Legislature(2015 - 2016)BUTROVICH 205
04/10/2015 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HJR18 | |
| SB101 | |
| SB50 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HJR 18 | TELECONFERENCED | |
| *+ | SB 101 | TELECONFERENCED | |
| += | SB 50 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 101-STATE PARKS FEES & SALES OF MERCHANDISE
3:57:17 PM
CHAIR GIESSEL announced the consideration of SB 101.
BEN ELLIS, Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources (DNR), Juneau, Alaska, said SB
101 is necessary to allow the Division of Parks and Outdoor
Recreation to sell state park merchandise to retailers ensuring
a fair and reasonable return to help support state park
operations, thereby reducing reliance on the general fund.
SB 101 would add a new subsection to AS 41.21.026 to grant the
DNR the authority to sell the retailers state park-themed
merchandise for informational, educational and promotional
purposes to support park operations. The new subsection that
would allow the department to establish prices for park-themed
merchandise is to ensure a fair and reasonable return. It would
also remove language in AS 41.21.026(a) requiring all fees to be
collected in a park unit, making clear that the department has
the authority to collect fees at locations outside of park
units.
3:58:48 PM
MR. ELLIS said the bill is needed to help the division get more
revenue. The division currently generates about $3 million
annually from park fees and 33 percent of their operating budget
is covered by these fees. Fees were raised across the board
going into the 2015 season projecting the same usage as last
year and that results in about a 42-44 percent increase in
revenue. It has been his and the commissioner's goal to find
alternative ways to help fund more recreational opportunities in
Alaska. A number of states use this model; South Carolina has
done it for 10 years and raises about $1.72 million annually
above what their merchandising program costs to run. This
proposal would get Alaska going in that direction.
SB 101 would allow the state to create, purchase and sell
authentic state park merchandise to retailers thus providing
opportunity for private businesses while generating revenue for
the state. Currently, he could find only one source for
purchasing state park merchandise and it's on line. One can pick
any state park in Alaska and are able to buy a T-shirt, sweat
shirt, hat, whatever, and the state receives no funds from that
enterprise.
He said with this legislation that Alaskans who buy authentic
Alaska state park merchandise could be confident that their
purchases would benefit the state parks they care about.
4:01:26 PM
MR. ELLIS related that four years ago, they just had completed a
40-year celebration of Alaska state parks and had a number of
beautiful photos in a photo contest. He thought what great note
cards they would be and put eight of the winning photos on a
blank notecard along with the name of the photographer, the
location, and technical information. It was put into a nice
package that could be sold. His intent was to charge $15 for
what cost them $5.28 to create and it was going to go toward
operations. Unfortunately, current statutes say that parks can't
sell anything - camp fees, fire wood, whatever - for profit.
That was the beginning of his starting to look at what other
states do. He said that 39 other states have some type of a
merchandising program; South Carolina has the most successful.
SENATOR COSTELLO said she remembered this issue from previous
legislatures and asked if raising park fees needs a statute
change.
MR. ELLIS answered yes, because AS 41.21.026(a) lists
informational, educational and promotional purposes. It gets
wrapped up with fire wood and other things that can only be sold
for cost.
SENATOR STOLTZE asked if Alaska has a patent or trademark on
these logos.
MR. ELLIS answered no, but a patch saying "official gear" could
be put on with the Alaska state park logo and retailers could be
urged to put a sticker of support for Alaska state parks in
their windows. He can't get a copyright on it, but he is working
with people on using the Alaska grown symbol.
SENATOR STOLTZE mentioned that the DNR and the Department of Law
(DOL) could give him a lot of insight on the issue of patenting
that would be useful to have.
SENATOR MICCICHE said he thought selling authentic Alaskan wear
would be a good idea. He asked where the $350,000 would come
from to initiate the program and what it would be used for.
MR. ELLIS answered the $50,000 is a one-time capital request.
The $350,000 would the ability to receive up to $350,000 from
the merchandise. If this goes forward, he wanted to do it on a
very measured basis starting with creating $50,000 worth of
product, selling it, looking at the return, and investing it
again the following year until they get to a point of actually
having enough volume to make a significant profit.
SENATOR MICCICHE asked if he plans on changing revenues from
FY16 to FY21 on the fiscal note.
MR. ELLIS answered no.
4:07:21 PM
SENATOR WIELECHOWSKI asked what section 3 is repealing.
MR. ELLIS answered that it basically deletes language saying the
state can charge the cost of what the product is, but not for a
profit.
SENATOR STEDMAN said he had talked to Mr. Ellis earlier this
year about the budgets in trying to deal with the parks in
Sitka, one of which is where the Russians and Americans changed
the flag. Quite a few people access it and the state should be
able to charge a couple dollars to help offset the cost of
running the parks. But maybe they should consider outsourcing
the merchandising program and take some sort of royalty off of
it. People who are in the business of selling T-shirts or
popcorn are probably better at it than the well-meaning folks
that aren't actually in that type of business. The state could
just license the product and collect the check and not stick its
neck out too far.
MR. ELLIS responded that some states have that model, but he
looked at the states that generated the highest level of revenue
above the cost of the program and that was South Carolina that
is doing it themselves. But he was not opposed to that approach.
SENATOR STEDMAN said he saw his point, but state agencies don't
have that great a history of getting through their overhead
burden. But he supported the bill and the concept.
4:12:42 PM
SENATOR STOLTZE concurred with Senator Stedman, but added that
Alaska doesn't have a trademark or a patent and some companies
are already making these types of products. All Alaska can
really sell is an official sanction, which would have limited
value if it gets too expensive.
4:14:28 PM
SENATOR WIELECHOWSKI also wondered what the state really has to
sell if it doesn't have a trademark or a patent. He thought a
lot of people would want to buy an official T-shit or hat or
something knowing that a big chunk of it is going to the state
park system. Going to a private model would be preferable but
the state doesn't have anything to sell.
MR. ELLIS responded that he is exploring all options. He had
conversations with Princess Lodge that wants to sell these items
in their gift shops, because they want to promote and support
Alaska's parks. So, he believes there are merchants out there
that would be interested. Totem Bite is another example.
He didn't expect to make as much money as South Carolina does,
because the programs are different, but it is the start of
looking at other possible revenue generating areas. Just raising
fees is not a sustainable model.
4:19:20 PM
SENATOR STEDMAN asked him to explain what the Totem Bite is.
MR. ELLIS replied that Totem Bite is a state historical park in
Ketchikan that has hundreds of thousands of visitors each year.
It is a replica of a totem village that Totem Trading Company,
Inc., has next door to it, a museum that is second to none.
SENATOR MICCICHE agreed that there is a market for gear, but
said the division already has ability in existing law for
competitive and exclusive commercial use permits. Even if they
used kiosks in the most popular places, they wouldn't have to be
run by park employees. They have the option right now under
existing law for someone coming in and having such a thing with
a portion of the proceeds going to the Park Service.
MR. ELLIS answered if there is a product, yes, but he didn't
know of an Alaskan state product being sold in the state.
SENATOR WIELECHOWSKI wondered if the state is violating law now
by selling cabins referencing deleting "in a park unit" on page
1, line 6, and he thought it would be a good idea to do
something about that. He asked if there could be some other
unintended impacts coming from that deletion.
MR. ELLIS said he had worked with the Department of Law on that
and didn't always understand legal language, but currently if
one wants to reserve a public use cabin, it is done on line; it
is not done in a unit. If one goes to a public information
center and purchases an annual parking pass, that is not done in
a unit. This language just tries to clarify what is already
being done.
SENATOR COGHILL said this needs to be passed, because the state
is already violating law and asked what assurances he can give
if this proceeds forward, that it gets reviewed so the state
"doesn't get tangled up in a lawsuit." He liked the idea of
merchandising things and having it plowed back into the parks.
MR. ELLIS gave him his personal assurance that he would have the
Department of Law look into it. The model he used, South
Carolina, has a three-legged stool: they sell merchandise in
their units most of which have a gift shop; Alaska doesn't. They
sell them on line and they sell them in retail. Obviously, in
the park and on line, where the State of Alaska is using it, it
would be assured of the return on the profit. He is concerned in
going with on line and in the units that the state would be in
competition with the private sector even though they would be
giving the opportunity for the private sector to purchase the
product at wholesale.
4:27:09 PM
SENATOR COGHILL said on line would be the best place because his
area doesn't even have kiosks.
MR. ELLIS agreed that kiosks would not be cost effective and
that the best bet would be to work with lodges like the Princess
Lodge that has a large volume of people coming through it.
CHAIR GIESSEL said the National Park Service in Kotzebue has a
visitor center that sells merchandise and she sees that in a lot
of other states, as well.
SENATOR STOLTZE said the federal government has concessionaires
at the major national parks. He asked if the division needed a
broader authority so that conservation minded families wanting
to endow a cabin as a friend of the parks could be able to do
that.
MR. ELLIS answered that they do have that authority now. It
comes through a donation from a family that says it wants to
have it applied to a specific area or parks in general.
4:30:26 PM
SENATOR WIELECHOWSKI said he wanted to hear from the Department
of Law if on line fees are illegal.
MR. ELLIS replied he hadn't talked to them about that, but will
have an answer back through the chair.
SENATOR WIELECHOWSKI said he thought they likely needed to pass
something as quick as possible.
CHAIR GIESSEL agreed and said it would be helpful to know about
the logo trademark issue. She asked Mr. Ellis to get that
information. She held SB 101 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR18 Ver. H.PDF |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Ver. E.PDF |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Explaination of Changes.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Sponsor Statement.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Fiscal Note.PDF |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents -NPCA National Monuments List.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-ADN Article.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-Deseret News Editorial.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-KUCB News Article.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-Legislation and Policy Article.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-NPS Antiquities Act 1906.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-S. 437.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| HJR18 Supporting Documents-S.437 News Release.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |
| SB 101.pdf |
SRES 4/10/2015 3:30:00 PM |
SB 101 |
| SB 101 Transmittal Letter.pdf |
SRES 4/10/2015 3:30:00 PM |
SB 101 |
| SB 101 Fiscal Note.pdf |
SRES 4/10/2015 3:30:00 PM |
SB 101 |
| SB 101 Briefing Paper.pdf |
SRES 4/10/2015 3:30:00 PM |
SB 101 |
| SB50 Transmittal Letter.pdf |
SRES 4/10/2015 3:30:00 PM STRA 3/10/2015 3:30:00 PM |
SB 50 |
| SB50 Fact Sheet.pdf |
SRES 4/10/2015 3:30:00 PM STRA 3/10/2015 3:30:00 PM |
SB 50 |
| SB50 Fiscal Note-DCCED-AIDEA-Zero-2-11-15.pdf |
SRES 4/10/2015 3:30:00 PM STRA 3/10/2015 3:30:00 PM |
SB 50 |
| SB50 Sectional Analysis.pdf |
SRES 4/10/2015 3:30:00 PM STRA 3/10/2015 3:30:00 PM |
SB 50 |
| FBX North Star Borough R2015-08.pdf |
SNRG 3/10/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| Fairbanks Chamber Letter of Support for HB 105 & SB 50.pdf |
SNRG 3/10/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
HB 105 SB 50 |
| SB50 ver A.pdf |
SNRG 3/10/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| SB50 Fact Sheet.pdf |
SNRG 3/10/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| SB 50 CS NRG version W dated 3-26-15.PDF |
SNRG 3/26/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| SB50 Summary of Changes ver A to ver W.pdf |
SRES 3/30/2015 3:30:00 PM SRES 4/3/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| SB50 Supporting Documents-Furie LLC letter 3-2015.pdf |
SRES 3/30/2015 3:30:00 PM SRES 4/3/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| SB 50 Letter of Support Merrick Peirce.pdf |
SRES 3/30/2015 3:30:00 PM SRES 4/3/2015 3:30:00 PM SRES 4/10/2015 3:30:00 PM |
SB 50 |
| SB50-AIDEA PowerPoint.pdf |
SRES 4/10/2015 3:30:00 PM |
SB 50 |
| CSHJR18 Explanation of Changes Version E to N.pdf |
SRES 4/10/2015 3:30:00 PM |
|
| SB 50 - Coghill Amendment 29-GS1019 W.2.pdf |
SRES 4/10/2015 3:30:00 PM |
SB 50 |
| CSHJR18-Version N.pdf |
SRES 4/10/2015 3:30:00 PM |
HJR 18 |