Legislature(1993 - 1994)
03/25/1993 09:17 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 25, 1993
9:17 a.m.
TAPES
SFC-93, #42, Side 2 (300-000)
SFC-93, #44, Side 1 (000-100)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 9:17 a.m.
PRESENT
In addition to Co-chairs Frank and Pearce, Senators Kelly,
Kerttula, and Jacko were present. Senator Rieger arrived
while the meeting was in progress. Senator Sharp was
absent.
ALSO ATTENDING: Wendy Wolf, Deputy Director, Division of
Tourism, Department of Commerce & Economic Development; and
aides to committee members.
ALSO PARTICIPATING VIA TELECONFERENCE: Tina M. Lindgren,
Executive Director, Alaska Tourism Marketing Council
testified via teleconference from Anchorage.
SUMMARY INFORMATION
CSSB 85(L&C) - An Act deleting a requirement that certain
members of the board of directors of the
Alaska Tourism Marketing Council be
substantially involved in a visitor or
recreation industry business; relating to the
selection of a presiding officer for the
Alaska Tourism Marketing Council; extending
the termination date of the Alaska Tourism
Marketing Council; and providing for an
effective date.
Testimony was heard by Tina Lindgren,
Executive Director, Alaska Tourism Marketing
Council via teleconference from Anchorage.
Discussion was had by Senators Kelly,
Kerttula, and Co-chair Frank regarding the
Vacation Planner and other ATMC issues. CSSB
85(L&C) was HELD in committee.
CSSB 42(CRA) - An Act relating to municipal taxation of
alcoholic beverages; and providing for an
effective date.
CS FOR SENATE BILL NO. 85(L&C):
An Act deleting a requirement that certain members of
the board of directors of the Alaska Tourism Marketing
Council be substantially involved in a visitor or
recreation industry business; relating to the selection
of a presiding officer for the Alaska Tourism Marketing
Council; extending the termination date of the Alaska
Tourism Marketing Council; and providing for an
effective date.
CO-CHAIR DRUE PEARCE announced that CSSB 85(L&C) was before
the committee and a teleconference would be held with Tina
M. Lindgren, Executive Director, Alaska Tourism Marketing
Council. Co-chair Pearce asked Senator Kelly to explain the
bill to the committee.
SENATOR TIM KELLY, Chairman of Labor & Commerce Committee,
said the CSSB 85(L&C) version allows the chairman of the
board of directors of the Alaska Tourism Marketing Council
to be elected by the board of directors instead of the head
of the Division of Tourism automatically becoming the
chairman, and extends the term of the Council to four years
(instead of ten recommended by the legislative auditor). He
also noted that the word "substantially" was deleted from
the title of the bill. Discussion was had by SENATORS JAY
KERTTULA and Kelly whether the Council term should be four
or ten years.
Co-chair Pearce asked Ms. Lindgren to give the committee an
overview of goals for the Alaska Tourism Marketing Council
for the next year. TINA LINDGREN said that ATMC had taken a
new look at its priorities for the coming year. Advertising
has moved as its number one priority which would generate
interest for visitors to Alaska. Its secondary priority is
to generate inquiries for the state using the vacation
planner and satisfy those inquiries. Thirdly, the Council
will continue its public relations and national press to
attract positive coverage of the state. It will continue
newspaper travel sections and institute new programs for
regions of the United States that have a low travel rate to
Alaska.
SENATOR STEVE FRANK voiced his concern over the circulation
reduction of the Vacation Planner and reducing inquiries
that reach the small businesses in Alaska who do not have or
cannot afford other marketing programs. He asked what the
Council's opinion was on this issue. Mr. Lindgren said that
it was of concern to the Council especially in light of the
small businesses. However, the Council felt strongly that
it was the Council's responsibility to ensure that the whole
state benefit from more visitors rather than generating
interest toward the same visitors and the same number each
year. She said the Council had not planned to change the
program extensively but was hoping to find the proper mix
and level best for all of Alaska. She agreed that the small
businesses looked to the state to do advertising for them.
In answer to Senator Frank, Ms. Lindgren said the target
reduction for the Vacation Planner was being reduced from
450,000 to 350,000. She pointed out that the printing was
not nearly as expensive as the national advertising.
Senator Frank reiterated that the BRC card would not be
there for the small businesses but the cards would be there
for the large cruise lines because they could afford to
continue it. Ms. Lindgren said that the Council shared
these concerns, but that it was a matter of budget dollars.
Senator Kerttula voiced his support of the Council. After
his travels into the bush, he felt strongly that the
Vacation Planner was the only vehicle for small businesses
to advertise. He felt that it was going to effect his
constituents. Co-chair Pearce informed the committee and in
answer to Senator Kerttula, that the House subcommittee had
increased the industry share to ATMC from 15 percent to 22-
1/2 percent. She said that had not been the intent to
reduce ATMC's budget. The Senate had not yet come to an
agreement on this issue. Senator Frank said that the
decision to reduce the Travel Planner was done before the
budget process, and was part of the FY94 plan.
Co-chair Pearce said her intention, because of the
controversy surrounding ATMC, was to HOLD CSSB 85(L&C) in
committee. She wanted to form a committee representing the
administration, legislature and industry to work together
using the Alaska Visitors Association study as a base. This
committee could come back to the legislature with plans on
effective continued funding and a direction of marketing for
the state. She announced that the teleconference part of
the meeting was over.
CS FOR SENATE BILL NO. 42(CRA):
An Act relating to municipal taxation of alcoholic
beverages; and providing for an effective date.
Co-chair Pearce announced that CSSB 42(CRA) was before the
committee. SENATOR GEORGE JACKO, sponsor of the bill, said
that CSSB 42(CRA) would allow municipalities to tax
alcoholic beverages at a higher rate than other items, and
to hold a municipal election to decide that tax. He
believed it was an additional revenue tool for smaller
communities with a population of less than 2,500. In answer
to Co-chair Frank, Senator Jacko said that limiting the size
of the community was done by Senator Miller. Senator Jacko
would have preferred that it was available to all
communities.
Senator Kerttula voiced his support on taxing alcohol. He
pointed out that if the tax is too high, bootlegging could
result. Senator Jacko also voiced his concern in that area,
that this legislation would leave the amount of the tax up
to the community, letting the community judge the limit of
the tax for themselves.
Senator Jacko MOVED for passage of CSSB 42(CRA) from
committee with individual recommendations. No objections
being raised, CSSB 42(CRA) was REPORTED OUT of committee
with a zero fiscal note for the Department of Commerce and
Economic Development. Co-chairs Frank, Pearce, Senators
Kerttula, Rieger, and Jacko signed the committee report with
a "do pass" recommendation. Senator Sharp and Kelly did not
sign.
ADJOURNMENT
The meeting was adjourned at approximately 10:10 a.m.
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