05/03/1994 09:10 AM Senate FIN

                                                                               
  CS FOR HOUSE BILL NO. 342(FIN) am                                            
                                                                               
       An  Act  relating  to   the  Alaska  Tourism  Marketing                 
       Council; increasing to at least 25 percent the share of                 
       the  council's  expenses  that  must  be  paid  through                 
                                                                               
                                                                               
       contributions  by  an  association  that  contracts  to                 
       jointly  manage the  council;  required disclosures  in                 
       promotions on board tourism cruise ships; and providing                 
       for an effective date.                                                  
                                                                               
  Co-chair  Pearce  directed  that  CSHB  342  (Finance)am  be                 
  brought on for discussion and noted that the Senate version,                 
  SB 341, was reported out of committee last week.   The House                 
  bill  contains  provisions  from  Senate  "gaming on  cruise                 
  ships" legislation (SB  370), and it also extends the Alaska                 
  Tourism  Marketing Council  to December  30, 1998.   SB  341                 
  extended the Council to 1996 to conform with SB 370.                         
                                                                               
  REPRESENTATIVE PETE KOTT,  sponsor of the legislation,  came                 
  before committee.  He  voiced need for the 1998  sunset date                 
  for  the  Council  since  it  is   more  efficient  for  the                 
  legislature to extend  the date  as long as  possible.   The                 
  four-year period is  also well established as a  sunset date                 
  for numerous boards and  commissions.  It would also  send a                 
  stronger message to  ATMC supporters  and those involved  in                 
  marketing  and sales programs.   The  Dept. of  Commerce and                 
  Economic Development is supportive of  the bill as currently                 
  written.                                                                     
                                                                               
  Senator Rieger referenced language relating to disclosure of                 
  promotions  and advised  of  his  understanding that  dollar                 
  amounts  would not have to be provided.  Representative Kott                 
  concurred.  Disclosure  would merely  have to indicate  that                 
  one is  paying someone to  "promote your business  in port."                 
  Senator Rieger asked if that type of promotion would include                 
  a "kickback" on the fee charged by the shoreside operator or                 
  merely an  advertising payment.   Representative Kott voiced                 
  his recollection that it includes the "kickback."                            
                                                                               
  Senator Sharp  noted an ongoing  problem with ATMC  in that,                 
  over a six-year period, the Council has been unable to reach                 
  agreement  and  come  forward with  a  method  of offsetting                 
  general funds.  He suggested that  the sunset date should be                 
  "kept  as  short as  possible" to  force  a decision  by the                 
  Council  which  cannot  continue  to  be funded  from  state                 
  general  funds.   Senator  Sharp then  MOVED  to change  the                 
  sunset date  from December 30,  1998, to December  30, 1996.                 
  Senator Rieger noted  that statutory sunset dates  include a                 
  grace year.   A sunset date of 1996 would  allow the Council                 
  to operate into 1997.  Co-chair Pearce  called for a show of                 
  hands on the motion.   The motion carried on a  vote of 3 to                 
  2, and the amendment was ADOPTED.                                            
                                                                               
  Co-chair Frank  MOVED that SCS CSHB 342  (Finance) pass from                 
  committee  with individual  recommendations.   No  objection                 
  having been raised, SCS CSHB  342 (Finance) was REPORTED OUT                 
  of  committee  with a  zero fiscal  note  from the  Dept. of                 
  Commerce  and Economic  Development.   Co-chairs  Pearce and                 
  Frank  signed  the   committee  report  with  a   "do  pass"                 
                                                                               
                                                                               
  recommendation.  Senators Kelly, Kerttula, Rieger, and Sharp                 
  signed "no recommendation."   Senator Jacko was  absent from                 
  the meeting and did not sign.                                                
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:05 a.m.