Legislature(1993 - 1994)

04/17/1993 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                         April 17, 1993                                        
                            8:00 a.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Al Vezey, Chairman                                            
  Representative Pete Kott, Vice Chairman                                      
  Representative Harley Olberg                                                 
  Representative Gary Davis                                                    
  Representative Fran Ulmer                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Bettye Davis                                                  
  Representative Jerry Sanders                                                 
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative David Finkelstein                                             
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Confirmation Hearings:                                                       
       State Board of Public Accountancy:                                      
            Bradley Schaefer, CONFIRMATION RECOMMENDED 5-0                     
            Jean Schmitt, CONFIRMATION RECOMMENDED 5-0                         
            Charles Griffin, CONFIRMATION RECOMMENDED 5-0                      
                                                                               
  HB 115    "An Act extending the termination of the Alaska                    
            Tourism Marketing Council; and providing for an                    
            effective date."                                                   
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  HB 248    "An Act relating to predator control programs and                  
            hunting of predators."                                             
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  MCKIE CAMPBELL, Deputy Commissioner                                          
  Department of Fish and Game                                                  
  P.O. Box 25526                                                               
  Juneau, Alaska 99801-5526                                                    
  465-4100                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  BILL BURKE                                                                   
  P.O. Box 240742                                                              
  Douglas, Alaska  99824                                                       
  780-6019                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  IRENE MORRIS                                                                 
  Alaska Environmental Lobby                                                   
  P.O. Box 22151                                                               
  Juneau, Alaska  99801                                                        
  364-2729                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  REPRESENTATIVE DAVID FINKELSTEIN                                             
  Alaska State Legislature                                                     
  Court Room 612                                                               
  Juneau, Alaska 99801-1182                                                    
  465-2435                                                                     
  Position Statement: Prime Sponsor of HB 248                                  
                                                                               
  BERNADETTE ZIMMERMAN                                                         
  P.O. Box 1476                                                                
  Palmer, Alaska 99645                                                         
  745-9510                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  CATHERINE RICHARDSON                                                         
  P.O. Box 80766                                                               
  Fairbanks, Alaska  99708                                                     
  479-2362                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  CHARLES DERRICK                                                              
  891 Seldom Seen Road                                                         
  Fairbanks, Alaska 99712                                                      
  488-3093                                                                     
  Position Statement: Opposed HB 248 & HB 115                                  
                                                                               
  RALPH SEEKINS, President                                                     
  Alaska Wildlife Conservation Association                                     
  1625 Old Steese Highway                                                      
  Fairbanks, Alaska 99701                                                      
  452-1991                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  GREG MACHACEK                                                                
  P.O. Box 56245                                                               
  North Pole, Alaska 99705                                                     
  488-4534                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  KENNETH FORBES                                                               
  2593 Yakutat Drive                                                           
  North Pole, Alaska 99705                                                     
  488-4263                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  DAVE MACHACEK                                                                
  P.O. Box 55905                                                               
  North Pole, Alaska 99705                                                     
  488-7164                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  DAVID VANDENBURG                                                             
  Alaska Environmental Center                                                  
  218 Driveway                                                                 
  North Pole, Alaska 99705                                                     
  452-5021                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  STEVEN WELLS                                                                 
  Alaska Wildlife Alliance                                                     
  P.O. Box 202022                                                              
  Anchorage, Alaska 99520                                                      
  277-0897                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  WAYNE HALL                                                                   
  P.O. Box 190455                                                              
  Anchorage, Alaska 99519                                                      
  Position Statement: Supported HB 248                                         
                                                                               
  TERRY BURRELL                                                                
  3716 Weslyan Drive                                                           
  Anchorage, Alaska 99508                                                      
  563-4454                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  MARILYN HOUSER                                                               
  2411 Ingra Street                                                            
  Anchorage, Alaska 99508                                                      
  276-6563                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  JOHN PETER CREIGHTON                                                         
  P.O. Box 2013                                                                
  Bethel, Alaska 99559                                                         
  543-4174                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  AMELIE REDMAN                                                                
  P.O. Box 991                                                                 
  Bethel, Alaska 99559                                                         
  543-2154                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  CAROL JANSEN                                                                 
  8451 Greenhill Way                                                           
  Anchorage, Alaska 99502                                                      
  344-7078                                                                     
  Position Statement: Supported HB 248                                         
                                                                               
  MIKE TINKER                                                                  
  P.O. Box 25197                                                               
  Ester, Alaska 99725                                                          
  479-3712                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  DICK BISHOP                                                                  
  1555 Gus's Grind                                                             
  Fairbanks, Alaska 99709                                                      
  455-6151                                                                     
  Position Statement: Opposed HB 248                                           
                                                                               
  BOB JACOBSEN                                                                 
  Alaska Visitors Association                                                  
  1873 Shell Simmons Drive                                                     
  Juneau, Alaska  99801                                                        
  789-0970                                                                     
  Position Statement: Supported HB 115                                         
                                                                               
  TINA LINDGREN, Executive Director                                            
  Alaska Tourism Marketing Council                                             
  3601 C Street #200                                                           
  Anchorage, Alaska  99503                                                     
  563-2259                                                                     
  Position Statement: Supported HB 115                                         
                                                                               
  ANN CAMPBELL                                                                 
  Alaska Center for Economic Development                                       
  1577 C St., Suite 304                                                        
  Anchorage, Alaska 99502                                                      
  248-7680                                                                     
  Position Statement: Supported HB 115                                         
                                                                               
  LINDA MCLAUGHLIN                                                             
  Anchorage Convention and Visitors Bureau                                     
  3830 W. International Airport Road                                           
  Anchorage, Alaska 99502                                                      
  344-4330                                                                     
  Position Statement: Supported HB 115                                         
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 115                                                                
  SHORT TITLE:  EXTEND TOURISM MARKETING COUNCIL                               
  BILL VERSION:                                                                
  SPONSOR(S):   LABOR & COMMERCE                                               
                                                                               
  TITLE: "An Act extending the termination date of the Alaska                  
  Tourism Marketing Council; and providing for an effective                    
  date."                                                                       
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/03/93       213    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/03/93       213    (H)   TRADE & TOURISM, LABOR & COMM,                   
                              FINANCE                                          
  02/18/93              (H)   ITT AT 05:00 PM CAPITOL 102                      
  02/18/93              (H)   MINUTE(ITT)                                      
  02/18/93              (H)   MINUTE(TRA)                                      
  02/24/93       442    (H)   STA REFERRAL ADDED, FOLLOWING                    
                              L&C                                              
  02/25/93       453    (H)   ITT RPT  CS(ITT) NEW TITLE  6DP                  
  02/25/93       454    (H)   DP: GREEN, SANDERS, NORDLUND,                    
                              MENARD                                           
  02/25/93       454    (H)   DP: TOOHEY, JAMES                                
  02/25/93       454    (H)   -ZERO FISCAL NOTE  (DCED)                        
                              2/25/93                                          
  03/02/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/02/93              (H)   MINUTE(STA)                                      
  03/02/93              (H)   MINUTE(L&C)                                      
  03/03/93       517    (H)   L&C RPT  6DP                                     
  03/03/93       517    (H)   DP: PORTER, SITTON, MULDER,                      
                              WILLIAMS                                         
  03/03/93       517    (H)   DP: GREEN, HUDSON                                
  03/03/93       517    (H)   -PREVIOUS ZERO FN  (DCED)                        
                              2/25/93                                          
  03/03/93       517    (H)   REFERRED TO STATE AFFAIRS                        
  04/17/93              (H)   STA AT 08:00 AM BUTROVICH ROOM                   
                              205                                              
                                                                               
                                                                               
  BILL:  HB 248                                                                
  SHORT TITLE:  AERIAL HUNTING OF PREDATORS                                    
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) FINKELSTEIN                                  
                                                                               
  TITLE: "An Act relating to predator control programs and                     
  hunting of predators.                                                        
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/22/93       732    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/22/93       733    (H)   STATE AFFAIRS, RESOURCES,                        
                              FINANCE                                          
  04/17/93              (H)   STA AT 08:00 AM BUTROVICH ROOM                   
                              205                                              
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-41, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN AL VEZEY called the House State Affairs Committee                   
  to order at 8:04 a.m. on April 13, 1993.  Members present                    
  were Representatives Kott, Olberg, G. Davis and Ulmer,                       
  representing a quorum.                                                       
                                                                               
  CONFIRMATION HEARINGS:  STATE BOARD OF PUBLIC ACCOUNTANCY                    
                                                                               
  Number 012                                                                   
                                                                               
  CHAIRMAN VEZEY announced the confirmation hearings for the                   
  State Board of Public Accountancy, and opened discussions on                 
  nominee BRADLEY SCHAEFER.  Mr. Schaefer was neither present,                 
  nor on teleconference for questions.                                         
                                                                               
  Number 034                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS MOVED the nomination of BRADLEY                    
  SCHAEFER.  There was no objection.                                           
                                                                               
  Number 046                                                                   
                                                                               
  CHAIRMAN VEZEY initiated discussion on the nomination of                     
  JEAN SCHMITT to the board.  Ms. Schmitt was neither present,                 
  nor on teleconference for questions.                                         
                                                                               
  Number 059                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS MOVED the nomination of JEAN SCHMITT                 
  to the board.  There were no objections.                                     
                                                                               
  Number 066                                                                   
                                                                               
  CHAIRMAN VEZEY initiated discussion on the nomination of                     
  CHARLES GRIFFIN to the board.  Mr. Griffin was neither                       
  present, nor on teleconference for questions.                                
                                                                               
  Number 075                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG MOVED the nomination of CHARLES                 
  GRIFFIN to the board.  There were no objections.                             
  HB 248:  AERIAL HUNTING OF PREDATORS                                         
                                                                               
  Number 091                                                                   
                                                                               
  CHAIRMAN VEZEY then read the title to HB 248, and not seeing                 
  its sponsor present, invited public testimony.                               
                                                                               
  Number 107                                                                   
                                                                               
  MCKIE CAMPBELL, DEPUTY COMMISSIONER, ALASKA DEPARTMENT OF                    
  FISH AND GAME, testified in opposition to HB 248.  He stated                 
  the department could not support HB 248 because it, and SB
  77, were both created in reaction to the aerial wolf hunt                    
  controversy.  The department believes both bills to be in                    
  error because HB 248 would effectively preclude predator                     
  control except under the most extreme circumstances, and                     
  SB 77 would mandate it.  He also stated the powers involved                  
  in each bill are already built into the department's duties,                 
  making them unnecessary.                                                     
                                                                               
  REPRESENTATIVE G. DAVIS asked if HB 248 effectively tied the                 
  hands of department officials.                                               
                                                                               
  Number 150                                                                   
                                                                               
  MR. CAMPBELL stated there are already some regulations in                    
  effect that are covered by HB 248.  He stated there were                     
  several problems with HB 248, including the phrase stating                   
  predator control could only be undertaken if predators are                   
  the primary cause of ungulate population depletions.  He                     
  stated that predators are not always the primary cause of a                  
  depletion, but they can put prey into the "predator pit"                     
  model of populations after weather or other Outside factors                  
  kill off significant numbers.  He also said getting written                  
  assurances from the federal government to undertake                          
  population control would be near impossible to do under HB
  248, and not likely to be done in a timely manner in any                     
  case.                                                                        
                                                                               
  Number 186                                                                   
                                                                               
  CHAIRMAN VEZEY asked if it seemed HB 248 made wolf control                   
  almost impossible until ungulate populations were extinct.                   
                                                                               
  Number 194                                                                   
                                                                               
  MR. CAMPBELL felt HB 248 was "ungulate unfriendly," and that                 
  the phrases built into the bill made it unlikely any                         
  predator control could occur.  He stated any controls might                  
  be delayed unreasonably by HB 248.                                           
                                                                               
  Number 207                                                                   
                                                                               
  BILL BURKE testified in support of HB 248.  He stated HB 248                 
  is a comprehensive game management effort that stops the                     
  needless killing of wildlife for hunters.                                    
                                                                               
  Number 225                                                                   
                                                                               
  IRENE MORRIS OF THE ALASKA ENVIRONMENTAL LOBBY testified in                  
  support HB 248.  She supported the use of scientific data                    
  for game management and believed single species management                   
  supported by hunters was wrong.  She noted the need for                      
  wildlife to be protected as the eco-tourism movement grows,                  
  and stated aerial hunting of wolves is unethical.                            
                                                                               
  Number 255                                                                   
                                                                               
  REPRESENTATIVE DAVID FINKELSTEIN, PRIME SPONSOR OF HB 248,                   
  presented his sponsor statement.  He stated the intent of                    
  HB 248 was to develop a system similar to the one now in use                 
  in the Yukon Territory in Canada.  He stated the intent of                   
  HB 248 was to take into account several factors in game                      
  management, including subsistence use, tourism, hunting and                  
  consumptive use.  Accordingly, control would not be done by                  
  private citizens under the direction of the state, but by                    
  Fish and Game officers.  In addition, he stated the intent                   
  of HB 248 was not to eliminate wildlife control, but rather                  
  to set up guidelines for its use.                                            
                                                                               
  CHAIRMAN VEZEY asked if HB 248, as written, seemed to be                     
  "anti-ungulate" and written more in favor of predators.                      
                                                                               
  REPRESENTATIVE FINKELSTEIN stated it was his intent to                       
  achieve a balance between predators and prey, and the bill                   
  was not written in favor of one species.  He admitted HB 248                 
  is written in favor of predators.                                            
                                                                               
  Number 335                                                                   
                                                                               
  BERNADETTE ZIMMERMAN testified by teleconference from Mat-Su                 
  in favor of HB 248.  She stated there is a mentality in                      
  certain sectors of the population that yearned for the "Gold                 
  Rush Days," in which if it competed with man for food, it                    
  (predators) should be shot.  She stated this mentality was                   
  antiquated, and the Board of Game was more concerned about                   
  moose and caribou populations than total system management.                  
  She stated aerial hunting of wolves is morally and ethically                 
  wrong.                                                                       
                                                                               
  Number 388                                                                   
                                                                               
  CATHERINE RICHARDSON testified by teleconference from                        
  Fairbanks in support of HB 248.  She liked HB 248 because it                 
  opposed wolf control in general, restricted subsistence                      
  hunting, was consistent with federal law, set up an annual                   
  review, and any control program would be carried out by the                  
  government and not the public.                                               
                                                                               
  Number 408                                                                   
                                                                               
  CHARLES DERRICK testified by teleconference from Fairbanks                   
  in opposition to HB 248.  He stated the need for effective                   
  control programs, especially in light of the drop in                         
  Fairbanks area caribou populations by more than 50% in the                   
  last few months.  He expressed concern that the populations                  
  might be falling into the "predator pit," and he was worried                 
  many calves would fall prey, which could restrict the                        
  population further.  He stated this was an example of an                     
  "emergency condition" and called for HB 248's defeat.                        
                                                                               
  Number 431                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS asked how long Mr. Derrick had been                  
  working on the wolf management plan that had been agreed                     
  upon.                                                                        
                                                                               
  Number 436                                                                   
                                                                               
  MR. DERRICK stated he had been working on such a plan with                   
  others since 1974, but specifically on the latest plan for                   
  at least two years.  He stated the Strategic Wolf Management                 
  Plan was the product of testimony from several groups and                    
  that it had been wrongly struck down because of pressure                     
  from those who simply didn't have the facts.                                 
                                                                               
  Number 451                                                                   
                                                                               
  RALPH SEEKINS, PRESIDENT, ALASKA WILDLIFE CONSERVATION                       
  ASSOCIATION, testified by teleconference from Fairbanks in                   
  opposition to HB 248.  He said any bill that states the                      
  ungulate population must be in serious jeopardy is                           
  sophomoric and obviously anti-human consumption.  House Bill                 
  248, he stated, is anti-consumption and not tourism                          
  friendly, because hunters are statistically responsible for                  
  less than two and a half percent of any population loss, and                 
  predators take the majority, and if nothing is done to                       
  control those predators, there will be fewer animals for                     
  tourists to see.                                                             
                                                                               
  Number 484                                                                   
                                                                               
  GREG MACHACEK testified by teleconference from Fairbanks in                  
  opposition to HB 248.  He said he was an active outdoorsman                  
  who has seen firsthand the dramatic drop in populations, and                 
  predators appear to be taking over in the absence of wolf                    
  control.  He said more aggressive control programs are                       
  needed, and there is no logical reason to wait for                           
  populations to crash to institute management controls.                       
                                                                               
  Number 510                                                                   
                                                                               
  KENNETH FORBES testified by teleconference from Fairbanks in                 
  opposition to HB 248.  He stated HB 248 appeared to be more                  
  of a people control bill instead of predator control, and                    
  the sponsor's concerns were in the wrong place.  He stated                   
  that 20 year veterans of wildlife management had come up                     
  with a viable plan, only to see the plan quashed because of                  
  Outside interests like Westours, and that was not in the                     
  best interest of Alaska wildlife management.                                 
                                                                               
  Number 524                                                                   
                                                                               
  DAVID MACHACEK testified by teleconference from Fairbanks in                 
  opposition to HB 248.  He stated HB 248 is unnecessary                       
  because its provisions are already covered in Chapter 92 of                  
  the hunting regulations.  He stated it was absurd to                         
  consider waiting until populations crash to institute                        
  population controls, and it was also unrealistic to expect                   
  changes in populations in one year, the time required for                    
  recertification of the program.  He called on the state to                   
  do predator control in the most efficient manner for both                    
  wildlife's and the budget's sake.                                            
                                                                               
  Number 556                                                                   
                                                                               
  DAVID VANDENBURG OF THE ALASKA ENVIRONMENTAL CENTER                          
  testified by teleconference from Anchorage in support of HB
  248.  He stated he was not opposed to control, but to                        
  reckless management of wildlife.  He stated HB 248 was based                 
  in biology and was a balanced and fair approach.  He also                    
  stated HB 248 mirrored the Strategic Wolf Management Plan                    
  the most, would not tie any hands, and should be adopted.                    
                                                                               
  Number 575                                                                   
                                                                               
  STEVEN WELLS OF THE ALASKA WILDLIFE ALLIANCE testified by                    
  teleconference from Anchorage in favor of HB 248.  He stated                 
  HB 248 reasonably addresses wolf management, including the                   
  increasing demands of hunters for more moose and caribou.                    
  He said he objected to the practice of aerial hunting, and                   
  it ought to be obvious now that most Alaskans do as well.                    
                                                                               
  TAPE 94-41, SIDE B                                                           
  Number 000                                                                   
                                                                               
  WAYNE HALL testified by teleconference from Anchorage in                     
  support of HB 248.  He stated aerial control measures are                    
  unpopular and unnecessary, and that any extreme measure must                 
  be monitored.  He said HB 248 simply sets up and defines                     
  when those measures must be taken.  He stated it was wrong                   
  to allow the greed of hunters to justify predator and wolf                   
  controls.                                                                    
                                                                               
  Number 041                                                                   
                                                                               
  TERRY BURRELL testified by teleconference from Anchorage in                  
  favor of HB 248, stating it is friendly to all Alaskans.                     
  She claimed hunters are the biggest reason for the decline                   
  in ungulate populations, and HB 248 takes the politics out                   
  of wildlife management.                                                      
                                                                               
  Number 066                                                                   
  MARILYN HOUSER testified by teleconference from Anchorage in                 
  favor of HB 248.  She stated the Game Board is nothing more                  
  than a bunch of "yes men" for Fish and Game, which is                        
  controlled by hunters.  She stated it is clear guidelines                    
  are needed to be set up for predator control, and that HB
  248 does that.  She stated the only reason predator control                  
  was entertained in the first place was because of poor                       
  management, overhunting and poaching.                                        
                                                                               
  Number 090                                                                   
                                                                               
  JOHN PETER CREIGHTON testified by teleconference from Bethel                 
  in support of HB 248.  He stated a majority of Alaskans were                 
  against predator control, and it was not in the best                         
  interest of the environment.  He commented that those who                    
  claim Outsiders have unfairly influenced the outcome of the                  
  aerial hunt should look at themselves, since it seemed to                    
  him that third generation Euro-Americans were trying to                      
  dictate policy to Natives.                                                   
                                                                               
  Number 135                                                                   
                                                                               
  AMELIE REDMAN testified by teleconference from Bethel in                     
  opposition to HB 248, and stated any wolf management is                      
  against God's will, and the use of radio wolf collars is a                   
  violation of a wolf's privacy.  She stated slaughtering any                  
  wolves was a violation of the commandment, "Thou Shall Not                   
  Kill."                                                                       
                                                                               
  Number 159                                                                   
                                                                               
  CAROL JANSEN testified by teleconference from Anchorage in                   
  support of HB 248.  She stated HB 248 is a much better                       
  option than SB 77, which mandates the use of wolf control.                   
  She stated HB 248 is a compromise in line with the original                  
  Strategic Wolf Management Plan and it is based in biology.                   
  She stated our credibility in Alaska is on the line, and not                 
  passing HB 248 would test that credibility.                                  
                                                                               
  Number 207                                                                   
                                                                               
  MIKE TINKER testified by teleconference from Fairbanks in                    
  opposition to HB 248.  He stated he was involved in the wolf                 
  management plan from the beginning, and opposed HB 248                       
  because it supplanted the process of public input.  He also                  
  stated that if the state was going to abandon the process of                 
  wildlife management in regards to wolf control, it should                    
  logically also close all its fish hatcheries.  He was also                   
  opposed to any one year renewal clause in any management                     
  plan, stating that any control program would need more time                  
  to take effect.                                                              
                                                                               
  Number 245                                                                   
                                                                               
  DICK BISHOP testified by teleconference from Fairbanks in                    
  opposition to HB 248.  He stated HB 248 puts the state back                  
  to square one when it comes to predator control, and it                      
  creates an atmosphere of gridlock when it comes to any hope                  
  of predator control in 1993.  He also stated HB 248 does not                 
  incorporate good biology in its system; all terms used in                    
  the bill mean no management of predators; and HB 248 is not                  
  worthy of legislative consideration.                                         
                                                                               
  Number 274                                                                   
                                                                               
  CHAIRMAN VEZEY noted the time and called a five minute at-                   
  ease at 9:09 a.m.                                                            
  HB 115:  EXTEND TOURISM MARKETING COUNCIL                                    
                                                                               
  Number 278                                                                   
                                                                               
  CHAIRMAN VEZEY called the committee back to order at 9:15                    
  a.m. and read the title to HB 115, then called for                           
  testimony.                                                                   
                                                                               
  Number 282                                                                   
                                                                               
  BOB JACOBSEN, PRESIDENT, ALASKA VISITORS ASSOCIATION (AVA),                  
  joined the committee to testify in favor of HB 115.  He                      
  stated it is critical for HB 115 to receive a prompt                         
  approval in order for 1994 marketing and advertising plans                   
  to be made in time.  He stated the Alaska Tourism Marketing                  
  Council's (ATMC) Vacation Planning Guide is the primary                      
  marketing tool for many small Alaska tourism businesses, and                 
  any delay could jeopardize their 1994 plans.  He also stated                 
  if HB 115 is not passed, larger tourist businesses will go                   
  on with their marketing plans because they have the                          
  necessary money, but small businesses will be irreparably                    
  hurt.                                                                        
                                                                               
  Number 323                                                                   
                                                                               
  CHAIRMAN VEZEY stated he had serious concerns with ATMC's                    
  evolution since its incorporation as a state funded agency                   
  in 1988.  He stated he had great concerns about ATMC's                       
  apparent position on Fish and Game issues.                                   
                                                                               
  Number 340                                                                   
                                                                               
  MR. JACOBSEN stated he felt ATMC did not voluntarily jump                    
  into the controversy over the aerial wolf hunt, but did                      
  react to comments attributed to state Fish and Game                          
  officials in the New York Times, stating they had designed                   
  the hunt as an aid to building a tourist attraction.  He                     
  said the ATMC had no position on Fish and Game issues; they                  
  were interested in building tourism.                                         
                                                                               
  Number 369                                                                   
                                                                               
  CHAIRMAN VEZEY stated he had concerns about the fact that                    
  ATMC officials had apparently not filed Alaska Public                        
  Offices Commission (APOC) Conflict of Interest statements                    
  until 1991, and asked why that was.                                          
                                                                               
  Number 385                                                                   
                                                                               
  MR. JACOBSEN stated he could not speak for others, but he                    
  personally had filled out a statement previous to that.                      
                                                                               
  Number 391                                                                   
                                                                               
  CHAIRMAN VEZEY stated he was told by APOC that only two or                   
  three ATMC members had filed statements in the last three                    
  years.                                                                       
                                                                               
  MR. JACOBSEN said he was surprised, and he would personally                  
  remind AVA members to file APOC statements in the future.                    
                                                                               
  Number 408                                                                   
                                                                               
  TINA LINDGREN, EXECUTIVE DIRECTOR, ALASKA TOURISM MARKETING                  
  COUNCIL, joined the committee to testify in favor of HB 115.                 
  She reiterated the need for HB 115 to be passed in order for                 
  small Alaska tourist businesses to be successfully promoted                  
  in the next year, and stated the prompt passage of HB 115                    
  was needed because of the long lead time necessary for a                     
  successful marketing program.  On the topic of public                        
  disclosure, she stated she knew ATMC board members'                          
  statements were being monitored, because she knew of at                      
  least one member who had been fined for not filing in time.                  
                                                                               
  Number 450                                                                   
                                                                               
  CHAIRMAN VEZEY asked about the financial relationship                        
  between the three agencies participating in the ATMC                         
  marketing program.                                                           
                                                                               
  Number 457                                                                   
                                                                               
  MS. LINDGREN stated the ATMC was joined by the State                         
  Department of Commerce and Economic Development and the                      
  Alaska Visitors Association to handle the in-kind cash                       
  contributions made by ATMC members.  She noted since a 1991                  
  auditor's report, that relationship has been modified in                     
  accordance with the auditor's report.                                        
                                                                               
  Number 468                                                                   
                                                                               
  CHAIRMAN VEZEY asked why the profits generated under ATMC's                  
  marketing plan became an issue for auditors.                                 
                                                                               
  Number 472                                                                   
                                                                               
  MS. LINDGREN explained that the profits themselves were not                  
  a problem, but rather the timeliness of their reporting.                     
  She stated that the auditors wanted funds transferred and                    
  accounted for at the end of each fiscal year, while Commerce                 
  and Economic Development wanted it done at the end of the                    
  calendar year.  She stated this point is still in dispute.                   
                                                                               
  Number 479                                                                   
                                                                               
  CHAIRMAN VEZEY asked what happened to the interest gained                    
  from funds placed in the bank for use in ATMC's matching                     
  grant program.  He asked if that interest was turned over to                 
  the state or used for the matching grant program.                            
                                                                               
  Number 488                                                                   
                                                                               
  MS. LINDGREN stated the interest would go to the matching                    
  grant fund, which legislators knew when they created the                     
  program.  She said the auditors felt the interest should be                  
  turned over to the state, and that it wasn't a question of                   
  misappropriation of funds, but the timeliness of the deposit                 
  and then subsequent use.                                                     
                                                                               
  Number 503                                                                   
                                                                               
  CHAIRMAN VEZEY stated after reading the auditor's report it                  
  seemed to him the dispute centered around the handling of                    
  profits and the handling of the interest from them.                          
                                                                               
  MS. LINDGREN said ATMC is going on a ruling from the                         
  Department of Law stating that ATMC's handling of both was                   
  in accordance of the law.                                                    
                                                                               
  CHAIRMAN VEZEY stated it seemed one party was taking                         
  advantage of another.  He noted the auditors' concern with                   
  money spent by the state on a post Exxon Valdez spill                        
  project, and wondered if the state got the benefit of its                    
  prorated share.                                                              
                                                                               
  Number 524                                                                   
                                                                               
  MS. LINDGREN stated the auditors' concerns grew out of the                   
  $14 million marketing campaign Exxon mounted in the wake of                  
  the spill, which the state went along with for $400,000.                     
  She stated the auditors' concerns about how the money had                    
  been spent and accounted for and were legitimate, and that                   
  new ATMC rules will not allow such a transaction again; and                  
  in the future, a similar program would have to be mounted                    
  with a donation from a company.                                              
                                                                               
  TAPE 93-42, SIDE ONE                                                         
  Number 000                                                                   
                                                                               
  CHAIRMAN VEZEY asked about the $400,000 cited by auditors as                 
  not spent on tourism related marketing or administrative                     
  costs.                                                                       
                                                                               
  Number 012                                                                   
                                                                               
  MS. LINDGREN responded that the entry in the audit book                      
  refers back to the Exxon campaign she previously explained.                  
                                                                               
                                                                               
  Number 040                                                                   
                                                                               
  CHAIRMAN VEZEY noted the auditors' concerns that the ATMC                    
  sometimes did not follow the Alaska Bidders' Preference when                 
  it contracted for work.                                                      
                                                                               
  Number 046                                                                   
                                                                               
  MS. LINDGREN explained that the problem was a function of                    
  using subcontractors for subcontractors.  She stated some                    
  subcontractors opted to use Outside help instead of Alaskans                 
  in previous years.  She said ATMC has now directed its                       
  advertising agency and its subcontractors to use Alaskan                     
  talent and to follow the Alaska Bidders Preference when                      
  possible.                                                                    
                                                                               
  Number 070                                                                   
                                                                               
  CHAIRMAN VEZEY referred to the audit report about money that                 
  had been determined to be spent improperly, and asked if                     
  that issue had been resolved.                                                
                                                                               
  Number 080                                                                   
                                                                               
  MS. LINDGREN stated the money in question had gone to a                      
  research contract that had been in contention.  She stated                   
  the issue had been discussed and resolved with the auditors.                 
                                                                               
  Number 090                                                                   
                                                                               
  CHAIRMAN VEZEY referred to the auditor's complaint that                      
  ATMC's accounting system was not compatible with state                       
  procedures, and asked if that had been resolved.                             
                                                                               
  Number 103                                                                   
                                                                               
  MS. LINDGREN replied that the auditors' disagreement was not                 
  with ATMC, but rather with Commerce and Economic                             
  Development.  She said the auditors found no problem with                    
  the accounting itself, but rather how far into smaller                       
  components it had been broken into.                                          
                                                                               
  Number 119                                                                   
                                                                               
  CHAIRMAN VEZEY expressed concern about the makeup of the                     
  ATMC board, saying he hoped small business' concerns were                    
  being addressed, and he wasn't sure small business was being                 
  appropriately represented.                                                   
                                                                               
  Number 133                                                                   
                                                                               
  MS. LINDGREN stated she felt small business was being well                   
  represented on the board, the result of having 21 board                      
  members for a 900 member group.  She said of the 21 members,                 
  17 are Alaskans, and the ATMC had formed a Small Business                    
  Task Force specifically to address the concerns of smaller                   
  business.                                                                    
                                                                               
  Number 153                                                                   
                                                                               
  ANN CAMPBELL, COMMERCIAL ENTERPRISE DEVELOPMENT CORPORATION,                 
  joined the committee to testify in favor of HB 115.  She                     
  stated the corporation was actively involved in developing                   
  rural tourism and currently represents more than 200                         
  businesses in the rural sector.  She said HB 115 was vital                   
  for them to actively market the rural businesses, especially                 
  to take advantage of the eco-tourism boom.                                   
                                                                               
  Number 182                                                                   
                                                                               
  LINDA MCLAUGHLIN, PRESIDENT, ANCHORAGE CONVENTION AND                        
  VISITORS BUREAU (ACVB), testified in favor of HB 115, saying                 
  the ACVB depends heavily on the ATMC's Vacation Planner to                   
  market their product.  She stated the planner is also the                    
  only way for smaller businesses to get their foot in the                     
  door to compete with the larger companies, and to take away                  
  the ability to market in the planner would hurt them the                     
  most.  She noted that 783 of 900 ACVB members were small                     
  businesses with five employees or less, and she urged the                    
  committee to pass HB 115 for their sake.                                     
                                                                               
  Number 251                                                                   
                                                                               
  CHARLES DERRICK testified by teleconference from Fairbanks                   
  in opposition to HB 115.  He stated the tourist industry was                 
  one of the major opponents of the wolf hunt, especially                      
  Westours.  He asked rhetorically if the tourism industry                     
  could impact the control of one Alaskan resource, and which                  
  one would be next.                                                           
                                                                               
  Number 281                                                                   
                                                                               
  RALPH SEEKINS, PRESIDENT, ALASKA WILDLIFE CONSERVATION                       
  ASSOCIATION, testified by teleconference from Fairbanks and                  
  stated the association did not oppose funding of the ATMC,                   
  but he was concerned about the impact the industry had on                    
  the wolf hunt.                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Number 293                                                                   
                                                                               
  CHAIRMAN VEZEY stated he intended to take HB 115 up in                       
  committee in the next session, at which time he expected it                  
  to pass easily.  He stated that before it left House State                   
  Affairs, he did have several questions that needed to be                     
  answered.  With that, he adjourned the meeting at 9:55 a.m.                  

Document Name Date/Time Subjects