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HB 222: "An Act establishing and relating to the Alaska Promotion and Marketing Board and the Alaska promotion and marketing fund; relating to marketing tourism contracts and campaigns; and providing for an effective date."

00 HOUSE BILL NO. 222 01 "An Act establishing and relating to the Alaska Promotion and Marketing Board and 02 the Alaska promotion and marketing fund; relating to marketing tourism contracts and 03 campaigns; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 39.50.200(b) is amended by adding a new paragraph to read: 06 (64) the Alaska Promotion and Marketing Board. 07 * Sec. 2. AS 44.33 is amended by adding new sections to read: 08 Article 15. Alaska Promotion and Marketing. 09 Sec. 44.33.950. Alaska promotion and marketing fund. The Alaska 10 promotion and marketing fund is created. The department, in consultation with the 11 board, shall administer the fund. 12 Sec. 44.33.955. Contents of fund. (a) The fund consists of 13 (1) money appropriated to the fund by the legislature for grants for the 14 fund's purpose;

01 (2) gifts, bequests, contributions from other sources, and federal 02 money appropriated to the fund for grants for the fund's purpose; and 03 (3) interest from investments of the money in the fund that is 04 appropriated to the fund by the legislature for grants for the fund's purpose. 05 (b) The fund is not a dedicated fund. 06 Sec. 44.33.960. Purpose of fund. The purpose of the fund is to promote and 07 market industries that broaden the economic base of the state and that provide jobs and 08 business opportunities for the residents of the state. 09 Sec. 44.33.965. Use of fund. Subject to appropriation, the department shall use 10 the money in the fund to 11 (1) make grants to private entities for projects that promote the fund's 12 purpose; and 13 (2) pay the costs of administering AS 44.33.950 - 44.33.990. 14 Sec. 44.33.970. Grant requirements. (a) A grant recipient shall be an entity 15 that operates in or represents an industry that brings money into the state. 16 (b) A grant made to an entity that operates in an emerging industry must 17 require that the grant recipient provide matching funds of 30 percent of the grant 18 amount for the grant project. 19 (c) A grant made to an entity that operates in an established industry must 20 require that the grant recipient provide matching funds of 50 percent of the grant 21 amount for the grant project. 22 (d) Subject to appropriation, the total of the grants made in one fiscal year to 23 entities that operate in established industries may not exceed 75 percent of the 24 appropriations made to the fund for that fiscal year. 25 Sec. 44.33.975. Alaska Promotion and Marketing Board established. (a) 26 The Alaska Promotion and Marketing Board is established in the department. 27 (b) The board is composed of three members appointed by the governor. The 28 members of the board shall be appointed for terms of three years. 29 (c) Members of the board shall be selected without regard to political 30 affiliation or geographical location of residence. 31 (d) Members of the board shall be residents of the state. Each member shall

01 have expertise in private sector business or industry, or both, and possess 02 demonstrated leadership skills. However, a member may not, immediately before 03 being appointed or while acting as a board member, hold an executive position in a 04 business or industry entity. 05 (e) The board shall elect one member of the board to serve as chair of the 06 board. 07 (f) A vacancy on the board shall be filled by the governor. A member selected 08 to fill a vacancy shall hold office for the balance of the term for which the member's 09 predecessor on the board was appointed. 10 (g) A vacancy on the board does not impair the authority of a quorum of the 11 members to exercise the powers and perform the duties of the board. 12 (h) Members of the board do not receive compensation but are entitled to the 13 per diem and travel expenses authorized for boards and commissions under 14 AS 39.20.180. 15 (i) The board shall meet at least once each fiscal year. 16 Sec. 44.33.980. Board duties. The board shall 17 (1) develop a methodology for determining the priority for proposed 18 projects to receive grants; 19 (2) identify the criteria for evaluating the degree to which proposed 20 projects achieve the fund's purpose; the board shall give more value to 21 (A) projects that add to the state's primary sector economy or 22 reduce reliance on imported goods or services; and 23 (B) grant applicants who have established a self-assessment to 24 support their projects; 25 (3) determine the eligibility criteria for grant applicants; 26 (4) develop a methodology for the department to use in determining 27 which industries are emerging industries and which are established industries; 28 (5) make recommendations to the department on the selection of 29 projects for grants; 30 (6) describe how self-assessments by grant applicants will be evaluated 31 when the projects are being reviewed;

01 (7) define "emerging industry," "established industry," and "industry 02 that brings money into the state"; and 03 (8) provide a report to the legislature not later than 10 days after the 04 first day of each regular legislative session; the report must provide the 05 recommendations that the board 06 (A) has made to the department for making grants from the 07 money already appropriated to the fund, including a description, an evaluation, 08 and the priority of the proposed projects for grants; and 09 (B) is making to the legislature regarding appropriations to the 10 fund, including a description, an evaluation, and the priority of the proposed 11 projects for grants. 12 Sec. 44.33.985. Regulations. The board shall adopt regulations under 13 AS 44.62 (Administrative Procedure Act) to carry out its duties under AS 44.33.950 - 14 44.33.990. The department shall adopt regulations under AS 44.62 (Administrative 15 Procedure Act) to carry out its duties under AS 44.33.950 - 44.33.990. 16 Sec. 44.33.990. Definitions. In AS 44.33.950 - 44.33.990, 17 (1) "board" means the Alaska Promotion and Marketing Board; 18 (2) "department" means the Department of Commerce, Community, 19 and Economic Development; 20 (3) "fund" means the Alaska promotion and marketing fund; 21 (4) "fund's purpose" means the purpose of the fund identified in 22 AS 44.33.960; 23 (5) "grant" means a grant made from the fund. 24 * Sec. 3. AS 36.30.850(b)(41); AS 44.33.120(b)(4), 44.33.120(b)(7), 44.33.120(d), and 25 44.33.125 are repealed. 26 * Sec. 4. AS 39.50.200(b)(64); AS 44.33.950, 44.33.955, 44.33.960, 44.33.965, 44.33.970, 27 44.33.975, 44.33.980, 44.33.985, and 44.33.990 are repealed July 1, 2019. 28 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION: INITIAL BOARD. (a) The governor shall appoint the members of the 31 Alaska Promotion and Marketing Board, established by AS 44.33.975, enacted by sec. 2 of

01 this Act, within one month following the effective date of this section. 02 (b) Notwithstanding AS 44.33.975, enacted by sec. 2 of this Act, the governor shall 03 appoint the first three members of the Alaska Promotion and Marketing Board, established by 04 AS 44.33.975, enacted by sec. 2 of this Act, to staggered terms as follows: 05 (1) one member shall serve a one-year term; 06 (2) one member shall serve a two-year term; and 07 (3) one member shall serve a three-year term. 08 * Sec. 6. This Act takes effect January 1, 2012.