Legislature(1999 - 2000)
04/22/1999 09:07 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 107(L&C)
"An Act relating to tourism and tourism marketing;
eliminating the Alaska Tourism Marketing Council; and
providing for an effective date."
DARWIN PETERSON, aide to Senator John Torgerson explained
the changes made in the proposed CS before committee
members. Many of the items conformed to changes made by
the House Finance Committee to the companion bill. Some of
the changes were as follows:
Language was deleted that stated, "The tourism related
contract awarded under AS 44.33.125(b) to a qualified trade
association with the right of first refusal or subcontract
by a qualified trade association." This was conforming
changes to those made in the House version.
Language was inserted to clarify the location of a visitor
center in Tok, Alaska. Co-Chair John Torgerson said the
intent was to ensure the location of the only state-
operated visitor center.
Direction was given as to what kind of research could be
conducted in relation to tourism. This provision was not
included in the House bill.
Section 15 was amended to provide for marketing operations.
Instead of stating that the procedures were to be directed
by the department, the language gave the direction. This
also conformed to the House changes.
Language was inserted to read "or fails to accept the offer
within a reasonable time" and related to the contracting of
services. This was not contained in the House bill but was
inserted here to show the Legislature's intent to the trade
association. Co-Chair John Torgerson clarified this was to
avoid contract delay.
Clarification was given to allow the use of the state seal
and other logos. The use of mailing lists and other data
received as part of the contractual services was also
stipulated.
Conforming technical changes were made to apply to the
substantive amendments.
Senator Sean Parnell offered a motion to adopt the CS
Version "I" as a Workdraft. Senator Al Adams objected. He
wanted the sponsor to testify as to whether or not he
agreed with the changes.
SENATOR JERRY MACKIE, sponsor of the bill, stated he
supported the changes. Many of the changes were technical
and cleaned up the language.
Senator Al Adams removed his objection and Version "I" was
adopted.
GINNY FAY, Legislative Liaison, Department of Commerce and
Economic Development testified. Although she had not had an
opportunity to review the CS, she felt the changes were
fine.
Senator Al Adams asked if new fiscal notes would be
prepared. Co-Chair John Torgerson said the committee would
draft fiscal notes to reflect the changes.
Senator Jerry Mackie stated the changes wouldn't change the
fiscal notes. Co-Chair John Torgerson concurred but noted
he wanted to address the personnel services component of
the note.
Ginny Fay noted there should be an updated fiscal note. The
department had found a mistake and submitted a revised
fiscal note.
NANCY LETHCOE testified via teleconference from Valdez in
support of the bill.
The committee began addressing the fiscal notes. Co-Chair
John Torgerson noted he had requested that the department
provide a breakdown. A House Finance Committee fiscal note
would also be considered for this bill.
Senator Jerry Mackie spoke to the fiscal notes. He
supported the fiscal notes submitted to the committee with
the Senate Resources committee substitute. He spoke to the
location of staff positions, which were agreed upon with
the department. These actually showed a reduction.
Co-Chair John Torgerson said the biggest concern was with
the personnel services line.
Ginny Fay pointed out a misunderstanding in one of the
fiscal notes. The House Finance Committee fiscal note was
based on the millenium plan and was in error. She shared
the same confusion that the reductions weren't happening
more rapidly. She detailed the situation and showed how the
latest fiscal note corrected the error.
JOE BALASH, Staff to Representative Gene Therriault came to
the table at the request of the co-chair. He was asked if
the budget would be increased with the HFC fiscal note. He
clarified that numbers the previous witness referred to
were general funds only and the long-range discussion would
address that. He detailed the fiscal information. There was
discussion between Ginny Fay and Joe Balash on the matter.
Co-Chair John Torgerson understood that the project
development and the project assistance portions would not
be funded through the department. There would be fewer
positions funded. Senator Jerry Mackie affirmed. There was
discussion as the differences of the number of positions
requested in the various fiscal notes.
Senator Jerry Mackie supported the existence of the
Division of Tourism. It provided important functions.
However, he noted that if many of the functions were
removed, the same number of positions could not be
justified. He spoke to the general budget situation. He was
trying to be realistic.
Co-Chair John Torgerson asked if the personnel services
line totaled $890,400. Ginny Fay stated there would be a
reduction from 16 staff to nine.
Joe Balash countered that was not correct. There was a
$100,000 difference in the personnel services line and
$20,000 in the contract line for FY00.
Co-Chair John Torgerson was inclined to recommend the
committee adopts the HFC fiscal note. Senator Jerry Mackie
asked the department to defend their argument that they
needed to maintain the same level of staffing in light of
the intent to scale down the division. Ginny Fay responded
that the fundamental difference was that currently there
was no staff in either the ATMC or the Division of Tourism
to directly do marketing functions. It was contracted out
and overseen by staff. If the bill passed, there would not
actually be a privatization of marketing but rather a
consolidation of marketing. Staff would be reduced in both
agencies and the Division of Tourism would be required to
oversee a contracting level that was four times greater
that the present.
Co-Chair John Torgerson was not convinced.
Senator Loren Leman agreed with Co-Chair John Torgerson's
assumptions on the first year, but looked at the second
year and suggested merging the numbers of the two fiscal
notes as the amount was higher in the house fiscal note
than the division requested.
Joe Balash commented on the contractual line item saying
that the funding would be to fund initial contract
services. After the initial contracts were made, fewer
funds would be needed to oversee the contractors.
Senator Jerry Mackie said the $200,000 was for tourism
related research and had been provided for in the committee
substitute.
Senator Randy Phillips made a motion to direct the co-chair
to write a new fiscal note similar to the house version and
work out the details later. Senator Al Adams objected and
spoke to his objection. By having the co-chair draft the
new fiscal note, the remainder of the committee would not
know the amount and allocation of funds between the
personnel services and contractual services components. Co-
Chair John Torgerson said he would write the fiscal note
using the direction of the discussion held in this hearing.
Senator Loren Leman did not have a problem granting the co-
chair authority to write the fiscal note. He had concerns
with the additional spending allowed in the second year. He
didn't believe sufficient savings were presented.
The motion to create a new fiscal note adopted by a vote of
6-2-2. Senator Loren Leman and Senator Al Adams voted
against the motion. Senator Dave Donley and Senator Sean
Parnell were absent.
Senator Randy Phillips offered a motion to report CS SB 107
(FIN) out of committee with the new fiscal note. There was
no objection and it was so ordered.
[Pause]
| Document Name | Date/Time | Subjects |
|---|