Legislature(1995 - 1996)
03/15/1995 01:45 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 220
"An Act relating to the duties of the commissioner of
commerce and economic development concerning the Alaska
Tourism Marketing Council; relating to the per diem
travel expenses of the council's board of directors;
relating to the powers and duties of the council;
extending the termination date of the council; and
providing for an effective date."
ROD MOURANT, STAFF, REPRESENTATIVE KOTT testified in support
of HB 220. He stressed that the legislation assists in
tourism expansion and diversification of the state's
economy. He noted that the legislation allows the
Commissioner of Department of Commerce and Economic
Development to contract with a qualified in-state trade
association to promote Alaska as a visitor destination
through a cooperative marketing effort. The contract term
would be expanded from two to four years.
Mr. Mourant noted that section 2 recognizes a need for
outside travel on the part of the Alaska Tourism Marketing
Council (ATMC). He noted that ATMC reimbursable travel is
currently limited to in-state travel. Section 2 would allow
per diem and travel expenses for travel outside the state at
a standard allowable rate.
Mr. Mourant observed that sections 3 and 4 alleviate the
effort of promoting Alaska as a tourist destination from the
director level to the commissioner level. Section 5 amends
the sunset date from 1996 to December 30, 1999. He noted
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that the fiscal note accompanying HB 220 is simply the ATMC
proposed operating budget.
JOHN LITTON, MEMBER, ALASKA MARKETING TOURISM COUNCIL
testified via the teleconference network from Sitka. He
testified in support of HB 220. He noted that a trip he
took to New York City to promote Alaska tourism resulted in
the Good Morning America television show being broadcast
from Juneau. The trip was not reimbursable. He emphasized
that the legislation will assist the operations of the
Council.
KEITH PERKINS, MEMBER, CITY AND BOROUGH OF SITKA ASSEMBLY
testified via the teleconference network from Sitka. He
testified in support of HB 220. He noted that he is also a
member of the Alaska Visitor's Association. He stressed
support for ATMC's effort to market Alaska.
NANCY LETHCOE, ALASKA WILDERNESS RECREATION AND TOURISM
ASSOCIATION (AWRTC) testified via the teleconference network
from Valdez. She provided members with a letter to Co-Chair
Hanley (Attachment 6). She noted that AWRTC feels there is
an imbalance in the membership of the Alaska Tourism
Marketing Council. She stated that the imbalance has led to
an unintentional bias of the Council which is unfavorable to
small Alaskan owned and operated rural tourism businesses.
She noted that her letter details areas in which the
imbalance is evident.
Ms. Lethcoe referred to suggestions for amendments listed in
her letter. She stated that the definition of "qualified
trade organization" should be expanded to include "hunting,
sport fishing, and wilderness outfitters and guides."
Ms. Lethcoe suggested that the Governor appoint 12 seats to
the Council and the qualified trade association appoint 8
seats to the Alaska Tourism Marketing Council. She added
that the qualified trade association should be required to
appoint members that represent various sectors of the
tourism industry. She emphasized the need for a "fair
playing field" for the making of decisions regarding the
expenditures of state funds.
Mr. Mourant noted that AS 44.33.705 governs the appointments
to the Board. He noted that the Alaska Tourism Marketing
Council appoints 10 members. The Director of Tourism is
also a member of the Board. In addition, the Governor
appoints 10 members. He observed that statutes state that
the Governor shall ensure that the Board is broadly
representative of the different regions of the state and the
various sectors of the visitor industry. He pointed out
that if the definition of a qualified trade organization is
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expanded to include the recommendations by AWRTC then camp
grounds, food services, gift stores, tour and charter small
plane operations and helicopter operations would also need
to be considered. He maintained that the current definition
already includes the recommendations by the AWRTC.
Representative Brown noted that concerns have been expressed
concerning which audiences will be targeted by the Council.
She observed that the perception exists that cruise traffic
has been overly targeted as opposed to independent
travelers. She pointed out that any change would have to
take under consideration the ongoing relationship with the
large operators, who fund a large portion of the program.
BOB DINDINGER, VICE CHAIR, ALASKA MARKETING TOURISM COUNCIL
responded to comments by members. He noted that it takes
eleven affirmative votes to take any action by the Council.
He asserted that it is virtually impossible for the trade
association to manipulate or take advantage of the process.
He added that the trade association, by its own policy
appoints 3 of its 10 participants on a geographic basis.
The other 7 seats are appointed based upon their cash
contributions to the program. He pointed out the 90 percent
of the industry's cash contribution comes from less then 10
companies. He observed that legislative action has raised
the percentage of industry contribution from 10 to 25
percent. He noted that appointments based on contributions
range from $250.0 thousand dollars to 60.0 thousand dollars.
Representative Brown referred to remarks by Ms. Lethcoe.
Mr. Dindinger observed that the Council's funding has been
reduced. He noted that when more money was available the
Council was able to fund special interest marketing. He
emphasized that the current funding level requires generic,
centralized marketing. He asserted that all concerns have
equally shared the pain of downsizing.
In response to a question by Co-Chair Hanley, Mr. Mourant
noted that "shall" was changed on page 1, line 11 to "may".
Mr. Dindinger stated that the Council is not concerned by
the change.
Representative Brown noted that the change reflects the
difference in language on page 1, lines 8 and 9. She did
not think the change to "may" would constitute a problem.
Representative Brown asked if the Council has considered
marketing over Internet. Mr. Dindinger responded that the
Council is actively investigating the possibility of
utilizing network marketing technology. Mr. Mourant noted
the expense of investing in computer network marketing.
Representative Grussendorf noted that the contract term is
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being changed from 2 to 4 years. He asked how the contract
would be affected if the state did not appropriate funding.
Mr. Mourant noted that everything is subject to legislative
appropriation.
Representative Martin spoke in support of network marketing.
He expressed concern with the fiscal note. Co-Chair Hanley
explained that the fiscal note by the Department of Commerce
and Economic Development reflects the Council's operating
budget. He noted that the fiscal note does not obligate
future legislatures. He observed that the Council's funding
level will be debated.
Representative Mulder MOVED to report CSHB 220 (L&C) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 220 (L&C) was reported out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Department of Commerce and Economic Development, dated
3/8/95.
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