HB 63 - ELECTRONIC FISH & GAME LICENSURE [Taping difficulties continued, and the following was reconstructed from the log notes.] CO-CHAIR SCALZI announced that the first order of business would be HOUSE BILL NO. 63, "An Act relating to electronic application for and issuance of licenses, permits, and tags issued by the Department of Fish and Game; relating to violations regarding a license, permit, or tag applied for or issued electronically; and providing for an effective date." KEVIN BROOKS, Director, Division of Administrative Services, Alaska Department of Fish & Game (ADF&G) came before the committee to discuss the proposed committee substitute (CS), Version C. [The tape recording begins at this point.] TAPE 01-21, SIDE A Number 0001 MR. BROOKS mentioned working with Representative Masek's office [on the new language of Version C], which he said was an improvement. Mr. Brooks explained: The concern was that we have a situation with our vendors that they're either going to get a commission under the provisions set forth in statute now, or else they would get a ... per-transaction fee, but not be able to get both. And I think the new language is very clear in that manner. Number 0098 REPRESENTATIVE FATE made a motion to adopt the proposed CS [Version C, 22-GH1070\C, Utermohle, 3/7/01] as a work draft. There being no objection, Version C was before the committee. Number 0123 REPRESENTATIVE STEVENS mentioned a friend in Kodiak who sells licenses; the friend had said he would not be selling the high- end licenses such as for bear hunts, but only the fishing licenses. Representative Stevens asked Mr. Brooks if he thought [the language in Version C] would be a disincentive to vendors to stay in the business. MR. BROOKS replied that out of an estimated 600,000 pieces of stock sold, 8,000 pieces were sold [electronically]. Therefore, he did not foresee a significant loss of vendor business because of electronic licensing; instead, electronic licensing would be a complement to it. In regard to speculating whether the higher-end sales would be predominately by vendor or by electronic means, Mr. Brooks said it would be a matter of customer preference. He stated that there are 1,500 vendors statewide, and 20 percent of those are responsible for 80 percent of the sales. REPRESENTATIVE STEVENS asked Mr. Brooks to describe the incentives to the vendors. MR. BROOKS answered that the current vendor compensation provisions are 5 percent of the receipts, plus $1 per item sold. He said there were approximately "$1.2 million in retained commissions to 5 percent." He recalled that there was approximately $700,000 in additional vendor compensation of $1 per item. Mr. Brooks said ADF&G paid out nearly $2 million in vendor commissions. He added that the vendors were making money by outfitting the people buying the licenses in their stores, not from the sale of the licenses themselves. Number 0435 REPRESENTATIVE FATE asked Mr. Brooks if Version C would put some of the vendors in a "no man's land," trying to do it, but not making the 5 percent, so that it just becomes a service, and a nuisance, at that. MR. BROOKS responded that it was that type of analysis that brought ADF&G to [electronic licensing], because there are many "marginal" vendors who don't sell much. He pointed out that many of those vendors are in remote areas, so ADF&G figured that if the information is put out on the Internet, more people would have access to a license. Number 0539 REPRESENTATIVE STEVENS asked Mr. Brooks how much 5 percent of a high-end license would equal. MR. BROOKS offered an example of a person from Europe buying a license for $1,000, 5 percent of which would equal $50. REPRESENTATIVE FATE moved to report CSHB 63 [version 22- GH1070\C, Utermohle, 3/7/01] out of committee with individual recommendations [and the accompanying zero fiscal note]. There being no objection, CSHB 63(RES) was moved out of the House Resources Standing Committee.