04/19/1994 03:10 PM House FIN

  HB 342    An  Act  extending  the  termination  date  of the                 
            Alaska Tourism Marketing Council.                                  
                                                                               
            CS HB 342 (FIN) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by  the   Department  of  Commerce   and  Economic                 
            Development dated 1/21/94.                                         
  HOUSE BILL 342                                                               
                                                                               
       "An Act extending  the termination  date of the  Alaska                 
  Tourism   Marketing Council."                                                
                                                                               
  Co-Chair MacLean MOVED #8-LS1426\I, Lauterbach, 4/18/94,  HB
 be the  version before  the Committee.   There being  NO                 
  OBJECTIONS, it was adopted.                                                  
                                                                               
  Representative  Parnell,  the Subcommittee  Chair, explained                 
  the differences between the previous work  draft and the new                 
  one.  The in-cash contribution has  been changed from 15% to                 
  20%.  He added that the cash contribution had been increased                 
  and the in-kind contribution would  be considered toward the                 
  full 50% required  donation.   Co-Chair MacLean stated  that                 
  the cash contribution was too low.                                           
                                                                               
  PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC                 
  DEVELOPMENT,  spoke   to  the  legalities  of   the  in-kind                 
  contributions.  He disagreed that administrative time should                 
  be  considered  as  part of  those  in-kind  obligations and                 
  recommended that portion of the legislation be excluded from                 
  the bill.                                                                    
                                                                               
  Commissioner Fuhs added that the Department would  recommend                 
  the  Alaska  Tourism  Marketing  Council  (ATMC) pay  a  25%                 
  contribution.                                                                
                                                                               
  Representative  Brown asked  who  would  be  responsible  to                 
  determine which  contributions qualify.   Commissioner  Fuhs                 
  responded  that the  Department would  work  with ATMC  on a                 
  standard  operating procedure  in  order to  identify  which                 
  charges would be permissible.   The report would be provided                 
  each year to the Legislature.                                                
                                                                               
  Discussion followed  among Committee  members regarding  the                 
  administrative time as  an accountable in-kind contribution.                 
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  KAREN COWART, (TESTIFIED VIA TELECONFERENCE), ALASKA VISITOR                 
  ASSOCIATION (AVA),  ANCHORAGE, noted  that currently  AVA is                 
  providing a 20% match  and is paying for the  ATMC planners.                 
  She stressed  that it would  be a difficult  arrangement for                 
  AVA to increase  contributions to  25% and continue  payment                 
  for the planners.                                                            
                                                                               
  Co-Chair  MacLean provided the  Committee with Amendment #1,                 
  required amount  from   a "20%"  to "25%"  match.   [Copy on                 
  file].    Co-Chair  MacLean  MOVED  to adopt  Amendment  #1.                 
  Representative Parnell OBJECTED.                                             
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Foster, Martin,  Navarre, Larson,                 
                      MacLean.                                                 
       OPPOSED:       Grussendorf, Hanley, Hoffman, Parnell.                   
                                                                               
  Representative Therriault was not present for the vote.                      
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative Grussendorf MOVED to adopt Amendment #2 which                 
  would  amend  Page  2,  Line   7-9,  deleting  all  language                 
  following "less".   Ms. Cowart replied AVA would  not oppose                 
  Amendment #2.  There being NO OBJECTION, it was adopted.                     
                                                                               
  Representative Brown MOVED to adopt Amendment #3  to Page 1,                 
  Line 14, inserting  "cash" following the language  "form of"                 
  and on Line 15, delete "and"  and insert "or".  There  being                 
  NO OBJECTION, it was adopted.                                                
                                                                               
  Representative Brown MOVED  to adopt  Amendment #4 making  a                 
  change  to Page 2,  Line 3, inserting  language "approved by                 
  the ATMC and" following "is".                                                
                                                                               
  Co-Chair MacLean  MOVED to  report CS  HB 342  (FIN) out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal  note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS HB 342 (FIN) was reported out of Committee with "do pass"                 
  recommendation and with  a fiscal note by the  Department of                 
  Commerce and Economic Development dated 1/21/94.