05/04/2004 09:07 AM Senate FIN

                                                                                                                                
     CS FOR SENATE BILL NO. 254(L&C)                                                                                            
     "An Act  relating to the levy  and collection of an  assessment                                                            
     on  certain  tourism-related   and  recreation-related   sales,                                                            
     leases,  and rentals,  to tourism marketing  contracts,  and to                                                            
     vehicle rental taxes;  relating to Alaska marine highway system                                                            
      passenger fares; and providing for an effective date."                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken  pointed out that this legislation  would reduce the                                                            
level  of the  tourist  industry's match  requirement  as  currently                                                            
specified in  the Millennium Plan.  by changing He noted  that a new                                                            
committee substitute,  Version 23-LS0947\Z  is before the  Committee                                                            
for consideration.                                                                                                              
                                                                                                                                
AT EASE: 9:11 AM / 9:11 AM                                                                                                      
                                                                                                                                
SENATOR GENE THERRIAULT,  the bill's sponsor, informed the Committee                                                            
that while the  original purpose of this legislation  was to further                                                            
funding  mechanisms  through which  the  tourism industry  could  be                                                            
assessed to support  marketing efforts "to make the  State of Alaska                                                            
a destination," the Version  "Z" committee substitute reflects that,                                                            
due to industry outfall  and such things as the industry's inability                                                            
to generate  funds equivalent  to the 60-percent  level mandated  in                                                            
the  tourism  marketing  Millennium  Plan,  the bill  has  been  re-                                                            
directed to  continue the current  Millennium Marketing Plan  and to                                                            
lower the required industry contribution to 50-percent.                                                                         
                                                                                                                                
Senator Therriault  voiced appreciation, however,  for the fact that                                                            
the  industry does  recognize  the State's  fiscal  dilemma and  is,                                                            
therefore,  actively attempting to  develop self-funding  avenues to                                                            
market the  State, even  though the industry's  original  Millennium                                                            
Plan's assessment was unobtainable.                                                                                             
                                                                                                                                
Co-Chair  Wilken noted  that  a Department  of Revenue  zero  fiscal                                                            
note,  dated May  4,  2004 accompanies  the  Version  "Z"  committee                                                            
substitute.                                                                                                                     
                                                                                                                                
Co-Chair Green moved to  adopt the committee substitute, Version "Z"                                                            
as the working document.                                                                                                        
                                                                                                                                
There being no  objection, the Version "Z" committee  substitute was                                                            
ADOPTED as the working document.                                                                                                
                                                                                                                                
Senator  Bunde questioned  the  amount the  State might  spend  as a                                                            
result of changing  the tourism marketing plan to  a 50/50 split, as                                                            
he pointed  out  that the  Department of  Revenue  zero fiscal  note                                                            
simply reflects the fact  that the bill would not increase the level                                                            
of funding that the State has been spending in this regard.                                                                     
                                                                                                                                
Senator  Therriault  qualified  that he  did  not have  the  funding                                                            
particulars with him.                                                                                                           
                                                                                                                                
Co-Chair Wilken  understood the amount  to be four million  dollars.                                                            
                                                                                                                                
Co-Chair  Green clarified  that  the State's  share  of the  expense                                                            
would be $2 million in FY 05.                                                                                                   
                                                                                                                                
Co-Chair Wilken acknowledged.                                                                                                   
                                                                                                                                
Senator Bunde understood  therefore that the combined State/industry                                                            
marketing expenditure would amount to four million dollars.                                                                     
                                                                                                                                
Co-Chair  Green  moved  to  report  the  committee  substitute  from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
note.                                                                                                                           
                                                                                                                                
Senator Bunde objected.                                                                                                         
                                                                                                                                
Senator  Bunde asked  whether  the original  Millennium  Plan had  a                                                            
termination date.                                                                                                               
                                                                                                                                
Senator Therriault responded that it did not.                                                                                   
                                                                                                                                
Senator Bunde removed his objection.                                                                                            
                                                                                                                                
There being no further  objection, CS SB 254 (FIN) was REPORTED from                                                            
Committee with  a new zero fiscal note, dated May  4, 2004, from the                                                            
Department of Revenue.