Legislature(2013 - 2014)BARNES 124

04/14/2014 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 99 AIDEA: DEVELOPMENT LOANS TELECONFERENCED
Moved Out of Committee
+ SB 140 AIDEA: ARCTIC DEVELOPMENT PROGRAM/FUND TELECONFERENCED
Moved Out of Committee
+ SB 194 TOURISM MARKETING BOARD TELECONFERENCED
Moved HCS CSSB 194(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SB 194-TOURISM MARKETING BOARD                                                                             
                                                                                                                                
4:31:41 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
CS  FOR SENATE  BILL NO.  194(FIN), "An  Act creating  the Alaska                                                               
Tourism Marketing Board; and relating to tourism marketing."                                                                    
                                                                                                                                
4:31:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD moved  to adopt  the proposed  committee                                                               
substitute (CS)  for HB 194  labeled 28-LS1497\R,  Martin, 4/9/14                                                               
as the working document.                                                                                                        
                                                                                                                                
CHAIR OLSON objected for discussion purposes.                                                                                   
                                                                                                                                
4:32:07 PM                                                                                                                    
                                                                                                                                
GENEIVIEVE WOJTUSIK,  Staff, Senator Lesil McGuire,  Alaska State                                                               
Legislature, explained this bill  would create the Alaska Tourism                                                               
Marketing Board  within the Department  of Commerce,  Community &                                                               
Economic  Development consisting  of  21  members, including  one                                                               
member appointed  by the House  and Senate and one  DCCED member.                                                               
She   stated   that   18  members   will   represent   Southeast,                                                               
Southcentral,  Southwest, Interior  Alaska,  and  the far  north.                                                               
The   categories   would  include   accommodations,   activities,                                                               
attractions, transportation,  cruise travel, tour  operators, and                                                               
destination management organizations (DMOs).   She explained that                                                               
SB  194  would require  the  department  and  the board  to  work                                                               
together  to plan  and execute  a  destination tourism  marketing                                                               
plan for  Alaska.  The  public members on  the board serve  at no                                                               
cost to the state and the board  will sunset in 2018.  The quorum                                                               
to conduct business  would require nine members  but must include                                                               
one representative from each part of the state.                                                                                 
                                                                                                                                
4:33:16 PM                                                                                                                    
                                                                                                                                
MS.  WOJTUSIK explained  the changes  in  the proposed  committee                                                               
substitute,  Version  R.    She  referred to  page  3,  line  16,                                                               
changing "governor  shall" to  "governor may."   It  also changes                                                               
the number  of appointees from  a "list of  three" to a  "list of                                                               
nominees."   It also  clarifies on  page 3, line  31 and  page 4,                                                               
line 1, that  the state does not  pay for the per  diem or travel                                                               
expenses for the 18 remaining board members to attend meetings.                                                                 
                                                                                                                                
4:33:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  referred   to  the  sponsor  statement                                                               
noting  that the  bill is  an  important step  in continuing  the                                                               
growth of  one of Alaska's  most important industries.   He asked                                                               
how this bill would do that beyond what is currently happening.                                                                 
                                                                                                                                
MS.  WOJTUSIK  answered that  it  formalizes  the Alaska  Tourism                                                               
Marketing Board as  a process, and she hoped the  18 members plus                                                               
the   legislative  and   department  members   can  create   [the                                                               
additional industry growth.]                                                                                                    
                                                                                                                                
4:34:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  referred to  page  2,  line 30,  which                                                               
reads,  "(1) the  18 members  appointed by  the governor  who are                                                               
members of  the leading  statewide nonprofit  tourism association                                                               
...."    He  offered  his   belief  the  Alaska  Travel  Industry                                                               
Association is the leading tourism association                                                                                  
                                                                                                                                
MS. WOJTUSIK agreed.                                                                                                            
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  referred to  page  3,  line 16,  "(C),                                                               
which allows the  governor to appoint the members from  a list of                                                               
nominees  for  each  seat  submitted  by  the  leading  statewide                                                               
nonprofit   tourism   marketing   association   and   asked   for                                                               
clarification on  "shall" and "may."   He said it is  mandated on                                                               
page 2, but the governor "might" pick from there on page 3.                                                                     
                                                                                                                                
MS. WOJTUSIK  referred to page  3, which clarifies the  number of                                                               
nominees since  it had previously  read "three" nominees,  but is                                                               
now a list of nominees.                                                                                                         
                                                                                                                                
4:35:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT expressed  concern that  regions of  the                                                               
state are  represented, but  he did not  see the  Kenai Peninsula                                                               
represented.  He suggested that the  Kenai Peninsula is as much a                                                               
destination of the  Far North.  He wondered if  anyone has raised                                                               
this issue when the bill was considered by other committees.                                                                    
                                                                                                                                
MS. WOJTUSIK  said it has not  been brought up.   She deferred to                                                               
the Alaska Travel Industry Association.                                                                                         
                                                                                                                                
4:37:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON referred to page  3 of the bill and said                                                               
it seemed as  though if the governor selected someone  not on the                                                               
statewide  nonprofit tourism  marketing  association, the  person                                                               
would need to join the association.                                                                                             
                                                                                                                                
MS. WOJTUSIK agreed with that assessment.                                                                                       
                                                                                                                                
4:37:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked  whether the  bill  has  another                                                               
committee of referral.                                                                                                          
                                                                                                                                
MS.  WOJTUSIK said  it would  go to  the House  Finance Committee                                                               
next.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  JOSEPHSON suggested  the requirement  to join  an                                                               
association may come up.                                                                                                        
                                                                                                                                
4:38:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked if  this bill  is for  the tourism                                                               
industry or  if the sponsor  would like  to create the  vision of                                                               
what Alaska looks like in the future.                                                                                           
                                                                                                                                
MS.  WOJTUSIK offered  her belief  that  this is  limited to  the                                                               
current  tourism   industry.    She  recalled   some  preliminary                                                               
discussions about  doing something  with other divisions,  but at                                                               
this point, SB 194 is limited to tourism.                                                                                       
                                                                                                                                
4:39:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD remarked that if  the state knows what it                                                               
wants to  look like  in the  future, it would  make it  easier to                                                               
manage where tourism, roads, and infrastructure is placed.                                                                      
                                                                                                                                
REPRESENTATIVE CHENAULT noted the  proposed board was a 21-member                                                               
board, but only 9 members would  be needed to establish a quorum.                                                               
He  was  not  aware  of  any instance  in  which  a  minority  of                                                               
membership could  establish a quorum  since the  quorum typically                                                               
requires half or more of the board membership to be present.                                                                    
                                                                                                                                
MS. WOJTUSIK answered  that initially the quorum  was 11 members,                                                               
but Senator Fairclough  pointed out that it can be  hard to get a                                                               
quorum.  Thus the figure was  changed, but it requires one member                                                               
from each region.                                                                                                               
                                                                                                                                
4:40:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  commented  it   can  be  hard  to  hold                                                               
meetings that  work with everyone's  schedule so sometimes  it is                                                               
easier to  get a  smaller group together.   He  acknowledged that                                                               
meeting during the tourism timeframe could be difficult.                                                                        
                                                                                                                                
REPRESENTATIVE HERRON  acknowledged that a lot  of tourists don't                                                               
want  infrastructure  and seek  a  lack  of infrastructure.    He                                                               
suggested it could be an important quality.                                                                                     
                                                                                                                                
REPRESENTATIVE JOSEPHSON commented that  the Kenai Peninsula is a                                                               
unique,  stand-alone place  and arguably  is the  most remarkable                                                               
place in the state.   He also agreed some people  want to be "off                                                               
the  grid."   He  hoped that  if  the board  is  created it  will                                                               
consider some  opportunities for  non-consumptive use.   He said,                                                               
"That's what tourists  want as well.  They want  to see wildlife,                                                               
and we've got to make sure that happens."                                                                                       
                                                                                                                                
REPRESENTATIVE  REINBOLD agreed.    She  wondered what  locations                                                               
should   be   identified   as   natural   locations   and   where                                                               
accommodations should  be located.   She  further asked  what the                                                               
state would like to see in 10, 20, 50, or 100 years.                                                                            
                                                                                                                                
4:43:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER  referred   to  page   3,  line   16-19,                                                               
[subsection (d)],  which allows  the governor  to reject  a list.                                                               
He asked whether it is the  sponsor's intent that there isn't any                                                               
duplication.                                                                                                                    
                                                                                                                                
MS. WOJTUSIK  answered that she  was unsure.  She  suggested that                                                               
this language was used for other boards.                                                                                        
                                                                                                                                
REPRESENTATIVE SADDLER  could understand the request  to consider                                                               
non-consumptive use, but  he thought it was  equally important to                                                               
have "consumptive" use represented so  all aspects of tourism are                                                               
on the proposed ATMB.                                                                                                           
                                                                                                                                
4:44:56 PM                                                                                                                    
                                                                                                                                
BILL  PEDLAR,   Government  Relations,  Alaska   Travel  Industry                                                               
Association  (ATIA), related  he  is also  president of  Knightly                                                               
Tours,  which is  a small  tour company  that specializes  in in-                                                               
bound  vacation travel  to Alaska.   He  said Knightly  Tours has                                                               
been in business  for over 45 years.  He  said, most notably, the                                                               
ATIA recognizes the Kenai as  a hugely important area in tourism;                                                               
the definitions of  the areas represent the areas  the state uses                                                               
to market  Alaska in  the state's Alaska  Travel Planner.   Thus,                                                               
this  is where  the five  regions were  derived from  and it  was                                                               
thought it  would be easier  to use the regional  definitions the                                                               
travel industry currently uses.                                                                                                 
                                                                                                                                
4:46:07 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON answered that the visitor guide will link up.                                                                       
                                                                                                                                
MR. PEDLAR agreed.                                                                                                              
                                                                                                                                
4:46:18 PM                                                                                                                    
                                                                                                                                
MR.  PEDLAR  explained that  the  ATIA  has often  discussed  the                                                               
"rings  of tourism"  including high,  mid, and  low density.   In                                                               
fact, over the  years, the travel industry has  come forward with                                                               
several  plans that  mirror  the way  agencies  manage state  and                                                               
federal  lands.   From  that  point the  ATIA  believes there  is                                                               
pretty good  synergy.  He said  that this board's function  is to                                                               
renormalize  a relationship  between the  industry and  the DCCED                                                               
that went awry several years ago.   However, the statute has been                                                               
in effect since  1988.  Further, the industry would  like a broad                                                               
representation   to  have   small  to   large  businesses.     He                                                               
characterized it  as bringing  the best  marketing talent  to the                                                               
table  to  help the  state  efficiently  market  the money.    He                                                               
suggested that thus far it has worked out well.                                                                                 
                                                                                                                                
4:47:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON remarked that  he recalled the conversation                                                               
on  tourism and  the  board.   He offered  his  belief that  this                                                               
"reset" is  a good way to  move forward.  He  suggested that this                                                               
group  of people  decide together  on  sustainable and  practical                                                               
approaches to tourism because the state wants people to visit.                                                                  
                                                                                                                                
MR. PEDLAR  commented on  the quorum.   He recalled  that Senator                                                               
Fairclough pointed out  she didn't want a quorum not  to occur if                                                               
the three  government employees  serving on  the board  could not                                                               
attend.  Thus the quorum was reduced to nine, he said.                                                                          
                                                                                                                                
4:49:23 PM                                                                                                                    
                                                                                                                                
JOSEPH  JACOBSON,  Director,  Division of  Economic  Development,                                                               
Department of Commerce, Community  & Economic Development, stated                                                               
that this  this essentially formalizes the  relationship that the                                                               
department currently  has with  the Alaska  Travel Industry.   He                                                               
said the department supports SB 194.                                                                                            
                                                                                                                                
4:50:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  asked  for  clarification  on  how  the                                                               
members would be picked to serve  on the board.  He further asked                                                               
whether the seats would be dedicated.                                                                                           
                                                                                                                                
MR.  PEDLAR  answered  the  ATIA  has  found  that  the  broadest                                                               
representation, such as three members  from each region and three                                                               
"at  large" appointments,  always tends  to work  the best.   The                                                               
industry  has  found  that  if  it  does  not  have  broad  based                                                               
representation that  the industry  can miss  part of  the market.                                                               
He  emphasized  the importance  of  the  ATIA  to make  sure  the                                                               
membership  represents  very balanced  representation  throughout                                                               
the  state.   He said  the ATIA  doesn't want  people complaining                                                               
they have  not been  listened to.   He  acknowledged that  it was                                                               
left  "a little  loose"  intentionally so  it  wasn't too  highly                                                               
defined to get best marketing talent available to the state.                                                                    
                                                                                                                                
4:52:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER  said   sometimes  there   are  informal                                                               
allocations   of  seats   and   asked  him   to  identify   three                                                               
representatives, and  whether it would  be for categories  of big                                                               
boats and aviation.  He asked for the "understood" division.                                                                    
                                                                                                                                
MR.  PEDLAR   responded  that  currently  there   are  about  six                                                               
different  classes  of tourism  operators  defined  at the  state                                                               
level.   The  ATIA's goal  would be  to have  a balance,  that it                                                               
would  not be  a board  of big  cruise, big  airlines, helicopter                                                               
operators, or  fishing operators.   He  said people  volunteer to                                                               
serve  from  the  big  Westmark   chain  of  hotels  to  bed  and                                                               
breakfasts and emphasized the importance of achieving diversity.                                                                
                                                                                                                                
4:53:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked for the six general areas.                                                                         
                                                                                                                                
MR.  PEDLAR  listed  the  six   areas  as  being  accommodations,                                                               
activities,  attractions,  transportation,  cruise  travel,  tour                                                               
operators and destination  marketing organizations, predominately                                                               
the convention and visitor bureaus.                                                                                             
                                                                                                                                
4:54:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER referred  to page 2, line  30, which read,                                                               
"(1) 18 members appointed by the  governor who are members of the                                                               
leading statewide  nonprofit tourism association ...."   He asked                                                               
him to  identify the organization  that is the  leading statewide                                                               
nonprofit tourism association.                                                                                                  
                                                                                                                                
MR.  PEDLAR  answered the  ATIA  is  the only  organization  that                                                               
currently fills  that role.   He clarified  that the  language is                                                               
general so  if the association changes  its name, or the  ATIA is                                                               
no longer the leading association, that it would still apply.                                                                   
                                                                                                                                
4:55:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked whether  anyone would feel that they                                                               
are "aced out" of serving on the board.                                                                                         
                                                                                                                                
MR.  PEDLAR acknowledged  there is  always someone  who wants  to                                                               
serve.  He stated that the goal  is to have people bring ideas to                                                               
the table.  In the past,  ATIA has had a significant subcommittee                                                               
structure that allows interested parties  to serve.  He said that                                                               
for the  key 18  members, the  industry tried  to narrow  it down                                                               
from a  larger board to one  that is still representative  of all                                                               
the  facets  of   the  industry  as  well   as  the  geographical                                                               
distribution of the industry.                                                                                                   
                                                                                                                                
4:56:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  asked for further clarification,  that the                                                               
definition  of  Southcentral  and  Interior is  understood.    He                                                               
wondered  about  the Southwest  and  the  Far  North.   He  asked                                                               
whether a loose  geographical description would be  the area west                                                               
of the Alaska Range to the end of  the chain, up to the Yukon and                                                               
that the Far  North would be north of the  Yukon, wrapping around                                                               
the coast to Barrow and Kaktovik.                                                                                               
                                                                                                                                
MR. PEDLAR answered yes.                                                                                                        
                                                                                                                                
4:56:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether  segments of  the tourism                                                               
economy feel  unappreciated by the  ATIA, such as  eco-tourism or                                                               
subsistence tours on the North Slope.                                                                                           
                                                                                                                                
MR.  PEDLAR acknowledged  that  many years  ago  it was  probably                                                               
true.   He said that  there was  some general animosity,  but the                                                               
industry  has  "grown up"  and  that  "all inclusive"  tends  for                                                               
better ideas and  decisions.  He noted that  members and segments                                                               
may not  always agree, but  everyone's ideas are allowed  to come                                                               
to the table and be heard.  He  did not believe that there is any                                                               
group left out of the current way the state is marketed.                                                                        
                                                                                                                                
4:58:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT acknowledged  the  intent  is to  ensure                                                               
that all industry  and all user groups are "under  the tent."  He                                                               
said he  does not have any  amendment at this point,  but he just                                                               
wants  to  be  sure  the  Kenai Peninsula  is  represented.    He                                                               
expressed confidence that  the ATMB will ensure  all Alaskans are                                                               
represented.                                                                                                                    
                                                                                                                                
4:59:05 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on SB 194.                                                                                     
                                                                                                                                
REPRESENTATIVE HERRON  moved a conceptual  amendment that  can be                                                               
dealt with at a  later time to add Kenai as an  area of the state                                                               
that could  be added to the  five areas represented by  the ATMB.                                                               
In response to a question,  he agreed that some committee members                                                               
could further discuss this with the sponsor.                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  noted  that  Eagle River  wants  to  be                                                               
remembered, too.                                                                                                                
                                                                                                                                
5:00:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD  moved   to   the  proposed   committee                                                               
substitute (CS)  for SB 194 labeled  28-LS1497\R, Martin, 4/9/14,                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There  being no  objection,  the HSC  CSSB 194(L&C)  was                                                               
reported from the House Labor and Commerce Standing Committee.                                                                  

Document Name Date/Time Subjects
SB99 ver P.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Sponsor Statement.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Sectional Analysis ver P.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Fiscal Note-DCCED-AIDEA-02-14-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Summary of Changes ver A to ver P.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Marble Construction 4-03-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Austin Powder West LLC 4-04-2014.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Southeast Stevedoring Corporation 2-02-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Resolution 142546 City of Ketchikan.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Greater Ketchikan Chamber of Commerce 3-31-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Amak Towing Co 4-02-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Tyler Rental 4-02-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB99 Supporting Documents-Letter Alaska Miners Association 4-04-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 99
SB140 ver E.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Sponsor Statement.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Sectional Analysis.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Fiscal Note-DCCED-AIDEA-02-14-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Summary of Changes ver U to ver E.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Letter North Slope Borough 3-19-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Letter NANA 2-27-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Letter PT Public Policy 3-20-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Letter City of Seward 2-26-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Letter Trimble Strategies.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-ARPA Polar map.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Planning and Infrastructure Section of AAPC Preliminary Report.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB140 Supporting Documents-Letter AVCP 3-18-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 140
SB194 ver Y.PDF HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Sponsor Statement.pdf HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Fiscal Note-DCCED-DED-04-03-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Fiscal Note-LEG-COU-3-26-14.pdf HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Fiscal Note-DCCED-DED-3-24-14.PDF HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Summary of Changes ver A to ver Y.pdf HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Draft Proposed Blank CS ver R.PDF HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Supporting Documents-Visit Anchorage Resolution.pdf HL&C 4/14/2014 3:15:00 PM
SB 194
SB194 Supporting Documents-Letter AkHLA 3-31-2014.pdf HL&C 4/14/2014 3:15:00 PM
SB 194