Legislature(1999 - 2000)

02/28/2000 01:48 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE FINANCE COMMITTEE                                                                                                         
February 28, 2000                                                                                                               
1:48 P.M.                                                                                                                       
                                                                                                                                
TAPE HFC 00 - 42, Side 1                                                                                                        
TAPE HFC 00 - 42, Side 2                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Therriault called the House Finance Committee                                                                          
meeting to order at 1:48 p.m.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Therriault    Representative Foster                                                                                    
Vice Chair Bunde   Representative Grussendorf                                                                                   
Representative Austerman   Representative Moses                                                                                 
Representative J. Davies   Representative Phillips                                                                              
Representative G. Davis   Representative Williams                                                                               
                                                                                                                                
Co-Chair Mulder                                                                                                                 
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Kevin Hand, Staff, House Transportation Committee and                                                                           
Representative Halcro; Karen Crane, Director, Division of                                                                       
Libraries, Archives and Museums; Kevin Brooks, Director,                                                                        
Division of Administrative Services, Department of Fish and                                                                     
Game; Bea Sheppard, Board Member, Museums Alaska, Juneau;                                                                       
Geron Bruce, Legislative Liaison, Department of Fish and                                                                        
Game; John Manly, Staff, Representative Harris; Mike                                                                            
Tibbles, Staff, Representative Therriault;                                                                                      
                                                                                                                                
TESTIFIED VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Donna Mathews, Executive Director, Museums Alaska,                                                                              
Anchorage; Diane Brenner, Archivist, Anchorage Museum of                                                                        
History and Art, Anchorage.                                                                                                     
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
HB 206 "An Act relating to the migratory game bird                                                                              
conservation tag, to a nonresident combined sport                                                                               
fishing and hunting license, to the nonresident                                                                                 
military small game and sport fishing license, to                                                                               
applications for certain licenses, tags, and                                                                                    
permits issued by the Department of Fish and Game,                                                                              
and to duplicate crewmember licenses."                                                                                          
                                                                                                                                
 HB 206 was heard and HELD in Committee for further                                                                             
consideration. HB 206 was assigned to a                                                                                         
subcommittee consisting of: Representative Mulder                                                                               
as chair and Representatives Phillips and                                                                                       
Grussendorf.                                                                                                                    
                                                                                                                                
HB 218 "An Act relating to property loaned to or held by                                                                        
museums."                                                                                                                       
                                                                                                                                
 zero fiscal note by the Department of Education                                                                                
and Early Development.                                                                                                          
                                                                                                                                
HB 243 "An Act relating to taxes on motor fuel used in or                                                                       
on boats and watercraft; and providing for an                                                                                   
effective date."                                                                                                                
                                                                                                                                
HB 243 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
HOUSE BILL NO. 243                                                                                                              
                                                                                                                                
"An Act relating to taxes on motor fuel used in or on                                                                           
boats and watercraft; and providing for an effective                                                                            
date."                                                                                                                          
                                                                                                                                
KEVIN HAND, STAFF, HOUSE TRANSPORTATION COMMITTEE AND                                                                           
REPRESENTATIVE HALCRO testified in support of the                                                                               
legislation on behalf of the sponsor. He observed that the                                                                      
State of Alaska has currently been attempting to divest                                                                         
itself of the ownership and maintenance and operation                                                                           
obligations for many of Alaska's harbors. He maintained that                                                                    
the legislation encourages local governments to assume that                                                                     
responsibility. The legislation generates revenue for                                                                           
municipalities that assume local responsibility of ownership                                                                    
for their port and harbor facilities.                                                                                           
                                                                                                                                
Mr. Hand emphasized that the bill reduces the state marine                                                                      
fuel tax in a qualified municipality to 2 cents from the                                                                        
current 5 cents, and allows the local governing body to                                                                         
impose their own 3 cent tax, the revenue from which could                                                                       
then be used for maintenance and operation obligations.                                                                         
                                                                                                                                
Mr. Hand observed that this process comes with specific                                                                         
caveats required of the local entity. A qualified                                                                               
municipality must:                                                                                                              
                                                                                                                                
- Assume possession and responsibility for operation                                                                            
and maintenance of all state port and harbor                                                                                    
facilities within its boundaries - except those                                                                                 
owned by a public corporation or a state agency and                                                                             
used for state purposes: the Alaska Marine Highway                                                                              
System and the Alaska Railroad corporation (both                                                                                
operate dock facilities around the state).                                                                                      
                                                                                                                                
- The state shall not retain any maintenance and                                                                                
operation obligation or liability for the operation                                                                             
of these facilities                                                                                                             
                                                                                                                                
- The local government must adopt municipal ordinances                                                                          
that dedicate these revenues to be used in their                                                                                
harbors.                                                                                                                        
                                                                                                                                
Mr. Hand asserted that the legislation represents an                                                                            
efficient  "user-pay" system since part of the revenue                                                                          
generated from fuel purchases will return to benefit the                                                                        
harbor where the fuel was purchased. The tax on the consumer                                                                    
remains constant; the effective 5-cent tax per gallon will                                                                      
remain consistent throughout the state.                                                                                         
                                                                                                                                
Mr. Hand maintained that the implementation of HB 243 would                                                                     
encourage small communities around the state to gain local                                                                      
control of their harbors and free the Department of                                                                             
Transportation and Public Facilities of maintenance and                                                                         
operation obligations. He acknowledged that the legislation,                                                                    
in its current form, has some working difficulties. He                                                                          
suggested that the bill be placed in a subcommittee to hash                                                                     
out the remaining problems.                                                                                                     
                                                                                                                                
Co-Chair Therriault noted that the legislation only pertains                                                                    
to maintenance and operation. He observed that the intent                                                                       
has been to turn facilities over to municipalities and asked                                                                    
that the subcommittee consider if there is a way to dedicate                                                                    
a revenue stream for local municipalities to pay for                                                                            
improvements, in order to remove the state from the process                                                                     
a step earlier. He noted that Co-Chair Mulder has expressed                                                                     
concern over the loss of revenues to the state of Alaska and                                                                    
noted that revenue loss needs to be balanced with a                                                                             
reduction in responsibility.                                                                                                    
                                                                                                                                
In response to a question by Representative Foster, Mr. Hand                                                                    
observed that there is an indeterminate fiscal note. The tax                                                                    
is imposed at the local level. The department estimates a                                                                       
possible loss of $3.7 million dollars.                                                                                          
                                                                                                                                
Co-Chair Therriault appointed a subcommittee consisting of                                                                      
Representative Mulder as chair and Representatives Phillips                                                                     
and Grussendorf.                                                                                                                
                                                                                                                                
HB 206 was heard and HELD in Subcommittee for further                                                                           
consideration.                                                                                                                  
HOUSE BILL NO. 206                                                                                                              
                                                                                                                                
"An Act relating to the migratory game bird                                                                                     
conservation tag, to a nonresident combined sport                                                                               
fishing and hunting license, to the nonresident                                                                                 
military small game and sport fishing license, to                                                                               
applications for certain licenses, tags, and permits                                                                            
issued by the Department of Fish and Game, and to                                                                               
duplicate crewmember licenses."                                                                                                 
                                                                                                                                
JOHN MANLY, STAFF, REPRESENTATIVE HARRIS testified in                                                                           
support of the legislation. He noted that the legislation is                                                                    
a general cleanup bill for technical problems within the                                                                        
Department of Fish and Game.  A significant portion of the                                                                      
bill deals with changing "waterfowl" conservation tags to                                                                       
"migratory game bird" tags. The definition would be expanded                                                                    
to include snipes and cranes, which are not currently                                                                           
covered.                                                                                                                        
                                                                                                                                
Mr. Manly noted that other sections of the bill would make                                                                      
statutes consistent with current practices. Section three                                                                       
requires formerly exempt holders of $5 licenses and free                                                                        
disabled veteran licenses to register in the National                                                                           
Migratory Bird Harvest Information Program, through one of                                                                      
two methods.                                                                                                                    
                                                                                                                                
Section 4 would create a combination 7-day hunting and                                                                          
fishing license for nonresidents, a popular combination that                                                                    
is more convenient for those visitors who want to hunt and                                                                      
fish during a short stay.                                                                                                       
                                                                                                                                
Section 5 would equalize the fees paid by nonresident                                                                           
military personnel for small game and sport fishing                                                                             
licenses. Currently, the fee for a nonresident military                                                                         
license is higher than the fee for ordinary nonresidents.                                                                       
                                                                                                                                
The final significant change in section 16 would authorize                                                                      
the Department of Fish and Game to issue a duplicate                                                                            
commercial-fishing crewmember license for $5.                                                                                   
                                                                                                                                
Co-Chair Therriault clarified that section 16 is a                                                                              
replacement fee in case of loss. Additional language was                                                                        
added to conform statutes to changes made in section 3.                                                                         
                                                                                                                                
In response to a question by Representative Austerman, Mr.                                                                      
Manly clarified that wording in section 4 utilizes current                                                                      
statutory language.                                                                                                             
                                                                                                                                
Representative Phillips noted that the legislation joins                                                                        
crew licenses and migratory birds. She questioned if the                                                                        
legislation would run afoul of the single subject rule. Mr.                                                                     
Manley did not think the legislation would conflict with the                                                                    
single subject rule.                                                                                                            
                                                                                                                                
GERON BRUCE, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND                                                                        
GAME observed that the legislation was offered on behalf of                                                                     
the Department of Fish and Game. He explained that the                                                                          
change would help with conservation efforts. Snipes and                                                                         
cranes are harvested in a number of states. Their inclusion                                                                     
would provide information on their harvest and the impact of                                                                    
harvest. They are not included under current statutes.                                                                          
                                                                                                                                
Mr. Bruce referred to sections 8 and 9. He observed that                                                                        
vendors must swear an oath; vendors essentially act as a                                                                        
notary. Since vendors are not setup to swear oaths, the                                                                         
provision has not been enforced. This language would be                                                                         
deleted.                                                                                                                        
                                                                                                                                
Co-Chair Therriault referred to section 4. He emphasized                                                                        
that the legislature must make the policy decision of                                                                           
whether or not to authorize consolidated licenses. There is                                                                     
no discount for the combination of licenses. He noted that                                                                      
any combination of licenses could occur. If the language is                                                                     
retained an amendment would be needed on page 3, line 12 to                                                                     
clarify that it is a seven day sport fishing and "annual"                                                                       
hunting license.                                                                                                                
                                                                                                                                
Mr. Bruce emphasized that the department has heard from                                                                         
vendors and guides, who support this combination. The                                                                           
combination would be convenient for persons visiting the                                                                        
state of Alaska. It is a customer driven combination. Vice                                                                      
Chair Bunde noted that residents can currently buy a number                                                                     
of combination licenses. There is only one accommodation for                                                                    
non-residents. Co-Chair Therriault observed that residents                                                                      
do not have the time limit. He did not think requiring two                                                                      
licenses would be a burden.                                                                                                     
                                                                                                                                
Vice Chair Bunde stressed that the combination license would                                                                    
save administrative time and money. Representative Phillips                                                                     
echoed remarks of Vice Chair Bunde and added that she has                                                                       
sold licenses and stressed that one piece of paper is more                                                                      
convenient.                                                                                                                     
                                                                                                                                
Representative Austerman spoke in support of the combination                                                                    
license. He questioned if a game animal outside of the                                                                          
license could be taken under section 4. Mr. Bruce explained                                                                     
that nonresident hunters can already take a different game                                                                      
animal. The language is included for consistency. In                                                                            
response to a question by Representative Austerman, Mr.                                                                         
Bruce affirmed that an elk hunter could shoot a deer while                                                                      
hunting for elk.                                                                                                                
                                                                                                                                
Co-Chair Therriault suggested that section 5 be amended to                                                                      
list the cost of each type of license. Mr. Bruce noted that                                                                     
nonresident military personnel stationed in the state of                                                                        
Alaska can purchase a small game hunting license for $20                                                                        
dollars, the same rate as a resident; and nonresident                                                                           
military personnel stationed in the state of Alaska can                                                                         
purchase a sport fishing license for $15 dollars, at the                                                                        
same rate as a resident.                                                                                                        
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT "annual" on line 12, page                                                                    
3 before "hunting". There being NO OBJECTION, it was so                                                                         
ordered.                                                                                                                        
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT a conceptional amendment                                                                     
to clarify that nonresident military personnel stationed in                                                                     
the state of Alaska may obtain a small game hunting license                                                                     
for $20 dollars and an annual sport-fishing license for $15                                                                     
dollars.                                                                                                                        
                                                                                                                                
In response to a question by Representative Austerman, Mr.                                                                      
Bruce explained that the intent is to offer the license at                                                                      
the lowest rate available.                                                                                                      
                                                                                                                                
Representative Austerman questioned if the amendment was                                                                        
necessary.                                                                                                                      
                                                                                                                                
Mr. Bruce clarified that when the license fees for residents                                                                    
and nonresidents were raised, the resident rate for a small                                                                     
game-hunting license became more expensive than a                                                                               
nonresident license. The intent is to offer nonresident                                                                         
military personnel stationed in the state of Alaska the                                                                         
lowest rate. The license only authorizes hunting of small                                                                       
game such as rabbits and birds.                                                                                                 
                                                                                                                                
Vice Chair Bunde observed that the license would allow                                                                          
persons to enjoy hunting at a reasonable rate until they get                                                                    
their residency.                                                                                                                
                                                                                                                                
Co-Chair Therriault WITHDREW his amendment.                                                                                     
                                                                                                                                
Representative Phillips questioned if there is a problem                                                                        
with the single subject rule. Mr. Bruce stated that the                                                                         
drafter has not indicated that there would be a problem with                                                                    
the single subject law.                                                                                                         
                                                                                                                                
Representative Austerman stated that he understood the                                                                          
intent but felt that military personnel already receive                                                                         
sufficient perks.                                                                                                               
                                                                                                                                
Co-Chair Therriault asked if the legislation was offered to                                                                     
meet federal law mandating fees charged to military                                                                             
personnel.                                                                                                                      
                                                                                                                                
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT OF FISH AND GAME provided information relating to                                                                    
HB 206. He explained that the legislation would comply with                                                                     
federal law.                                                                                                                    
                                                                                                                                
Co-Chair Therriault noted that federal law might dictate the                                                                    
perks.                                                                                                                          
                                                                                                                                
HB 206 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
HOUSE BILL NO. 218                                                                                                              
                                                                                                                                
"An Act relating to property loaned to or held by                                                                               
museums."                                                                                                                       
                                                                                                                                
Co-Chair Therriault provided members with a proposed                                                                            
committee substitute, work draft 1-LS0786\D, 2/28/00 (copy                                                                      
on file).                                                                                                                       
                                                                                                                                
Mr. Hand testified in support of the legislation on behalf                                                                      
of the sponsor. He acknowledged the good job that Alaska's                                                                      
many museums do in preserving the state's rich cultural                                                                         
heritage. Unfortunately, there are numerous artifacts in                                                                        
Alaska's museums that are currently in a quandary because                                                                       
the owners or lender of the property have lost contact with                                                                     
the museum. Lenders pass away or move without maintaining                                                                       
notice with the museum.  Sometimes, there is little or no                                                                       
documentation as to the origins of items. This leaves                                                                           
museums in a difficult position since without contact with                                                                      
the lender or defined ownership by the museum, it is very                                                                       
difficult to properly care for these artifacts. Artifacts                                                                       
require care and maintenance over time. Some artifacts                                                                          
require maintenance/upkeep that could be potentially                                                                            
damaging to the property.  It is even possible that an item                                                                     
has degenerated to a point where the best thing to do, is to                                                                    
dispose of the property. Without contact with the lender,                                                                       
museums are put in the unenviable position of having to care                                                                    
for these items without authority to do so. He maintained                                                                       
that museums cannot reasonably be expected to properly care                                                                     
for an item while simultaneously incurring liability for                                                                        
doing so. House Bill 218 establishes a process through which                                                                    
museums may clarify title on unclaimed objects.                                                                                 
                                                                                                                                
Mr. Hand outlined the process through which museums may                                                                         
clarify title on unclaimed objects. At least 7 years must                                                                       
have passed after the expiration date of the loan without                                                                       
any contact between the lender and museum. The museum must                                                                      
first send a notice by certified mail, return receipt                                                                           
requested, to the lender's last known address. If, after 30                                                                     
days, no notice of delivery has been received, the museum                                                                       
then publishes notices for a period of 4 weeks in a general                                                                     
circulation newspaper in the area of the museum and in the                                                                      
area of the lender's last known address:                                                                                        
                                                                                                                                
- The notice states that the museum intends to take                                                                             
title to the property.                                                                                                          
- The bill specifically stipulates the information                                                                              
that must be included in the notices.                                                                                           
                                                                                                                                
Mr. Hand explained that if no response is received within a                                                                     
period of 65 days, the museum then sends another certified                                                                      
mailing to the last known address of the lender. If again                                                                       
there is no response, the museum then undertakes another                                                                        
round of newspaper notices for a period of two weeks. A                                                                         
lender still has legal recourse through a reclamation period                                                                    
of 2 years after the museum has taken title to the property.                                                                    
                                                                                                                                
The bill also stipulates that a museum must take responsible                                                                    
steps in order to keep proper written records regarding                                                                         
loaned property, including notifying any lenders about a                                                                        
change of location of the museum. Also, under this act,                                                                         
museums must notify all new lenders of this statute.                                                                            
                                                                                                                                
Mr. Hand concluded that the legislation provides for a                                                                          
course of action museums can follow in order to alleviate                                                                       
very serious problems that seemingly every museum in the                                                                        
state is encountering. There is strong support from those in                                                                    
the museum community who are working very hard to preserve                                                                      
Alaska's cultural heritage.                                                                                                     
                                                                                                                                
Vice Chair Bunde questioned if notification costs could be                                                                      
absorbed with a zero fiscal note. He questioned how many                                                                        
certified letters would be sent to artifact owners. Mr. Hand                                                                    
observed that the department felt that the cost of newspaper                                                                    
notification would be minimal and could be included in the                                                                      
cost of doing business. He did not know how many letters                                                                        
would have to be sent.                                                                                                          
                                                                                                                                
Vice Chair Bunde asked if loan contract agreements have                                                                         
provisions for forfeiture. Mr. Hand did not know. He added                                                                      
that the legislation would address undocumented items.                                                                          
MIKE TIBBLES, STAFF, REPRESENTATIVE THERRIAULT provided                                                                         
information regarding the proposed committee substitute. He                                                                     
noted that the first change occurred in section 2 of the                                                                        
bill. Section 2(a)(1) and (2) differentiate between loans                                                                       
with and without expiration dates. Redundant language was                                                                       
taken out of section 2(a)(2); the museum can take possession                                                                    
if there is no expiration date and seven years have passed.                                                                     
The telephone number of the museum representative was added                                                                     
in subsection (b) on line 11, page 2.                                                                                           
Mr. Tibble continued to explain changed made in the proposed                                                                    
committee substitute. The third change occurred on line 21,                                                                     
page 2: "or" was added to clarify that notice would be                                                                          
provided by newspaper in the judicial district the museum is                                                                    
located and in the judicial district in which the lender's                                                                      
last known address or the county, borough or geographical                                                                       
organization of their last known address. The final change                                                                      
was on page 3, line 9: "at least" before "once a week" was                                                                      
added to provide consistency.                                                                                                   
                                                                                                                                
Mr. Hand observed that the requirement for a telephone                                                                          
number was also added on page 4, line 5; and "at least" was                                                                     
also added page 4 and line 10. The sponsor agreed with the                                                                      
changes made in the proposed committee substitute.                                                                              
                                                                                                                                
Vice Chair Bunde MOVED to ADOPT work draft 1-LS0786\D,                                                                          
2/28/00. There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
Representative Austerman questioned how estates would be                                                                        
handled. Mr. Hand clarified in the case of an estate that                                                                       
the heirs would be the titleholder of the property.                                                                             
                                                                                                                                
Representative Phillips questioned why seven years was                                                                          
chosen and asked if it would be retroactive. Mr. Hand                                                                           
explained that the provision would be in affect for items                                                                       
that have been in the museum's custody for the previous                                                                         
seven years without contact from the lender. They would not                                                                     
have to begin another 7-year period. The seven-year period                                                                      
was chosen arbitrarily based on provisions in other states.                                                                     
                                                                                                                                
KAREN CRANE, DIRECTOR, DIVISION OF LIBRARIES, ARCHIVES AND                                                                      
MUSEUMS spoke in support of HB 218. She observed that out of                                                                    
25,000 objects that there are 85 objects that would be                                                                          
affected; 24 are unclaimed; the rest are undocumented.                                                                          
                                                                                                                                
(TAPE CHANGE, HFC 00 - 42, SIDE 2)                                                                                              
                                                                                                                                
Ms. Crane explained that the cost of contacting owners would                                                                    
occur over a number of years. She did not anticipate that                                                                       
all 85 objects would be addressed in the first year. She                                                                        
observed that old airplane parts are among the unclaimed                                                                        
objects. These could be transferred or sold. It is expensive                                                                    
to maintain objects that the state does not hold title to.                                                                      
The legislation would cleanup problems encountered by the                                                                       
department.                                                                                                                     
                                                                                                                                
Representative J. Davies asked if there is a problem with                                                                       
the affective date of the bill. Ms. Crane indicated that                                                                        
effective date is not a problem.                                                                                                
                                                                                                                                
Vice Chair Bunde asked about forfeiture provisions. Ms.                                                                         
Crane responded that there is a forfeiture provision                                                                            
containing the same seven-year period. The timeline chosen                                                                      
for the legislation was modeled after the American                                                                              
Association of Museums.                                                                                                         
                                                                                                                                
DONNA MATHEWS, EXECUTIVE DIRECTOR, MUSEUMS ALASKA, ANCHORAGE                                                                    
testified via teleconference in support of the legislation.                                                                     
She noted that the legislation would affect private museums                                                                     
around the state. All museums have some items that cannot be                                                                    
cared for, disposed of or transferred to other interested                                                                       
parties. The legislation provides strong guidelines for                                                                         
future practices and is clear and specific.                                                                                     
                                                                                                                                
DIANE BRENNER, ARCHIVIST, ANCHORAGE MUSEUM OF HISTORY AND                                                                       
ART, ANCHORAGE testified via teleconference in support of                                                                       
the legislation. She noted that in 1969 an old organ was                                                                        
brought to the museum for a temporary display. The owners                                                                       
disappeared. The museum wishes to dispose of the organ. The                                                                     
legislation would allow for disposal.                                                                                           
                                                                                                                                
BEA SHEPPARD, BOARD MEMBER, MUSEUMS ALASKA, JUNEAU testified                                                                    
in support of the legislation. She noted that Museums Alaska                                                                    
has supported the change for many years. She observed that                                                                      
abandoned property must be handled by an auction. In many                                                                       
cases museums wish to retain the property or turn them over                                                                     
to other museums.                                                                                                               
                                                                                                                                
Representative Austerman questioned if there is a policy of                                                                     
trying to contact heirs. Ms. Sheppard responded that in many                                                                    
cases the museum does not know whom to contact.                                                                                 
                                                                                                                                
Co-Chair Therriault asked if the current practice is to                                                                         
enter into a written agreement. Ms. Crane explained that the                                                                    
current practice is to accept loans for a period of a year;                                                                     
if the museum desires to keep the object longer the loan is                                                                     
renegotiated. It is easier to find the heirs to the estate                                                                      
or the legal owners after only a year.                                                                                          
                                                                                                                                
Co-Chair Therriault provided members with a timeline showing                                                                    
the proposed schedule for acquisition (copy on file). He                                                                        
questioned if the process could be streamlined. Ms. Crane                                                                       
stressed the relationship of trust with owners and donors.                                                                      
Ms. Sheppard observed that the legislation is based on                                                                          
similar legislation in other states. She felt that the                                                                          
legislation is a good compromise and emphasized the need for                                                                    
private institutions.                                                                                                           
                                                                                                                                
Vice Chair Bunde asked if the contract requires owners to be                                                                    
contacted at the end of a year. Ms. Crane noted that the                                                                        
obligation is on the museum to contact donors. Notification                                                                     
occurs before the year has ended.                                                                                               
                                                                                                                                
Vice Chair Bunde observed that museums would obtain title to                                                                    
objects that are in need of care and that there would be                                                                        
additional costs associated with the assumption of these                                                                        
objects.                                                                                                                        
                                                                                                                                
Co-Chair Therriault asked if the museum could take                                                                              
possession prior to seven years. Ms. Crane interpreted the                                                                      
legislation to require the museum to wait for seven years                                                                       
before taking possession. Ms. Crane felt that seven years is                                                                    
a reasonable period and reiterated the need to maintain                                                                         
trust with owners. She did not feel that the problem would                                                                      
occur in the future. Ms. Sheppard noted that the one-year                                                                       
period only pertained to the state museum and that there are                                                                    
up to 70 other museums in the state.                                                                                            
                                                                                                                                
Representative J. Davies asked if the legislation would                                                                         
preclude museums from entering into different contract                                                                          
arrangements. Ms. Crane responded that the museum would                                                                         
follow state guidelines.                                                                                                        
                                                                                                                                
Co-Chair Therriault did not know if passage of the                                                                              
legislation would preclude other contractual provisions.                                                                        
                                                                                                                                
Co-Chair Therriault observed that the museum would take                                                                         
possession before the requirement for the second notice                                                                         
expired. Ms. Crane thought that the legislation would                                                                           
provide for possession after the 65th day.                                                                                      
                                                                                                                                
Co-Chair Therriault questioned if the Committee would prefer                                                                    
a timeline that would be shorter and less expensive.                                                                            
                                                                                                                                
Vice Chair Bunde spoke in support of a compromise between 60                                                                    
days and seven years. Co-Chair Therriault clarified that it                                                                     
was not his intent for the museum to take possession as soon                                                                    
as the expiration of the contract occurred. Vice Chair Bunde                                                                    
noted that the Department of Public Safety has a one-year                                                                       
time period for dealing with property that comes into their                                                                     
possession.                                                                                                                     
                                                                                                                                
Vice Chair Bunde asked how many items the state museum has                                                                      
acquired in the last seven years without a contract. Ms.                                                                        
Crane stated that there have not been any acquisitions                                                                          
without a contract in the last seven years.                                                                                     
                                                                                                                                
Representative G. Davis pointed out that the statute would                                                                      
be unnecessary after the backlogs of past acquisitions have                                                                     
been addressed.                                                                                                                 
                                                                                                                                
Representative J. Davies expressed concern that museums not                                                                     
be precluded from entering into shorter contracts. Page 5,                                                                      
line 11 states that the provisions in the legislation would                                                                     
govern over conflicts in other state law.                                                                                       
                                                                                                                                
Co-Chair Therriault did not expect that the museum would                                                                        
hear from anyone that has not contacted them over the past                                                                      
seven years. He questioned if the expense of two newspaper                                                                      
notifications was warranted. He stressed that the intent is                                                                     
to take care of the backlog of items and felt that the                                                                          
legislation could be streamlined to shorten the time period                                                                     
and reduce the costs of notification.                                                                                           
                                                                                                                                
Ms. Crane acknowledged that the intent of the legislation is                                                                    
to address old objects. Ms. Sheppard agreed that the concern                                                                    
is to take care of the backlog.                                                                                                 
                                                                                                                                
Co-Chair Therriault acknowledged that the intent is to                                                                          
address backlog but pointed out that the legislation would                                                                      
pertain to future purchases as well.                                                                                            
                                                                                                                                
HB 218 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 3:05 p.m.                                                                                              
House Finance Committee  11 2/28/00                                                                                             

Document Name Date/Time Subjects