Legislature(1993 - 1994)
04/13/1994 08:30 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 13, 1994
8:30 A.M.
TAPE HFC 94 - 122, Side 2, #000 - end.
TAPE HFC 94 - 123, Side 1, #000 - #671.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Pete Kott; Joe Swanson, Director, Division of
Elections, Office of the Lieutenant Governor; Jeannie
Larson, Staff, Representative Terry Martin; Jay Dulany,
(Testified via teleconference), Director, Division of Motor
Vehicles, Department of Public Safety; Ron King, Project
Manager, Mobil Sources, Department of Environmental
Conservation; Paul Fuhs, Commissioner, Department of
Commerce and Economic Development; Brad Phillips, Alaska
Tourism Marketing Council (ATMC), Anchorage; Tina Lindgren,
(ATMC), Anchorage; John Binkley, Representing Self,
Fairbanks.
SUMMARY
HB 47 An Act relating to the delivery of the primary
ballots to persons making application for them
when, by operation of political party rule, two or
more primary ballots must be provided to the
public.
CS HB 47 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Office of the Governor.
HB 328 An Act relating to motor vehicle registration and
registration fees; to fees for drivers' licenses
and permits; and providing for an effective date.
1
HB 328 was placed into Subcommittee with
Representative Martin as Chair and held for
further consideration.
HB 342 An Act extending the termination date of the
Alaska Tourism Marketing Council.
HB 342 was HELD in Committee for further
consideration.
HOUSE BILL 47
"An Act relating to the delivery of the primary ballots
to persons making application for them when, by
operation of political party rule, two or more primary
ballots must be provided to the public."
Representative Martin noted that HB 47 had been drafted
following the 1992 Primary Election in which an absentee
ballot applicant had not indicated a ballot preference.
Through this legislation, the absentee voter would receive
the appropriate primary election ballot, as determined by
their political affiliation on record. The legislation
would create a 30 day limitation on party affiliation
changes to facilitate the election process.
JOE SWANSON, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE
LIEUTENANT GOVERNOR, commented that the fiscal note had been
zeroed out.
Representative Brown noted her preference of an "open"
primary and asked the legal options for that choice. Mr.
Swanson advised it would not be optional due to a mandate by
the Supreme Court. Currently there are regulations in
effect which are based on that court order and which are not
in statute. The proposed legislation clarifies regulations.
Co-Chair Larson asked if the bill would change the court
ruling which would specify that each party make individual
determinations whether to open or close the primary.
Representative Brown asked if Section #6, Page 5, would
annul a regulation. Mr. Swanson replied that Section #6
would provide a cost savings measure and would automatically
take the regulations off of the books. Discussion followed
between Committee members and Mr. Swanson regarding the open
and primary ballot systems.
Representative Brown MOVED to amend Page 4, Line 16 and Line
17, deleting "statutory" and inserting "open".
2
Representative Therriault OBJECTED. Representative Parnell
stated that the language would be too broad and a
mischaracterization of the intention.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Brown, Foster, Grussendorf,
Larson.
OPPOSED: Martin, Parnell, Therriault, Hanley.
Representative Navarre and MacLean were not present for the
vote.
The MOTION PASSED (5-4).
Representative Hanley MOVED to report CS HB 47 (FIN) out of
Committee with individual recommendations and with a zero
fiscal note. There being NO OBJECTION, it was so ordered.
CS HB 47 (FIN) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the Office
of the Governor.
HOUSE BILL 328
"An Act relating to motor vehicle registration and
registration fees; to fees for drivers' licenses and
permits; and providing for an effective date."
Representative Martin noted that the proposed legislation
would establish a biennial motor vehicle registration
effective January 1, 1995. The fees for biennial
registration would be reduced to one and one-half times the
current one year rate and would result in an annual savings
to motor vehicle owners of $4.6 million dollars. The
legislation would also reduce the Division of Motor
Vehicle's (DMV) workload by 10% annually, significantly
reducing the rate of new hires.
JAY DULANY, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY,
testified that the Department of Public Safety supports the
concept of the legislation, however, indicated concern with
the potential loss in revenue.
JEANNE LARSON, STAFF, REPRESENTATIVE TERRY MARTIN, explained
that in establishing the biennial registration, there would
be annual inspections for vehicle emissions in order to
comply with the federal clean air act.
RON KING, PROJECT MANAGER, MOBIL SOURCES, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, expounded that the legislation
3
would provide three proposals. Option #1 would employee a
sticker program utilizing on street enforcement. Option #2
would become available if statute changes had not been
enforced, including more staff, adding penalties under the
existing statutes. Option #3 would alter the existing
programs, returning to the Anchorage and Fairbanks
communities and pursuing options which had previously been
excluded.
Mr. King indicated that Option #1 would be the least costly
to the State. He noted that DEC maintains a neutral
position on the bill.
Representative Brown asked the changes necessary to
implement Option #1. Mr. King stated that a violation or
bailable offense would need to be established by statute and
would create a fine for operation without the required
window sticker. The second change would clarify whether the
revocation of registration would be possible. Ms. Larson
noted that all fees charged result from program receipts.
Representative Brown inquired how the annual emission test
would be enacted. Mr. King stated that Option #1 would
establish a system in which a sticker would be required on
the vehicle in addition to the registration enforcement
date.
Co-Chair Larson placed HB 328 into Subcommittee with
Representative Martin as Chair.
1. Provide for a biennial license.
2. Address concerns of the emission testing.
3. Do away with any changes that would effect vehicle
registration fees.
HB 328 was HELD in Committee for further consideration.
HOUSE BILL 342
"An Act extending the termination date of the Alaska
Tourism Marketing Council."
REPRESENTATIVE PETE KOTT noted that HB 342 would extend the
life of the Alaska Tourism Marketing Council (ATMC) to
December 30, 1998. He added that the legislation would
conform to the recommendations of the 1993 Budget and Audit
report.
ATMC falls under the Department of Commerce and Economic
Development (DEC), Division of Tourism. ATMC contributes a
substantial amount to the State by providing over $52
million dollars each year.
4
Co-Chair MacLean provided the Committee with a work draft
Revenues to the State of Alaska Generated by the Visitor
Industry". [Copy on file].
She noted that the committee substitute for HB 342 proposed
an increase to the industry contribution inline with what
the Governor intended in the proposed operating budget. The
committee substitute would also increase the minimum
industry contribution in statute from 15% to 38% for FY95.
Thereafter, there would be a graduation of the industry
contribution structured in the bill.
Co-Chair MacLean added that ATMC would need increased
program receipt authority to accommodate the increases in
industry contribution. The draft would not allow for the
industry contribution to be in-kind.
(Tape Change, HFC 94-123, Side 1).
Co-Chair MacLean MOVED to adopt the committee substitute as
the version before the Committee. Representative Parnell
OBJECTED stressing the damage the harsh measures would
inflict to small tour operators by increasing the
contributing to 50%. Co-Chair MacLean replied that the
small tour operators had agreed to pay a dedicated fund.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, pointed out that if the Alaska Visitor's
Association (AVA) was not able to meet the match, the law
states that the decision of action should be made by the
Commissioner of Commerce, the Director of the Division of
Tourism and another commissioner designated by the Governor.
He added that a marketing program would continue to exist
although it would not be provided by AMTC and if that should
happen, an advisory committee would be established.
Commissioner Fuhs stated his support for the extension of
the Alaska Tourism Marketing Council. The Governor has
requested a more substantial match. He noted that ASMI
currently provides 85% of their funding source. ATMC
contributes a 15% match which the Department thinks is too
low.
Representative Kott remarked that the in-kind contribution
should be considered as an essential element provided by
tourism pointing out that last year $5 million dollars has
made available.
BRAD PHILLIPS, ALASKA TOURISM MARKETING COUNCIL (ATMC),
ANCHORAGE, discussed the in-kind contributions. He added
5
that he was discouraged by the impact which the work draft
submitted by Representative MacLean would make on small
Alaskan operators. He indicated that ATMC has two sources
of revenue:
1. Sales of ads.
2. Sale of the mailing list.
Mr. Phillips explained that people do not realize the
economic contribution made to the State as a result of
tourism. This enterprise covers multiple processes and
hires over twenty thousand people in the State. He urged
the Committee to create a mechanism which would guarantee
that money raised by AMTC be used for tourism marketing
rather than placed into the general fund. Mr. Phillips
noted that the group has not been opposed to a broad base
tax in order to provide revenues but asks that those funds
be used for tourism marketing only.
Discussion followed among Committee members and Mr. Phillips
regarding the delegation of taxing power and the need to
create a constitutional amendment for a dedicated fund.
JOHN BINKLEY, REPRESENTING SELF, FAIRBANKS, explained that
the Alaska Tourism Council would like to have the same
status as ASMI by paying for half their share and providing
for the same mechanism to generate funds. He added that
ASMI has the power of taxation and has the authority to veto
any tax which the legislature implements. ATMC is
requesting that the same authorization of assessment be made
available. He pointed out that the tourism industry relies
on marketing and they are willing to participate in a joint
marketing program. The tourism commodity would be difficult
to tax. Consequently, ATMC requests that the constitutional
amendment be considered for implementation of tourism
marketing for Alaska.
Co-Chair MacLean remarked that three taxes have been
suggested to the tourism council although not well received:
1. Bed tax;
2. Crew ship head tax; and
3. Motor vehicle rental tax.
Mr. Binkley reiterated that the tourism industry wants to
guarantee that the funds generated from the taxes be
returned to marketing.
Representative Brown recommended enacting taxes on a two
year basis in order to fund the programs for a short period
of time while further work is done in consideration of the
6
constitutional amendment. She observed that the function of
the State and the joint partnership in tourism is well
exampled by the public-private partnership.
HB 342 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 10:10 A.M.
HOUSE FINANCE COMMITTEE
April 13, 1994
8:30 A.M.
TAPE HFC 94 - 122, Side 2, #000 - end.
TAPE HFC 94 - 123, Side 1, #000 - #671.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Pete Kott; Joe Swanson, Director, Division of
Elections, Office of the Lieutenant Governor; Jeannie
Larson, Staff, Representative Terry Martin; Jay Dulany,
(Testified v***FIN103AM
0AAHFIN 0413940830
HOUSE FINANCE COMMITTEE
April 13, 1994
8:30 A.M.
TAPE HFC 94 - 122, Side 2, #000 - end.
TAPE HFC 94 - 123, Side 1, #000 - #671.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Pete Kott; Joe Swanson, Director, Division of
Elections, Office of the Lieutenant Governor; Jeannie
Larson, Staff, Representative Terry Martin; Jay Dulany,
(Testified via teleconference), Director, Division of Motor
Vehicles, Department of Public Safety; Ron King, Project
Manager, Mobil Sources, Department of Environmental
Conservation; Paul Fuhs, Commissioner, Department of
Commerce and Economic Development; Brad Phillips, Alaska
Tourism Marketing Council (ATMC), Anchorage; Tina Lindgren,
(ATMC), Anchorage; John Binkley, Representing Self,
Fairbanks.
SUMMARY
HB 47 An Act relating to the delivery of the primary
ballots to persons making application for them
when, by operation of political party rule, two or
more primary ballots must be provided to the
public.
CS HB 47 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Office of the Governor.
HB 328 An Act relating to motor vehicle registration and
registration fees; to fees for drivers' licenses
and permits; and providing for an effective date.
1
HB 328 was placed into Subcommittee with
Representative Martin as Chair and held for
further consideration.
HB 342 An Act extending the termination date of the
Alaska Tourism Marketing Council.
HB 342 was HELD in Committee for further
consideration.
HOUSE BILL 47
"An Act relating to the delivery of the primary ballots
to persons making application for them when, by
operation of political party rule, two or more primary
ballots must be provided to the public."
Representative Martin noted that HB 47 had been drafted
following the 1992 Primary Election in which an absentee
ballot applicant had not indicated a ballot preference.
Through this legislation, the absentee voter would receive
the appropriate primary election ballot, as determined by
their political affiliation on record. The legislation
would create a 30 day limitation on party affiliation
changes to facilitate the election process.
JOE SWANSON, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE
LIEUTENANT GOVERNOR, commented that the fiscal note had been
zeroed out.
Representative Brown noted her preference of an "open"
primary and asked the legal options for that choice. Mr.
Swanson advised it would not be optional due to a mandate by
the Supreme Court. Currently there are regulations in
effect which are based on that court order and which are not
in statute. The proposed legislation clarifies regulations.
Co-Chair Larson asked if the bill would change the court
ruling which would specify that each party make individual
determinations whether to open or close the primary.
Representative Brown asked if Section #6, Page 5, would
annul a regulation. Mr. Swanson replied that Section #6
would provide a cost savings measure and would automatically
take the regulations off of the books. Discussion followed
between Committee members and Mr. Swanson regarding the open
and primary ballot systems.
Representative Brown MOVED to amend Page 4, Line 16 and Line
17, deleting "statutory" and inserting "open".
2
Representative Therriault OBJECTED. Representative Parnell
stated that the language would be too broad and a
mischaracterization of the intention.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Brown, Foster, Grussendorf,
Larson.
OPPOSED: Martin, Parnell, Therriault, Hanley.
Representative Navarre and MacLean were not present for the
vote.
The MOTION PASSED (5-4).
Representative Hanley MOVED to report CS HB 47 (FIN) out of
Committee with individual recommendations and with a zero
fiscal note. There being NO OBJECTION, it was so ordered.
CS HB 47 (FIN) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the Office
of the Governor.
HOUSE BILL 328
"An Act relating to motor vehicle registration and
registration fees; to fees for drivers' licenses and
permits; and providing for an effective date."
Representative Martin noted that the proposed legislation
would establish a biennial motor vehicle registration
effective January 1, 1995. The fees for biennial
registration would be reduced to one and one-half times the
current one year rate and would result in an annual savings
to motor vehicle owners of $4.6 million dollars. The
legislation would also reduce the Division of Motor
Vehicle's (DMV) workload by 10% annually, significantly
reducing the rate of new hires.
JAY DULANY, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY,
testified that the Department of Public Safety supports the
concept of the legislation, however, indicated concern with
the potential loss in revenue.
JEANNE LARSON, STAFF, REPRESENTATIVE TERRY MARTIN, explained
that in establishing the biennial registration, there would
be annual inspections for vehicle emissions in order to
comply with the federal clean air act.
RON KING, PROJECT MANAGER, MOBIL SOURCES, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, expounded that the legislation
3
would provide three proposals. Option #1 would employee a
sticker program utilizing on street enforcement. Option #2
would become available if statute changes had not been
enforced, including more staff, adding penalties under the
existing statutes. Option #3 would alter the existing
programs, returning to the Anchorage and Fairbanks
communities and pursuing options which had previously been
excluded.
Mr. King indicated that Option #1 would be the least costly
to the State. He noted that DEC maintains a neutral
position on the bill.
Representative Brown asked the changes necessary to
implement Option #1. Mr. King stated that a violation or
bailable offense would need to be established by statute and
would create a fine for operation without the required
window sticker. The second change would clarify whether the
revocation of registration would be possible. Ms. Larson
noted that all fees charged result from program receipts.
Representative Brown inquired how the annual emission test
would be enacted. Mr. King stated that Option #1 would
establish a system in which a sticker would be required on
the vehicle in addition to the registration enforcement
date.
Co-Chair Larson placed HB 328 into Subcommittee with
Representative Martin as Chair.
1. Provide for a biennial license.
2. Address concerns of the emission testing.
3. Do away with any changes that would effect vehicle
registration fees.
HB 328 was HELD in Committee for further consideration.
HOUSE BILL 342
"An Act extending the termination date of the Alaska
Tourism Marketing Council."
REPRESENTATIVE PETE KOTT noted that HB 342 would extend the
life of the Alaska Tourism Marketing Council (ATMC) to
December 30, 1998. He added that the legislation would
conform to the recommendations of the 1993 Budget and Audit
report.
ATMC falls under the Department of Commerce and Economic
Development (DEC), Division of Tourism. ATMC contributes a
substantial amount to the State by providing over $52
million dollars each year.
4
Co-Chair MacLean provided the Committee with a work draft
Revenues to the State of Alaska Generated by the Visitor
Industry". [Copy on file].
She noted that the committee substitute for HB 342 proposed
an increase to the industry contribution inline with what
the Governor intended in the proposed operating budget. The
committee substitute would also increase the minimum
industry contribution in statute from 15% to 38% for FY95.
Thereafter, there would be a graduation of the industry
contribution structured in the bill.
Co-Chair MacLean added that ATMC would need increased
program receipt authority to accommodate the increases in
industry contribution. The draft would not allow for the
industry contribution to be in-kind.
(Tape Change, HFC 94-123, Side 1).
Co-Chair MacLean MOVED to adopt the committee substitute as
the version before the Committee. Representative Parnell
OBJECTED stressing the damage the harsh measures would
inflict to small tour operators by increasing the
contributing to 50%. Co-Chair MacLean replied that the
small tour operators had agreed to pay a dedicated fund.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, pointed out that if the Alaska Visitor's
Association (AVA) was not able to meet the match, the law
states that the decision of action should be made by the
Commissioner of Commerce, the Director of the Division of
Tourism and another commissioner designated by the Governor.
He added that a marketing program would continue to exist
although it would not be provided by AMTC and if that should
happen, an advisory committee would be established.
Commissioner Fuhs stated his support for the extension of
the Alaska Tourism Marketing Council. The Governor has
requested a more substantial match. He noted that ASMI
currently provides 85% of their funding source. ATMC
contributes a 15% match which the Department thinks is too
low.
Representative Kott remarked that the in-kind contribution
should be considered as an essential element provided by
tourism pointing out that last year $5 million dollars has
made available.
BRAD PHILLIPS, ALASKA TOURISM MARKETING COUNCIL (ATMC),
ANCHORAGE, discussed the in-kind contributions. He added
5
that he was discouraged by the impact which the work draft
submitted by Representative MacLean would make on small
Alaskan operators. He indicated that ATMC has two sources
of revenue:
1. Sales of ads.
2. Sale of the mailing list.
Mr. Phillips explained that people do not realize the
economic contribution made to the State as a result of
tourism. This enterprise covers multiple processes and
hires over twenty thousand people in the State. He urged
the Committee to create a mechanism which would guarantee
that money raised by AMTC be used for tourism marketing
rather than placed into the general fund. Mr. Phillips
noted that the group has not been opposed to a broad base
tax in order to provide revenues but asks that those funds
be used for tourism marketing only.
Discussion followed among Committee members and Mr. Phillips
regarding the delegation of taxing power and the need to
create a constitutional amendment for a dedicated fund.
JOHN BINKLEY, REPRESENTING SELF, FAIRBANKS, explained that
the Alaska Tourism Council would like to have the same
status as ASMI by paying for half their share and providing
for the same mechanism to generate funds. He added that
ASMI has the power of taxation and has the authority to veto
any tax which the legislature implements. ATMC is
requesting that the same authorization of assessment be made
available. He pointed out that the tourism industry relies
on marketing and they are willing to participate in a joint
marketing program. The tourism commodity would be difficult
to tax. Consequently, ATMC requests that the constitutional
amendment be considered for implementation of tourism
marketing for Alaska.
Co-Chair MacLean remarked that three taxes have been
suggested to the tourism council although not well received:
1. Bed tax;
2. Crew ship head tax; and
3. Motor vehicle rental tax.
Mr. Binkley reiterated that the tourism industry wants to
guarantee that the funds generated from the taxes be
returned to marketing.
Representative Brown recommended enacting taxes on a two
year basis in order to fund the programs for a short period
of time while further work is done in consideration of the
6
constitutional amendment. She observed that the function of
the State and the joint partnership in tourism is well
exampled by the public-private partnership.
HB 342 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 10:10 A.M.
HOUSE FINANCE COMMITTEE
April 13, 1994
8:30 A.M.
TAPE HFC 94 - 122, Side 2, #000 - end.
TAPE HFC 94 - 123, Side 1, #000 - #671.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Pete Kott; Joe Swanson, Director, Division of
Elections, Office of the Lieutenant Governor; Jeannie
Larson, Staff, Representative Terry Martin; Jay Dulany,
(Testified via teleconference), Director, Division of Motor
Vehicles, Department of Public Safety; Ron King, Project
Manager, Mobil Sources, Department of Environmental
Conservation; Paul Fuhs, Commissioner, Department of
Commerce and Economic Development; Brad Phillips, Alaska
Tourism Marketing Council (ATMC), Anchorage; Tina Lindgren,
(ATMC), Anchorage; John Binkley, Representing Self,
Fairbanks.
SUMMARY
HB 47 An Act relating to the delivery of the primary
ballots to persons making application for them
when, by operation of political party rule, two or
7
more primary ballots must be provided to the
public.
CS HB 47 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Office of the Governor.
HB 328 An Act relating to motor vehicle registration and
registration fees; to fees for drivers' licenses
and permits; and providing for an effective date.
HB 328 was placed into Subcommittee with
Representative Martin as Chair and held for
further consideration.
HB 342 An Act extending the termination date of the
Alaska Tourism Marketing Council.
HB 342 was HELD in Committee for further
consideration.
HOUSE BILL 47
"An Act relating to the delivery of the primary ballots
to persons making application for them when, by
operation of political party rule, two or more primary
ballots must be provided to the public."
Representative Martin noted that HB 47 had been drafted
following the 1992 Primary Election in which an absentee
ballot applicant had not indicated a ballot preference.
Through this legislation, the absentee voter would receive
the appropriate primary election ballot, as determined by
their political affiliation on record. The legislation
would create a 30 day limitation on party affiliation
changes to facilitate the election process.
JOE SWANSON, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE
LIEUTENANT GOVERNOR, commented that the fiscal note had been
zeroed out.
Representative Brown noted her preference of an "open"
primary and asked the legal options for that choice. Mr.
Swanson advised it would not be optional due to a mandate by
the Supreme Court. Currently there are regulations in
effect which are based on that court order and which are not
in statute. The proposed legislation clarifies regulations.
Co-Chair Larson asked if the bill would change the court
ruling which would specify that each party make individual
determinations whether to open or close the primary.
8
Representative Brown asked if Section #6, Page 5, would
annul a regulation. Mr. Swanson replied that Section #6
would provide a cost savings measure and would automatically
take the regulations off of the books. Discussion followed
between Committee members and Mr. Swanson regarding the open
and primary ballot systems.
Representative Brown MOVED to amend Page 4, Line 16 and Line
17, deleting "statutory" and inserting "open".
Representative Therriault OBJECTED. Representative Parnell
stated that the language would be too broad and a
mischaracterization of the intention.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Brown, Foster, Grussendorf,
Larson.
OPPOSED: Martin, Parnell, Therriault, Hanley.
Representative Navarre and MacLean were not present for the
vote.
The MOTION PASSED (5-4).
Representative Hanley MOVED to report CS HB 47 (FIN) out of
Committee with individual recommendations and with a zero
fiscal note. There being NO OBJECTION, it was so ordered.
CS HB 47 (FIN) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the Office
of the Governor.
HOUSE BILL 328
"An Act relating to motor vehicle registration and
registration fees; to fees for drivers' licenses and
permits; and providing for an effective date."
Representative Martin noted that the proposed legislation
would establish a biennial motor vehicle registration
effective January 1, 1995. The fees for biennial
registration would be reduced to one and one-half times the
current one year rate and would result in an annual savings
to motor vehicle owners of $4.6 million dollars. The
legislation would also reduce the Division of Motor
Vehicle's (DMV) workload by 10% annually, significantly
reducing the rate of new hires.
JAY DULANY, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY,
testified that the Department of Public Safety supports the
9
concept of the legislation, however, indicated concern with
the potential loss in revenue.
JEANNE LARSON, STAFF, REPRESENTATIVE TERRY MARTIN, explained
that in establishing the biennial registration, there would
be annual inspections for vehicle emissions in order to
comply with the federal clean air act.
RON KING, PROJECT MANAGER, MOBIL SOURCES, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, expounded that the legislation
would provide three proposals. Option #1 would employee a
sticker program utilizing on street enforcement. Option #2
would become available if statute changes had not been
enforced, including more staff, adding penalties under the
existing statutes. Option #3 would alter the existing
programs, returning to the Anchorage and Fairbanks
communities and pursuing options which had previously been
excluded.
Mr. King indicated that Option #1 would be the least costly
to the State. He noted that DEC maintains a neutral
position on the bill.
Representative Brown asked the changes necessary to
implement Option #1. Mr. King stated that a violation or
bailable offense would need to be established by statute and
would create a fine for operation without the required
window sticker. The second change would clarify whether the
revocation of registration would be possible. Ms. Larson
noted that all fees charged result from program receipts.
Representative Brown inquired how the annual emission test
would be enacted. Mr. King stated that Option #1 would
establish a system in which a sticker would be required on
the vehicle in addition to the registration enforcement
date.
Co-Chair Larson placed HB 328 into Subcommittee with
Representative Martin as Chair.
1. Provide for a biennial license.
2. Address concerns of the emission testing.
3. Do away with any changes that would effect vehicle
registration fees.
HB 328 was HELD in Committee for further consideration.
HOUSE BILL 342
"An Act extending the termination date of the Alaska
Tourism Marketing Council."
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REPRESENTATIVE PETE KOTT noted that HB 342 would extend the
life of the Alaska Tourism Marketing Council (ATMC) to
December 30, 1998. He added that the legislation would
conform to the recommendations of the 1993 Budget and Audit
report.
ATMC falls under the Department of Commerce and Economic
Development (DEC), Division of Tourism. ATMC contributes a
substantial amount to the State by providing over $52
million dollars each year.
Co-Chair MacLean provided the Committee with a work draft
Revenues to the State of Alaska Generated by the Visitor
Industry". [Copy on file].
She noted that the committee substitute for HB 342 proposed
an increase to the industry contribution inline with what
the Governor intended in the proposed operating budget. The
committee substitute would also increase the minimum
industry contribution in statute from 15% to 38% for FY95.
Thereafter, there would be a graduation of the industry
contribution structured in the bill.
Co-Chair MacLean added that ATMC would need increased
program receipt authority to accommodate the increases in
industry contribution. The draft would not allow for the
industry contribution to be in-kind.
(Tape Change, HFC 94-123, Side 1).
Co-Chair MacLean MOVED to adopt the committee substitute as
the version before the Committee. Representative Parnell
OBJECTED stressing the damage the harsh measures would
inflict to small tour operators by increasing the
contributing to 50%. Co-Chair MacLean replied that the
small tour operators had agreed to pay a dedicated fund.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, pointed out that if the Alaska Visitor's
Association (AVA) was not able to meet the match, the law
states that the decision of action should be made by the
Commissioner of Commerce, the Director of the Division of
Tourism and another commissioner designated by the Governor.
He added that a marketing program would continue to exist
although it would not be provided by AMTC and if that should
happen, an advisory committee would be established.
Commissioner Fuhs stated his support for the extension of
the Alaska Tourism Marketing Council. The Governor has
requested a more substantial match. He noted that ASMI
currently provides 85% of their funding source. ATMC
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contributes a 15% match which the Department thinks is too
low.
Representative Kott remarked that the in-kind contribution
should be considered as an essential element provided by
tourism pointing out that last year $5 million dollars has
made available.
BRAD PHILLIPS, ALASKA TOURISM MARKETING COUNCIL (ATMC),
ANCHORAGE, discussed the in-kind contributions. He added
that he was discouraged by the impact which the work draft
submitted by Representative MacLean would make on small
Alaskan operators. He indicated that ATMC has two sources
of revenue:
1. Sales of ads.
2. Sale of the mailing list.
Mr. Phillips explained that people do not realize the
economic contribution made to the State as a result of
tourism. This enterprise covers multiple processes and
hires over twenty thousand people in the State. He urged
the Committee to create a mechanism which would guarantee
that money raised by AMTC be used for tourism marketing
rather than placed into the general fund. Mr. Phillips
noted that the group has not been opposed to a broad base
tax in order to provide revenues but asks that those funds
be used for tourism marketing only.
Discussion followed among Committee members and Mr. Phillips
regarding the delegation of taxing power and the need to
create a constitutional amendment for a dedicated fund.
JOHN BINKLEY, REPRESENTING SELF, FAIRBANKS, explained that
the Alaska Tourism Council would like to have the same
status as ASMI by paying for half their share and providing
for the same mechanism to generate funds. He added that
ASMI has the power of taxation and has the authority to veto
any tax which the legislature implements. ATMC is
requesting that the same authorization of assessment be made
available. He pointed out that the tourism industry relies
on marketing and they are willing to participate in a joint
marketing program. The tourism commodity would be difficult
to tax. Consequently, ATMC requests that the constitutional
amendment be considered for implementation of tourism
marketing for Alaska.
Co-Chair MacLean remarked that three taxes have been
suggested to the tourism council although not well received:
1. Bed tax;
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2. Crew ship head tax; and
3. Motor vehicle rental tax.
Mr. Binkley reiterated that the tourism industry wants to
guarantee that the funds generated from the taxes be
returned to marketing.
Representative Brown recommended enacting taxes on a two
year basis in order to fund the programs for a short period
of time while further work is done in consideration of the
constitutional amendment. She observed that the function of
the State and the joint partnership in tourism is well
exampled by the public-private partnership.
HB 342 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 10:10 A.M.
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