CSHB 115(ITT): "An act deleting a requirement that certain members of the board of directors of the Alaska Tourism Marketing Council be substantially involved in a visitor or recreation industry business; relating to the selection of a presiding officer for the Alaska Tourism Marketing Council: and providing for an effective date." Number 639 REP. HUDSON gave a brief overview and explained that HB 115 was amended in the House International Tourism and Trade committee to conform to changes made in the Senate companion bill. Number 645 REP. HUDSON then expressed the following: "I must mention there is some contention in this field as it relates to the Commissioner of the Department of Commerce and Economic Development. He has approached me directly suggesting that they would like to have the legislation entertain a shift in the administrative overhead of the Alaska Tourism and Marketing Council (ATMC) and to essentially do away with the industries separate administrative escholon and place the administration of this into the hands of the director of the Division of Tourism. What that would do if we adopt this bill in its current form would potentially put that at odds. I don't believe we would necessarily have to change this law in order to permit them to do that, and if that is going to occur, it will occur at the budgeting end where they literally take the administrative funds away from the ATMC. The Finance Committee can modify the management of the ATMC by simply budgeting the money into the Department of Tourism rather than into the ATMC." Number 680 REP. HUDSON continued: "We can do one of two things. We can either sit on this or we can pass it and it can be dealt with in the Finance Committee or State Affairs Committee. We introduced this legislation in substantially the form that the industry wants; the industry contributes heavily towards this whole program here. As the chairman of this committee, I suggest that we pass it out and let it be dealt with ultimately in the Finance committee. It will be a policy call that may involve a caucus decision." Number 780 VICE CHAIRMAN GREEN asked for questions from the committee. Number 785 REP. PORTER asked if the committee should send a letter of concern. Rep. Porter aired a concern about the transferring of administrative functions. Number 801 In answer to Rep. Porter's question, REP. MULDER said that there are a number of concerns regarding funding and administrative functions by and for the tourism industry. He further speculated on the concern of the commissioner of the Department of Commerce and Economic Development. Number 835 WENDY MULDER, LEGISLATIVE LIAISON FOR THE DEPARTMENT OF COMMERCE, testified on behalf of the commissioner and made note that the commissioner was unable to join the Labor & Commerce Committee. She clarified the concern of the commissioner by saying that the commissioner wanted the committee to know that it was a budgetary matter and felt that the committee should be aware of that. She further stated that the department is willing to go any direction the legislature wishes the ATMC or the Division of Tourism to go. Number 864 REP. GREEN asked if funding was the driving force behind what happens with the ATMC. He asked if it would create confusion, and shouldn't there be an established place for it. Number 867 MS. MULDER explained that for budgetary reasons they would bring the staff of the ATMC back into the Division of Tourism. The ATMC would still have voting power over the contracts, but administratively it would be handled in the Division of Tourism. Number 900 REP. HUDSON explained that because of the above stated reasons, this bill should be moved on to the Finance Committee. Number 906 REP. PORTER aired a concern regarding the moving of administrative functions of the ATMC to the Division of Tourism. He further stated that he did not think that was a good idea. Number 926 JOHN LITTON, MEMBER OF THE TOURISM MARKETING COUNCIL, testified in support of HB 112. Number 937 REP. MULDER moved and asked unanimous consent that CSHB 112(ITT) move from committee with individual recommendations and a zero fiscal note. There being no objections, it was so ordered. VICE CHAIRMAN GREEN adjourned the House Labor & Commerce Committee meeting at 4:16 p.m.