SB 143: "An Act making special appropriations for a contract with a qualified trade association and for a marketing program; and providing for an effective date."
00 SENATE BILL NO. 143 01 "An Act making special appropriations for a contract with a qualified trade association 02 and for a marketing program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. LEGISLATIVE FINDINGS. The legislature finds that 05 (1) the state's general fund support for tourism marketing adjusted for 06 inflation, has declined from $23, 000,000 to $5,700,000 from 1990 to 2006; 07 (2) for more than 15 years, Alaska's travel industry has identified the need for 08 a $20,000,000 tourism marketing program; if Alaska is to regain its market share and compete 09 successfully in the national and worldwide travel marketplace, then the tourism marketing 10 budget must be strengthened; 11 (3) Alaska's travel industry greatly benefits the state's economy, as stated in a 12 2006 report by the Department of Commerce, Community, and Economic Development that 13 identifies the travel industry as a major contributor to the state's general fund as compared to 14 all other industries in the state, other than oil and gas, with a net return of over $20,000,000;
01 (4) the March 2006 report by the Department of Commerce, Community, and 02 Economic Development to the Senate Labor and Commerce Committee stated that 85 percent 03 of the vehicle rental tax is generated by independent summer visitors; under AS 43.52.010 - 04 43.52.099, the rate of the vehicle rental tax is 10 percent, and the proceeds of the tax may be 05 appropriated for tourism marketing; 06 (5) the investment of revenue generated by independent travelers will ensure 07 the growth in Alaska's small business sector, creating jobs in Alaska's unique communities; 08 (6) the tourism industry in Alaska is at a critical crossroads; the future of this 09 vital industry depends on a significantly increased tourism marketing budget; tourism revenue 10 to the state must be reinvested if the state is to have a robust travel industry; without 11 increasing liabilities to the state, increased tourism marketing funding will stimulate the state's 12 economy through small business growth and job creation and return a net profit to the state's 13 general fund; 14 (7) reinvesting tourism tax revenue in the state's travel marketing budget is 15 necessary to regain the state's market share and stop the decline of the independent travel 16 segment. 17 * Sec. 2. The sum of $18,000,000 is appropriated from the general fund to the Department 18 of Commerce, Community, and Economic Development for a contract with a qualified trade 19 association selected under AS 44.33.125. 20 * Sec. 3. The sum of $8,500,000 is appropriated from the vehicle rental tax account 21 (AS 43.52.080) in the general fund to the Department of Commerce, Community, and 22 Economic Development under AS 44.33.125(d) for a marketing program targeted toward 23 independent travelers. 24 * Sec. 4. This Act takes effect July 1, 2007.