment on sales both           
 domestically and internationally, by farmed salmon, foreign seafood           
 production, and by other protein markets, has caused them to lose             
 market share and reduces the price they receive.  He stated the               
 board directed ASMI to change their status to seek relief from the            
 state procurement code.                                                       
 MR. WILDER added they had developed a comprehensive domestic                  
 marketing plan that has brought more staff into the Lower 48                  
 operation and has brought a much greater need to have the                     
 flexibility they were seeking.  He explained several of the issues            
 that were involved as the basis for seeking this relief:  Fishermen           
 and processors finance ASMI domestic operations; they have offices            
 in Juneau and Seattle, and the majority of activities are carried             
 out in Seattle.  Many of these activities require immediate                   
 response and flexibility.  Going through the procurement code                 
 process eliminates the possibility of taking advantage of                     
 situations that would benefit the industry and allow them to sell             
 more product at higher prices.  He stated that the board was                  
 committed to a cost efficient structure to promote quality in                 
 marketing Alaskan seafood products.  Roughly 33,000 people depend             
 on the industry for full-time jobs.  He concluded that it would be            
 in the best interest of the state and the industry to get relief              
 from the procurement code.                                                    
 Number 250                                                                    
 CHAIRMAN KOTT asked for a recent example of how the procurement               
 code had adversely affected ASMI.                                             
 MR. WILDER said that recently, they had hired two people under                
 contract to represent ASMI in their domestic retail program.  They            
 were not able to go out and hire them when they needed them because           
 it was over the $25,000 limit, and it took a substantial amount of            
 time.  He also said this has been the same issue in procurement of            
 office supplies, and slows up their process in dealing with                   
 out-of-state issues.                                                          
 Number 274                                                                    
 taken a new course with a new marketing plan.  The marketing plan             
 is regional in nature, targeting the Lower 48 as the newest                   
 opportunity for Alaska's seafood expansion.  He explained that it             
 was an area that had not been evangelized in the past to the degree           
 that the seafood industry, fishermen and processors want it to be             
 in the future.  Part of the plan, based on extensive research,                
 strongly suggested that they focus on the central core of the                 
 United States, where 25 percent of the U.S. population resides                
 above average in disposable income.  The marketing strategy also              
 provided that as they become successful in those regional areas,              
 they would roll out in other regions placing five individuals for             
 a total of five regions to represent Alaska's seafood interests.              
 MR. SCHHEUNEMANN followed up on Mr. Wilder's example of the two               
 field marketing representatives that were put in place in                     
 September.  He stated that it took three and one-half months to               
 place them in the field.  Because the contract for the individual             
 was over $25,000, they couldn't advertise in the Lower 48 or do               
 normal recruitment.  These people weren't treated like potential              
 employees applying for a job.  They had to accommodate the                    
 procurement process by becoming licensed contractors in the state.            
 Instead of having those people in the field setting up contacts,              
 building relationships, and developing what needs to be done in the           
 retail marketplace, food service and consumer advertising areas,              
 they were behind the curve.  The season had been upon them for some           
 time.  He stated this would be a very cumbersome and costly process           
 when they hire the other regional representatives.  He pointed out            
 that as the organization becomes more aggressive in terms of                  
 marketing strategy, his retail director might want to work with               
 multiple contractors to provide different services at any one time.           
 He indicated that they did not want to have to go through this                
 lengthy process.                                                              
 MR. SCHHEUNEMANN pointed out that this system was designed for                
 state bureaucratic agencies to protect themselves and to make sure            
 all vendors from "outside" had equal access to state services that            
 were being contracted out.                                                    
 Number 402                                                                    
 CHAIRMAN KOTT asked if ASMI advertises within the state.                      
 MR. SCHHEUNEMANN replied that virtually all advertising is done               
 outside the state, although there is an instate awareness                     
 communications program.                                                       
 Number 428                                                                    
 REPRESENTATIVE ELTON added that many of the instate efforts of ASMI           
 have been in quality working with fishermen and processors.  He               
 expounded that you could sell a fish once, but if it's bad quality,           
 you have a tough time selling it a second time.                               
 Number 440                                                                    
 CHAIRMAN KOTT stated there was an amendment before the committee.             
 REPRESENTATIVE ROKEBERG made a motion to adopt amendment 1 to HB
 116 as presented.                                                             
 CHAIRMAN KOTT asked if there was objection.  Hearing none, the                
 amendment was adopted.                                                        
 REPRESENTATIVE ROKEBERG offered amendment 2, page 1, line 12, to              
 delete subsection 3, the Alaska Housing Finance Corporation (AHFC),           
 and to adjust the following numbers of the underlying subsections.            
 REPRESENTATIVES ELTON & KUBINA objected.                                      
 REPRESENTATIVE AUSTERMAN stated that he could not support this                
 REPRESENTATIVE ROKEBERG offered that this bill was an exemption to            
 the procurement code to the state of Alaska.  He suggested that               
 perhaps they should be looking at changing the procurement code and           
 not the exemptions.                                                           
 REPRESENTATIVE AUSTERMAN agreed with that position.  He stated he             
 would be happy to sign on if someone was willing to redraft the               
 procurement codes of the state of Alaska.                                     
 REPRESENTATIVE ELTON stated he would be intrigued and possibly a              
 Co-sponsor if there was another bill that discussed the different             
 things that AHFC was doing.  He related that the major difference             
 between AHFC and ASMI was that ASMI was using industry dollars and            
 needs the latitude that industry has in their private marketing.              
 Number 504                                                                    
 REPRESENTATIVE ROKEBERG asked Representative Elton if industry                
 dollars refer to a fish tax.                                                  
 REPRESENTATIVE ELTON answered that there were three primary income            
 streams into ASMI.  The first was the .03 percent tax on seafood              
 processed in state, the second was created by the last legislature            
 when they passed a 1 percent assessment on the value of salmon                
 product in the state, and the last income stream is federal, which            
 last year was over $5,000,000.  The later is used exclusively in              
 overseas marketing and is secured with a 15 percent cash match by             
 the state general fund.                                                       
 REPRESENTATIVE ROKEBERG withdrew his amendment.                               
 Number 542                                                                    
 REPRESENTATIVE ELTON made a motion to move CSHB 116(L&C) out of               
 committee with individual recommendations.                                    
 CHAIRMAN KOTT asked if there was any objection.  Hearing none, the            
 motion passed.                                                                
 HL&C - 02/27/95                                                               
 SB 55 - REPEALING SUNSET OF ENHANCED 911 SYSTEM                             
 Number 552                                                                    
 SENATOR JOHN TORGERSON, PRIME SPONSOR OF SB 55, stated this bill              
 repeals the sunset clause authorizing local governments that have             
 the enhanced 911 system to continue the surcharge against local               
 phone cooperatives.  He explained that local governments did not              
 want to lose this revenue stream.  It is a shared cost throughout             
 the municipality based upon this surcharge.  It was their request             
 to remove this sunset provision and let the municipalities continue           
 to collect the surcharge.                                                     
 Number 575                                                                    
 HEALTH and SOCIAL SERVICES, told the committee that they support              
 this bill.  Most of the communities and municipalities around the             
 state have or are in the process of implementing this system which            
 provides the dispatcher with the automatic number and location                
 identification of the caller.  He acknowledged that some of the               
 rural communities, particularly smaller areas that have dispatch              
 capabilities or rural highway areas outside major cities and                  
 boroughs, should somehow find a way to benefit from enhanced 911              
 systems.  He said this mechanism doesn't seem to be the way to do             
 that.  He offered that some other type of legislation may be needed           
 to address those areas of the state.  He said they would be willing           
 to work on that.                                                              
 Number 594                                                                    
 REPRESENTATIVE ROKEBERG asked what the surcharge was.                         
 MR. JOHNSON answered that for communities over 100,000 people, the            
 charge was 50 cents per phone line; for those under 100,000 people,           
 the charge would be 75 cents.                                                 
 Number 602                                                                    
 KEVIN O'LEARY, ANCHORAGE CHIEF OF POLICE, also responsible for the            
 Enhanced 911 System in the municipality of Anchorage (MOA),                   
 testified via teleconference in support of SB 55.  He stated the              
 cost in the MOA is a little in excess of $3,000,000 per year to               
 operate this system, they collect $883,000 year through the 50 cent           
 charges.  The system that rural areas have in place, does have the            
 capabilities of handling statewide enhanced 911.  If the state                
 chooses to do so, the cost would be for installation of additional            
 capacity in the computer and the tracking system.  This system has            
 been installed in some of the major municipalities in the Lower 48            
 that are larger than the population of the entire state of Alaska.            
 Number 618                                                                    
 REPRESENTATIVE JERRY SANDERS asked how many phone calls were                  
 handled each year.                                                            
 CHIEF O'LEARY replied that the Anchorage Police Department handled            
 in excess of 700,000 calls to their dispatch center, of which                 
 230,000 resulted in some type of police action.  The fire                     
 department handled between 12,000 to 15,000 runs and there were               
 approximately 26,000 emergency medical technician (EMT) runs.                 
 REPRESENTATIVE ROKEBERG stated the system was costing the                     
 municipality of Anchorage $3,000,000 per year and they were                   
 collecting approximately $883,000.  He asked Chief O'Leary what               
 the charge per phone line was, and what the 911 enhanced portion of           
 the $3,000,000 is.                                                            
 CHIEF O'LEARY answered that it was 50 cents per line, but he didn't           
 have information on the cost for the equipment at this time.                  
 REPRESENTATIVE ROKEBERG (Indisc.--end of tape)                                
 TAPE 95-10, SIDE B                                                            
 Number 000                                                                    
 REPRESENTATIVE ROKEBERG asked again what the totality of the                  
 enhanced 911 cost was.                                                        
 CHIEF O'LEARY stated that it was hard to separate the enhanced                
 section, because it is part of the computer system that brings the            
 name and location of the caller into the computer at dispatch.  He            
 explained there was one finite cost for all three functions with              
 police, fire and EMT.                                                         
 Number 018                                                                    
 CHAIRMAN KOTT pointed out that since 911 benefits the city as a               
 whole, and fire and police protection are the central function of             
 government, why not pay for this system from the city's general               
 CHIEF O'LEARY stated this was the best way to pay for a system that           
 was ongoing in terms of expenditures.  He added that they had                 
 researched the laws in other states and discovered that Alaska was            
 one of the last states not to have this type of system in place for           
 a collection of a small fee to pay for the enhancement.                       
 CHAIRMAN KOTT asked if they were raising more money than what the             
 system was costing.                                                           
 CHIEF O'LEARY answered that the money raised pays for approximately           
 one-third of the total cost of running the system.  This includes             
 the cost of the enhanced 911 equipment, the emergency operators and           
 dispatchers in various public safety access points hooked up to               
 this system.                                                                  
 Number 096                                                                    
 REPRESENTATIVE SANDERS asked if there were actually 2,000 calls per           
 day coming in to the system in Anchorage.                                     
 CHIEF O'LEARY answered yes, but of that number, perhaps 25 percent            
 of those calls actually require some sort of police action.                   
 REPRESENTATIVE SANDERS replied that $3,000,000 divided by 780,000             
 calls equals $4.00 per call.  He was astounded that 1 percent of              
 the people in Anchorage called 911 every day.                                 
 CHIEF O'LEARY stated those calls were not just 911 calls.  The 911            
 systems track and trace phone calls coming into any telephone in              
 the dispatch center.  In the event that an individual calls into a            
 business line and has some type of difficulty, the system would               
 still be able to trace that call.                                             
 REPRESENTATIVE BRIAN PORTER commented that the initial estimate of            
 what the fee should be was at best, arbitrary.  He stated he had              
 not heard anything indicating that this hasn't been a benefit to              
 REPRESENTATIVE SANDERS asked if there was any reference to this               
 when they put the bill through a few years ago.                               
 REPRESENTATIVE PORTER stated that part of the ability of this                 
 system is that a computer can display who is making the call.  For            
 instance, the child who doesn't know where they live or the person            
 whose house is burning and they just forget they're at home as                
 opposed to the job.  Sometimes these people forget to call 911, or            
 they sometimes call in on other numbers.                                      
 Number 111                                                                    
 REPRESENTATIVE SANDERS asked about the anonymous informant that is            
 trying to help the police without getting himself in trouble.                 
 REPRESENTATIVE PORTER answered that it could apply to that.                   
 Number 150                                                                    
 order to clear up a letter sent by General Lestenkof dated February           
 2, 1995, to Representative Kay Brown.  The purpose of the letter              
 was simply to raise issues, not to take any stand or make                     
 recommendations on the bill.  There are some issues concerning                
 statewide 911 systems.  The nature of the letter was to raise those           
 issues and that was all.  He said he will be drafting a letter to             
 be signed by General Lestenkof and forwarded to Senator Torgerson             
 stating this and clarifying the issue.                                        
 CHAIRMAN KOTT pointed out that he had spoken to Mr. Harpring on the           
 matter, and he had stated the same.                                           
 Number 195                                                                    
 Enhanced 911 Project Manager, testified via teleconference and                
 reiterated Chief O'Leary's comments that the borough was very much            
 in support of SB 55.  The surcharge had allowed them to initiate              
 the process to get enhanced 911 services in the Mat-Su Borough.  He           
 explained they have had a basic 911 system over the last few years.           
 The surcharge uses the additional funding over and above what is              
 locally generated from tax revenues to purchase the equipment and             
 the software and staffing to actually place enhanced systems on               
 line.  He stated their enhanced system should be on line late                 
 summer or early fall of next year.  He stated that with Palmer's              
 contract for dispatch services, the entire cost of the system                 
 should run approximately $850,000 this year.  The surcharge would             
 generate approximately $190,000 from the surcharge.                           
 In closing, MR. KOCHLEIN encouraged the movement of SB 55 through             
 the House.                                                                    
 PALMER, testified that they were in support of SB 55.  His only               
 comment was that they might consider Alaska Public Utilities                  
 Commission (APUC) or some agency oversight if there was a concern             
 over the use of the 911 money.                                                
 Number 242                                                                    
 REPRESENTATIVE PORTER clarified that this system does not display             
 every incoming call to the police department.  If a call comes in             
 directly to a detective's phone and it is determined that call is             
 a 911 call, it would be rerouted to the 911 Center.  There is not             
 a display by every phone in the police department that calls up the           
 subscriber of the number.                                                     
 CHAIRMAN KOTT submitted that they should place this with APUC.                
 REPRESENTATIVE ROKEBERG asked why the sponsor does not delete the             
 language, rather than extend the date.                                        
 SENATOR TORGERSON stated he did not see the state ever going back             
 and funding this amount of money being collected now.  He stated it           
 was a good system working well and helps offset the costs of the              
 enhanced 911 systems, and just extending the date out would mean              
 repeating this again in a couple of years.                                    
 REPRESENTATIVE ELTON commented that this bill allows municipalities           
 to make their own decisions.                                                  
 Number 297                                                                    
 REPRESENTATIVE ROKEBERG pointed out that he supports Enhanced 911,            
 but as a legislator he objects to voting on something for which the           
 cost is not determined.                                                       
 SENATOR TORGERSON commented that the enhanced system was part of              
 the mapping system.  When called, the system would trace that call.           
 In the Kenai Peninsula Borough they took even the utilities, so               
 they were all using the same mapping system.                                  
 Number 320                                                                    
 CHAIRMAN KOTT asked Chief O'Leary if the Eagle River area is                  
 complete and on line with the enhanced systems.                               
 CHIEF O'LEARY stated there was a small lag time where they had a              
 problem with the specific address correction information, but this            
 had been corrected.  If you live in Eagle River, Chugiak or Eklutna           
 it does come into their dispatch center.                                      
 REPRESENTATIVE ELTON made a motion to move SB 55 with attached zero           
 fiscal notes and individual recommendations out of committee.                 
 CHAIRMAN KOTT asked if there was any objection.  Hearing none, the            
 motion was passed.                                                            
 HL&C - 02/27/95                                                               
 HB 146 - SLED DOG RACE CLASSIC                                              
 FOSTER, stated that HB 146 was intended to give the Iditarod Race             
 an alternative method to raising funds.  He stated that the siege             
 by animal rights activists has caused many corporate sponsorships             
 to withdraw their financial support.  This, combined with the                 
 removal of legislative funds has put the Iditarod in a precarious             
 position and threatens the future of the race.                                
 MR. EDGMON stated that HB 146 creates a separate category in the              
 charitable gaming statutes that devises the sled dog classic                  
 enabling the Iditarod Trail Committee to conduct a statewide                  
 sweepstakes.  The trail committee would sell raffle tickets to                
 contestants, both in Alaska and outside, for wagering on arrival              
 times both at the check points and into the finishing line in Nome.           
 He added, there is a minor change to tighten the title to make the            
 language exclusive to the Iditarod Sled Dog Race.                             
 Number 378                                                                    
 REPRESENTATIVE ELTON asked why the sponsor felt it necessary to               
 change the title.                                                             
 MR. EDGMON stated this was a technical change.  The Senate version            
 has that same title, and they felt that the vote could go through             
 in its original form.  Tightening this would make further assurance           
 that this was specifically for the Iditarod Race.                             
 Number 388                                                                    
 REPRESENTATIVE GENE KUBINA disagreed with Mr. Edgmon.  He felt that           
 the language within the legislation should be changed if they                 
 wanted to tighten it.                                                         
 MR. EDGMON explained that the category of sled dog race classics is           
 supported by Section 4.  It defines sled dog race classic                     
 pertaining to Iditarod Sweepstakes, operated and administered by              
 the Iditarod Trail Committee.                                                 
 Number 420                                                                    
 REPRESENTATIVE BEVERLY MASEK asked why this should be just for the            
 Iditarod when there are two major sled dog races in the state of              
 Alaska; the Yukon Quest being one of them.  She explained that many           
 races in the state were in financial trouble, and that is why the             
 language should be changed so as not to focus on just one race.               
 MR. EDGMON commented that the charitable gaming issues are a                  
 sensitive subject, and that many bills have not made it through the           
 legislature.  He explained that Representative Foster's position in           
 introducing this bill is that the Iditarod Race represents the                
 state of Alaska.  Certainly there are many regional races that                
 could stand to benefit from using this kind of mechanism, but if              
 they open this legislation up to other races, then they may as well           
 open it up to gaming activities for other organizations.  He stated           
 the Iditarod Race is "The Last Great Race" and benefits the entire            
 Number 452                                                                    
 REPRESENTATIVE SANDERS observed that dog mushing is like baseball;            
 if you eliminate the smaller races, wouldn't you be left with a               
 hollow Iditarod Race.  He stated that he would be more comfortable            
 supporting this if it covered sled racing as a whole and not just             
 the Iditarod.                                                                 
 MR. EDGMON brought up the Nenana Ice Classic which has raised a               
 large amount of money for worthwhile organizations.  He stated the            
 Iditarod Race means a lot to the state of Alaska, and without a               
 mechanism to raise money, the future of the Iditarod is in peril.             
 REPRESENTATIVE SANDERS asked if he felt that broadening the                   
 legislation would hurt the Iditarod.                                          
 MR. EDGMON stated that broadening this legislation would hurt the             
 chances of this bill getting through.                                         
 REPRESENTATIVE MASEK stressed that accountability should be kept in           
 mind with any type of organization.  She felt they shouldn't just             
 focus on the Iditarod, but they should look beyond that.                      
 Number 489                                                                    
 REPRESENTATIVE KUBINA noted there had been mention of the Nenana              
 Ice Classic, and its restrictiveness because it existed before                
 1959.  He didn't feel that you would want to have an Ice Classic in           
 every river.  He summarized that he was sympathetic to this bill              
 and wouldn't want to expand it.                                               
 REPRESENTATIVE ROKEBERG recalled that there had been a Tanana Ice             
 Number 509                                                                    
 testified in favor of HB 146.  He stated the Iditarod and its large           
 national sponsors had been the target of an ever-increasing amount            
 of negative and harmful publicity by various radical                          
 (indisc.--coughing).  He said they needed a way to diversify their            
 funding base.  This past spring, the two remaining outside sponsors           
 announced that they wouldn't be renewing their sponsorship due to             
 various pressures.  As a result, $300,900 disappeared from the race           
 budget this year, and an additional $190,000 will disappear next              
 year.  He stated for the past six months, they have worked hard to            
 recoup those lost revenues.  These revenues had made it possible              
 for the ITC to stage the caliber of race that Alaskans have come to           
 expect.  Through international and national coverage, ITC has been            
 able to help the visitor industry.  He concluded that the ITC                 
 believes it vitally important to put a mechanism in place to insure           
 the long term financial stability of the race, and HB 146 does just           
 that.  In a game of chance for prices, money would be awarded to              
 the closest guess of the winning time of the Iditarod.  He stated             
 this measure is not a way to wager on the race, but a way to                  
 predict the winning time.  They felt that would do away with any              
 mischief or potential fraud.  The economic impact report of 1992              
 indicated that the Iditarod attracted 16 percent of out-of-state              
 visitors during the fall, winter and spring seasons.  Today, the              
 percentage is much higher than this.  He mentioned that the                   
 television coverage of the race has significantly benefitted the              
 visitor industry.  Approximately half of the broadcast time                   
 accentuated issues and images support tourism.  He pointed out                
 they weren't saying that the Iditarod was a better race than the              
 others.  The Iditarod has borne the brunt of these groups because             
 it's so visible.                                                              
 REPRESENTATIVE MASEK asked if the Iditarod was supposed to be the             
 Last Great Race, the greatest in the United States, the world, why            
 were they undergoing so many financial problems.  She further                 
 stated the Humane Society issues had been brought up many years               
 ago.  She asked why the committee doesn't work with the Humane                
 Society of the United States (HSUS).  She also asked what the                 
 relationship was with the villages along the trail.                           
 MR. HOOLEY responded that as an organization, the ITC is forced by            
 large national sponsors to work with animal rights groups to                  
 insulate them from being publicly attacked by these groups as well.           
 In their opinion, the various animal rights groups want to use this           
 event and the visibility that surrounds this event to more                    
 effectively compete for a larger share of that multi-million dollar           
 pie that is donated to these groups annually.  The HSUS manipulated           
 certain facts, arranged for exclusive interviews on Good Morning              
 America and were not dealing with the ITC in good faith.  The ITC             
 didn't see the benefit of working with People for Ethical Treatment           
 of Animals (PETA)., International Society for Animal Rights (ISAR),           
 and HSUS.  He stated this legislation is an attempt to return the             
 control of the race to Alaska.                                                
 MR. HOOLEY responded to the question of relationships with the                
 villages.  He said that more of an effort would be put into                   
 enhancing those relationships in the years to come.  He stated they           
 were sensitive to the need of making this race more accessible to             
 the Native community.  He said that this year there was only one              
 Native participating.                                                         
 REPRESENTATIVE MASEK interjected that there weren't any.                      
 MR. HOOLEY stated that Ramy Brooks is a Native and he strongly                
 objected to the media reporting that there weren't any Natives                
 participating.  The ITC and the media heard about it.  He explained           
 that as this race becomes more competitive, it becomes more                   
 expensive to participate.  People off the road system, be it in the           
 Native community or otherwise, find it very difficult to be a part            
 of this race.                                                                 
 TAPE 95-11, SIDE A                                                            
 Number 000                                                                    
 REPRESENTATIVE MASEK noted that in the past few years she had                 
 received correspondence and phone calls from villagers that were              
 negative towards the ITC.  She clarified that the children playing            
 along the trail were finding discarded syringes from vaccinations             
 and garbage, and this was very disturbing to the villagers.  She              
 asked what level of funding goes out to the cleanup effort.  Also,            
 she said she hasn't seen much effort in putting any type of                   
 education out to the Native communities.                                      
 MR. HOOLEY stated that an advisory council of leaders from around             
 the state was formed specifically to address key issues.  One of              
 those was village relationships.  He noted that this takes some               
 time to work through what specific actions should be taken.  He               
 stated they had discussed trail cleanup some time ago.  He asked              
 whether those complaints came subsequent to the 1994 race, and he             
 recalled that this was an issue in the 1993 race.  He did not think           
 those were issues this past year.                                             
 REPRESENTATIVE MASEK stated that being a participant from 1990 to             
 1993, going through the check points and meeting the people, that             
 she still hears from them today.                                              
 Number 067                                                                    
 CHAIRMAN KOTT asked what kind of revenue would be brought in, and             
 how the moneys would be disseminated.                                         
 MR. HOOLEY said his organization would look at all the important              
 issues.  Their ability to do all they should do, such as sweeping             
 the trail, is limited by the amount of money they have at this                
 point.  They do have a line item plugged in this year specifically            
 for trail cleanup.  They expect to make even more progress this               
 year than they did last year.  He explained that they had not                 
 worked out a specific plan for the sharing of the proceeds yet.               
 They are going to work with the Department of Revenue, Division of            
 Charitable Gaming, to establish something that makes sense.  If the           
 Nenana Ice Classic sells over 250,000 tickets, the ITC feels that             
 it's not unreasonable to think that they couldn't sell 1 million              
 tickets given the right effort.                                               
 REPRESENTATIVE ELTON asked for a copy of the articles of                      
 incorporation for the ITC.                                                    
 REPRESENTATIVE SANDERS asked if any members on the board of                   
 directors were past or present mushers.                                       
 MR. HOOLEY indicated that of the ten member board, five of the                
 members were mushers.  He didn't have the exact list in front                 
 of him.  He stated the board had been dominated by active members             
 of the mushing community.  The current board has recognized the               
 need to balance this;  as organization has become more of a                   
 business, it is important that it be run like a business.                     
 Number 196                                                                    
 REPRESENTATIVE SANDERS compared the smaller races to farm teams in            
 baseball.  He asked if most of the mushers in the Iditarod come               
 from these smaller races and work their way up.  He stated that if            
 this is true, and they fail, won't the Iditarod run out of young              
 people working their way into the system.                                     
 MR. HOOLEY stated that the Iditarod certainly isn't the first race            
 that is run.  There are specific qualifying procedures in which               
 individuals need to complete 500 miles to compete, and they do this           
 through the other races.  He stated they had a great interest in              
 insuring that dog mushing, particularly mid to long distance                  
 mushing, remain viable and healthy.  The overall health of the                
 Iditarod translates directly back into how much interest people are           
 going to have in mushing.                                                     
 Number 286                                                                    
 (ADMA), testified via teleconference that he was against HB 146.              
 He stated the gaming laws currently allow for sled dog classics.              
 The ADMA has a yearly classic on the Open North American Sled Dog             
 Race.  The law allows for betting on finishing places and finishing           
 time.  He said that at this time, it was legal to do parimutuel               
 betting in the state just as if you were doing it on horses.  He              
 said the ADMA had talked about having a sled dog classic on the               
 Iditarod, but decided they didn't want to be associated with the              
 Iditarod.  He stated that the last paragraph of the legislation               
 would bar any organization from having a sled dog classic, and the            
 Iditarod would be the one and only.  He said the classics were a              
 viable fund raising tool for many organizations and villages.  In             
 conclusion, he stated that if the trail committee wanted to have a            
 classic, they could do that legally now.                                      
 CHAIRMAN KOTT asked if he was opposed to having any betting on dog            
 racing now or would he agree to allow betting on other races.                 
 MR. LAMBERT reiterated that it currently is legal to bet on                   
 finishing places and finishing times in all dog sled races under              
 dog sled contests.  He stated that this legislation would simply              
 bar anyone else from having a classic.                                        
 REPRESENTATIVE PORTER stated it was his understanding that this               
 bill wouldn't change the kind of betting described by Mr. Lambert.            
 MR. LAMBERT stated that the parimutuel betting was a separate                 
 issue.  The sled dog classic and betting on finishing times, under            
 the regulation states "sweepstakes offered and administered by the            
 Iditarod Trail Committee."                                                    
 REPRESENTATIVE PORTER stated this was under definition of sled dog            
 race classic.  He assumed there was also a definition in the                  
 statute of dog musher's contests.  He stated this definition does             
 not seek to limit or expand that definition; therefore, if it were            
 legal it would continue to be legal.                                          
 MR. LAMBERT explained it covers that you can bet on the finishing             
 time, and the sled dog classic is betting on the finishing time.              
 Therefore, if you limit betting on the finishing time to the sled             
 dog classic through the Iditarod Sweepstakes, how does that allow             
 anyone else.                                                                  
 REPRESENTATIVE PORTER replied that you could still do it under dog            
 musher's contests.                                                            
 MR. LAMBERT then asked what was the purpose was of this                       
 Number 318                                                                    
 testified via teleconference in support of HB 146.  He commented              
 that during the last couple years, the attack by special interest             
 groups has resulted in severe financial hardship.  He stated that             
 the board has been reviewing their operations and is making ongoing           
 operational change.  As a short term solution for their crisis,               
 they've turned to state sponsors.  With the elimination of the                
 controlling animal rights groups, many of the old sponsors in the             
 state increased their sponsorship.  He didn't see how they could              
 continue to milk the instate sponsors.  They feel that this                   
 legislation is an opportunity to increase revenue.  He stated this            
 wouldn't change the particular item with dog musher's classic.  As            
 a separate provision under the definition of Alaska Statute                   
 05.15.690, Subsection 11, this would be in addition to the statute,           
 similar to the Nenana Ice Classic.  They believe that the Iditarod            
 has a year-round impact on the economy in Nome, as well as around             
 the state as a whole.  Media coverage exports Alaska's name to the            
 world, which generates interest and intrigue; translating into                
 tourism throughout the state.  He stated being the city at the end            
 of the trail, they have seen changes to the race organization.  The           
 board made amendments for funding the cleanup of the villages.                
 They made rules requiring the mushers to take with them many of the           
 items previously disposed of in the villages.  He stated they were            
 committed, as a board, to work on any problems that do exist and,             
 once again, to make this an event that all Alaskans can be proud              
 of.  They would like to stand on their own without having people              
 from the Lower 48 dictate how they're going to operate.                       
 EARL NORRIS testified via teleconference that he has been mushing             
 since 1946.  He is considered the founder of the Anchorage Fur                
 Rendezvous and is a charter member of the Alaska Dog Musher's                 
 Association in Fairbanks.  He stated he was against HB 146.  Dog              
 racing as a whole needs support.  It shouldn't be limited to one              
 organization.  He pointed out that he wasn't against the Iditarod;            
 he had competed in it.                                                        
 Number 421                                                                    
 NATALIE NORRIS concurred with her husband, that the sport of sled             
 dog racing in Alaska does need help.  All the races contribute;               
 therefore, she would like to have the last paragraph of the bill              
 changed to include other races.                                               
 CHAIRMAN KOTT stated that HB 146 would be held over until the next            
 committee meeting.                                                            
 There being no further business to come before the House Labor &              
 Commerce Committee, Chairman Kott adjourned the meeting at 5:15               

Document Name Date/Time Subjects