Legislature(1993 - 1994)

04/26/1994 05:55 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  CSSB 341(RES): An  Act   relating  to  the   Alaska  Tourism                 
                 Marketing  Council;  and  providing   for  an                 
                 effective date.                                               
                                                                               
                 Discussion was had by Co-chair Frank, Pearce,                 
                 Senators Sharp and Kelly  regarding "pro rata                 
                 share."  Even  though he  had not planned  to                 
                 speak to SB  341, Tom Dow, Vice  President of                 
                 Hotels,  Princess  Tours,  shared information                 
                 with  the  committee  regarding the  vacation                 
                 planner.    Clark Gruening,  lobbyist, Alaska                 
                 Visitor Association, also spoke  to the bill.                 
                 Amendment 1  was ADOPTED.  CSSB  341(FIN) was                 
                 REPORTED  out  of  committee with  individual                 
                 recommendations and  a zero  fiscal note  for                 
                 the   Department   of  Commerce   &  Economic                 
                 Development.                                                  
                                                                               
  CS FOR SENATE BILL NO. 341(RES):                                             
                                                                               
       An  Act  relating  to   the  Alaska  Tourism  Marketing                 
                                                                               
                                                                               
       Council; and providing for an effective date.                           
                                                                               
  Co-chair Pearce announced that CSSB  241(RES) was before the                 
  committee.     She  said   the  Resources   CS  raised   the                 
  contribution by Alaska Tourism Marketing Council (ATMC) from                 
  15 to 25 percent, and the sunset date extended to 1996.                      
                                                                               
  In answer to Co-chair Frank, Co-chair Pearce said that under                 
  the powers of ATMC, they could  provide space to a qualified                 
  trade association in publications  and promotional materials                 
  developed by the  Council.  She  read from the statutes  and                 
  explained that for the Travel Planner  that was out now, the                 
  production  costs  were around  $400,000  and the  "pro rata                 
  share" paid  by the  trade association  was  $200,000 or  50                 
  percent.  She understood that  their contracted share was 50                 
  percent but under the  statute it referred to  it as a  "pro                 
  rata share".                                                                 
                                                                               
  TOM DOW, Vice President of Hotels, Princess Tours, said that                 
  he was  not expecting to  testify on SB  341 but he  offered                 
  information.    He  said  the   Vacation  Planner  contained                 
  advertising which  was sold to raise money  for the industry                 
  match,  and  the sale  of  labels  were the  two  major fund                 
  raising mechanisms.   Those  pages dedicated  to advertising                 
  were  considered  the   "pro  rata   share"  of  the   trade                 
  association to carry the  cost of the contribution.   If the                 
  book  cost $400,000, and  half of the  book was advertising,                 
  then that was how the 50 percent cost was reached.  Co-chair                 
  Pearce said that Bob Jacobson  had just called those figures                 
  into the committee.                                                          
                                                                               
  After discussion  was had by Co-chairs Pearce and Frank, and                 
  Mr. Dow regarding budget figures and the pro rata share, Mr.                 
  Dow indicated  that the  AA Board  was in  town tonight  and                 
  would be willing to answer questions for the committee.  Co-                 
  chair  Frank asked what  the pro rata  share would be  at 25                 
  percent.    Co-chair Pearce  compared  pro rata  shares with                 
  House and Senate numbers.                                                    
                                                                               
  CLARK  GRUENING,  lobbyist for  Alaska  Visitors Association                 
  (AVA),  said that  15 percent  was presently in  statute and                 
  that was calculated on the total  amount of the budget which                 
  included the industry contribution.  One of the problems AVA                 
  would face with a reduced state contribution was the ability                 
  to sell ads at  the present rate which raised $1.3M  for the                 
  current year.   If the  state share  would go  down (and  it                 
  would with either the House or  Senate numbers) the price of                 
  the  ads  would have  to  be  raised and  coverage  would be                 
  reduced.                                                                     
                                                                               
  Co-chair  Frank said  that if  the budget  was reduced,  the                 
  amount of ads  would not have  to be raised.   Mr.  Gruening                 
  disagreed  and said there would be  slippage.  Senator Sharp                 
  said that was under  the assumption that they would  want to                 
                                                                               
                                                                               
  reduce the program.                                                          
                                                                               
  Co-chair Pearce read from the statute AS  44.33.715(a).  Co-                 
  chair Frank  MOVED amendment 1 which deleted  the word "not"                 
  to subsection (13).   No objection being heard, amendment  2                 
  was ADOPTED.                                                                 
                                                                               
  End SFC-93 #81, Side 1                                                       
  Begin SFC-93 #81, Side 2                                                     
                                                                               
  Discussion  was  held  by Co-chairs  Frank  and  Pearce, and                 
  Senator  Kelly regarding ad  sales and label  sales for ATMC                 
  matching money.                                                              
                                                                               
  Co-chair  Frank  MOVED  for passage  of  CSSB  341(FIN) from                 
  committee  with  individual recommendations.    No objection                 
  being heard,  CSSB 341(FIN)  was REPORTED  OUT of  committee                 
  with "individual  recommendations," and a  zero fiscal  note                 
  for the Department  of Commerce & Economic Development.  Co-                 
  chairs Pearce and  Frank signed "do pass."   Senators Kelly,                 
  Rieger and Sharp signed "no recommendation."                                 
                                                                               
  CSSB 341(RES): An  Act   relating  to  the   Alaska  Tourism                 
                 Marketing  Council;  and  providing   for  an                 
                 effective date.                                               
                                                                               
                 Discussion was had by Co-chair Frank, Pearce,                 
                 Senators Sharp and Kelly  regarding "pro rata                 
                 share."  Even  though he  had not planned  to                 
                 speak to SB  341, Tom Dow, Vice  President of                 
                 Hotels,  Princess  Tours,  shared information                 
                 with  the  committee  regarding the  vacation                 
                 planner.    Clark Gruening,  lobbyist, Alaska                 
                 Visitor Association, also spoke  to the bill.                 
                 Amendment 1  was ADOPTED.  CSSB  341(FIN) was                 
                 REPORTED  out  of  committee with  individual                 
                 recommendations and  a zero  fiscal note  for                 
                 the   Department   of  Commerce   &  Economic                 
                 Development.                                                  
                                                                               
  CS FOR SENATE BILL NO. 341(RES):                                             
                                                                               
       An  Act  relating  to   the  Alaska  Tourism  Marketing                 
                                                                               
                                                                               
       Council; and providing for an effective date.                           
                                                                               
  Co-chair Pearce announced that CSSB  241(RES) was before the                 
  committee.     She  said   the  Resources   CS  raised   the                 
  contribution by Alaska Tourism Marketing Council (ATMC) from                 
  15 to 25 percent, and the sunset date extended to 1996.                      
                                                                               
  In answer to Co-chair Frank, Co-chair Pearce said that under                 
  the powers of ATMC, they could  provide space to a qualified                 
  trade association in publications  and promotional materials                 
  developed by the  Council.  She  read from the statutes  and                 
  explained that for the Travel Planner  that was out now, the                 
  production  costs  were around  $400,000  and the  "pro rata                 
  share" paid  by the  trade association  was  $200,000 or  50                 
  percent.  She understood that  their contracted share was 50                 
  percent but under the  statute it referred to  it as a  "pro                 
  rata share".                                                                 
                                                                               
  TOM DOW, Vice President of Hotels, Princess Tours, said that                 
  he was  not expecting to  testify on SB  341 but he  offered                 
  information.    He  said  the   Vacation  Planner  contained                 
  advertising which  was sold to raise money  for the industry                 
  match,  and  the sale  of  labels  were the  two  major fund                 
  raising mechanisms.   Those  pages dedicated  to advertising                 
  were  considered  the   "pro  rata   share"  of  the   trade                 
  association to carry the  cost of the contribution.   If the                 
  book  cost $400,000, and  half of the  book was advertising,                 
  then that was how the 50 percent cost was reached.  Co-chair                 
  Pearce said that Bob Jacobson  had just called those figures                 
  into the committee.                                                          
                                                                               
  After discussion  was had by Co-chairs Pearce and Frank, and                 
  Mr. Dow regarding budget figures and the pro rata share, Mr.                 
  Dow indicated  that the  AA Board  was in  town tonight  and                 
  would be willing to answer questions for the committee.  Co-                 
  chair  Frank asked what  the pro rata  share would be  at 25                 
  percent.    Co-chair Pearce  compared  pro rata  shares with                 
  House and Senate numbers.                                                    
                                                                               
  CLARK  GRUENING,  lobbyist for  Alaska  Visitors Association                 
  (AVA),  said that  15 percent  was presently in  statute and                 
  that was calculated on the total  amount of the budget which                 
  included the industry contribution.  One of the problems AVA                 
  would face with a reduced state contribution was the ability                 
  to sell ads at  the present rate which raised $1.3M  for the                 
  current year.   If the  state share  would go  down (and  it                 
  would with either the House or  Senate numbers) the price of                 
  the  ads  would have  to  be  raised and  coverage  would be                 
  reduced.                                                                     
                                                                               
  Co-chair  Frank said  that if  the budget  was reduced,  the                 
  amount of ads  would not have  to be raised.   Mr.  Gruening                 
  disagreed  and said there would be  slippage.  Senator Sharp                 
  said that was under  the assumption that they would  want to                 
                                                                               
                                                                               
  reduce the program.                                                          
                                                                               
  Co-chair Pearce read from the statute AS  44.33.715(a).  Co-                 
  chair Frank  MOVED amendment 1 which deleted  the word "not"                 
  to subsection (13).   No objection being heard, amendment  2                 
  was ADOPTED.                                                                 
                                                                               
  End SFC-93 #81, Side 1                                                       
  Begin SFC-93 #81, Side 2                                                     
                                                                               
  Discussion  was  held  by Co-chairs  Frank  and  Pearce, and                 
  Senator  Kelly regarding ad  sales and label  sales for ATMC                 
  matching money.                                                              
                                                                               
  Co-chair  Frank  MOVED  for passage  of  CSSB  341(FIN) from                 
  committee  with  individual recommendations.    No objection                 
  being heard,  CSSB 341(FIN)  was REPORTED  OUT of  committee                 
  with "individual  recommendations," and a  zero fiscal  note                 
  for the Department  of Commerce & Economic Development.  Co-                 
  chairs Pearce and  Frank signed "do pass."   Senators Kelly,                 
  Rieger and Sharp signed "no recommendation."                                 
                                                                               

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