SENATE BILL NO. 101 "An Act relating to fees for use of state park system facilities; and relating to the sale of merchandise by the Department of Natural Resources." 9:30:23 AM BEN ELLIS, DIRECTOR, ALASKA DIVISION OF PARKS AND OUTDOOR RECREATION, DEPARTMENT OF NATURAL RESOURCES, explained that the bill would remove language that required all authorized fees to be collected in a park unit, making clear that the Department of Natural Resources (DNR) would have the authority to collect fees online or in locations outside of a park unit. 9:31:29 AM Senator Dunleavy understood that there were drop box fees at state parks. Mr. Ellis replied that there were drop boxes for user fees at developed facilities, and that passes were available. 9:32:23 AM Senator Olson queried the reasoning behind the clarifying language related to fees being collected outside of a park unit. Mr. Ellis stated that the original intent of the governor's bill had been to allow state parks to sell merchandise for a profit, in order to decrease the dependence on the General Fund. He said that the bill had been modeled on a survey that was conducted over 20 states, with the original concept to provide an opportunity for state to sell merchandise for profit. He said that current statute only allowed for the sale of items for cost. 9:35:07 AM Co-Chair MacKinnon directed committee attention to the original draft of the legislation. She queried the removal of Section 2 from the original bill. Mr. Ellis responded that the language had been removed by the Senate Resources Committee. He said that concern had been expressed during the bill hearing that the bill could be in competition with the private sector. 9:35:57 AM Senator Bishop wondered whether the bill would benefit the division. Mr. Ellis responded that the current version of the bill would alleviate a technical issue that some had not believed was a serious issue. 9:37:04 AM Co-Chair MacKinnon stressed that the bill was an issue of public policy. She said that the government generally avoided competition with the private sector. She said that her office would take amendments until Wednesday, March 23, 2016. 9:37:42 AM Senator Olson wondered whether there were private entities that sold comparable items to those sold by the division. Mr. Ellis responded that the division was not currently selling any products. He added that he did not believe that any company was selling Alaska State Park merchandise. He stated that there was an internet based company in Seattle that was could create merchandise using any names in the public domain. 9:38:56 AM Vice-Chair Micciche remarked that the bill was similar to SB 101, as it was an attempt for a department to offset costs. He appreciated the proposed bill. 9:39:42 AM Co-Chair MacKinnon shared that she had served as a department manager at JC Penney, which sold millions in Alaskan merchandise. She felt that it would be nice for the state to get credit for distributing state products. She suggested that the state could be a wholesaler of original Alaska brand merchandise. Mr. Ellis concurred. He stressed that the state would create the merchandise, and would sell it to a wholesaler or retailer at a marked up cost. Co-Chair MacKinnon reiterated that amendments were due the following Wednesday. 9:42:12 AM Senator Dunleavy spoke in support of the legislation. Mr. Ellis quoted a parks director in New Hampshire: "We're fairly passionate about our retail operation in the Hampshire State Parks. When you change the dialogue from cost control, to revenue growth opportunities, all of the sudden new doors open, employees attitudes shift, and we build a broader customer base of support, loyalty, and advocacy for the states park system." 9:43:43 AM Senator Bishop agreed that the bill was a good concept. He stressed that Alaska was a tourism destination. 9:44:37 AM Co-Chair MacKinnon hoped that the merchandise would be made in America, possibly in partnership with the prison system. 9:45:07 AM Senator Olson spoke to Section 2 of the original version of the legislation. He understood that this portion of the bill had been removed from the current version. He wondered whether the change had altered the original intent of the legislation. Mr. Ellis responded that the current bill version from the Senate Resources Committee did not achieve the original intent of the bill. 9:45:58 AM Senator Olson wondered why the committee was hearing the legislation. Mr. Ellis responded that in April 2015, the bill had been amended to eliminate the part that related to the sale of merchandise, and move forward the section that offered the technical amendment pertaining to online payments. 9:46:56 AM Co-Chair MacKinnon clarified that Section 2 had been removed from the original bill, but could be offered as an amendment. 9:48:07 AM Senator Olson wondered whether the department was in favor of the current version of the legislation. Mr. Ellis responded that the department was supportive of clarifying the revenue stream. He repeated that the current version of the bill did not speak to the governor's original intent. 9:48:52 AM AT EASE 9:49:02 AM RECONVENED 9:49:05 AM Vice-Chair Micciche revealed that there had been concern in the Senate Resources Committee about state competition with the private sector, as well as the cost of employing additional state employees. He hoped that the bill could be amended to require that Alaskan businesses be used in the production of merchandise. 9:50:25 AM Mr. Ellis remarked that the division was sensitive to the competition with the private sector, and shared that there was a constant search for balance. Co-Chair MacKinnon OPENED public testimony. Co-Chair MacKinnon CLOSED public testimony. SB 101 was HEARD and HELD in committee for further consideration.