05/08/1997 08:10 AM Senate FIN

                                                                               
       HOUSE BILL NO. 210                                                      
                                                                               
       "An Act relating to the extension  of contracts for the                 
  sale      and    delivery    of   inbond    merchandise   at                 
  international airports."                                                     
                                                                               
  Representative Norman Rokeberg, sponsor, was invited to join                 
  the committee.   He testified  on behalf  of his  bill.   He                 
  noted  constraints  on lease  terms.   Senator  Pearce asked                 
  about the cost of  goods in the  duty free shops, saying  it                 
  was her understanding that one could purchase name brands at                 
  a  reduced  price  because they  were  in  duty free  shops.                 
  Representative  Rokeberg  said  that  higher  ticket   items                 
  usually  attracted shoppers in duty free shops.  He referred                 
  to a legal  memo dated  5 May  and said there  was the  same                 
  discussion last  year on the  North Star contract.   Senator                 
  Pearce advised  that  the State  was presently  in Court  on                 
  North Star.                                                                  
                                                                               
  Elizabeth    Hickerson,    Assistant    Attorney    General,                 
  Transportation   Section,   Anchorage,  Department   of  Law                 
  testified  via teleconference  from  Anchorage.   She  noted                 
  there were four  bids prior  to the award  on the  contract.                 
  She said one could opt for an extension also.                                
                                                                               
  Sam Kito, III, Legislative Liaison/Special Assistant, Office                 
  of the Commissioner, Department of Transportation and Public                 
  Facilities was  invited to join the committee.  He basically                 
  concurred with  testimony offered briefly by  Ms. Hickerson.                 
  He said  the department  neither supported  nor opposed  the                 
  bill.  In response to a question by Senator  Parnell he said                 
  they would  leave  it to  the  Legislature to  continue  any                 
  existing contracts.   Senator Torgerson asked how  this bill                 
  would affect the  foreign trade zone and  Ms. Hickerson said                 
  it would not affect it.   Senator Torgerson also asked about                 
  any FAA waiver  and Mr. Kito said  any FAA waiver was  not a                 
  big deal.                                                                    
                                                                               
  Ashley Reid, lobbyist,  briefly testified  on behalf of  the                 
  bill.  There were no questions of this witness.                              
                                                                               
  Senator Donley moved HB 210 with individual  recommendations                 
  and accompanying fiscal notes.   Senator Torgerson objected.                 
  By a  vote of 2 - 3 (Torgerson, Parnell, Pearce, nay; Adams,                 
  Sharp,  absent)  the  bill  failed  to  be  reported  out of                 
  committee.                                                                   
                                                                               
  Co-chair Sharp called SB 114.