HFSH - 02/13/95 HB 116 - EXEMPT ASMI FROM PROCUREMENT CODE Number 035 MR. SCHEUNEMANN testified, "ASMI needs to be removed from the state procurement codes, because ASMI is not a state government organization in the sense of the word that those codes were originally designed and enacted for. The codes were designed to prevent conflict of interest and abuse of competing interests or services, not a market-orientated type of program ASMI is moving forward with. The process to place two field representatives in the Midwest was encumbered for months by the procurement codes. The procurement system has also been a hindrance in the area of bringing media agencies on line. Many varied promotional programs are made difficult by all the legal aspects of the procurement codes." Number 236 REPRESENTATIVE OGAN asked, "Is ASMI an administrative unit of the Executive Branch of state government or a public corporation?" MR. SCHEUNEMANN responded, "We are tied administratively with the Department of Commerce and Economic Development." Number 263 REPRESENTATIVE OGAN followed up by asking, "Why should we grant ASMI an exemption to the procurement codes?" MR. SCHEUNEMANN responded, "ASMI is not a typical state agency, that do business with the same types of private sector individuals, corporations or providers. We are a market-orientated business and for all intents and purposes, a private organization working in a governmental environment." Number 329 REPRESENTATIVE ELTON stated, "First of all, in marketing, you want the best bidder, not necessarily the lowest bidder. Secondly, HB 116 doesn't remove the state oversight of the procurement procedures. And last, by making the process a little quicker, we are more responsible to industry." Number 377 JERRY McCUNE, President, United Fishermen of Alaska, testified in support of HB 116. He further stated, "ASMI is hampered by the states' procurement codes and additionally, more of the dedicated funds could be used for advertising and promotional activities if this bill passes." Number 406 REPRESENTATIVE GARY DAVIS commented, "Representative Ogan is not off target, when he questions, what is in the states' procurement codes and how they relate to ASMI." REPRESENTATIVE OGAN added, "I applaud the efforts of ASMI's marketing program. I have a fundamental problem with the government taxing people, to fund a private corporation. For that reason, I am going to vote against HB 116." Number 437 REPRESENTATIVE CARL MOSES motioned to moved HB 116 out of committee with individual recommendations and a zero fiscal note. REPRESENTATIVE OGAN registered an objection. Number 452 CHAIRMAN AUSTERMAN called for a roll call vote. Those voting in favor of the motion were Representatives Davis, Elton, Moses and Austerman. Representative Ogan voted against the motion. CHAIRMAN AUSTERMAN announced that HB 116 passed out of the House Special Committee on Fisheries with a zero fiscal note.