Legislature(2011 - 2012)BARNES 124
04/07/2011 08:00 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Biomass Boiler Heating Systems | |
| HJR27 | |
| HB222 | |
| HB191 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HJR 27 | TELECONFERENCED | |
| *+ | HB 222 | TELECONFERENCED | |
| += | HB 191 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 222-AK PROMOTION & MARKETING FUND/BOARD
8:42:56 AM
CO-CHAIR HERRON announced that the next order of business would
be HOUSE BILL NO. 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."
8:43:08 AM
REPRESENTATIVE ALAN AUSTERMAN, Alaska State Legislature, stated
that his experience on the House Finance Committee led him to
understand that Alaska is not marketed as a business
destination; in fact, new businesses are not encouraged to come
to the state and bring jobs and income. He opined a board or
fund within the Department of Commerce, Community & Economic
Development (DCCED) tasked to work on promoting Alaska would
accomplish this by including all industries such as seafood,
tourism, mining, and agriculture. However, because the
legislature cannot "tell the department what to do," the initial
concept of the bill will be addressed next year, thus HB 222 is
a starting point for: A methodology to bring all of the
industries to the table and determine how to fund a marketing
effort for each individual industry. Representative Austerman
anticipated that changes will be made to the proposed
legislation, and he expressed his hope that testimony from the
affected industries will be heard.
8:46:27 AM
ASTRID LIEVANO, Staff, Representative Alan Austerman, Alaska
State Legislature, said HB 222, Section 1, adds the Alaska
Promotion and Marketing Board to the list of boards and
commissions that are subject to the public official financial
disclosure chapter. Section 2 adds new sections to create the
Alaska Promotion and Marketing Fund and the Alaska Promotion and
Marketing Board. Section 44.33.950 creates the fund, and
directs DCCED to administer the fund in consultation with the
board. Section 44.33.955 identifies the money that is to be in
the fund and states that the fund is not a dedicated fund.
Section 44.33.960 states the purpose of the fund, which is to
promote and market industries that broaden the economic base of
the state and provide jobs and business opportunities for Alaska
residents. Section 44.33.965 states that the fund money shall
be used, subject to appropriation, to make grants to private
entities for projects that promote the fund purpose, and to pay
administration costs for the new sections. Section 44.33.970
establishes certain requirements for grants from the fund,
addresses the type of entity that may be a grant recipient,
addresses the matching requirements of 50 percent of the grant
amount, and sets a maximum amount of 75 percent per fiscal year
for grants to entities in established industries. Section
44.33.975 establishes the board, including the number of
members, and the appointment of members by the governor.
Section 44.33.980 lists the board's duties including developing
a methodology for prioritizing projects; identifying criteria
for evaluation achievement of the fund purpose by proposed
projects; determining grant applicant eligibility criteria.
Section 44.33.985 authorizes the board and DCCED to adopt
regulations for the new sections. Section 44.33.990 defines the
terms for the new sections. Section 3 repeals certain sections
relating to marketing tourism contracts and campaigns. Section
4 establishes a sunset date of 7/1/19. Section 5 provides for
the appointment of the first members of the board within one
month of the effective date and with staggered terms. Section 6
makes the Act effective 1/1/12, unless changed.
8:52:32 AM
REPRESENTATIVE GARDNER asked whether Section 3 repeals the
funding structure for the Alaska Travel Industry Association
(ATIA).
REPRESENTATIVE AUSTERMAN clarified that it does repeal the
current funding methodology through ATIA and DCCED, and moves
the qualified trade association concept over to a new board that
is created by the bill. In further response to Representative
Gardner, he explained that the change would apply to any trade
association or group that wants to market Alaska, such as the
Alaska Seafood Marketing Institute (ASMI). Details will be
worked out during the interim by the committee, after hearing
from industry.
8:55:09 AM
REPRESENTATIVE GARDNER recalled a meeting in Sitka of a group of
rural communities interested in promoting tourism with a focus
different from that of ATIA. She asked whether this group
could apply to the new board for a grant.
REPRESENTATIVE AUSTERMAN said yes, and added that there will be
a lot of discussion about the scope of tourism that would be
included. He opined all groups can come to the board after its
criteria is established.
8:56:21 AM
REPRESENTATIVE MUNOZ asked for confirmation that ASMI would be
eligible to compete for funds.
REPRESENTATIVE AUSTERMAN indicated yes; ASMI currently qualifies
for marketing funding, although it is funded differently and at
a lower percentage than ATIA. Marketing funds are an annual
argument for the legislature, and this board would work with the
industry to identify funding. The legislature would still fund
the marketing fund each year, which could mean more money for
marketing in the long-term, with the addition of new businesses.
8:58:23 AM
REPRESENTATIVE FOSTER pointed out the board will determine what
constitutes an "emerging market," and inquired about that
process.
REPRESENTATIVE AUSTERMAN said he did not know. He recalled how
- during past troubled times for the seafood industry - matching
funds and federal money was used to bring the fishing industry
back from a period of low prices with incentives on new and
developing products.
CO-CHAIR HERRON opened public testimony.
9:00:21 AM
DEB HICKOK, Chair, Board of Directors, Alaska Travel Industry
Association (ATIA), said the ATIA board shares Representative
Austerman's passion for growing and diversifying Alaska's
economy. She relayed that the ATIA board of directors works
with its 11,000 member businesses to develop and market Alaska
as a travel destination; in fact, the board supports a marketing
committee structure because it gives large and small businesses
a direct voice in the marketing program. However, the ATIA
board also seeks to scrutinize the proposed marketing process
for possible improvements. Ms. Hickok offered that the board
will collaborate with the legislature and the administration,
and suggested an independent audit of the marketing committee
structure and programs during the interim discussions regarding
the proposed legislation. Referring to the bill, she opined
Section 3 - that repeals the qualified trade association (QTA) -
is premature, and has negative consequences to the travel
industry. Ms. Hickok urged for more collaboration with the
travel industry during interim.
9:04:43 AM
REPRESENTATIVE AUSTERMAN recently heard that an audit of ATIA
was under consideration; however, this bill does not have
anything to do with ATIA and its ability to perform its task.
He stressed that HB 222 does not relate to the operations of
ATIA; in fact, this legislation creates a new structure for how
marketing is funded by the state.
[HB 222 was heard and held.]
9:06:11 AM
Chair Herron turned the gavel over to Vice Chair Olson.
9:06:21 AM