Legislature(1995 - 1996)
03/06/1995 03:08 PM House L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 6, 1995
3:08 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Jerry Sanders
Representative Beverly Masek
Representative Kim Elton
Representative Gene Kubina
MEMBERS ABSENT
Representative Brian Porter
COMMITTEE CALENDAR
HB 17: "An Act relating to the titles that describe the two
principal executive officers of electric and telephone
cooperatives."
HEARD AND HELD
HB 146: "An Act relating to sled dog race classics."
PASSED OUT OF COMMITTEE
*HB 220: "An Act relating to the duties of the commissioner
of commerce and economic development concerning
the Alaska Tourism Marketing Council; relating to
the per diem travel expenses of the council's
board of directors; relating to the powers and
duties of the council; extending the termination
date of the council; and providing for an
effective date."
PASSED OUT OF COMMITTEE
(* First Public Hearing)
WITNESS REGISTER
REPRESENTATIVE GAIL PHILLIPS
Alaska State Legislature
Capitol Building, Room 208
Juneau, AK 99802-1182
Telephone: (907) 465-2689
POSITION STATEMENT: Testified in favor of HB 146
SENATOR LYDA GREEN
Alaska State Legislature
Capitol Building, Room 423
Juneau, AK 99801-1182
Telephone: (907) 465-6600
POSITION STATEMENT: Testified in favor of HB 146
DAVE LAMBERT, President
Alaska Dog Musher's Association
P.O. Box 1243
Fairbanks, AK 99707
Telephone: (907) 457-6874
POSITION STATEMENT: Testified on HB 146
BRYCE EDGMON, Legislative Assistant
to Representative Richard Foster
Alaska State Legislature
Capitol Building, Room 410
Juneau, AK 99801-1182
Telephone: (907) 465-3789
POSITION STATEMENT: Provided sponsor statement for HB 146.
DENNIS BOSHARD
Division of Charitable Gaming
Department of Revenue
P.O. Box 110440
Juneau, AK 99801-0440
Telephone: (907) 465-2229
POSITION STATEMENT: Provided information on HB 146
ROD MOURANT, Administrative Assistant
to Representative Pete Kott
Alaska State Legislature
State Capitol, Room 432
Juneau, AK 99801-1182
POSITION STATEMENT: Explained HB 220
JEFF BUSH, Deputy Commissioner
Department of Commerce and Economic Development
P.O. Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Testified in support of HB 220
BOB DINDINGER, Vice Chairman
Alaska Tourism Marketing Council
9085 Glacier Highway
Juneau, AK 99801
Telephone: (907) 789-0052
POSITION STATEMENT: Testified in support of HB 220
JOHN LITTEN
Alaska Visitors Association
P.O. Box 1001
Sitka, AK 99835
POSITION STATEMENT: Testified in support of HB 220
JOHNE BINKLEY, President
Alaska Visitors Association
1975 Discovery Drive
Fairbanks, AK 99709
Telephone: (907) 479-0035
POSITION STATEMENT: Testified in support of HB 220
ALAN LEMASTER
P.O. Box 222
Gakona, AK 99586
Telephone: (907) 822-3664
POSITION STATEMENT: Testified in support of HB 220
FREDERICK DURE, Member
Alaska Visitors Association
Alaska Wilderness Recreation
and Tourism Association
526 West 19th
Anchorage, AK 99503
Telephone: (907) 274-3038
POSITION STATEMENT
TINA LINDGREN, Executive Director
Alaska Visitors Association
3201 C Street, Number 403
Anchorage, AK 99503
Telephone: (907) 561-5733
POSITION STATEMENT: Testified in support of HB 220
NANCY LETHCOE, President
Alaska Wilderness Recreation and
Tourism Association
P.O. Box 1353
Valdez, AK 99686
Telephone: (907) 835-4300
POSITION STATEMENT: Testified in support of HB 220
PREVIOUS ACTION
BILL: HB 17
SHORT TITLE: OFFICERS OF UTILITY COOPERATIVES
SPONSOR(S): REPRESENTATIVE(S) GREEN
JRN-DATE JRN-PG ACTION
01/06/95 25 (H) PREFILE RELEASED
01/16/95 25 (H) READ THE FIRST TIME - REFERRAL(S)
01/16/95 25 (H) STATE AFFAIRS, LABOR & COMMERCE
02/07/95 (H) STA AT 08:00 AM CAPITOL 102
02/07/95 (H) MINUTE(STA)
02/10/95 293 (H) STA RPT CS(STA) NEW TITLE 6DP 1NR
02/10/95 294 (H) DP: JAMES, PORTER, GREEN, ROBINSON
02/10/95 294 (H) DP: WILLIS, OGAN
02/10/95 294 (H) NR: IVAN
02/10/95 294 (H) ZERO FISCAL NOTE (DCED)
03/01/95 (H) L&C AT 03:00 PM CAPITOL 17
03/01/95 (H) MINUTE(L&C)
BILL: HB 146
SHORT TITLE: SLED DOG RACE CLASSIC
SPONSOR(S): REPRESENTATIVE(S) FOSTER, Phillips, Mulder,
Navarre, Brice, Grussendorf, Toohey, Ivan
JRN-DATE JRN-PG ACTION
02/03/95 235 (H) READ THE FIRST TIME - REFERRAL(S)
02/03/95 235 (H) CRA, L&C
02/13/95 343 (H) COSPONSOR(S): IVAN
02/14/95 (H) CRA AT 01:00 PM CAPITOL 124
02/14/95 (H) MINUTE(CRA)
02/15/95 365 (H) CRA RPT 4DP 1NR
02/15/95 366 (H) DP: MACKIE, ELTON, IVAN, NICHOLIA
02/15/95 366 (H) NR: AUSTERMAN
02/15/95 366 (H) ZERO FISCAL NOTE (REV)
02/27/95 (H) L&C AT 03:00 PM CAPITOL 17
02/27/95 (H) MINUTE(L&C)
03/01/95 (H) L&C AT 03:00 PM CAPITOL 17
03/01/95 (H) MINUTE(L&C)
03/03/95 (H) L&C AT 03:00 PM CAPITOL 17
03/06/95 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 220
SHORT TITLE: ALASKA TOURISM MARKETING COUNCIL
JRN-DATE JRN-PG ACTION
03/01/95 531 (H) READ THE FIRST TIME - REFERRAL(S)
03/01/95 531 (H) LABOR & COMMERCE, FINANCE
03/06/95 (H) L&C AT 03:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 95-14, SIDE A
Number 000
The House Labor and Commerce Standing Committee was called to order
by Chairman Pete Kott at 3:08 p.m. Members present at the call to
order were Representatives Kott, Rokeberg, Sanders, Masek, Elton
and Kubina. Representative Porter was absent.
HB 17 - OFFICERS OF UTILITY COOPERATIVES
CHAIRMAN PETE KOTT requested that the committee rescind their
previous action on HB 17 as amended. He explained that when the
committee substitute was forwarded to the drafting attorney, she
brought up several concerns that needed to be addressed.
REPRESENTATIVE NORMAN ROKEBERG made a motion to rescind action on
HB 17.
REPRESENTATIVE KIM ELTON asked when the bill would be rescheduled.
CHAIRMAN KOTT stated it would be scheduled on March 13, and heard
on March 15. Chairman Kott asked for objections on the motion.
Hearing none, the motion passed.
HB 146 - SLED DOG RACE CLASSIC
Number 076
REPRESENTATIVE GAIL PHILLIPS expressed how important the Iditarod
was to her. She served on the Board of Directors and has served as
race coordinator for three years. She stated that people all
across the country and around the world are interested in the
Iditarod. In recent years, however, the race has been the subject
of much unwarranted controversy generated by extensive
misinformation campaigns initiated by animal rights extremists.
She stated that these extremists intentionally distort the
Iditarod's noble history and tradition in an effort to generate
contributions from outsiders unfamiliar with the sport. She
continued that the barrage of negative and misinformed publicity
has led to the withdrawal of several large national sponsorships.
She stated that this year sponsor withdrawals total $390,000, and
an additional $175,000 will be lost next year. She pointed out
that without these revenues, the ability of the Iditarod Trail
Committee (ITC) to stage the race is threatened. She concluded by
stating that the Iditarod Sweepstakes Sled Classic is a game of
chance, similar to the Kenai River Snow Goose Classic, the Nenana
River Ice Classic, salmon classics and many other classics
currently authorized by statute. Authorizing this fund raising
activity would assist the committee in it's efforts to replace lost
sponsorship revenues.
REPRESENTATIVE BRIAN PORTER joined the meeting at 3:15.
Number 182
SENATOR LYDA GREEN stated that she had sponsored similar
legislation in the Senate. She concurred with Representative
Phillips and stated that the ITC should be making sure arrangements
have been made and that all of the check points are in place,
rather than having to spend so much time on fund raising and
outside efforts. She stated since 1977, the state has contributed
to the Iditarod in excess of $1 million. This is a trend the ITC
would like to reverse. Through this method the ITC could become
self supporting.
Number 212
DAVE LAMBERT, PRESIDENT, ALASKA DOG MUSHER'S ASSOCIATION (ADMA),
testified via teleconference. He asked what the purpose of HB 146
was. He stated that the ITC can now, and always has been able to,
hold a sled dog classic. He continued that the ADMA is currently
holding a classic on the Open North American Sled Dog Race. He
stated that this legislation will not give the ITC the right to do
anything they can't do now. What it will do, he stated, is ban any
other organization from having sled dog race classics. He inquired
again as to the purpose of this bill.
Number 214
CHAIRMAN KOTT explained that a person would bet on winning times
into checkpoints and the finishing time into Nome.
BRYCE EDGMON, LEGISLATIVE ASSISTANT TO REPRESENTATIVE RICHARD
FOSTER, stated that he did have a legal opinion from Jerry
Luckhaupt, Legislative Council, that states "the committee
substitute that is before you would not prevent other sled dog
races from doing anything they're currently permitted to do." Mr.
Edgmon emphasized that this bill has no restrictive qualities.
Number 262
MR. LAMBERT reiterated his query of what the purpose of the
legislation was. He stated that the way he reads the legislation,
it does say "limited to the Iditarod Sweepstakes".
MR. EDGMON stated that this legislation creates sled dog classics
and gives the ITC the ability to conduct statewide sweepstakes
under the banner of "Sled Dog Classic." He continued that under
Title 5, there is statutory authority for dog races to conduct
gaming activities to bet on the finishing times of mushers or the
individual mushers themselves. He explained that this bill allows
for the clarification of wagering on arrival times into check
points as well as the finish line into Nome.
Number 282
MR. LAMBERT disagreed. He stated that the Nenana Ice Classic still
needs to get approval from local municipalities just like any other
group.
Number 292
REPRESENTATIVE BEVERLY MASEK, in reference to the memorandum to
Senator Green from Jerry Luckhaupt, asked what the different types
of charitable games were.
MR. EDGMON stated that the intent of Representative Foster was to
give the ITC the gaming authority to conduct statewide sweepstakes.
Once this legislation has passed, the ITC will have the authority
to devise the particulars in gaming activities, working in
conjunction with the Division of Charitable Gaming.
Number 315
CHAIRMAN KOTT stated that it was his opinion that this bill would
not diminish any of the opportunities that currently exist under AS
5.15.690.
MR. EDGMON stated that was correct and that this point has been
reinforced by the Department of Law and Legislative Legal Services.
Number 329
REPRESENTATIVE ROKEBERG inquired into the differences.
MR. EDGMON answered that this legislation gives the ITC the
authority to bet on arrival times and to use sled dog race classics
in conducting these activities.
Number 340
CHAIRMAN KOTT stated that, under present law, you cannot wager
based on finishing times or checkpoint times.
MR. EDGMON observed that these statutes are generally worded. He
said that it is clearly stated that the objective is to create sled
dog classics for the ITC to administer.
CHAIRMAN KOTT inquired whether, if this legislation were to pass,
and was applied to the Iditarod Classic, they then would be
excluded as a dog musher contest.
MR. EDGMON stated that they wouldn't be excluded.
Number 360
DENNIS BOSHARD, DIVISION OF CHARITABLE GAMING, DEPARTMENT OF
REVENUE, stated that this legislation would not prohibit other
organizations from getting the proper permits and conducting a dog
mushers contest of the same nature. He pointed out that there is
no discussion of arrival times into checkpoints in the current
statute.
Number 381
REPRESENTATIVE MASEK asked who would be overseeing these
activities.
MR. BOSHARD responded that all charitable gaming is overseen by the
Division of Charitable Gaming.
Number 397
REPRESENTATIVE ROKEBERG stated that he still hadn't heard an answer
to his question.
CHAIRMAN KOTT stated, for the record, that they did not have the
CSHB 146 before the committee; they had HB 146 before the
committee.
Number 403
SENATOR GREEN stated that, up until now, there was a connection
with a particular musher or dog team. She stated that the bill
would only cover elapsed time.
REPRESENTATIVE ROKEBERG asked why it had individual checkpoints in
the statute.
REPRESENTATIVE PORTER answered that there would be more
opportunities for betting.
CHAIRMAN KOTT pointed out that in the existing language, it ties in
with individual teams. He stated that in HB 146 they were not
"musher specific."
REPRESENTATIVE JERRY SANDERS stated that Section 4, would make the
actions of this bill exclusive to the ITC. He asked if they would
consider an amendment to delete Section 4.
REPRESENTATIVE PORTER commented that if Section 4 is eliminated, it
would eliminate the bill.
REPRESENTATIVE PORTER made a motion to adopt the CSHB 146 version
G, dated 2-21-95.
REPRESENTATIVE GENE KUBINA stated that he didn't see a difference
in the two.
Number 489
MR. EDGMON stated that the difference was in the title. The intent
of the title change is to make the bill specific to the Iditarod.
CHAIRMAN KOTT noted that the motion before them was for work draft
G, which would be the CS.
REPRESENTATIVE ELTON stated that he had an amendment that would
broaden this legislation.
CHAIRMAN KOTT interjected that they should adopt the draft for
discussion. He asked for objections. Hearing none, the motion was
adopted.
REPRESENTATIVE ELTON explained the following: On page 2, lines 12
and 13, strike everything after "checkpoints along the race" and
insert "provided the game of chance is administered by the
non-profit organization that conducts the sled dog race." He noted
that this amendment would also require a title change.
Number 534
REPRESENTATIVE PORTER objected. He stated that he didn't disagree
with the amendment, but he feels that the legislature would lose
the ability to say that we're trying to do something for the
Iditarod.
REPRESENTATIVE KUBINA felt that the amendment might limit other
organizations from holding classics on other races.
Number 560
REPRESENTATIVE ELTON stated that this broadens the definition of a
sled dog classic to include other races. It wouldn't restrict
practices that are already occurring. He commented that some of
the other races have now been targeted by the Humane Society of the
United States (HSUS) creating financial difficulties for them as
well. He pointed out that they can't forget about the qualifying
races for the Iditarod.
Number 585
CHAIRMAN KOTT concurred with Representative Porter that they were
trying to bail out one aspect of Alaska's dog racing.
REPRESENTATIVE MASEK observed that they should not forget about
sprint, mid and long distance racing in the state. She stated that
she was not against helping out the Iditarod but felt they should
look at the mushing community as a whole.
MR. EDGMON noted that the smaller races conduct gaming activities.
This bill doesn't shut the door on these races. Instead, it opens
the door for the Iditarod to conduct statewide sweepstakes under
the banner of sled dog race classic.
CHAIRMAN KOTT asked Mr. Edgmon to comment on the amendment.
MR. EDGMON answered right now, other organizations could conduct
sweepstakes on the Iditarod. This would narrow it down to just the
ITC having the ability to do that.
CHAIRMAN KOTT asked if the objection was still maintained.
REPRESENTATIVE PORTER answered that it was.
CHAIRMAN KOTT asked for a roll call vote. Voting for the amendment
were Representatives Sanders, Masek and Elton. Voting against the
amendment were Representatives Kubina, Porter and Kott.
CHAIRMAN KOTT stated Amendment 1 failed to be adopted.
Number 630
REPRESENTATIVE PORTER made a motion to move CSHB 146(L&C) with
individual recommendations and accompanying fiscal notes out of
committee.
CHAIRMAN KOTT asked if there were objections. Hearing none, the
motion passed.
TAPE 95-14, SIDE B
HB 220 - ALASKA TOURISM MARKETING COUNCIL
Number 000
CHAIRMAN KOTT stated that the next bill up was HB 220.
ROD MOURANT, ADMINISTRATIVE ASSISTANT TO REPRESENTATIVE PETE KOTT,
prime sponsor of HB 220, stated that HB 220 extends the sunset date
of the Alaska Tourism Marketing Council (ATMC) from the current
date of 1996, to 1999. He stated, that with the decline in oil
production and oil pricing, alternate sources of state revenue and
private sector diversity and expansion become more important each
year. This legislation calls on the Commissioner of the Department
of Commerce and Economic Development to contract with qualified in-
state trade associations to promote tourism, and Alaska as a
visitor destination point, through a cooperative marketing effort.
Mr. Mourant continued that it states if a qualified in-state trade
association exists and is interested. It also enables an industry
directed approach rather than one that's bureaucratic directed or
bureaucratic run. He stated that the legislation also changes the
travel and per diem statutes relating to the ATMC. He explained
that at the current time, most in-state travel is borne by the
individual board members. This would allow the board members, when
travelling out of state, to be reimbursed for their expenses.
MR. MOURANT stated that Sections 3 and 4 elevate the importance of
the ATMC, to the commissioner's level of respect. It does so by
calling on the Commissioner to review the budget as proposed by
ATMC, rather than the Director of Tourism, and further by calling
on the Commissioner as opposed to the Director of Tourism, to sign
a contract with the qualified and selected tourism association.
MR. MOURANT stated that Section 5 changes the sunset date from 1996
to 1999. He added that the fiscal note that accompanies shows no
expense in FY96 and FY97. It projects the operating budget of the
ATMC as the fiscal note.
Number 075
REPRESENTATIVE ELTON asked why they chose the date of December 30,
1999, rather than the end of the fiscal year of June 30.
MR. MOURANT replied that traditionally, sunset dates are extended
in four year increments. The change of the contract language in
Section 1, page 2 line 2, allows for development and consistency in
the marketing effort, instead of going through the expense and
effort of redesigning a marketing effort every two years.
Number 104
REPRESENTATIVE ELTON noted that the contract with the industry
group ends six months prior to the ending of the ATMC, if the
Sunset is not removed. He inquired as to why you wouldn't want
both to occur at the same time, instead of being separated by six
months.
MR. MOURANT stated that this wasn't intentional, but it has worked
out so that if they go into a wind down year, it gives the
subsequent legislature time to consider the circumstance.
CHAIRMAN KOTT added that the bill extends an opportunity for the
contract to be extended up to four years, but not mandating it.
Number 135
REPRESENTATIVE GENE KUBINA stated that they should leave in Section
1, the language that reads "the best interest in the state."
MR. MOURANT explained that the best interest of the state, in
regard to ATMC and tourism marketing, is demonstrated already
through actions of the legislature. This is done by the extension
of the sunset date of ATMC and also with the adoption of a budget.
He stated that the purpose of changing the language to "a qualified
trade association in-state that has an interest in promoting", is
to allow an industry directed promotional effort in Alaska, as
opposed to a bureaucracy doing the same thing.
REPRESENTATIVE ELTON stated that there is a declaration of intent
by the legislature that promoting tourism is in the best interest
of the state. We're talking here about taking that legislative
intent out. He stated that he would like to keep the statement,
"that it is in the best interest of the state to promote tourism."
Number 181
MR. MOURANT pointed out that the operative language in the
amendment is that the commissioner can determine there is in fact
a qualified trade association in the state that is interested in
promoting. He commented that they were calling on the commissioner
to make the determination that there is one. The commissioner
shall contract with a single qualified trade association.
Number 194
JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, testified in support of HB 220. In reference to the
December date mentioned earlier, he stated that this language is
already in existing law, and there's not any change. He commented
that if the committee felt it better to coincide with the fiscal
year than the calendar year, there wouldn't be much opposition. He
suggested a change the department would like to see. On page 1,
line 11, change the word "shall" to "may", so the Commissioner is
given some discretion on when to enter into the contract with the
qualified trade association. In response to an earlier question of
whether "in the state" should be included with respect to the
qualified trade association, he stated that this was unnecessary,
as this language is already included in the definition of a
qualified trade association in the statute.
Number 240
REPRESENTATIVE PORTER asked if changing the "shall" to "may", would
allow the commissioner to have regional organizations rather than
one single organization.
MR. BUSH responded that it wouldn't. He explained that the
definition of qualified trade association, requires that it be a
statewide organization.
Number 259
CHAIRMAN KOTT asked if through the negotiating process, some kind
of promulgated agreement could occur between the department and the
trade association.
MR. BUSH stated that if no contract is entered into with a
qualified trade association, the ATMC still exists. The Board of
Directors of the ATMC consists of the director of the Division of
Tourism and two other commissioners, one being the Commissioner of
Commerce, the other Commissioner is appointed by the Governor. Mr.
Bush stated that there is an interest from both parties'
perspective to enter into a contract.
CHAIRMAN KOTT asked if the insertion of "may" would allow the
department to circumvent the existing trade association and permit
the Division of Tourism to promote Alaska.
Number 288
MR. BUSH responded under that circumstance, the department would
have some discretion to decide to enter into a contract. The
department has an interest in promoting ATMC. The insertion of
this language gives the state some discretion to negotiate.
Number 316
REPRESENTATIVE KUBINA agreed with department.
MR. BUSH stated that the AVA's position is that it is the best
interest of the state to create a joint cooperative marketing
program. He stated taking "it is in the best interest of the
state" and inserting changing "shall" to "may", states more
accurately that a cooperative marketing program is an appropriate
device, but also leaves the department some discretion on
negotiating a contract.
Number 348
CHAIRMAN KOTT pointed out that this language had been here since
1987, the year prior to the creation of the ATMC.
Number 355
REPRESENTATIVE ELTON asked if there was any discussion on the
departmental level whether they might want to have three years with
three (one year) extensions.
MR. BUSH stated that there had been no discussion on that point.
He agreed with Representative Elton that a long term contract was
the way to go.
CHAIRMAN KOTT asked if the length of the contract would give any
leverage.
Number 373
REPRESENTATIVE KUBINA asked if there were problems with contracts
extending longer than a Governor's term.
MR. BUSH responded that contracts are cancelable on a certain
amount of notice.
BOB DINDINGER, VICE CHAIRMAN, ALASKA TOURISM MARKETING COUNCIL
(ATMC), testified in favor of HB 220. In reference to the issue
travel reimbursement, he explained that some board members had
traveled to New York on several occasions to finalize the deal with
the Good Morning America Show. The board did not pay them any
compensation, salary or otherwise, but did feel that they should be
compensated for travel. The board then discovered a possible
interpretation of the by-laws that travel expenses were not
reimbursable. However, at the time of the negotiation of the ATMC,
the non-allowable reimbursement for out of state travel applied if
the board were to hold meetings out of state. He pointed out that
it is not the intention of the council to hold meetings out of
state. But to do the business of the council, some members may
have to travel out of state for non-meeting purposes.
MR. DINDINGER explained that, on the issue of the sunset date, they
chose December as opposed to June 30, to allow for a six month wind
down period if the council were to ever sunset. He closed by
stating that the ATMC was in concurrence with the department in
changing the language from "shall" to "may".
Number 458
JOHN LITTEN, ALASKA VISITORS ASSOCIATION (AVA), testified via
teleconference in support of HB 220. He stated that he has
followed this statute closely since its inception in 1986. Mr.
Litten said that the language changes have enabled the ATMC to make
adjustment in the programs that help Alaska remain competitive in
the national marketplace. He concluded that the changes being
proposed today are minor. They enable the council to promote
effectively, and they clarify the responsibilities of the
Commissioner and the council.
Number 477
JOHNE BINKLEY, PRESIDENT OF the ALASKA VISITORS ASSOCIATION,
testified via teleconference in support of HB 220. He commented
that the extension date would have no material effect on the
extension or re authorization of the ATMC. He continued that they
didn't have any opposition to the department's recommendation of
changing the word "shall" to "may".
Number 505
ALAN LEMASTER testified in support of HB 220. He stated that he
was an ex-member of the AVA, and he felt that the organization has
done a great job over the many years, along with the ATMC, and
continues to do the best job it can. However, he explained that he
is an ex-member of the AVA, and an ex-advertiser in the ATMC
vacation planner, because he can't afford it. He stated that the
25 percent matching fund policy dictated by the legislature is
cutting hundreds and hundreds of businesses ability to advertise in
this very important place. He stated that the same advertising of
a two inch color ad with a two inch narrative, which two years ago
cost him $1,200 would now cost him $2,800. He explained that
Alaska desperately needs the AVA and ATMC, but also desperately
needs a program that won't exclude the small businesses in favor of
the large companies that can afford to advertise.
Number 527
REPRESENTATIVE KUBINA asked Mr. Lemaster what he felt the
legislature or AVA could do to help with that issue.
MR. LEMASTER stated that a year or two ago the legislature mandated
that the AVA come up with a 25 percent matching fund. In order to
raise those funds, the AVA found it necessary to increase the cost
of the advertising in the vacation planner, which is the small
businessman's tool. He pointed out that the AVA may be getting
more money from the legislature this year, so this would further
raise advertising costs. The problem he stated was with the 25
percent matching fund.
FREDERICK DURE, MEMBER, ALASKA VISITORS ASSOCIATION, ALASKA
WILDERNESS RECREATION AND TOURISM ASSOCIATION, testified via
teleconference in support of HB 220. He stated that he had 20
years experience in the tourism industry. He is currently a
marketing consultant for small and medium sized businesses that
generally have sales less than $1 million. He stated he supports
HB 220; however, the proposed rewording in Section 1, (b), if
approved could have a major negative impact on the several thousand
Alaskan tourism businesses. He stated the following four concerns:
He supports the general concept; however, he and others are
adamantly against the proposed change to Section 1, (b) that reads
"if the commissioner determines that it is in the best interest of
the state to promote the state as a destination through the
cooperative marketing program, the commissioner shall contract with
a single qualified trade association to jointly manage the
council". This is to be replaced by "there is a qualified trade
association in the state that has an interest in promoting the
state as a destination". He said that this rewording empowers the
AVA to the exclusion of those tourism business interests which are
not represented or supported by the AVA. To exclude the qualifier
"in the best interest of the state," would do an injustice to
businesses not represented or supported by the AVA. There is not
equal representation for the majority of the industry segments,
with half the seats on the ATMC placed by the AVA, the other half
acquired from influence from the AVA. Those that are members of
the AVA, and are supported by its powers, are able to leverage
their representation in the marketing of Alaskan tourism. Contrary
to popular belief, he stated, of the more than 3,000 tourism
business in Alaska, only approximately 700 are members of the AVA.
He said that he didn't feel this is a fair and equal representation
of Alaska.
Number 604
REPRESENTATIVE ELTON stated that it was common to hear complaints
about the Juneau and Anchorage Chamber of Commerce. One of the
ways to assure that those segments of the visitor industry that are
under represented in the AVA, is to join AVA so that you can
increase your representation and change the corporate culture, as
opposed to denying the state the ability to contract exclusively
with the AVA.
MR. DURE acknowledged that this was an excellent point. However,
he stated this was like the chicken with the egg problem. Does the
AVA recognize the interests of all the different industry segments,
and, therefore, present equal representation, or do the industry
suppliers that aren't represented by the AVA join the AVA to change
the corporate culture to gain the equal representation they want.
Number 618
TINA LINDGREN, EXECUTIVE DIRECTOR, Alaska Visitors Association,
testified via teleconference in support of HB 220. She affirmed
that the AVA represents members in all segments of the industry.
Ms. Lindgren stated that the businesses that feel there is not
equal representation should make themselves known to the Governor's
Office. She stated that the passage of HB 220 was the number one
priority of the AVA, due to the importance of cooperative marketing
and the jobs that are directly affected. She agreed that
(indisc.---end of tape)
TAPE 15, SIDE A
Number 000
NANCY LETHCOE, PRESIDENT, ALASKA WILDERNESS RECREATION AND TOURISM
ASSOCIATION (AWRTA), testified that they support the
reauthorization of the ATMC. However, she suggested changes in the
legislation. Ms. Lethcoe stated that they support retaining the
language "it is the best interest of the state to promote the state
as a destination". She explained that the legislature makes the
best interest determination, on a general level, and the
commissioner should retain the ability to make that determination
on a specific level. In addition, with respect to the language
"the commissioner may or shall contract with a single qualified
trade association", she requested the word "single" be deleted.
Ms. Lethcoe suggested that the commissioner be given the option of
allocating some of the state's tourism marketing dollars, to groups
that represent specific components of the tourism industry, such as
hunting, sport fishing, and wilderness guides, as well as
geographic areas such as local convention and visitor's bureaus.
She continued that in Section 2, page 2, line 17, they would like
the number 10 changed to 8, so the line would read "the contract
shall provide that the trade association may select up to 8
members. On line 21 the change would be from 10 to 12, the line
would read "the governor shall appoint 12 other board members."
The reason for the change is that board members appointed by the
trade organization are appointed on the basis of the amount of
money their companies contribute to the marketing program, and not
on the basis of geographic representation or the segment of tourism
they represent. She explained that board members appointed by the
Governor are broadly representative of different regions of the
state. She stated that the change to line 24 would make sure that
the state's marketing dollars are distributed equitably throughout
the state.
Number 089
REPRESENTATIVE KUBINA asked if her association had ever taken these
concerns to the AVA.
MS. LETHCOE replied that she had recently spoken with the AVA on
the change to the language "best interest to the state" however,
she stated that the AWRTA was not a member of the AVA, and they do
not support the governing structure of the AVA. She commented that
voting rights within the AVA depend on how much money you paid in
membership fees. It is difficult for small businesses to effect
change from within the AVA.
REPRESENTATIVE KUBINA asked if this was brought up during the
transition.
MS. LETHCOE, stated that she sat on the transition policy team for
marketing. The major point of conflict was whether it should be
the policy that state money should be spent primarily to market
Alaskan owned and operated businesses, or to promote the greatest
number of people coming to the state. She stated that cruise ship
passengers only spend approximately 17 percent of their travel
dollars within the state, whereas independent package visitors
spend 84 percent of their money within the state. She asked that
there be an independent study on the economic impact of the
program.
CHAIRMAN KOTT commented that the McDowell Group does a yearly
report.
MS. LETHCOE responded that they don't study these types of
questions.
CHAIRMAN KOTT asked if there was any further public testimony.
Hearing none, public testimony was closed.
Number 187
REPRESENTATIVE PORTER made a motion that on page 1, line 11, the
"shall" be changed to "may".
CHAIRMAN KOTT stated that there was a motion to change the language
on page 1, line 11, from "shall" to "may". He asked if there was
an objection to Amendment 1. Hearing none, Amendment 1 was
adopted.
REPRESENTATIVE KUBINA commented that he would follow up on the
suggestions made by Nancy Lethcoe and talk to AVA and the
department concerning these issues.
Number 209
REPRESENTATIVE ELTON stated that he would argue against removing
"single qualified trade association". He explained that if you
start taking things from under the umbrella, the umbrella gets many
holes. He suggested that instead of trying to designate seats for
highway, sport fishing, or eco-tourism, an alternative may be to
designate a certain number of seats to those companies that have an
Alaskan payroll of over $1 million and a certain number to Alaskan
payrolls under $1 million. He made a motion to move the bill
forward.
Number 237
CHAIRMAN KOTT commented that there was a balance between government
and the private sector with the ATMC. He stated that partnership
has been instrumental in turning the State's tourism industry
around. Since the inception of the ATMC, there has been a steady
growth of visitors to the state.
Number 249
REPRESENTATIVE PORTER concurred with Chairman Kott.
REPRESENTATIVE ROKEBERG made a motion to pass CSHB 220(L&C) out of
committee with individual recommendations and accompanying fiscal
notes.
Number 263
CHAIRMAN KOTT asked if there were objections. Hearing none, the
motion passed.
ADJOURNMENT
There being no further business to come before the House Labor and
Commerce Standing Committee, Chairman Kott adjourned the meeting at
5:00.
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