Legislature(2007 - 2008)BELTZ 211
02/28/2008 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SJR12 | |
| SB276 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 12 | TELECONFERENCED | |
| *+ | SB 276 | TELECONFERENCED | |
| *+ | SB 208 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | SB 218 | TELECONFERENCED | |
SJR 12-CRUISE SHIP PORT TIMES: JONES ACT
9:02:44 AM
CHAIR MCGUIRE announced the consideration of SJR 12.
SENATOR BUNDE moved to adopt the committee substitute (CS) to
SJR 12, labeled 25-LS1292\E, Kane. Hearing no objection, Version
E was before the committee.
SENATOR GENE THERRIAULT, Alaska State Legislature, said SJR 12
opposes proposed changes to the interpretation of the Passenger
Vessel Services Act of 1886 by the U.S. Department of Homeland
Security (DHS), which would affect the cruise itineraries of
foreign-flagged vessels transporting passengers to Alaska. In
November, DHS published a new interpretation requiring all
foreign-flagged cruise ships to spend at least 48 hours in a
foreign port, spend at least 50 percent of the time that is
spent at U.S. ports at foreign ports, and require passengers to
depart at a foreign port. The industry brings a million
passengers to Alaska each year, and this new interpretation will
mean 158 fewer voyages and 349,000 fewer passengers. It will
result in a loss of $222 million that supports Alaska businesses
in coastal communities and beyond. The public comment period is
closed so the statement will not be officially submitted into
the public record, but a decision has not been rendered. The CS
makes it clear that Alaska opposes the interpretation, but if it
is adopted, SJR 12 asks that Alaska be exempted.
9:06:05 AM
SENATOR BUNDE asked if this interpretation was developed because
of some problems with foreign-flagged cruise ships going to
Hawaii and spending a few hours in Mexican ports.
SENATOR THERRIAULT said the new interpretation does spring from
a problem in Hawaii. American-flagged ships provide intra-island
service, and "over time the large cruise ships that seasonally
come to the state of Alaska, some of them were going from the
West Coast over to Hawaii, around the islands, and to avoid the
problem with the old ruling, they would then go to Mexico, touch
base at a port there overnight, and then go back to the West
Coast." That is what triggered this. The determination
continually refers to the Hawaiian market, and at the end it
refers to any cruise itinerary, thereby sweeping in Alaska.
9:08:02 AM
WAYNE STEVENS, President, State Chamber of Commerce, said his
board supports SJR 12. It is on record opposing the proposed
criteria to determine if foreign-flagged passenger vessels are
in violation of the Passenger Services Vessels Act. While
intended to solve a problem in Hawaii, the interpretation isn't
limited to Hawaii and could be interpreted to include cruise
runs to Alaska from Seattle or San Francisco. This is one third
of the cruises coming to Alaska. It will not affect ships from
Vancouver, B.C. The loss of ships will be devastating to
Alaska's communities and delicate economy. The interpretation
could be in effect for the 2008 summer season. The loss of jobs,
revenue, and taxes will be crippling. If cruise ships spend 48
in foreign ports and 50 percent of port time in foreign ports on
round-trip voyages from Seattle to Alaska, it will make the
existing seven-day itineraries impossible. The only alternative
will be for ships to spend less time in Alaska and more time in
Canada. The proposed changes are a significant departure from
industry practice and not an interpretation of existing
regulations. These proposed changes will affect all tourism
communities. Cruise passengers typically fly from Alaska to
connect to the ships. The solution to a problem in Hawaii will
be of significant detriment to Alaska and its cruise industry.
9:11:14 AM
CHAIR MCGUIRE asked what the chamber is doing nationally to
influence the regulation writers in Washington D.C.
MR. STEVENS said the chamber has been commenting.
CHAIR MCGUIRE asked about the chances of success.
MR. STEVENS said there is potential to get it overturned.
SENATOR BUNDE asked about Seattle losing business, and if
Washington State is doing anything.
MR. STEVENS said he believes they are commenting.
9:12:35 AM
JEREMY GEISER, President, Juneau Chapter, Alaska Travel Industry
Association, said he is also the manager for Gastineau Guiding.
If a third of the port calls are lost in Juneau, his company
will lose one third of its business including some year-round
jobs. All of those jobs will go to British Columbia. The
proposed interpretation will impact the communities, visitor
services, and indirect businesses. Each organization stands to
suffer economic hardships, and the resolution will send an
important message.
CHIP THOMA, Juneau, said all the cruises that emanate from
Vancouver are legal, but the Seattle ones are illegal under the
Passenger Services Act. The complication can be solved by
Vancouver building more dock spaces and taking over the entire
trade. The problem with the Seattle-based cruises is that once
they leave Seattle, they don't spend any time in Canadian waters
until they come back and provide an eight-hour tour of Victoria.
The ships then go back to Seattle. That is the token stop. The
San Diego trade stops in Ensenada, Mexico, in the middle of the
night for a few hours. He said he supports the resolution, but
it should be more focused. On line 6, of page 1, instead of
saying the cruise ship industry, it should say the Port of
Seattle. On line 8, after "cruise ships", it should say "cruise
ships from Seattle".
9:16:41 AM
DON HABEGER, Regional Vice President, Royal Caribbean, Juneau,
said the industry is on the record in opposition to the proposed
regulations. The best trade organization for getting cruise ship
messages out is "our membership" and the Association of American
Port Authorities. They say the rule would drastically restrict
vacation options for cruise passengers, and they specifically
mention Alaska. It would limit cruise markets to itineraries
with a single U.S. port of call, driving all Alaska business to
Canada and Hawaii business to Mexican Ports. It will eliminate
Key West Florida, and numerous East Coast and Gulf ports of
call. He said there is a controversy in the Hawaiian market. He
comes from the foreign-flagged side of the industry, and they
have a different niche in that market. The foreign-flagged
cruises to Hawaii are 14-15 days long and have a different
clientele. The U.S.-flagged ships in Hawaii are typically seven
nights. He thinks there is room for both in Hawaii. The proposed
regulation will drastically change the business in North
America. He supports the resolution.
9:19:47 AM
SENATOR FRENCH asked if the governor received an answer to her
letter sent in December, 2007.
HEATHER BRAKES, Staff to Senator Therriault, Alaska State
Legislature, said she believes she has not.
SENATOR BUNDE moved to report the CS to SJR 12, labeled 25-
LS1292\E, from committee with individual recommendations and
attached fiscal note(s). There being no objection, CSSJR 12(STA)
passed out of committee.
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