02/09/2012 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB146 | |
| SB175 | |
| SB125 | |
| SB149 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 125 | TELECONFERENCED | |
| *+ | SB 149 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 175 | TELECONFERENCED | |
| = | SB 146 | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 9, 2012
1:34 p.m.
MEMBERS PRESENT
Senator Dennis Egan, Chair
Senator Joe Paskvan, Vice Chair
Senator Linda Menard
Senator Bettye Davis
Senator Cathy Giessel
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 175
"An Act relating to the practice of naturopathy; and providing
for an effective date."
- HEARD & HELD
SENATE BILL NO. 125
"An Act relating to certain vehicles, including trailers; and
relating to motor vehicle dealer advertising, motor vehicle
dealer sales of used motor vehicles, motor vehicle sales
contracts, motor vehicle service contracts, and motor vehicle
sales financing."
- HEARD & HELD
SENATE BILL NO. 149
"An Act providing a tax credit for certain contributions to a
qualified dog mushing corporation."
- HEARD & HELD
SENATE BILL NO. 146
"An Act establishing a snow classic as an authorized form of
charitable gaming."
- MOVED SB 146 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 146
SHORT TITLE: SNOW CLASSIC
SPONSOR(s): SENATOR(s) GIESSEL
01/17/12 (S) PREFILE RELEASED 1/6/12
01/17/12 (S) READ THE FIRST TIME - REFERRALS
01/17/12 (S) L&C, FIN
02/07/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/07/12 (S) Heard & Held
02/07/12 (S) MINUTE(L&C)
02/09/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 175
SHORT TITLE: PRACTICE OF NATUROPATHY
SPONSOR(s): SENATOR(s) MCGUIRE
01/25/12 (S) READ THE FIRST TIME - REFERRALS
01/25/12 (S) L&C
02/07/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/07/12 (S) Heard & Held
02/07/12 (S) MINUTE(L&C)
02/09/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 125
SHORT TITLE: MOTOR VEHICLE TRANSACTIONS
SPONSOR(s): SENATOR(s) MEYER
04/12/11 (S) READ THE FIRST TIME - REFERRALS
04/12/11 (S) TRA, L&C
02/02/12 (S) TRA AT 1:00 PM BUTROVICH 205
02/02/12 (S) Moved SB 125 Out of Committee
02/02/12 (S) MINUTE(TRA)
02/03/12 (S) TRA RPT 5DP
02/03/12 (S) DP: KOOKESH, HUGGINS, MENARD, THOMAS,
EGAN
02/09/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 149
SHORT TITLE: TAX CREDIT FOR DONATIONS TO DOG MUSHING
SPONSOR(s): SENATOR(s) THOMAS
01/17/12 (S) PREFILE RELEASED 1/13/12
01/17/12 (S) READ THE FIRST TIME - REFERRALS
01/17/12 (S) L&C, FIN
02/09/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
MARY MINER, Naturopathic Doctor (N.D.)
Fairbanks, Alaska
POSITION STATEMENT: Supported SB 175.
MADELEINE MORRISON
Alaska Association of Naturopathic Doctors
Anchorage, AK
POSITION STATEMENT: Supported SB 175.
WARD HURLBURT, Chief Medical Officer
Department of Health and Social Services (DHSS)
Anchorage, AK
POSITION STATEMENT: Opposed SB 175.
MARY DESMETT, representing herself
Juneau, AK
POSITION STATEMENT: Supported SB 175.
C.W. JASPER, N.D.
Juneau, AK
POSITION STATEMENT: Supported SB 175 and amendments.
MARY ALICE MCKEEN, representing herself
Juneau, AK
POSITION STATEMENT: Supported SB 175.
MARTIN NEIMI, representing himself
Juneau, AK
POSITION STATEMENT: Supported SB 175.
DON HABEGAR, Director
Division of Corporations, Business and Professional Licensing,
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, AK
POSITION STATEMENT: Commented on SB 175.
ANDY HARRINGTON, Assistant Attorney General
Civil Division
Commercial and Fair Business Section
Department of Law
Anchorage, AK
POSITION STATEMENT: Answered legal questions about SB 175.
SENATOR KEVIN MEYER
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 125.
ED SNIFFIN, Assistant Attorney General
Civil Division
Commercial and Fair Business Section
Department of Law (Department of Law)
Anchorage, AK
POSITION STATEMENT: Discussed legal issues concerning SB 125.
MARTIN MARTINSON
Alaska Auto Dealers Association
Juneau, AK
POSITION STATEMENT: Supported SB 125.
SENATOR JOE THOMAS
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 149.
GRIER HOPKINS, Staff
Senator Joe Thomas
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Explained SB 149 for the sponsor.
GEORGE ATTLA, representing himself
Huslia, Alaska
POSITION STATEMENT: Supported SB 149.
KATHRYN FITZGERALD
Alaska Dog Mushers Association
Fairbanks, AK
POSITION STATEMENT: Supported SB 149.
DAVID VANDENBERG, Executive Director
Downtown Association of Fairbanks
Fairbanks, AK
POSITION STATEMENT: Supported SB 149.
ANDY BAKER, Chairman
Iditarod Board of Directors
Anchorage, AK
POSITION STATEMENT: Supported SB 149.
ACTION NARRATIVE
1:34:38 PM
CHAIR DENNIS EGAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:34 p.m. Present at the call to
order were Senators Giessel, Menard, Davis, Paskvan and Egan.
SB 146-SNOW CLASSIC
1:36:14 PM
CHAIR EGAN announced consideration of SB 146. He said testimony
had been taken previously; he found that Senator Giessel,
sponsor, had no further comments.
SENATOR PASKVAN moved to report SB 146, version 27-LS1079\A,
from committee with individual recommendations and attached zero
fiscal note. There were no objections and it was so ordered.
1:37:49 PM
At ease from 1:37 to 1:39 p.m.
SB 175-PRACTICE OF NATUROPATHY
1:39:25 PM
CHAIR EGAN announced consideration of SB 175 [version 27-
LS1230\M]. He said that public testimony was still open.
SENATOR GIESSEL moved to adopt Amendment 1.
27-LS1230\M.4
AMENDMENT 1
OFFERED IN THE SENATE SENATOR GIESSEL
TO: SB 175
Page 1, line 13, through page 2, line 2:
Delete all material and insert:
"* Sec. 2. AS 08.45.050 is amended by adding new
subsections to read:
(b) Notwithstanding (a)(1)(A) of this section, a
person who practices naturopathy may give, prescribe,
or recommend in the practice a device or, in a form
that is not a controlled substance, an herbal or
homeopathic remedy, a dietetic remedy, or
hydrotherapy.
(c) In this section,
(1) "dietetic remedy" means nutritional
therapy, nutritional counseling, a nutritional
substance, vitamins, minerals, or supplements to
promote health and to diagnose, treat, or prevent
disease, illness, or conditions;
(2) "herbal remedy" means a substance
derived from or a concentrate or extract of a plant,
tree, root, moss, or fungus;
(3) "homeopathic remedy" means a remedy
defined in the current version of Homeopathic
Pharmacopoeia of the United States;
(4) "hydrotherapy" means the use of water
in all forms and temperatures to promote health and to
diagnose, treat, and prevent disease, illness, and
conditions."
SENATOR GIESSEL explained that this amendment would replace
Section 2 of the bill.
1:40:30 PM
SENATOR PASKVAN objected for purposes of discussion.
1:41:25 PM
MARY MINER, Naturopathic Doctor (N.D.), Fairbanks, Alaska, said
Valentine's Day is the 28th anniversary of her being licensed in
Washington State. She supported SB 175 as amended. She has been
well trained and does not want to limit the services she is able
to deliver to her patients and has a sense of urgency because
these services wouldn't be available to them otherwise. They
would have to go to their other provider who wouldn't have a
clue what they are.
1:44:18 PM
MADELEINE MORRISON, Alaska Association of Naturopathic Doctors,
Anchorage, said she had practiced in Alaska since 1996 and
agreed with Ms. Miner's testimony. She added that she works with
M.D.s on a regular basis together with patients for the best
possible outcome.
1:45:27 PM
WARD HURLBURT, Chief Medical Officer, Department of Health and
Social Services (DHSS), Anchorage, said the administration has
concerns with SB 175 because it could either potentially or in
reality expand the scope of naturopathic practice. Dr. Jackson,
who testified at an earlier meeting, said that he ran into a
problem with a prescription being required for capsicum. Their
Chief Pharmacist did some research and talked with the company
that manufactures it and found that it was their decision to put
on the box that a prescription be required, not something the
FDA did.
He said the state has in the past considered that naturopathic
doctors do not have prescribing authority and believes that the
bill would expand it, which would incur a cost. Dr. Jackson said
his understanding is that authorizing prescriptions for
substances derived from plant, trees, roots, moss and fungus
would include substances like penicillin. Fifteen to twenty
percent of drugs used by allopathic and osteopathic physicians
are originally derived from natural substances.
Some confusion may be because of different training and
vocabulary used for the disciplines. Dr. Jackson testified that
in his training drugs and medicines are different; the drugs are
synthetic chemical substances whereas the medicines more broadly
include natural substances. Mr. Hurlburt said in his training
those terms are interchangeable.
SENATOR MENARD clarified that vitamins are from natural sources
and are sometimes put into 11 percent of prescription-type drugs
to enhance them.
MR. HURLBURT answered they are not talking about vitamins.
Examples of other kinds of pharmaceuticals that are derived from
plants would be digitalis, used for heart failure, and quinine,
originally an anti-malaria drug, some anti-cancer drugs and
penicillin.
SENATOR GIESSEL said the current definition in regulation for
naturopath says herbal remedies include "medicines derived". The
amended form of the bill says herbal remedy means "a substance",
the effort there being to separate digitalis from an herbal
preparation. Did he not think that was clear enough that it's
not a prescription, pharmaceutical agent?
MR. HURLBURT replied his initial take is that it would clarify
it, but their Chief Pharmacist felt the language in the
amendment was broad enough to lead to some confusion in saying
they are derived from natural substances and opened the
possibility of prescribing things like digitalis and anti-cancer
drugs.
SENATOR GIESSEL asked if a clearer statement would have a
semicolon and another phrase that says, "these substances do not
include pharmaceutical agents."
MR. HURLBURT answered yes.
1:53:03 PM
MARY DESMETT, representing herself, Juneau, said she is a
consumer and patient of both naturopathic and allopathic care.
Her life had been profoundly affected in a positive way by being
able to choose when to see a naturopathic doctor or a western
doctor. She was well on her way to type 2 diabetes and now her
labs are all good and she is off every medication including an
anti-depressant.
1:54:32 PM
C.W. JASPER, N.D., said he supported SB 175 and the amendments.
He enjoyed meeting with Dr. Hurlburt, but the concerns about
anti-cancer drugs that may come from an herb or digitalis
forgets an important issue - that every health care provider is
limited by his training and education. And even though this
definition in the regulations might have allowed the use of
those anti-cancer drugs in the last 18 years, the fact of the
matter is that nobody has used them for the last 18 years,
because that is not what their training is. That is the safety
factor. Digitalis is always mentioned because it's a famous
herbal medicine, but nobody uses it anymore. Penicillin was
brought up, and the definition would allow it, but after
speaking to many colleagues on the phone he found that no one
knows of any naturopath who has used it in the last 18 years,
just that the definition would allow it. But again, he said they
practice what they are trained to do. He just didn't think it
was an issued because it's not part of naturopathic practice
based on their training.
1:56:36 PM
SENATOR PASKVAN asked what notice he received of any change from
the department or division.
DR. JASPER replied none. He had a nice meeting with Mr. Habegar
this morning who wasn't aware of putting out any notice to that
effect and didn't know where it came from; he was checking into
it.
1:58:07 PM
SENATOR PASKVAN asked how long naturopaths have used
pharmacists.
MR. JASPER answered for the past 18 years pharmacists have
honored their prescriptions, but for just very few things,
because there aren't a lot of prescription drugs.
SENATOR PASKVAN asked for 18 years consistent with the statutes
and administrative codes of Alaska.
MR. JASPER responded that was correct.
SENATOR GIESSEL asked what he would think if she amended item 2
in Section 2 to say "herbal remedy means a substance derived
from; substance does not mean pharmaceutical agent."
MR. JASPER said he thought it would be confusing because it
would add an undefined word to the definition.
2:01:02 PM
MARY ALICE MCKEEN, representing herself, Juneau, said she is a
consumer of naturopathic care and an administrative judge for
the federal government. She supported SB 175 and appreciated all
the efforts to solve this problem, because people want access to
this type of care. In 1986 the legislature made a policy
decision that people in Alaska should have access to it and
severely restricting the scope of practice [for naturopaths]
really undermines that decision.
Referencing the department's letter that said patients could use
substances in their natural form, she remarked the legislature
did not intend for naturopaths to recommend that patients grind
up their own red pepper but that they could obtain a capsicum
tincture by prescription. She said the regulation answers that
squarely because it says in 12 AAC 42.990(a) that a prescription
drug does not include a device or herbal or homeopathic remedy
or dietetic substance in a form that is not a controlled
substance. It doesn't say it has to be in its natural form; it
really answers the form question by saying the prescription drug
cannot be in a form that is not a controlled substance.
MS. MCKEEN said this new interpretation didn't have any notice
or comment period but the regulations have all gone through a
notice and comment procedure and the public got a chance to
weigh in. If there was a proposed regulation that said
"prescription drug" means everything you need a prescription to
get, people would come out and testify against it and she mused
that in a way, this is the comment period for this new
interpretation.
2:05:07 PM
MARTIN NEIMI, representing himself, Juneau, said he is a 69
year-old patient of a naturopathic doctor and old enough to
choose which kind doctor to see first. The way he views his
choices is that the naturopathic doctor guides him to a better
and healthier life style and when it gets to the point of
needing drugs or surgery, he will go to a medical doctor. He
summarized that he was a P.E. and health teacher before he
retired and knows a little bit about health care and has had a
wonderful experience with naturopathic doctors.
2:06:12 PM
DON HABEGAR, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), came forward to answer questions.
SENATOR PASKVAN asked if he agreed that naturopaths didn't have
any notice of this change.
MR. HABEGAR replied that his staff hadn't released any kind of
formal information to pharmacists or naturopaths, but he was
still looking into it.
SENATOR PASKVAN said that answer seems to infer that no process
was followed, so there was no foundation for his position in the
last meeting.
MR. HABEGAR said in the last meeting he referred to recent
licensure action and he also referred to what appears to be a
consistent no prescriptive authority position based on the
division's history.
SENATOR PASKVAN asked if he agreed that whatever the source,
there had been a material restriction in the naturopath's
ability to access pharmacies as part of their practice from what
has occurred over the last 18 years.
MR. HABEGAR replied he agreed that that is the issue before
everyone and that is what they are saying, but he personally
didn't have any evidence of it.
SENATOR PASKVAN said everything he is hearing says that there
are statutes going back to 1986 and administrative regulations
that go back to 1994 and it appears that they have solid
practices going back 18 years. No notice was given to the
naturopaths, and that implies there was no opportunity for them
to be heard. Therefore, something has occurred that appears to
be arbitrary and capricious. Whatever the source, he was pretty
troubled.
2:10:14 PM
ANDY HARRINGTON, Assistant Attorney General, Civil Division,
Commercial and Fair Business Section, Department of Law, Juneau,
responded that a complaint was filed about a naturopath for
using or administering prescriptive drugs in 2008. During the
investigation, the division asked the naturopath where and how
the prescription drugs were being obtained and the naturopath
indicated an unwillingness to provide that information. Then the
division served several local pharmacies with administrative
subpoenas regarding any prescriptions they may have filled for
the naturopath. The division investigator gave a heads up to the
Pharmacy Board as to why the subpoenas were being served. The
Pharmacy Board eventually sent a cautionary letter to the one
pharmacy that had been filling the prescriptions. He surmised,
Alaska being a small state, that word of the subpoena and
perhaps the letter got discussed on the pharmacist grapevine and
passed along. So, it is not surprising that other naturopaths in
other parts of the state found pharmacists who may have normally
been filling prescriptions written by naturopaths were less
willing to do so.
MR. HARRINGTON said that any pharmacist either in state or out
who called him would have been told that Alaska statute very
clearly prohibits naturopaths from giving, prescribing or
recommending in the practice a prescription drug. The division
felt compelled to interpret its regulations consistent with that
statutory prohibition. Director Habegar is correct that since
shortly after the regulations were enacted the division has
consistently taken the position that the regulations did not
forge any kind of an exception to the statutory prohibition. It
is also fair to say that the naturopaths who were saying they
assumed the regulations trumped the statute are also being very
truthful in their testimony, but regulations don't trump
statute.
2:14:32 PM
SENATOR PASKVAN asked why it isn't appropriate to allow a
practice that has been in place for 18 years to continue while
the legal issue is addressed since it appears the risk is
nonexistent.
MR. HARRINGTON replied that it is appropriate because the
problem arises from a mismatch between language of the statute
with its fairly clear prohibition and the language of the
regulations, which leaves much room for debate. If the statute
is not changed to correspond to regulatory language, the
division would have to go through the notice and public comment
procedure to propose a regulatory change that would be more in
accordance with the statute, AS O8.45.050(1)(A). But the
division has wisely decided to await the outcome of the
legislative process and is neutral as to the merits of the bill,
but recognizes the current situation is pretty untenable.
Naturopaths and their patients and the people in the division
who are trying to administer this law are all disserved by the
confusion created for everyone.
2:17:52 PM
SENATOR GIESSEL said AS 08.45.200 says naturopathy means the use
of hydrotherapy and dietetics and later says that "dietetics
includes herbal and homeopathic remedies" and those are not
defined there; they are defined in regulation and that is the
definition that is being offered in this bill.
SENATOR DAVIS asked if a pharmacist was on line. She heard
someone from a pharmacy say that they had been giving out the
medicine but had received information saying it was illegal to
do so.
CHAIR EGAN said Dr. Hurlburt said that.
SENATOR DAVIS said she had been trying to increase the scope of
practice for naturopaths for years and hasn't gotten anywhere.
This bill doesn't give them any more authority, but it would put
current practice in statute and she was ready to move it.
SENATOR PASKVAN removed his objection to the Amendment 1.
CHAIR EGAN said he would hold SB 175 in committee.
SB 125-MOTOR VEHICLE TRANSACTIONS
2:21:39 PM
CHAIR EGAN announced SB 125 to be up for consideration.
SENATOR MEYER, sponsor of SB 125, said it updates the statute
that is commonly referred to as the Auto Dealers Practice Act;
it does that by clarifying several provisions concerning the
advertising on new and used automobiles. These revisions will
assist the consumers in understanding auto comparison pricing
and will eliminate any ambiguities contained in current statutes
while assisting the dealers in their quest to follow state law.
This bill was drafted in conjunction with the Department of law.
It also makes the document fees a moot issue.
2:23:30 PM
ED SNIFFIN, Assistant Attorney General, Civil Division,
Commercial and Fair Business Section, Department of Law (DOL),
said the language in SB 125 was worked on with the auto dealers
and clarifies many provisions of the statute to make it easier
for auto dealers and consumers in their buying experience. A
couple of substantive changes would allow auto dealers the
ability to engage in price comparison advertising with used
automobiles, and that is something that isn't in statute.
Another change allows dealers the ability to advertise free
merchandise with the vehicle which is prohibited currently. All
other changes to the statute are clarifications and consumer
friendly.
MARTIN MARTINSON, Alaska Auto Dealers Association, Juneau, said
auto dealers are not trying to get an unfair business advantage,
they are simply trying to clarify language that would make it
easier to both follow and enforce the law.
CHAIR EGAN said that public testimony was closed and asked the
sponsor if he had any closing comments.
2:26:38 PM
SENATOR MEYER replied no, the bill is pretty self-explanatory
and people are in concurrence with its need.
[SB 125 was held in committee.]
SB 149-TAX CREDIT FOR DONATIONS TO DOG MUSHING
2:27:04 PM
CHAIR EGAN announced SB 149 to be up for consideration.
SENATOR JOE THOMAS, sponsor of SB 149, said dog mushing is
Alaska's state sport and has a long and storied history and
background from its development by indigenous Alaskans to dog
teams connecting and supplying mining and military camps to the
Nome serum run to today's recreation and sports traditions.
SENATOR THOMAS said he used to run dogs in Fairbanks and today
dog mushing not only preserves our heritage but also brings
international attention to the state. Alaska's dog mushing races
inject needed money and activity into dozens of small rural
Alaskan towns. There are, however, dozens of races of all
different lengths and difficulties each year from the Iditarod
with its nearly $4 million budget to small town sprint races run
on a shoestring budget. All play a vital role in numerous towns
and their economies.
He said SB 149, the Support Alaska's Mushing Sport Heritage Act
(SAMSHA), creates a stronger financial base of support for dog
mushing by bringing together the private business sector in
races organized by non-profits through modest tax credits. It
allots a certain amount of tax credits to a qualified dog
mushing race that then solicits private donations on a first
come, first served basis. By limiting the available credits, SB
149 not only limits the fiscal impacts to the state, it also
creates a competitive environment for access to credits by
bringing in financial support earlier in the year, filling a
hole that these races generally suffer on an annual basis. By
incentivizing the small and medium sized donations, the bill
will help create a more diversified base of support that is not
reliant on one or more large donations (so if that donor drops
out, all the money dissipates). It will also help foster
Alaska's winter tourism industry in the many towns they take
place in.
2:31:01 PM
GRIER HOPKINS, staff to Senator Thomas, said the impetus behind
this bill was to begin developing a stronger financial base for
dog mushing races across the state from big too small. Dog
mushers have a number of operating costs throughout the year,
but their fund raising efforts do not come to fruition until the
energy behind these races starts building. The expenses include
the purses and salaries for people who work on the races. The
idea behind SB 149 would be to create a competitive system of
tax credits where businesses that would be donating to these
organizations know there is a specific limited amount of tax
credits available to them based on the non-profit's budget.
Fundraising efforts don't come to fruition until these races
start being promoted, and businesses would have to come to the
races early in the year for their credits or the allotted amount
could have already been used by others. He explained that a
specific amount of credits would be available to all the races
in the state and the amount is based on 5 percent of the race's
allotted budget from the year before.
2:33:44 PM
MR. HOPKINS said there are 22 different non-profit dog mushing
races in the state. Most of those do not get anywhere near the
$1 million budget, but if they all start doing well, a worst
case scenario would be a $1.1 million impact to the state from
these credits.
He explained that the bill works by requiring qualified non-
profit dog mushing races to have offered a minimum $5,000 purse
in the previous two years (to make sure it's a legitimate
organization). At that time the race would submit its budget to
the department showing how much it spent last year; they would
then receive a tax credit allocation in an amount based on 5
percent of their annual budget. A dog mushing non-profit with a
$500,000 or less budget would receive $12,500 in credit, a
budget of $1 million would receive $25,000 in credit and more
than $1 million would receive $50,000 in credit. Those non-
profit races would go out and solicit their own donations from
the community starting at the beginning of the year spreading
out the funding base, so that something like the BP Top of the
World Race doesn't happen again where one big donor pulls out
and it goes defunct.
A step system was created where donations of $2,000-$5,000 would
receive 50 percent credit, $5,000-$10,000 would receive a 33
percent donation; $10,000-$25,000 would receive a 25 percent
donation and anything greater than $25,000 would be capped at
$7,900. He said there are races all over the state and all of
them would benefit.
MR. HOPKINS noted that people from all across the state support
this bill and he has recently received letters of support from
the City of Huslia, the City of Alakaket and the Montana Creek
Dog Mushers Association that runs the Sheep Mountain Race in
Juneau. He said he would be working with the department on the
fiscal note trying to find a way to remove the fiscal impact to
the state.
2:37:37 PM
SENATOR PASKVAN asked if the maximum credit that any one
corporation may claim is $7,900.
MR. HOPKINS replied yes.
SENATOR PASKVAN asked if depending on the annual budget there
are caps that apply to the race so that a late-comer
corporately, assuming a race were to reach that limit, wouldn't
be eligible for a credit.
MR. HOPKINS replied that was correct.
SENATOR PASKVAN asked how he got to the $1.1 million impact to
the state.
SENATOR THOMAS said most of these races have been in place for
many years and haven't grown dramatically and that is the total
of the existing 22 races having the maximum amount of credits
applied times the $50,000.
SENATOR MENARD suggested that the big sponsors could start
advertising at certain check points in a race like golf
tournaments that have sponsors for each hole.
MR. HOPKINS replied creative solutions to making their ends meet
do exist; for example, the Kobuk 440 uses a sponsor for a mile.
2:41:45 PM
GEORGE ATTLA, representing himself, Huslia, Alaska, thanked
Senator Thomas for introducing the bill. He said he had been in
dog racing for over 50 years and the sport really needs help
financially. It is losing lots of mushers because it is hard to
raise funds.
2:43:13 PM
KATHRYN FITZGERALD, Alaska Dog Mushers Association, Fairbanks,
said the association was incorporated in the 1950s and hosts the
Open North American Championship Sled Dog Race, which in 2012
will be in its 67th consecutive running. SB 149 would help
create an environment where additional funding could be raised
for their events. She said no other sled dog race in the world
has run consecutively for that long.
MS. FITZGERALD said it has become increasingly difficult to
raise additional purse money when they host a variety of sled
dog races that are world-renowned and are competing for the same
piece of the pie. Each one has its own little niche in the sled
dog racing world, but Alaska is fortunate enough to have the
majority of the most notable races worldwide that people like to
participate in and part of that is because of increased funding
for the purses. Between December and March over 100 sprint races
that take place across the United States and Canada with a
participation level of 3,000 to 3,500 people. They want to
attract most of them to Alaska to race. The Open North American
has been estimated to bring in $1.8 million for the three day
event in Fairbanks. Alaska has been in the forefront of mushing
she said, and people no longer ask if events will take place but
when.
2:46:43 PM
DAVID VANDENBERG, Executive Director, Downtown Association of
Fairbanks, supported SB 149. He said the Yukon Quest and the
Open North American, especially, by taking place in downtown
Fairbanks really promote the local businesses that are very
aware of the economic impact in an otherwise slow time of the
year. He said all the Interior dog races, especially the larger
ones, are marketed by the Fairbanks Convention and Visitors
Bureau so it's kind of a full-court press to get what they can
out of these races. Better financial support for these races
means a better economic profile for downtown Fairbanks and for
the Interior.
MR. VANDENBERG said the whole downtown turned out for the Yukon
Quest that started last weekend. A list of involved business
includes: the Fairbanks Community Museum, the Alaska Public
Lands Information Center, the Morris Thompson Cultural and
Visitors center, Big Daddies' BBQ, the Farthest North Elks
Lodge, Lavelle's Bistro, Arctic Travelers' Gift Shops, Forget-
Me-Not Books, Julia's Solstice Café, the Big Eye Pub and Lounge,
the Fudge Pots in the Coop Plaza and the Pomegranate.
CHAIR EGAN closed public testimony and opened it again for one
more person who was on the list to testify.
2:49:46 PM
ANDY BAKER, Chairman, Iditarod Board of Directors, supported SB
149. He said all the races, big and small, around the state
depend on fund raising. Most of the races have the ticket
drawing banquet three days before the race and that has to sell
all the tickets to pay the prize two weeks later. There is no
cushion and you can't plan very well for next year. It gets
worse the smaller the race is. It's hard to get outside
sponsors, but it should be about Alaskans anyhow, but that makes
the pool smaller and they get hit over and over again.
2:52:19 PM
MR. BAKER said he already has some $5,000 to $350,000 sponsors
and those on the top end could donate more, so he suggested
expanding the cap up to $500,000. Although they don't want to
rely on the one sponsor, an extra $200,000 would just help them
be a little more stable a little bit longer. Just the Iditarod
alone the first week in March has a $10 million economic impact
to the Anchorage and MatSu areas according to a 2003 study; that
is not counting anywhere else along the Railbelt, Nome or the 20
million website hits that bring the 350 media up. Making each of
these races bigger and stronger all over the state will help the
state as a whole.
SENATOR PASKVAN remarked that Mr. Baker was the first Native
Alaskan to win the Iditarod and congratulated him.
MR. BAKER thanked him and said breaking the record was a bonus
and this year the goal is to break it again!
CHAIR EGAN said that completed public testimony. [SB 149 was
held in committee.]
2:55:04 PM
Finding no other business to come before the committee, Chair
Egan adjourned the Senate Labor and Commerce Standing Committee
at 2:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 149 - Sponsor Statement.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB 149 - Distance Race Schedule.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB 149 - Newspaper Articles.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB 149 - Non-Profit Mushers Associations.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB 149 - Quest Volunteer Form.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB 149 - Race Maps.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB 149 - Synopsis.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB149-DCCED-CBPL-02-03-12.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB149-DCCED-INS-02-03-12.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |
| SB149-DOR-TAX-02-02-12.pdf |
SL&C 2/9/2012 1:30:00 PM |
SB 149 |