Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/05/2021 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SJR9 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 9 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 5, 2021
1:09 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Roger Holland, Vice Chair
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
Senator Joshua Revak
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 9
Urging the United States Congress to exempt cruise ships from
certain provisions of the Passenger Vessel Services Act and
other applicable provisions of federal law for the period during
which Canadian ports are closed to cruise ships carrying more
than 100 people; and urging the President of the United States
not to fine or take actions against cruise ships sailing to the
state.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SJR 9
SHORT TITLE: URGE EXEMPTION FOR CRUISE SHIPS
SPONSOR(s): SENATOR(s) KIEHL
02/10/21 (S) READ THE FIRST TIME - REFERRALS
02/10/21 (S) TRA, L&C
02/18/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
02/18/21 (S) Moved SJR 9 Out of Committee
02/18/21 (S) MINUTE(TRA)
02/19/21 (S) TRA RPT 2DP 1NR
02/19/21 (S) DP: MYERS, KIEHL
02/19/21 (S) NR: SHOWER
03/03/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/03/21 (S) Scheduled but Not Heard
03/05/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR JESSE KIEHL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SJR 9.
PATTI MACKEY, President and CEO
Ketchikan Visitor Bureau
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of SJR 9.
BETH WELDON, Mayor
City and Borough of Juneau
Juneau, Alaska
POSITION STATEMENT: Testified in support of SJR 9.
ACTION NARRATIVE
1:29:33 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:29 p.m. Present at call to order
were Senators Holland, Gray-Jackson, Stevens, and Chair
Costello.
SJR 9-URGE EXEMPTION FOR CRUISE SHIPS
1:30:06 PM
CHAIR COSTELLO announced the consideration of SENATE JOINT
RESOLUTION NO. 9, Urging the United States Congress to exempt
cruise ships from certain provisions of the Passenger Vessel
Services Act and other applicable provisions of federal law for
the period during which Canadian ports are closed to cruise
ships carrying more than 100 people; and urging the President of
the United States not to fine or take actions against cruise
ships sailing to the state.
She stated that the intent is to hear the introduction, take
invited and public testimony and hold the bill for future
consideration.
1:30:46 PM
SENATOR JESSE KIEHL, Alaska State Legislature, Juneau, Alaska,
sponsor of SJR 9, stated that this legislation calls for a life
ring. In 2019, about 2.25 million visitors came to Alaska, 1.3
million of which were passengers on cruise ships. The tourism
sector brings roughly $4 billion in economic activity to Alaska
each year. In 2020, the tourism figures dropped close to zero.
While some businesses closed, others have held on with federal
help from the CARES Act [Coronavirus Aid, Relief, and Economic
Security Act]. Seasonal employees relied on pandemic
unemployment assistance because there was no seasonal
employment. He cautioned that many of these businesses will not
survive without a cruise season this year.
SJR 9 asks Alaska's Congressional Delegation and the executive
branch of the federal government for short-term relief to make
it possible for Alaska to have a cruise ship season this year.
He noted that he worked with members of the delegation when
drafting the resolution.
SENATOR KIEHL said SJR 9 is not a request to make permanent
changes to federal laws or lasting changes in federal rules
designed to protect American steel or shipbuilding jobs. It is
not an attack on U.S. jobs or local control of tourism. Nor is
it a COVID risk. Rather, SJR 9 requests a waiver limited to the
2021 cruise ship season, he said.
1:37:52 PM
SENATOR STEVENS commented that it is a good sign that all
members of the committee are co-sponsors. He asked if the cruise
lines have confirmed that they will send ships to Alaska if they
can legally transit Canadian waters.
SENATOR KIEHL replied he is hopeful but the cruise lines have
made no commitments. He noted that they also have not made any
final commercial decisions but they will do so very soon.
SENATOR STEVENS asked if coming to Alaska represents a large
portion of cruise lines' business in a year.
SENATOR KIEHL replied that Alaska is about 4.5 to 5 percent of
the global cruise business but Alaska is a tremendous part of
the business for lines that come to the state. He said the
primary focus of SJR 9 is the customers who come on the ships
who patronize Alaskan-owned small and medium sized businesses
that employ Alaskans.
1:39:59 PM
CHAIR COSTELLO found no further questions and asked if his staff
intended to discuss the sections of the bill.
SENATOR KIEHL answered that his staff was prepared to do so but
he was happy to save the committee the time since all the
members had looked at it.
1:40:24 PM
CHAIR COSTELLO noted the proposed amendment.
1:40:28 PM
SENATOR GRAY-JACKSON moved Amendment 1, [work order 32-
LS0503\B.1], to SJR 9.
32-LS0503\B.1
Fisher
2/23/21
AMENDMENT 1
OFFERED IN THE SENATE
TO: SJR 9
Page 2, line 29, following "actions":
Insert: "under the Passenger Vessel Services Act"
CHAIR COSTELLO objected for discussion purposes.
SENATOR KIEHL explained that the amendment is in response to
public testimony in the Transportation Committee. The concern
was that the clause could be misinterpreted as a request not to
fine cruise ships for some gross misconduct while in Alaskan
waters. This clarifies that the clause is talking about the
federal Passenger Vessel Services Act laws that would otherwise
restrict the transit of these vessels.
1:41:28 PM
CHAIR COSTELLO removed her objection; finding no further
objection, Amendment 1 was adopted.
CHAIR COSTELLO turned to invited testimony.
1:41:58 PM
PATTI MACKEY, President and CEO, Ketchikan Visitor Bureau,
Ketchikan, Alaska, explained that Ketchikan could have expected
$263 million in community spending from the entire visitor
industry in 2020. About $220 million of that is estimated to
have come from cruise line business. That includes $190 million
in passenger spending, $70 million in estimated crew spending,
and $20 million from the cruise industry itself on things like
state and local fees, dockage, and port development assessments.
The city also estimates that about 35 percent, or $4.5 million,
of the sales tax collected comes from visitors.
MS. MACKEY said the cruise industry in Ketchikan provides 1,350
direct jobs and about $76 million in labor income. The port
calls initially scheduled for this year have already dropped 55
percent and passenger estimates have declined even more. The
associated spending is expected to drop as well.
MS. MACKEY reported that about 90 percent of the businesses in
Ketchikan are either local or Alaska-owned and most have not
received any revenue from their businesses since October 2019.
If there is a season in 2022, these businesses will have lost
2.5 years of revenue.
1:45:36 PM
BETH WELDON, Mayor, City and Borough of Juneau (City and Borough
of Juneau), Juneau, Alaska, stated that having no ships visiting
last year was devastating to Juneau, the Southeast region, and
the Interior. She reported that CBJ loses $26 million in sales
tax and passenger fees each lost cruise season, not including
the associated collateral costs to businesses and employment.
She expressed appreciation for the legislature's efforts on
behalf of the communities that rely heavily on the cruise
industry for their budgets and citizens' livelihoods.
SENATOR STEVENS expressed thanks to the Mayor for hosting the
legislature every year and helping to provide vaccines to the
450 people who work in the capitol building.
MAYOR WELDON said she appreciated the recognition and hoped that
many would take advantage of the vaccinations.
CHAIR COSTELLO echoed Senator Stevens' comments. She pointed out
the letters in the bill packets in support of and a few in
opposition to the resolution.
1:47:56 PM
CHAIR COSTELLO opened public testimony on SJR 9. Finding none,
she said she would hold public testimony open through the next
meeting. She asked the sponsor if he had closing comments.
1:48:23 PM
SENATOR KIEHL reported the breaking news that both Alaska's
senators had introduced legislation to address this issue.
CHAIR COSTELLO asked him to share what happens to and who
receives a copy when a resolution goes to Washington, D.C.
SENATOR KIEHL explained that a formal copy of the enacted
resolution will be sent to the individuals listed in the
resolution, including the president and vice president, the
Alaska congressional delegation, and all the other members of
the U.S. Congress. He expressed appreciation to the committee
members for becoming cosponsors and said the number and breadth
of the cosponsors sends the important message that this is a
one-off step. It defies political lines and calls for political
help to save the Alaska economy in a specific way.
CHAIR COSTELLO voiced support for the tourism industry and noted
that the return on investment is about $35 for each dollar
invested.
CHAIR COSTELLO held SJR 9 in committee.
1:51:27 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 1:51 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR 9 Opposition Valerie Brooks.pdf |
SL&C 3/5/2021 1:30:00 PM |
SJR 9 |
| SJR 9 Support Alaska Policy Forum.pdf |
SL&C 3/5/2021 1:30:00 PM |
SJR 9 |
| SJR 9 Amendment No. 1.pdf |
SL&C 3/5/2021 1:30:00 PM |
SJR 9 |