Legislature(2007 - 2008)SENATE FINANCE 532
04/08/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB 2 | |
| SB 8 | |
| SB 212 | |
| HB 147 | |
| HB 166 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 212 | TELECONFERENCED | |
| += | SB 8 | TELECONFERENCED | |
| + | HB 2 | TELECONFERENCED | |
| + | HB 147 | TELECONFERENCED | |
| += | HB 166 | TELECONFERENCED | |
| + | HB 289 | TELECONFERENCED | |
| + | HB 307 | TELECONFERENCED | |
| + | HB 406 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 147(RLS)
"An Act relating to matching funds and state money for
state tourism marketing contracts with trade
associations; and providing for an effective date."
10:15:34 AM
PETE FELLMEN, STAFF, REPRESENTATIVE JOHN HARRIS, presented
an overview of the bill. He reported that HB 147 is
basically the same bill as SB 144, sponsored by Senator
Lesil McGuire. The difference between the two bills is that
the finance committee believed it prudent to limit the
amount of funds that the Office of Economic Development
could spend on tourism to $9 million. Mr. Fellman noted a
sunset provision for 2011 to give the tourism industry an
opportunity to grow and self finance the advertising. He
reminded the Committee that state tourism generates $1.5
billion into the state's economy. He noted that for every $1
the state contributes, $1.68 in returned to the state. The
economic boom from tourism flows throughout every region of
Alaska and touches many individuals and businesses. Mr.
Fellman disclosed that only nineteen other states require a
private sector contribution. Only Florida and California
have private section contributions more than Alaska. Alaska
ranks thirty-six in the nation in public sector funding.
10:19:10 AM
Senator Elton remained undecided on this approach because
state marketing efforts, with seafood and tourism, usually
require a market test. This market test asserts that the
benefiting industry believes they are receiving enough value
to contribute themselves at a certain level. His hesitation
to this approach is that the industry is not contributing at
the same level as before.
10:20:19 AM
Mr. Fellman responded that when the cruise ship tax became
part of the state statute, with cruise lines paying money
directly to the state's budget, they withdrew $2 million
that they had been investing in tourism. At one time Alaska
was putting in $20 million for tourism marketing but that
has since decreased.
Senator Elton interjected that the cruise lines are not
paying the tax directly but charging the head tax to the
passengers.
10:22:05 AM
Senator Olson inquired about the distribution level between
urban and rural Alaska.
10:22:25 AM
Mr. Fellman responded that there are a thousand tourism
businesses in the ATIA (Alaska Travel Industry Association)
and that money is distributed throughout the state depending
on how much is contributed. A plan would be developed to
disseminate the money throughout Alaska's various regions.
10:22:53 AM
Co-Chair Stedman reviewed the one fiscal note for $9
million.
10:23:07 AM
Co-Chair Hoffman noted he had similar concerns as Senator
Elton and wondered if more participation by industry could
be considered. He asked if the bill sponsor would consider a
lesser amount than listed in the bill
10:24:07 AM
Mr. Fellman responded that the present amount in the bill is
about the limit that the tourism industry could support. The
tourism industry will contribute $2.7 million to the
marketing campaign and can not contribute more at this time.
He remarked that if Alaska tourism begins to fall, then the
amount businesses will be able to contribute will also
decline. He stressed that it was important for Alaska to
help this industry until they are able to support
themselves.
Co-Chair Hoffman questioned why is there the belief that the
tourism industry is declining. He assumed Alaska tourism was
growing. He remarked that the cruise line industry has grown
tremendously in past years with tourists commenting that
Alaska sells itself.
10:26:27 AM
Senator Elton noted that it was hard for him to hear a
response that that says the tourism industry can not afford
more. He remarked that the tourism industry considers itself
larger than the seafood industry but the marketing program
for the seafood industry puts in twice a much as the tourism
industry and receives only $1 million from the state.
10:27:36 AM
Mr. Fellman responded that the fishing industry has received
considerable money in the past to help develop the industry.
He believed about $125 million has been invested in
marketing to help the fishing industry develop. He noted
that tourism was a renewable resource that will continue to
generate income and grow. Tourism money benefits the entire
state.
10:29:26 AM
Senator Elton reported that as the former Executive Director
of the Alaska Seafood Marketing Institute the seafood
industry received approximately $4 million a year. He
stressed there must be a market test and he did not believe
it had been met.
10:30:23 AM
BRETT CARLSON, VOLUNTEER CHAIR, ALASKA TRAVEL INDUSTRY
ASSOCIATION testified via teleconference and spoke in
support of the bill. He reminded the Committee that ATIA
represents over one thousand businesses throughout Alaska.
ATIA believed that the state can help Alaska travel
businesses and nurture the private sector economy to
contribute revenues to local and state government. Mr.
Carlson stressed that Alaska's tourism marketing funding is
broken. ATIA believes that this bill represents a fix. The
$9 million fiscal note is less than the $9.5 million in
funding that passed out of the Senate Finance Committee last
session. It identifies a sustainable travel industry
generated funding source for Alaska's tourism marketing
program.
10:33:22 AM
Co-Chair Hoffman revealed how proud he was that Alaska was
leading the way in getting participation from industry and
business and hoped other states would take that initiative.
He judged it would be better to get more industry and
business participation.
10:34:09 AM
HB 147 was HEARD and HELD in Committee for further
consideration.
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