Legislature(2009 - 2010)BARNES 124

04/06/2009 03:15 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 167 TAX CREDIT FOR STATE TOURISM PROGRAM TELECONFERENCED
Moved CSHB 167(L&C) Out of Committee
*+ HB 177 MARINE & MOTORIZED RECREATIONAL PRODUCTS TELECONFERENCED
Moved CSHB 177(L&C) Out of Committee
*+ HB 185 LABOR NEUTRALITY FOR STATE CONTRACTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 167-TAX CREDIT FOR STATE TOURISM PROGRAM                                                                                   
                                                                                                                              
3:20:32 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL NO. 167, "An Act  relating to a corporation income tax                                                               
credit  for  contributions by  a  person  owning or  operating  a                                                               
commercial  passenger vessel  to  a  qualified trade  association                                                               
that  was  awarded a  contract  by  the Department  of  Commerce,                                                               
Community, and  Economic Development,  and used for  planning and                                                               
executing a destination tourism marketing campaign."                                                                            
                                                                                                                                
KAREN LIDSTER,  Staff, Representative John Coghill,  Alaska State                                                               
Legislature,  introduced  herself  as  staff  to  a  joint  prime                                                               
sponsor of HB 167.                                                                                                              
                                                                                                                                
3:21:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  made  a  motion  to  adopt  the  proposed                                                               
committee  substitute  (CS)  for  HB  167,  labeled  26-LS0695\E,                                                               
Bullock, 4/1/09.[Version E was before the committee.]                                                                           
                                                                                                                                
CHAIR OLSON objected for purposes of discussion.                                                                                
                                                                                                                                
MS. LIDSTER  explained the changes.   She stated that on  page 2,                                                               
line 2, a new paragraph was added, as follows:                                                                                  
                                                                                                                                
   (3) not used to provide the person making the contribution                                                                   
        with a direct or tangible benefit.                                                                                      
                                                                                                                                
MS. LIDSTER  explained paragraph (3)  was added to ensure  that a                                                               
person  making  a contribution  would  not  receive a  direct  or                                                               
tangible  benefit  from  the contribution  and  also  receive  an                                                               
income tax credit.   She explained that the  bill would establish                                                               
a  tourism marketing  tax  credit to  help  create a  sustainable                                                               
funding source for Alaska's tourism  marketing program.  The bill                                                               
would allow a  tax credit for contributions to  a qualified trade                                                               
association that  has been awarded  a contract by  the Department                                                               
of Commerce,  Community, & Economic Development  for planning and                                                               
executing  a destination  tourism  marketing campaign.   The  tax                                                               
credit   would  be   equal  to   the  value   of  the   qualified                                                               
contributions and could  be applied to a tax  liability under the                                                               
Alaska Corporate  Net Income Tax.   The credit could not  be used                                                               
to reduce  corporate income  tax below zero,  and the  tax credit                                                               
could not be  carried forward or transferred.   Additionally, the                                                               
definition  of "commercial  passenger  vessel" is  defined in  AS                                                               
43.52.295.  This bill was  created when the legislature asked the                                                               
tourism  industry  for  ideas for  funding  sources  for  tourism                                                               
marketing in Alaska.                                                                                                            
                                                                                                                                
3:23:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  referred to the sectional  analysis for HB                                                               
167.    He  related  his understanding  the  bill  would  provide                                                               
commercial passenger vessels  a credit against the tax  due for a                                                               
cash contribution to  a marketing program.  He  asked for further                                                               
clarification.                                                                                                                  
                                                                                                                                
MS.  LIDSTER  explained  the  contribution would  be  made  to  a                                                               
qualified  trade   association  that  was  awarded   the  tourism                                                               
marketing contract administered by the DCCED.                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN  asked if a  business such as  a fictitious                                                               
"Karen's Whitewater  Riverboat Extravaganza" made  a contribution                                                               
to the Alaska  Tourism and Marketing Association if  it would get                                                               
a credit.                                                                                                                       
                                                                                                                                
MS. LIDSTER agreed it would be  eligible for a tax credit so long                                                               
as the  business fell under  the definition in AS  43.52.295 with                                                               
respect  to "commercial  passenger vessel."   She  explained that                                                               
the tax credit is limited to vessels with 250 berths or more.                                                                   
                                                                                                                                
3:25:47 PM                                                                                                                    
                                                                                                                                
MS.  LIDSTER, in  response  to  Representative Neuman,  explained                                                               
that no  limit has  been established  at this  time.   In further                                                               
response  to Representative  Neuman, Ms.  LIDSTER explained  that                                                               
the company could make a $10  million contribution so long as the                                                               
company's income tax did not fall below zero.                                                                                   
                                                                                                                                
3:27:44 PM                                                                                                                    
                                                                                                                                
JOHANNA  BALES,  Excise  Audit  Manager,  Anchorage  Office,  Tax                                                               
Division,  Department of  Revenue (DOR),  stated this  particular                                                               
tax  credit  is  limited  to   those  corporations  that  operate                                                               
commercial passenger vessels  of 250 berths or  more, which would                                                               
apply basically  to cruise  ships.  Under  the bill,  the company                                                               
could  reduce  its  tax  liability  to zero.    She  referred  to                                                               
Representative Neuman's earlier question  and answered that a tax                                                               
credit would apply so long as  the industry had a $10 million tax                                                               
liability, the  company could reduce  its liability to zero.   In                                                               
further response  to Representative Neuman, Ms.  Bales stated the                                                               
companies could  estimate the  tax credit  since payments  can be                                                               
made any time during the year.   Thus, the company could take the                                                               
credit  at the  end of  the year  when the  company would  have a                                                               
better idea of the amount of corporate income taxes owed.                                                                       
                                                                                                                                
3:32:02 PM                                                                                                                    
                                                                                                                                
MS.  BALES, in  response to  Representative Buch,  explained that                                                               
the fiscal note is for $30 thousand  to cover a one time cost for                                                               
startup expenses  to enhance the tax  examination system, produce                                                               
tax forms, and educate the  stakeholders.  She explained that the                                                               
revenues are  considered indeterminate  since the  department can                                                               
not  estimate  the  amount  of  the  income  tax.    She  further                                                               
explained  that currently  the department  only has  one year  of                                                               
data available  and taxpayers that  pay the corporate  income tax                                                               
are  also commercial  passenger vessels.   She  offered that  the                                                               
department  previously "lumped"  the  corporation taxes  together                                                               
with other  tourism industry corporation  taxes.  In  2007, prior                                                               
to commercial passenger vessels  paying corporate income tax, the                                                               
department received  $3.5 million from other  corporations in the                                                               
tourism  industry.     She   highlighted  the   amount  collected                                                               
increased to  $15.8 million.  She  pointed out that a  large part                                                               
of  the  tax  collected  was  due  to  large  passenger  vessels.                                                               
However,  taxpayers  were  not  allowed  to  disclose  the  exact                                                               
amount, she noted.  Thus,  the department indicated in its fiscal                                                               
note  that  had the  tax  credit  been  in  effect in  2008,  the                                                               
potential  could have  resulted in  a $15.8  million decrease  in                                                               
revenue.  In  further response to Representative  Buch, Ms. Bales                                                               
explained that the $30,000 is the  specific cost of the impact of                                                               
this bill.   She  explained that  the one time  cost is  to cover                                                               
contract costs for information technology assistance.                                                                           
                                                                                                                                
3:34:44 PM                                                                                                                    
                                                                                                                                
ROURK BROWN  explained that he  is a  small business owner  and a                                                               
volunteer  government  relations  chair  for  the  Alaska  Travel                                                               
Industry  Association  (ATIA).     He  stated  that  the  tourism                                                               
industry is an  important part of Alaska's economy.   He provided                                                               
statistics  such  as that  tourism  brings  $1.8 billion  in  new                                                               
dollars  to  Alaska's  economy and  provides  the  equivalent  of                                                               
40,000 fulltime  jobs, $70 million  in local taxes and  fees, and                                                               
$122  million in  state  taxes  and fees.    He  referred to  his                                                               
handout,   titled    "Tourism   Tax   Credit    Premiere   Travel                                                               
Destination",  and  to  page  4,  titled  "Tourism  Marketing  in                                                               
Alaska".    He  explained  that since  1999,  the  public  sector                                                               
funding for  tourism marketing has  declined from $24  million to                                                               
$5 million  in FY 08.   During  that time independent  travel has                                                               
also declined.   The  industry believed  that the  only effective                                                               
proven tool is destination marketing  and a minimum budget of $20                                                               
million is needed to effectively  market Alaska as a destination.                                                               
Last  year  the legislature  reinvested  the  $9 million  vehicle                                                               
rental tax it  collected.  The bill that  implemented the vehicle                                                               
rental tax also  allowed funds to be spent  on tourism marketing.                                                               
He further stated that the  private sector matched the $9 million                                                               
with  an additional  $2.7 million,  which was  the third  highest                                                               
public/private  match.    Only  Hawaii  and  California  exceeded                                                               
Alaska, he  mentioned.  He said,  "We are very grateful  for this                                                               
first  step  that   was  taken  last  year."     Last  year,  the                                                               
legislature placed a three-year sunset  on the vehicle rental tax                                                               
bill,  asking  the  industry  to  work  to  provide  a  long-term                                                               
sustainable  solution  to  use  visitor  industry  generated  tax                                                               
dollars to fund tourism marketing.   He related that the industry                                                               
has worked to find a solution which is embodied in HB 167.                                                                      
                                                                                                                                
3:37:30 PM                                                                                                                    
                                                                                                                                
MR. BROWN explained  that HB 167 would allow the  cruise lines to                                                               
make contributions directly to the  state's marketing program and                                                               
receive  a   tax  credit  against  their   corporate  income  tax                                                               
liability.   He related that  the cruise industry  pays corporate                                                               
income  tax as  a  result  of a  cruise  ballot  initiative.   He                                                               
referred  to  page 5  of  his  handout, titled  "Estimated  State                                                               
Tourism  Revenues"  and to  the  $12,300,000  collected from  the                                                               
Cruise Corporate Income Tax.   He clarified that this amount does                                                               
not include the head tax, gambling  tax, or ocean ranger tax also                                                               
collected.   He compared  the concept for  cruise tax  credits is                                                               
similar to  the concept  of oil  tax credits  such that  when the                                                               
industry drills  more wells,  it will  produce more  wells, which                                                               
will increase  state revenues.   He opined  that this  bill would                                                               
increase  state  revenues,  which  is  also  one  of  the  travel                                                               
industry's goals.                                                                                                               
                                                                                                                                
MR. BROWN asked  if travel marketing works.  He  then answered by                                                               
stating that  in FY  05, the marketing  program resulted  in over                                                               
500,000 responses for people interested  in coming to Alaska.  He                                                               
referred  to page  3 of  his handout,  titled "Research  Reveals:                                                               
Marketing =  Visitors," stating that the  travel industry tracked                                                               
the  results of  visitors who  traveled to  Alaska.   He provided                                                               
statistics on those who requested  information in 2005.  Of those                                                               
requesting information  in 2005, 14.7 percent  traveled to Alaska                                                               
in 2006,  13.7 percent  traveled to Alaska  in 2006,  7.7 percent                                                               
traveled to Alaska  in 2007, and 9 percent traveled  to Alaska in                                                               
2008.   He opined that 45.1  percent of the people  who indicated                                                               
they  were interested  in 2005  in traveling  to Alaska  actually                                                               
traveled to  Alaska.   He explained that  the average  group size                                                               
was 2.6  persons, and the  average spending per person  was $971,                                                               
not  counting  any transportation  costs  to  Alaska.   He  said,                                                               
"Tourism   marketing  is   the  only   proven  way   to  increase                                                               
visitation."                                                                                                                    
                                                                                                                                
3:39:32 PM                                                                                                                    
                                                                                                                                
MR. BROWN  referred to page 6  of his handout, titled  "Season is                                                               
in Jeopardy",  and stated the  outlook is  grim.  He  opined that                                                               
bookings are  down anywhere  from 20  to 60  percent.   He stated                                                               
that cruise  prices are at  historic lows, many  small businesses                                                               
may not survive, and local  governments will also have diminished                                                               
bed tax  revenue projections.   He  said that it  is too  late to                                                               
affect the  2009 travel season,  but the industry could  begin to                                                               
turn  the tide  in 2010  with  passage of  this bill.   He  urged                                                               
members to pass HB 167 this session.                                                                                            
                                                                                                                                
3:40:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BUCH  opined  he  would  have  a  difficult  time                                                               
justifying  the  bill  to  his  constituents.    He  related  his                                                               
understanding that  many industries  such as  commercial fishing,                                                               
timber, and mining do not  benefit from similar state funding for                                                               
their industries.                                                                                                               
                                                                                                                                
MR. BROWN related  that he appreciated the concern.   However, he                                                               
mentioned that the travel industry  generates $122 million to the                                                               
state in  taxes and  fees, and contributes  $70 million  to local                                                               
governments.  He  highlighted that his community of  Homer pays a                                                               
sales tax and  a large part of the tax  collected is derived from                                                               
nonresident tourists.  He said, "I  believe it's fair to say that                                                               
this industry does support the state and all residents thereof."                                                                
                                                                                                                                
3:43:40 PM                                                                                                                    
                                                                                                                                
JERRY SCHOLAND, Operator, Kiana Bed  and Breakfast, stated he and                                                               
his wife  operate the Kiana Bed  and Breakfast.  He  related that                                                               
he  is also  a  member  of ATIA.    He  highlighted that  tourism                                                               
provides about  $122 million in  state taxes.  He  indicated that                                                               
throughout the 1990s, more money  was spent to market Alaska than                                                               
in this  decade.  He  opined that HB 167  seems to be  a painless                                                               
way to  take about  10 percent  or less of  the $122  million and                                                               
return it  to the industry to  market Alaska.  He  further opined                                                               
that  tourism  is truly  a  renewable  resource.   Tourists  take                                                               
pictures out  of the state  and basically come, spend  money, and                                                               
leave.   He stressed that Alaska  is not losing any  resources by                                                               
funding tourism.  He emphasized that  it will be a tough year for                                                               
tourism.   He projected a  reduction in Alaska's  tourism ranging                                                               
from 30 to  60 percent, which he related he  has confirmed in his                                                               
own business.  He urged members to pass the bill.                                                                               
                                                                                                                                
3:45:58 PM                                                                                                                    
                                                                                                                                
BONNIE QUILL, Executive  Director, Matanuska-Susitna Convention &                                                               
Visitor's Bureau  (MSCVB), stated  that the MSCVB  represents 300                                                               
tourism  businesses  in  the Matanuska-Susitna  valley,  most  of                                                               
which  are small  businesses.   She asked  members to  support HB                                                               
167.   She announced that  she is  pleased that ATIA  has created                                                               
the   proposal  to   make   Alaska   tourism  marketing   efforts                                                               
competitive.  She  opined that it is urgent to  pass this bill to                                                               
provide  the cruise  lines that  are  paying taxes  in Alaska  an                                                               
opportunity  to invest  in the  tourism marketing  program.   She                                                               
urged members to pass HB 167.                                                                                                   
                                                                                                                                
3:47:16 PM                                                                                                                    
                                                                                                                                
SHANNON  HAMRICK,  Kenai   Peninsula  Tourism  Marketing  Council                                                               
(KPTMC),  stated  that   the  Kenai-Peninsula  Tourism  Marketing                                                               
Council  represents  over 400  tourism  businesses  on the  Kenai                                                               
Peninsula.   She  encouraged  members  to move  HB  167 from  the                                                               
committee.  She related that  tourism is economic development for                                                               
Alaska and the  Kenai Peninsula.  She stressed  that the industry                                                               
is  in crisis.    She emphasized  that ATIA  is  critical to  the                                                               
efforts of the  KPTMC for outreach to prospective  visitors.  She                                                               
opined  that  this  bill  is  an  excellent  step  to  provide  a                                                               
sustainable solution to marketing  using dollars that the visitor                                                               
industry  generates.   She  concluded  by  stating that  over  25                                                               
percent of all businesses licensed  in the Kenai area are tourism                                                               
based,  and  30  percent  of   overall  sales  tax  revenues  are                                                               
generated  by tourism  businesses.   She  said,  "This bill  will                                                               
support small  businesses.   Please help them  by passing  HB 167                                                               
this year."                                                                                                                     
                                                                                                                                
3:48:44 PM                                                                                                                    
                                                                                                                                
DEB HICHCOCK, President, and CEO,  Fairbanks Convention & Visitor                                                               
Bureau (FCVB), stated that she also  serves as a volunteer on the                                                               
ATIA Board.  She thanked members  who have supported HB 167.  She                                                               
stated  supporting funding  for marketing  for ATIA  also assists                                                               
business  owners  in  Fairbanks,   the  Interior  and  throughout                                                               
Alaska.  She related that  entrepreneurs are the hallmarks of the                                                               
visitor industry.   She  also related  local business  owners and                                                               
their  employees are  Alaskan  neighbors,  friends, and  members'                                                               
constituents.   She  offered her  belief that  tourism creates  a                                                               
ripple effect  through the communities,  generating construction,                                                               
transportation, and countless other  services.  She stressed that                                                               
tourism  contributes to  the quality  of life  in her  community.                                                               
She related  that the community  has better airline  schedules, a                                                               
beautiful  airport, and  many attractions.    She indicated  that                                                               
tourism also  provides about  half of the  operating cost  of the                                                               
University  of  Alaska  Fairbanks,  Museum of  the  North.    She                                                               
highlighted that facilities like  the Carlson Center benefit from                                                               
tourism dollars.   She  also offered  her belief  that additional                                                               
marketing funds could help Fairbanks  develop its winter tourism.                                                               
She opined that Fairbanks has  concentrated its efforts on winter                                                               
tourism, but  cannot reach that  goal solely by its  own efforts.                                                               
She referred  to a recent  itinerary that was coordinated  by the                                                               
ATIA  for tour  operators.   She noted  that tour  operators from                                                               
countries  such as  Australia, Germany,  Switzerland, and  the UK                                                               
visited  multiple points  throughout  the state.   She  explained                                                               
that in  Fairbanks, the  operators were  exposed to  many locally                                                               
owned  businesses.    She  listed  a  long  list  of  businesses,                                                               
including  Brewster's   Restaurant,  the   Pumphouse  Restaurant,                                                               
Aurora  Borealis Lodge,  and the  Farthest North  Harley Davidson                                                               
Outpost.   She  mentioned  the tour  operators  also visited  the                                                               
Arctic Circle and Chena Hot Springs.   She emphasized that HB 167                                                               
creates a  sustainable funding mechanism for  ATIA marketing that                                                               
could benefit  businesses in the  summer and winter.   She opined                                                               
that this  marketing reaches the  depth and breadth  of potential                                                               
customers that is far beyond  the reach of most small businesses.                                                               
She urged members to support HB 167.                                                                                            
                                                                                                                                
3:52:29 PM                                                                                                                    
                                                                                                                                
SUZANNE RUST explained that her  family owns Rusts Flying Service                                                               
in Alaska and  K2 Aviation in Talkeetna.  She  explained that she                                                               
also volunteers on the ATIA board.   She asked members to support                                                               
HB  167.   She stated  that  her family's  business has  employed                                                               
about  75 people  in Anchorage  and Talkeetna.   She  also stated                                                               
that   her  family   anticipates   reducing   its  workforce   by                                                               
approximately 20 to  30 percent this year.   She highlighted that                                                               
the  reduction   in  work  force   affects  grocery   stores  and                                                               
restaurants,  creating  a  strong  ripple  effect  in  the  local                                                               
economies.  She stressed that the  situation is real.  She opined                                                               
that tourism is the economic engine  in Alaska.  She related that                                                               
some  of the  major tour  companies  have cut  their programs  in                                                               
half.  She noted that there is  a limited pool of visitors in the                                                               
U.S.  probably   consisting  of   more  domestic   visitors  than                                                               
international  visitors.   She opined  that Alaska  will need  to                                                               
compete for  its visitors  from the overall  pool.   She stressed                                                               
the importance of  marketing dollars to Alaska.   She stated that                                                               
tourism  is a  renewable  resource that  affects  everyone.   She                                                               
asked member to support for HB 167.                                                                                             
                                                                                                                                
3:55:19 PM                                                                                                                    
                                                                                                                                
JULIE SAUPE, President, Anchorage  Convention and Visitor Bureau,                                                               
offered her appreciation as well as  that of the 1,100 members of                                                               
the ACVB for members' anticipated support  of HB 167.  She stated                                                               
by supporting the  marketing funding for the ATIA  that the state                                                               
will  assist small  and large  businesses  throughout the  state.                                                               
She related  that a healthy  tourism industry is a  key component                                                               
of Anchorage's growth.  She  pointed out that tourism contributes                                                               
significantly to  the state's general fund  and local government.                                                               
She  further  related  that  the   tourism  industry  makes  many                                                               
contributions  that help  create  a robust  and lively  community                                                               
that  residents enjoy  year round.   She  said, "Your  support of                                                               
this legislation  will expand this  win-win cycle  to everybody's                                                               
benefit."  She  indicated she has observed first  hand the number                                                               
of  families that  tourism supports.   She  emphasized that  ACVB                                                               
relies on  statewide marketing.   She  opined that  by partnering                                                               
with ATIA, ACVB  can focus its energy on  booking conventions and                                                               
groups.  She related that  booking meetings and conventions keeps                                                               
the economy  vibrant during  winter months.   She  mentioned that                                                               
ATIA is a  model of private/public partnership.   She highlighted                                                               
that she serves on the Board of  Directors of the ATIA and on its                                                               
marketing committee,  so she  can attest to  the debates  and the                                                               
efforts   that  are   put  forth   to  ensure   the  program   is                                                               
representative  of the  entire state.   She  commended the  ATIA.                                                               
She further  opined that it  is time  to take this  model program                                                               
and provide  a stable  funding mechanism.   She asked  members to                                                               
support HB 167.                                                                                                                 
                                                                                                                                
3:58:05 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify,  closed public  testimony on  HB  167.   He removed  his                                                               
objection.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  BUCH  expressed  reticence to  second  guess  the                                                               
voters who passed the cruise ship  initiative.  He inquired as to                                                               
whether the sponsor has considered a sunset clause.                                                                             
                                                                                                                                
3:59:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  said he was  open to that  suggestion but                                                               
had not previously  considered it.  He related that  a minimum of                                                               
three seasons is needed for  planning purposes.  He recalled that                                                               
several  tax  credits  are  targeted  for  profit  and  nonprofit                                                               
industries,  as  well  as   for  public/private  partnerships  in                                                               
tourism.   He related  that due  to the  downturn in  the economy                                                               
that this bill  could help boost Alaska's economy.   He projected                                                               
that the  corporate tax  will also  diminish and  the legislature                                                               
would likely need to revisit the matter very soon.                                                                              
                                                                                                                                
4:00:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BUCH  suggested that the sunset  clause would need                                                               
to  be a  minimum of  five  years.   He  made a  motion to  adopt                                                               
Conceptual  Amendment 1,  to add  a sunset  date ending  June 30,                                                               
2014.                                                                                                                           
                                                                                                                                
CHAIR  OLSON asked  if  there was  any  opposition to  Conceptual                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
REPRESENTATIVE   NEUMAN  suggested   the   sponsor  consider   an                                                               
amendment to Conceptual  Amendment 1, and change  the sunset date                                                               
from June 30, 2014 to January 1,  2015, to extend the date so the                                                               
legislature could review the matter.                                                                                            
                                                                                                                                
REPRESENTATIVE BUCH offered an  amendment to Conceptual Amendment                                                               
1, to extend the sunset date to January 1, 2015.                                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL   stated  that   he  did  not   have  any                                                               
objections  to the  amendment.   There  being  no objection,  the                                                               
amendment to Conceptual Amendment 1 was adopted.                                                                                
                                                                                                                                
There  being   no  objection  to  the   Conceptual  Amendment  1,                                                               
Conceptual Amendment 1, as amended, was adopted.                                                                                
                                                                                                                                
4:01:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN   offered  his  belief  that   tourism  is                                                               
important to  Alaska.   He opined  that the  state can  cover its                                                               
mandated  costs  such as  for  public  safety and  education  for                                                               
several  years.   He recalled  prior committee  work to  consider                                                               
directing  marketing funds  to the  ATIA or  other organizations.                                                               
He  acknowledged  that  the marketing  amounts  fluctuate,  which                                                               
makes it  difficult for the  tourism organizations since  they do                                                               
not have  any certainty of funding  from year to year.   However,                                                               
he expressed concern  with this bill since state  funding is also                                                               
uncertain.   However, he noted that  he did not wish  to stop the                                                               
bill.   He opined  the tourism  industry will  be "hit  hard this                                                               
year."   He  also  offered  his belief  that  it's important  for                                                               
Alaskans to have jobs, too.                                                                                                     
                                                                                                                                
4:04:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  moved to  report  HB  [167], labeled  26-                                                               
LS0695\E,  Bullock, 4/1/09,  as  amended, out  of committee  with                                                               
individual  recommendations  and  the accompanying  fiscal  note.                                                               
There being  no objection,  the CSHB  167(L&C) was  reported from                                                               
the House Labor and Commerce Standing Committee.                                                                                
                                                                                                                                
CHAIR OLSON  announced that HB  167, Version E, as  amended, will                                                               
move  on to  the next  committee of  referral, the  House Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
4:04:58 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:04 p.m. to 4:07 p.m.                                                                       
                                                                                                                                

Document Name Date/Time Subjects
01 HB167 ver R.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
01 HB177 ver E.pdf HL&C 4/6/2009 3:15:00 PM
HB 177
02 CSHB167 ver E Sponsor Statement.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
03 CSHB167 ver E Sectional Analysis.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
04 HB167 Draft CS ver E.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
05 HB167 Fiscal Note DOR-TAX-04-03-09.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
06 HB167 PPT Presentation by ATIA.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
02 HB177 Sponsor Statement.pdf HL&C 4/6/2009 3:15:00 PM
HB 177
03 HB177 Sectional Analysis.pdf HL&C 4/6/2009 3:15:00 PM
HB 177
04 HB177 Draft CS ver P.pdf HL&C 4/6/2009 3:15:00 PM
HB 177
04 HB185 Fiscal Note DOT-AD-CA-3-26-09.pdf HL&C 4/6/2009 3:15:00 PM
HB 185
17 HB185 Multiple Letters of suppor-opposition.pdf HL&C 4/6/2009 3:15:00 PM
HB 185
18 HB185 Multiple Letters of suppor-opposition_2.pdf HL&C 4/6/2009 3:15:00 PM
HB 185
April 6 Packet Information.pdf HL&C 4/6/2009 3:15:00 PM
HB 167
HB 177