Legislature(2011 - 2012)BARNES 124

04/07/2011 08:00 AM House ECON. DEV., TRADE & TOURISM


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Audio Topic
08:03:22 AM Start
08:04:03 AM Presentation: Biomass Boiler Heating Systems
08:13:05 AM HJR27
08:42:56 AM HB222
09:06:36 AM HB191
09:37:19 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Presentation: Biomass Boiler Heating Systems by TELECONFERENCED
Representative Thompson
*+ HJR 27 RELOCATE COASTAL VILLAGES REGION FUND TELECONFERENCED
Moved Out of Committee
*+ HB 222 AK PROMOTION & MARKETING FUND/BOARD TELECONFERENCED
Heard & Held
+= HB 191 DEPARTMENT OF AGRICULTURE AND FOOD TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
           HB 222-AK PROMOTION & MARKETING FUND/BOARD                                                                       
                                                                                                                                
8:42:56 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON announced  that the next order  of business would                                                               
be HOUSE BILL  NO. 222," An Act establishing and  relating to the                                                               
Alaska  Promotion and  Marketing Board  and the  Alaska promotion                                                               
and marketing  fund; relating to marketing  tourism contracts and                                                               
campaigns; and providing for an effective date."                                                                                
                                                                                                                                
8:43:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALAN  AUSTERMAN, Alaska State  Legislature, stated                                                               
that his  experience on  the House Finance  Committee led  him to                                                               
understand   that  Alaska   is   not  marketed   as  a   business                                                               
destination; in fact,  new businesses are not  encouraged to come                                                               
to the state  and bring jobs and  income.   He opined  a board or                                                               
fund  within the  Department of  Commerce,  Community &  Economic                                                               
Development  (DCCED) tasked  to  work on  promoting Alaska  would                                                               
accomplish  this by  including  all industries  such as  seafood,                                                               
tourism,  mining,   and  agriculture.     However,   because  the                                                               
legislature cannot "tell the department  what to do," the initial                                                               
concept of the  bill will be addressed next year,  thus HB 222 is                                                               
a  starting  point for:    A  methodology  to  bring all  of  the                                                               
industries to  the table  and determine how  to fund  a marketing                                                               
effort for  each individual  industry.   Representative Austerman                                                               
anticipated   that  changes   will  be   made  to   the  proposed                                                               
legislation, and  he expressed his  hope that testimony  from the                                                               
affected industries will be heard.                                                                                              
                                                                                                                                
8:46:27 AM                                                                                                                    
                                                                                                                                
ASTRID  LIEVANO,  Staff,  Representative Alan  Austerman,  Alaska                                                               
State  Legislature,  said HB  222,  Section  1, adds  the  Alaska                                                               
Promotion  and  Marketing  Board  to   the  list  of  boards  and                                                               
commissions  that are  subject to  the public  official financial                                                               
disclosure chapter.   Section 2  adds new sections to  create the                                                               
Alaska Promotion and Marketing Fund  and the Alaska Promotion and                                                               
Marketing  Board.    Section  44.33.950  creates  the  fund,  and                                                               
directs DCCED  to administer  the fund  in consultation  with the                                                               
board.  Section  44.33.955 identifies the money that is  to be in                                                               
the  fund and  states  that the  fund is  not  a dedicated  fund.                                                               
Section 44.33.960  states the  purpose of the  fund, which  is to                                                               
promote and market  industries that broaden the  economic base of                                                               
the state and provide jobs  and business opportunities for Alaska                                                               
residents.   Section 44.33.965 states  that the fund  money shall                                                               
be  used, subject  to appropriation,  to make  grants to  private                                                               
entities for projects  that promote the fund purpose,  and to pay                                                               
administration  costs for  the new  sections.   Section 44.33.970                                                               
establishes  certain  requirements  for  grants  from  the  fund,                                                               
addresses  the type  of entity  that  may be  a grant  recipient,                                                               
addresses the  matching requirements of  50 percent of  the grant                                                               
amount, and sets  a maximum amount of 75 percent  per fiscal year                                                               
for  grants  to  entities  in established  industries.    Section                                                               
44.33.975  establishes   the  board,  including  the   number  of                                                               
members,  and  the  appointment   of  members  by  the  governor.                                                               
Section 44.33.980  lists the board's duties  including developing                                                               
a  methodology for  prioritizing  projects; identifying  criteria                                                               
for  evaluation  achievement  of  the fund  purpose  by  proposed                                                               
projects;  determining  grant   applicant  eligibility  criteria.                                                               
Section  44.33.985  authorizes  the  board  and  DCCED  to  adopt                                                               
regulations for the new sections.   Section 44.33.990 defines the                                                               
terms for the  new sections.  Section 3  repeals certain sections                                                               
relating to  marketing tourism contracts and  campaigns.  Section                                                               
4 establishes  a sunset date of  7/1/19.  Section 5  provides for                                                               
the  appointment of  the first  members of  the board  within one                                                               
month of the effective date and  with staggered terms.  Section 6                                                               
makes the Act effective 1/1/12, unless changed.                                                                                 
                                                                                                                                
8:52:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  whether  Section  3  repeals  the                                                               
funding  structure for  the  Alaska  Travel Industry  Association                                                               
(ATIA).                                                                                                                         
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  clarified  that  it  does  repeal  the                                                               
current  funding methodology  through ATIA  and DCCED,  and moves                                                               
the qualified trade association concept  over to a new board that                                                               
is created  by the bill.   In further response  to Representative                                                               
Gardner, he  explained that the  change would apply to  any trade                                                               
association or  group that  wants to market  Alaska, such  as the                                                               
Alaska  Seafood Marketing  Institute (ASMI).     Details will  be                                                               
worked out  during the  interim by  the committee,  after hearing                                                               
from industry.                                                                                                                  
                                                                                                                                
8:55:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER recalled a meeting  in Sitka of a group of                                                               
rural communities  interested in  promoting tourism with  a focus                                                               
different  from that  of ATIA.     She asked  whether this  group                                                               
could apply to the new board for a grant.                                                                                       
                                                                                                                                
REPRESENTATIVE AUSTERMAN said  yes, and added that  there will be                                                               
a lot  of discussion  about the  scope of  tourism that  would be                                                               
included.  He  opined all groups can come to  the board after its                                                               
criteria is established.                                                                                                        
                                                                                                                                
8:56:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  asked for  confirmation that ASMI  would be                                                               
eligible to compete for funds.                                                                                                  
                                                                                                                                
REPRESENTATIVE AUSTERMAN indicated  yes; ASMI currently qualifies                                                               
for marketing funding,  although it is funded  differently and at                                                               
a  lower percentage  than ATIA.   Marketing  funds are  an annual                                                               
argument for the legislature, and  this board would work with the                                                               
industry to identify  funding.  The legislature  would still fund                                                               
the marketing  fund each  year, which could  mean more  money for                                                               
marketing in the long-term, with the addition of new businesses.                                                                
                                                                                                                                
8:58:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER  pointed out the board  will determine what                                                               
constitutes  an  "emerging  market,"   and  inquired  about  that                                                               
process.                                                                                                                        
                                                                                                                                
REPRESENTATIVE AUSTERMAN said  he did not know.   He recalled how                                                               
- during past troubled times  for the seafood industry - matching                                                               
funds and  federal money was  used to bring the  fishing industry                                                               
back  from a  period of  low prices  with incentives  on new  and                                                               
developing products.                                                                                                            
                                                                                                                                
CO-CHAIR HERRON opened public testimony.                                                                                        
                                                                                                                                
9:00:21 AM                                                                                                                    
                                                                                                                                
DEB  HICKOK, Chair,  Board of  Directors, Alaska  Travel Industry                                                               
Association  (ATIA), said  the ATIA  board shares  Representative                                                               
Austerman's  passion   for  growing  and   diversifying  Alaska's                                                               
economy.   She  relayed that  the ATIA  board of  directors works                                                               
with its  11,000 member businesses  to develop and  market Alaska                                                               
as a travel destination; in  fact, the board supports a marketing                                                               
committee structure  because it gives large  and small businesses                                                               
a direct  voice in  the marketing  program.    However,  the ATIA                                                               
board  also seeks  to scrutinize  the proposed  marketing process                                                               
for possible  improvements.   Ms. Hickok  offered that  the board                                                               
will  collaborate with  the legislature  and the  administration,                                                               
and  suggested an  independent audit  of the  marketing committee                                                               
structure and  programs during the interim  discussions regarding                                                               
the  proposed legislation.   Referring  to the  bill, she  opined                                                               
Section 3 - that repeals  the qualified trade association (QTA) -                                                               
is  premature,  and  has  negative  consequences  to  the  travel                                                               
industry.   Ms.  Hickok  urged for  more  collaboration with  the                                                               
travel industry during interim.                                                                                                 
                                                                                                                                
9:04:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN recently  heard that  an audit  of ATIA                                                               
was  under  consideration;  however,  this  bill  does  not  have                                                               
anything to  do with ATIA  and its  ability to perform  its task.                                                               
He stressed  that HB  222 does  not relate  to the  operations of                                                               
ATIA; in fact,  this legislation creates a new  structure for how                                                               
marketing is funded by the state.                                                                                               
                                                                                                                                
[HB 222 was heard and held.]                                                                                                    
                                                                                                                                
9:06:11 AM                                                                                                                    
                                                                                                                                
Chair Herron turned the gavel over to Vice Chair Olson.                                                                         
                                                                                                                                
9:06:21 AM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
EDT 4.7.11 Biomass Heating Powerpoint.pdf HEDT 4/7/2011 8:00:00 AM
HB 191 Alaska's State-Funded Ag Projects and Policy.pdf HEDT 3/15/2011 10:15:00 AM
HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - SPONSOR_STATEMENT_HB_191 (Revised #2).pdf HEDT 3/15/2011 10:15:00 AM
HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - 14 Fiscal Notes.pdf HEDT 3/15/2011 10:15:00 AM
HEDT 4/7/2011 8:00:00 AM
HB 191
HB222-CCED-DED-04-01-11.pdf HEDT 4/7/2011 8:00:00 AM
HB 222
HB 222 Sponsor Statement.docx HEDT 4/7/2011 8:00:00 AM
HB 222
HJR 27 CVRF letter.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 KPB resolution of support.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 KPED resoultion of support.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 PND economic and scoping study.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 sponsor statment.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HJR 27 letter from congressional delegation.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27
HB 191 - Back-up.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Div of Ag - Building a sustainable agriculture industry.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Div. of Ag - Dev. Component from FY12 Budget.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Letter of Opposition.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Letters of Support.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Sectional Analysis (updated).pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 191 - Alaska Farm Bureau.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HB 222 - Sectional Analysis.PDF HEDT 4/7/2011 8:00:00 AM
HB 222
HB 191 - Hollembaek LTR of Support.pdf HEDT 4/7/2011 8:00:00 AM
HB 191
HJR 27 - Fiscal Note (Zero) Corrected.pdf HEDT 4/7/2011 8:00:00 AM
HJR 27