Legislature(1999 - 2000)

04/11/2000 01:55 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                SENATE LABOR AND COMMERCE COMMITTEE                                                                           
                          April 11, 2000                                                                                        
                             1:55 p.m.                                                                                          
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                              
Senator Jerry Mackie, Chairman                                                                                                  
Senator Dave Donley                                                                                                             
Senator Loren Leman                                                                                                             
Senator Lyman Hoffman                                                                                                           
                                                                                                                              
MEMBERS ABSENT                                                                                                                
                                                                                                                              
Senator Tim Kelly, Vice Chairman                                                                                                
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
CS FOR HOUSE  BILL NO. 105(FIN)"An  Act providing for the  licensing                                                            
of  speech-language   pathologists;   relating   to  fees  paid   by                                                            
audiologists and speech-language  pathologists; and providing for an                                                            
effective date."                                                                                                                
     -MOVED SCS CSHB 105(L&C) OUT OF COMMITTEE                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 363(FIN)                                                                                                  
"An Act relating to salmon  product reports and to the sale of fish;                                                            
and providing for an effective date."                                                                                           
     -MOVED SCS CSHB 363(L&C) OUT OF COMMITTEE                                                                                  
                                                                                                                                
HOUSE BILL NO. 130                                                                                                              
"An Act  adding limited  liability companies  and limited  liability                                                            
partnerships  to  the  organizations   that  can  be  authorized  to                                                            
practice architecture,  engineering,  land surveying, and  landscape                                                            
architecture;  and relating  to state  and municipal  contracts  for                                                          
architectural,   engineering,    land   surveying,   and   landscape                                                            
architectural services."                                                                                                        
     -MOVED SCSHB 130 (L&C) OUT OF COMMITTEE                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 284(JUD) am                                                                                               
"An  Act  relating  to  uninsured  and  underinsured  motor  vehicle                                                            
insurance; and providing for an effective date."                                                                                
     -SCHEDULED BUT NOT HEARD                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 382(L&C)                                                                                                  
"An Act relating  to the licensing of social workers  and to the use                                                            
of the title  'social worker' without  a license; and providing  for                                                            
an effective date."                                                                                                             
     -MOVED SCS HB 382(L&C) OUT OF COMMITTEE                                                                                    
                                                                                                                              
HOUSE BILL NO. 416                                                                                                              
"An Act relating to insurance coverage for prostate cancer                                                                      
screening."                                                                                                                     
     -HEARD AND HELD                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 420(FIN)(efd pfld)                                                                                        
"An Act relating to tourism marketing contracts; and providing for                                                              
an effective date."                                                                                                             
     -MOVED SCS CSHB 420(L&C) OUT OF COMMITTEE                                                                                
                                                                                                                              
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                              
HB 420 - No previous Senate action.                                                                                             
                                                                                                                                
HB 416 - No previous Senate action.                                                                                             
                                                                                                                                
HB 382 - No previous Senate action.                                                                                             
                                                                                                                                
HB 130 - No previous Senate action.                                                                                             
                                                                                                                                
HB 363 - No previous Senate action.                                                                                             
                                                                                                                                
HB 105 - No previous Senate action.                                                                                             
                                                                                                                              
WITNESS REGISTER                                                                                                              
                                                                                                                              
Ms. Patti Swenson                                                                                                               
Staff to Representative Con Bunde                                                                                               
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT: Commented on CSHB 105.                                                                                      
                                                                                                                                
Ms. Joanie Waller                                                                                                               
Staff to Representative Alan Austerman                                                                                          
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT: Commented on CSHB 363.                                                                                      
                                                                                                                                
Mr. Brett Fried                                                                                                                 
Economist                                                                                                                       
Income & Excise Audit Division                                                                                                  
Department of Revenue                                                                                                           
P.O. Box 110420                                                                                                                 
Juneau, AK 99811-0420                                                                                                           
POSITION STATEMENT: Commented on HB 363.                                                                                        
                                                                                                                                
Ms. Janet Seitz                                                                                                                 
Staff to Representative Norman Rokeberg                                                                                         
Alaska State Capitol                                                                                                            
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Commented on HB 130.                                                                                       
                                                                                                                                
Ms. Myrna McGhie                                                                                                                
Staff to Representative Jeannette James                                                                                         
Alaska State Capitol                                                                                                            
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Commented on HB 382.                                                                                       
                                                                                                                                
Ms. Catherine Reardon, Director                                                                                                 
Division of Occupational Licensing                                                                                              
Department of Community and Economic Development                                                                                
P.O. Box 110806                                                                                                                 
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Supported HB 382.                                                                                          
                                                                                                                                
Ms. Melinda Hofstad                                                                                                             
Staff to Representative Bill Hudson                                                                                             
Alaska State Capitol                                                                                                            
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Commented on HB 416.                                                                                       
                                                                                                                                
Mr. Joe Balash                                                                                                                  
Staff to Representative Gene Therriault                                                                                         
Alaska State Capitol                                                                                                            
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Commented on HB 420.                                                                                       
                                                                                                                                
Ms. Ginny Fay, Acting Director                                                                                                  
Division of Tourism                                                                                                             
Department of Community and Economic Development                                                                                
P.O. Box 110801                                                                                                                 
Juneau, Ak  99811                                                                                                               
POSITION STATEMENT:  Commented on HB 420.                                                                                       
                                                                                                                                
Ms. Ann Campbell, Chairman                                                                                                      
Alaska Travel Association                                                                                                       
POSITION STATEMENT: Supported CSHB 420.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 00-14, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee                                                                  
meeting to order at 1:55 p.m.  Present were Senators Mackie, Leman,                                                             
Donley, and  Hoffman.  The  first order of  business to come  before                                                            
the committee was CSHB 105(FIN).                                                                                                
                                                                                                                                
            HB 105-LICENSING SPEECH PATHOLOGY/AUDIOLOGY                                                                     
                                                                                                                                
MS. PATTI  SWENSON, staff  to Representative  Con Bunde, stated  the                                                            
purpose  of CSHB 105(FIN)  is to  improve the  standards for  speech                                                            
pathologists within the  State.  Speech pathologists are required to                                                            
take  a  national  exam  and follow  national  clinical   competency                                                            
guidelines.   CSHB 105)FIN) is supported  at the State and  national                                                            
levels.                                                                                                                         
                                                                                                                                
CHAIRMAN MACKIE stated  a proposed Senate Labor & Commerce committee                                                            
substitute  (CS) has  been  drafted.   Some small  school  districts                                                            
expressed  concern that, because  of their  size, they must  rely on                                                            
contract services  to provide speech  pathology services.   They are                                                            
concerned  that  CSHB 105(FIN)  will  directly  increase  costs  and                                                            
further  restrict the  supply of  professionals  available to  serve                                                            
their needs.  The proposed  CS will exempt school district employees                                                            
and  contractors  who practice  speech  language  pathology  in  the                                                            
district from the new licensing  requirements (in Section 16 on page                                                            
8).  The qualification  standards for these individuals  will remain                                                            
under  the jurisdiction  of the  Department of  Education and  Early                                                            
Development (DOEED).                                                                                                            
                                                                                                                                
MS. SWENSON stated Representative Bunde supports the CS.                                                                        
                                                                                                                                
SENATOR  DONLEY  moved  to adopt  SCS  CSHB  105(L&C)  (Version  M).                                                            
Without objection, the motion carried.                                                                                          
                                                                                                                                
SENATOR LEMAN asked if any changes would be made to the boards.                                                                 
                                                                                                                                
MS. SWENSON stated the  fiscal note combines fees from the 25 speech                                                            
language  pathologists  and 45 audiologists  to bring  the price  of                                                            
licensing down and they  will all be working under the same group of                                                            
people.                                                                                                                         
                                                                                                                                
SENATOR LEMAN  asked if a  speech pathologist  will be added  to the                                                            
board.                                                                                                                          
                                                                                                                                
MS. SWENSON answered "No."                                                                                                      
                                                                                                                                
Catherine  Reardon,   Director  of  the  Division  of  Occupational                                                             
Licensing, Department of  Community and Economic Development, stated                                                            
support for the bill.                                                                                                           
                                                                                                                                
SENATOR LEMAN  moved SCS CSHB 105 (L&C) (Version M)  with individual                                                            
recommendations  and accompanying fiscal notes.  Without  objection,                                                            
the motion carried.                                                                                                             
                                                                                                                                
             HB 363-SALMON PRICE REPORTS/SALE OF FISH                                                                       
                                                                                                                                
MS.  JOANIE   WALLER,  staff  to   Representative  Alan   Austerman,                                                            
explained that  CSHB 363(FIN) expands the existing  wholesale canned                                                            
salmon price report  compiled by the Department of  Revenue (DOR) to                                                            
include data  on all salmon  products including  fresh, frozen,  and                                                            
roe.  CSHB 363(FIN) will  rename the report "The Alaska Salmon Price                                                            
Report"  (ASPR).   The  report will  capture  the bulk  of  Alaska's                                                            
commercial salmon trade in a timely and accurate manner.                                                                        
                                                                                                                                
MS. WALLER pointed out  that the current statute requires processors                                                            
who sell 240,000 pounds  or more of canned salmon in a calendar year                                                            
to report  three times each  year.  The  bill changes the  recording                                                            
threshold to 1 million  pounds, which will account for 97 percent of                                                            
all salmon products  in Alaska.  The ASPR will reflect  the changing                                                            
times in this  industry.  At this time, there is no  reliable source                                                            
of  fresh and  frozen  fisheries  data.   CSHB  363(FIN)  will  give                                                            
Alaskans a  clear picture of the salmon  industry - one of  Alaska's                                                            
largest industries  and revenue sources.  This legislation  pertains                                                            
to the accuracy of the information available to the State.                                                                      
                                                                                                                                
MS.  WALLER   noted  CSHB   363(FIN)  is   the  direct  outcome   of                                                            
recommendations  made  at  in-depth   forums  that  State  agencies,                                                            
processors, and fishermen  attended.  All agreed that processors and                                                            
fishermen would  share information on short and long  term marketing                                                            
strategies.                                                                                                                     
                                                                                                                                
MR. BRETT FRIED,  Economist for the Income & Excise  Audit Division,                                                            
Department of Revenue (DOR),  stated DOR does not have a position on                                                            
the collection  of data for the Alaska Salmon Price  Reports, but it                                                            
does not see is as a function  of the DOR because there is no direct                                                            
link with taxation.   DOR taxes fish  at the ex-vessel level,  which                                                            
is what  the fishermen are  paid.  This report  is at the  wholesale                                                            
level  and  records what  the  buyers  pay to  the  processors.  DOR                                                            
believes it can do a good  job meeting the requirements of the bill.                                                            
                                                                                                                                
DOR's  fiscal  note  contains  funding   for  a three-quarter   time                                                            
position  at a  cost of  $38,100.   DOR will  also  have a  one-year                                                            
capital  expenditure  of  $20,000  to  set  up a  database  that  it                                                            
currently does  not need.  The number of processors  who report will                                                            
probably increase from 12 to about 32.                                                                                          
                                                                                                                                
SENATOR LEMAN asked if  DOR could establish an electronic format for                                                            
processor  reporting  instead  of  spending  $20,000  to  set  up  a                                                            
database.   He surmised that electronic  reporting would  negate the                                                            
need for an employee to enter data in the database.                                                                             
                                                                                                                                
MR.  FRIED said  that would  be  great and  would  reduce the  cost;                                                            
however,  if DOR uses an  electronic format,  everyone will  have to                                                            
report that way otherwise DOR will need two systems.                                                                            
                                                                                                                                
SENATOR LEMAN thought any  business that moves one million pounds of                                                            
product probably  has the capacity  to enter data electronically  or                                                            
hire someone to do it by  contract.  He noted he will hear this bill                                                            
again  in the  Senate  Finance Committee  and  he is  interested  in                                                            
looking at ways to decrease the fiscal note.                                                                                    
                                                                                                                                
CHAIRMAN  MACKIE said  the  Committee would  take  up the  amendment                                                            
regarding  the three-year  sunset date.   He explained the  original                                                            
bill has  a sunset  date of July  1, 2003; Section  13 repeals  that                                                            
date on page 5, line 20.                                                                                                        
                                                                                                                                
SENATOR LEMAN  said that is correct.  He moved to  delete Section 13                                                            
to restore the sunset date.                                                                                                     
                                                                                                                                
MS. WALLER said the sponsor supports the amendment.                                                                             
                                                                                                                                
CHAIRMAN MACKIE stated  this bill is the start of an ongoing process                                                            
to bring  fishermen and  processors together  and, although  it does                                                            
not do everything,  certain issues  can be addressed in the  future.                                                            
                                                                                                                                
CHAIRMAN  MACKIE  announced   the  amendment  was  adopted  with  no                                                            
objections.                                                                                                                     
                                                                                                                                
SENATOR LEMAN  moved to pass SCS CSHB  363(L&C) from committee  with                                                            
individual recommendations.   With no objections, it was so ordered.                                                            
                                                                                                                                
            HB 130-ARCHITECTS/ENGINEERS/LAND SURVEYORS                                                                      
                                                                                                                                
CHAIRMAN MACKIE announced HB 130 to be up for consideration.                                                                    
                                                                                                                                
MS. JANET  SEITZ, aide  to Representative  Norman Rokeberg,  said HB
130  makes  additions to  the  statutes  regarding  the Architects,                                                             
Engineers, Land  Surveyors and Landscape Architecture  (AELS) Board.                                                            
In  addition  to individual  licenses,  this  particular  board  has                                                            
requirements  that  certain  businesses  can  register  and  have  a                                                            
license as  long as they have a designated  person in charge.   Over                                                            
the  years   the  Legislature  has   authorized  limited   liability                                                            
companies (LLC)  and limited liability  partnerships (LLP)  as forms                                                            
of businesses.   The Department of Law (DOL) advised  the Department                                                            
of  Community  and Economic  Development  (DCED)  that  DCED  cannot                                                            
register  these types  of LLCs under  current law.   HB 130  permits                                                            
DCED to  allow those businesses  to practice  in the same manner  as                                                            
corporations  do.  Consumer  protection  and license accountability                                                             
are  maintained.   In  addition,  when  the landscape  architecture                                                             
language was added to the  AELS Board, language was not picked up in                                                            
the contract section  of AS 36.90.100.  Section 11  adds them to the                                                            
section.    The bill  is  supported  by  the Board  and  The  Alaska                                                            
Professional Design Council.                                                                                                    
                                                                                                                                
CHAIRMAN  MACKIE  noted  a  Senate  Labor  and  Commerce   Committee                                                            
substitute  (CS)  was  prepared.    He  noted  the  Board  requested                                                            
statutory language  that requires  a licensed architect or  engineer                                                            
do  project review,  inspection  or  approval.   The  Department  of                                                            
Public  Safety has  also requested  a similar  change  for the  Fire                                                            
Marshall's  Office.    Finally,  he  received   some  interest  from                                                            
municipal  building  inspectors.    He  noted  the  corrections  are                                                            
located in  Section (13)  on page 9.  The  Division of Occupational                                                             
Licensing  and the  Fire Marshall's  Office support  this  addition.                                                            
The change  has been  circulated  to all other  entities  expressing                                                            
interest in the bill and all were in agreement.                                                                                 
                                                                                                                                
MS. SEITZ said  that Representative Rokeberg supports  the committee                                                            
substitute.                                                                                                                     
                                                                                                                                
SENATOR LEMAN  noted that  on page 9, line  19, the word  "relating"                                                            
should be "related" and they should send a note to the drafter.                                                                 
                                                                                                                                
SENATOR LEMAN  moved to adopt the CS.  There were  no objections and                                                            
it was so ordered.                                                                                                              
                                                                                                                                
SENATOR LEMAN  moved to  report SCSHB 139(L&C)  from committee  with                                                            
individual recommendations.  There were no objections  and it was so                                                            
ordered.                                                                                                                        
                                                                                                                                
             HB 284-UNINSURED MOTOR VEHICLE INSURANCE                                                                       
                                                                                                                                
CHAIRMAN MACKIE  noted that the sponsor of HB 284  requested that HB
284 be removed from today's agenda.                                                                                             
                                                                                                                                
                  HB 382-SOCIAL WORKER LICENSING                                                                            
                                                                                                                              
CHAIRMAN MACKIE announced HB 382 to be up for consideration.                                                                    
                                                                                                                                
MS. MYRNA MCGHIE,  aide to Representative  James, sponsor,  told the                                                            
Committee that  Representative James introduced legislation  in 1998                                                            
that prohibits  the use of the title  of "social worker"  to be used                                                            
without a license.   That legislation  also established the  minimum                                                            
qualifications  for  each  level of  social  work  licensure.  Since                                                            
enacted,  DFYS found the  restrictions in the  bill to have  created                                                            
hiring  problems.   Social  workers  needed  time  to meet  the  new                                                            
licensing requirements.   Representative James introduced  HB 382 to                                                            
amend the current  laws to allow temporary  licensing for  up to one                                                            
year for  newly hired  social workers  providing  they have met  all                                                            
necessary requirements other than the licensing exam.                                                                           
                                                                                                                                
MS. CATHERINE  REARDON,  Director  of the Division  of Occupational                                                             
Licensing, DCED, expressed support for HB 382.                                                                                  
                                                                                                                                
With no further testimony  or questions, SENATOR DONLEY moved HB 382                                                            
from  committee with  individual  recommendations.    There were  no                                                            
objections and it was so ordered.                                                                                               
                                                                                                                                
                 HB 416-PROSTATE CANCER SCREENING                                                                           
                                                                                                                                
CHAIRMAN MACKIE announced HB 416 to be up for consideration.                                                                    
                                                                                                                                
MS. MELINDA  HOFSTAD, aide to Representative  Bill Hudson,  informed                                                            
Committee members  that Representative  Hudson asked the  House HESS                                                            
Committee to introduce  this legislation at the request of a 47 year                                                            
old constituent  who is  a four-year survivor  of advanced  prostate                                                            
cancer.  HB 416  lowers the age for required insurance  coverage for                                                            
an annual prostate  cancer screening  from 50 to 40 for the  general                                                            
male  population.    In the  case  of  high  risk  individuals,  the                                                            
screening age  is lowered from the  present age of 40 to  35.  "High                                                            
risk"  is defined  in this  legislation to  include  men who have  a                                                            
family history  of prostate cancer and African-Americans  who are 32                                                            
times more likely  to contract the disease.  Prostate  cancer in men                                                            
under age 65 tends to be  more aggressive in nature and, by lowering                                                            
the ages, earlier  screening will provide earlier  treatment, saving                                                            
lives  and suffering.    HB 416  passed  the House  unanimously  and                                                            
insurance  company  representatives   who  have  testified  have  no                                                            
objections to it.                                                                                                               
SENATOR DONLEY  moved to pass HB 416 from committee  with individual                                                            
recommendations.   There were no objections  and it was so  ordered.                                                            
                                                                                                                                
                HB 420-TOURISM MARKETING CONTRACTS                                                                          
                                                                                                                                
CHAIRMAN MACKIE announced HB 420 to be up for consideration.                                                                    
                                                                                                                                
MR.  JOE BALASH,  aide to  Representative  Therriault,  said HB  420                                                            
makes some  adjustments to a piece  of legislation that passed  last                                                            
year  (SB 107).    HB 420  will  require  DCED  to contract  with  a                                                            
qualified trade  association on or  before May of each fiscal  year.                                                            
Under the current  law, most negotiating  would be occurring  during                                                            
June and July, the peak  months of the tourism season.  To make that                                                            
change, new transition language had to be included in HB 420.                                                                   
                                                                                                                                
CHAIRMAN MACKIE  announced that a  Senate Labor and Commerce  CS was                                                            
drafted.                                                                                                                        
                                                                                                                                
SENATOR  LEMAN moved  to adopt  Version H  as the  Senate Labor  and                                                            
Commerce committee  substitute to HB 420.  There were  no objections                                                            
and it was so ordered.                                                                                                          
                                                                                                                                
MR. BALASH highlighted  the changes in the Senate Labor and Commerce                                                            
CS.  He said the contract  date is changed from August to April 1 in                                                            
Sections  1 and 2.  In  Section 3, the  transition language  directs                                                            
DCED to identify  and issue its central components  for the contract                                                            
by May  1 for the  FY01 contract.  The qualified  trade association                                                             
(QTA) would then  put together a marketing campaign  plan and submit                                                            
that to  DCED by June 15.   The format and  detail of the  marketing                                                            
campaign plan  should be similar to  DCED's FY00 action plan,  which                                                            
was the  best they  could come  up with.   The  contracts should  be                                                            
signed by July  1.  This addresses the concerns DCED  had with other                                                            
versions of this legislation.   In future years the transition steps                                                            
are not part of the legislation.                                                                                                
                                                                                                                                
SENATOR MACKIE  asked when  the central components  will have  to be                                                            
issued by.                                                                                                                      
                                                                                                                                
MR. BALASH replied by May 1.                                                                                                    
                                                                                                                                
CHAIRMAN MACKIE asked if the contract must be signed by July 1.                                                                 
                                                                                                                                
MR. BALASH said that is correct.                                                                                                
                                                                                                                                
CHAIRMAN MACKIE asked about future years.                                                                                       
                                                                                                                                
MR. BALASH  replied that in future  years the transition  steps will                                                            
not apply.                                                                                                                      
                                                                                                                                
CHAIRMAN  MACKIE asked what  will happen next  year in terms  of the                                                            
deadline.                                                                                                                       
                                                                                                                                
MR.  BALASH answered  that  the  deadline  is April  1,  2001 for  a                                                            
contract to be entered into for FY02.                                                                                           
                                                                                                                                
Number 1712                                                                                                                     
                                                                                                                                
SENATOR LEMAN noted that  the effective date failed in the House. He                                                            
asked if the new  transition language covers the challenges  so that                                                            
if this version passes the Senate, it will pass the House.                                                                      
                                                                                                                                
MR. BALASH said  his understanding of why the effective  date failed                                                            
is that  DCED and members  of the minority  felt that May 1  for the                                                            
current  negotiations is  too soon.   That date  was then pushed  to                                                            
July 1, which DCED staff said would be acceptable.                                                                              
                                                                                                                                
MS. GINNY FAY,  Deputy Director of the Division of  Tourism, had not                                                            
seen the committee  substitute but,  after a quick review,  said she                                                            
did not see a  problem with the deadlines.  This year  DCED actually                                                            
gave the  QTAs the essential  components during  the second  week of                                                            
February.   She thought that DCED  would give the components  to the                                                            
qualifying  associations earlier next  year.  She noted DCED  always                                                            
hoped to have  a contract signed by July 1 and that  the Legislature                                                            
chose the August 1 date.                                                                                                        
                                                                                                                                
MS. ANN  CAMPBELL,  Chair of the  Alaska Travel  Association  (ATA),                                                            
stated support for the  committee substitute.  She said that April 1                                                            
is an important  date for them and she thought they  could work with                                                            
the June  15 deadline to  get the campaign  to DCED in time  to sign                                                            
the contracts by July 1.                                                                                                        
                                                                                                                                
CHAIRMAN MACKIE  asked if she could comment on the  whole process of                                                            
meeting with DCED. He said  his understanding is that the industry's                                                            
membership drive is going very well.                                                                                            
                                                                                                                                
MS. CAMPBELL  responded that it is  a little early, but that  things                                                            
seem to  be working well  regarding new members.   The ATA  has some                                                            
fundamental  differences  with the  DCED in  terms of  the level  of                                                            
detail  that  has to  go  into marketing  plans  and  contracts  and                                                            
fundamental  differences in terms  of decision making.  She  did not                                                            
know how long  the process will really take.  The  ATA has agreed to                                                            
some of  the "big picture"  goals  for the program  but how  long it                                                            
will take  to grind out the  details of the  contract remains  to be                                                            
seen.  ATA is  committed to having its marketing plan  ready by June                                                            
15.                                                                                                                             
                                                                                                                                
SENATOR MACKIE  asked Ms.  Fay if she saw  any major obstacles  that                                                            
might cause a problem regarding the contract.                                                                                   
                                                                                                                                
MS. FAY answered  that the ATA has had the components  and goals for                                                            
two  months.   They have  been  meeting to  discuss  how to  measure                                                            
success.  She did not think  DCED could move forward to put together                                                            
a contract  until she sees a marketing  plan, which will  take time.                                                            
That is what she is waiting for.                                                                                                
                                                                                                                                
SENATOR  MACKIE asked  if  she thought  that could  be accomplished                                                             
under the time line in the bill.                                                                                                
                                                                                                                                
MS. FAY  said it is  a pretty tight  time line.   She commented  the                                                            
June  15 deadline  to submit  a marketing  plan will  give DCED  two                                                            
weeks for  review which is  very tight.  She  stated she would  like                                                            
the deadline  for the  marketing plans  to be  earlier to give  DCED                                                            
more  time,  especially  since  the  components   were  provided  in                                                            
February.                                                                                                                       
                                                                                                                                
CHAIRMAN  MACKIE said he  was the prime sponsor  of the legislation                                                             
last year and  it was clearly the intent of the legislature  to turn                                                            
over the marketing to this  group.  He hoped that DCED is not trying                                                            
to exercise  all the controls it had  before and that it  will allow                                                            
the group to do the marketing.                                                                                                  
                                                                                                                                
MS. FAY stated it is the  Legislature's prerogative.  She reiterated                                                            
that it is a short  amount of time given the level  of importance of                                                            
the issue.                                                                                                                      
                                                                                                                                
CHAIRMAN MACKIE  asked, in terms of the makeup of  the organization,                                                            
how  she felt  about the  concerns  DCED had  about  the small  tour                                                            
operators.                                                                                                                      
                                                                                                                                
MS. FAY said that  the sectors had been represented,  although there                                                            
were comments that rural Alaska hadn't been represented.                                                                        
                                                                                                                                
SENATOR LEMAN  asked what a more reasonable  time frame would  be to                                                            
review the plan and prepare the contract.                                                                                       
                                                                                                                                
MS. FAY replied  that she hoped to see a marketing  plan before June                                                            
15.  She suggested June 1.                                                                                                      
                                                                                                                                
SENATOR LEMAN  thought more time would  be reasonable and  suggested                                                            
rolling the other dates back.                                                                                                   
                                                                                                                                
CHAIRMAN  MACKIE commented  that the transition  dates were  changed                                                            
because of  the concerns DCED had  about not being able to  meet the                                                            
original  deadlines.   He said the  industry and  trade groups  will                                                            
write the marketing contract  and do the marketing.  If one believes                                                            
DCED will be  doing that, the bill  should not have been  introduced                                                            
in the first  place.  He asked Ms.  Campbell to comment on  the fact                                                            
that she  requested  the CS to  accommodate concerns  DCED had  with                                                            
meeting the original deadlines.                                                                                                 
                                                                                                                                
MR. BALASH said  that is correct and explained the  June 15 date was                                                            
given as a yardstick and  the May 1 deadline was offered to give the                                                            
QTA  six weeks  to finalize  a  marketing  plan together  after  the                                                            
components  are  determined.    The  ATA's  hope was  that  the  QTA                                                            
membership  at large could comment  on this which is why  the longer                                                            
period of time  was thought to be  beneficial to the small  business                                                            
owners.                                                                                                                         
                                                                                                                                
CHAIRMAN  MACKIE said his  understanding was  that there has  been a                                                            
huge response  in terms of the membership  wanting to be  part of it                                                            
but  there  is  still   a  significant  portion  of  the   potential                                                            
membership that first wants  to see what the marketing contract will                                                            
look like.  He  pointed out they are having to build  support within                                                            
the potential membership  and craft a contract that is acceptable to                                                            
the State based on the essential components.                                                                                    
                                                                                                                                
TAPE 00-14, SIDE B                                                                                                            
Number 2400                                                                                                                     
                                                                                                                                
MS. FAY said she is confused  because although DCED already produced                                                            
the essential  components in early February, it appears  to say they                                                            
might have to be redone.                                                                                                        
                                                                                                                                
MR. BALASH replied  that he was under the impression  there had been                                                            
some negotiations  between  industry and the  Department about  what                                                            
the components  would be.  The intent of the sponsor  is to have the                                                            
components  finalized  by May 1  and then  to give  the industry  an                                                            
opportunity   to  develop  the  marketing   plan  and  allow   their                                                            
membership to see it and comment.                                                                                               
                                                                                                                                
CHAIRMAN  MACKIE  said  if  there  are any  other  issues  with  the                                                            
Department,  the date certain  of May 1 gives  the QTA six  weeks to                                                            
put together a  marketing plan and present it to its  membership for                                                            
approval.   After that, there  will be a couple  of weeks to  do the                                                            
negotiating and sign the contract.                                                                                              
                                                                                                                                
MR. BALASH agreed with that.                                                                                                    
                                                                                                                                
MS. FAY noted  the ATA Board adopted  the components given  to it by                                                            
DCED  on February  17.   She  questioned  whether  this legislation                                                             
undoes that process.                                                                                                            
                                                                                                                                
CHAIRMAN MACKIE  said it does not,  it just provides two  more weeks                                                            
to address  anything  else that remains  unresolved.   He noted  the                                                            
marketing plan  could be submitted much earlier than  June 15 unless                                                            
DCED comes up with more issues.                                                                                                 
                                                                                                                                
MS. FAY said she just wanted  to be clear about whether she is being                                                            
asked to redo  something she is already done because  someone is not                                                            
happy with what she has done.                                                                                                   
                                                                                                                                
CHAIRMAN MACKIE said he  is not aware of what she has given them and                                                            
he has not  asked.  He pointed out  if she feels she has  given them                                                            
all of the  components then  the May 1 deadline  means nothing.   He                                                            
said everyone  is interested  in the  same end result  so it  is not                                                            
necessary to read things into the dates.                                                                                        
                                                                                                                                
SENATOR HOFFMAN  asked how the time lines affect the  signing of the                                                            
contract as they  relate to fundraising the matching  funds required                                                            
for the contract.                                                                                                               
                                                                                                                                
Number 2216                                                                                                                     
                                                                                                                                
MS.  CAMPBELL  replied  that  they  are on  track  for  raising  the                                                            
required 30% matching funds  (around $2 million).  The issue is when                                                            
they will contribute  the match to the program.  Some  of it will be                                                            
raised in the  spring and summer and  some of it would be  raised in                                                            
the fall and winter.                                                                                                            
                                                                                                                                
CHAIRMAN MACKIE  said they will not get the dollars  until they have                                                            
the match, whether  it is in installments or whatever  they work out                                                            
with the  Department.  He  pointed out there  are no set time  lines                                                            
because it takes time to raise that kind of money.                                                                              
                                                                                                                                
SENATOR  LEMAN moved  to pass  SCSHB  420(L&C) from  committee  with                                                            
individual recommendations.   There were no objections and it was so                                                            
ordered.                                                                                                                        
                                                                                                                                
CHAIRMAN MACKIE adjourned the meeting at 3:00 p.m.                                                                              

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