Legislature(1993 - 1994)
04/26/1994 05:55 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSSB 341(RES): An Act relating to the Alaska Tourism Marketing Council; and providing for an effective date. Discussion was had by Co-chair Frank, Pearce, Senators Sharp and Kelly regarding "pro rata share." Even though he had not planned to speak to SB 341, Tom Dow, Vice President of Hotels, Princess Tours, shared information with the committee regarding the vacation planner. Clark Gruening, lobbyist, Alaska Visitor Association, also spoke to the bill. Amendment 1 was ADOPTED. CSSB 341(FIN) was REPORTED out of committee with individual recommendations and a zero fiscal note for the Department of Commerce & Economic Development. CS FOR SENATE BILL NO. 341(RES): An Act relating to the Alaska Tourism Marketing Council; and providing for an effective date. Co-chair Pearce announced that CSSB 241(RES) was before the committee. She said the Resources CS raised the contribution by Alaska Tourism Marketing Council (ATMC) from 15 to 25 percent, and the sunset date extended to 1996. In answer to Co-chair Frank, Co-chair Pearce said that under the powers of ATMC, they could provide space to a qualified trade association in publications and promotional materials developed by the Council. She read from the statutes and explained that for the Travel Planner that was out now, the production costs were around $400,000 and the "pro rata share" paid by the trade association was $200,000 or 50 percent. She understood that their contracted share was 50 percent but under the statute it referred to it as a "pro rata share". TOM DOW, Vice President of Hotels, Princess Tours, said that he was not expecting to testify on SB 341 but he offered information. He said the Vacation Planner contained advertising which was sold to raise money for the industry match, and the sale of labels were the two major fund raising mechanisms. Those pages dedicated to advertising were considered the "pro rata share" of the trade association to carry the cost of the contribution. If the book cost $400,000, and half of the book was advertising, then that was how the 50 percent cost was reached. Co-chair Pearce said that Bob Jacobson had just called those figures into the committee. After discussion was had by Co-chairs Pearce and Frank, and Mr. Dow regarding budget figures and the pro rata share, Mr. Dow indicated that the AA Board was in town tonight and would be willing to answer questions for the committee. Co- chair Frank asked what the pro rata share would be at 25 percent. Co-chair Pearce compared pro rata shares with House and Senate numbers. CLARK GRUENING, lobbyist for Alaska Visitors Association (AVA), said that 15 percent was presently in statute and that was calculated on the total amount of the budget which included the industry contribution. One of the problems AVA would face with a reduced state contribution was the ability to sell ads at the present rate which raised $1.3M for the current year. If the state share would go down (and it would with either the House or Senate numbers) the price of the ads would have to be raised and coverage would be reduced. Co-chair Frank said that if the budget was reduced, the amount of ads would not have to be raised. Mr. Gruening disagreed and said there would be slippage. Senator Sharp said that was under the assumption that they would want to reduce the program. Co-chair Pearce read from the statute AS 44.33.715(a). Co- chair Frank MOVED amendment 1 which deleted the word "not" to subsection (13). No objection being heard, amendment 2 was ADOPTED. End SFC-93 #81, Side 1 Begin SFC-93 #81, Side 2 Discussion was held by Co-chairs Frank and Pearce, and Senator Kelly regarding ad sales and label sales for ATMC matching money. Co-chair Frank MOVED for passage of CSSB 341(FIN) from committee with individual recommendations. No objection being heard, CSSB 341(FIN) was REPORTED OUT of committee with "individual recommendations," and a zero fiscal note for the Department of Commerce & Economic Development. Co- chairs Pearce and Frank signed "do pass." Senators Kelly, Rieger and Sharp signed "no recommendation." CSSB 341(RES): An Act relating to the Alaska Tourism Marketing Council; and providing for an effective date. Discussion was had by Co-chair Frank, Pearce, Senators Sharp and Kelly regarding "pro rata share." Even though he had not planned to speak to SB 341, Tom Dow, Vice President of Hotels, Princess Tours, shared information with the committee regarding the vacation planner. Clark Gruening, lobbyist, Alaska Visitor Association, also spoke to the bill. Amendment 1 was ADOPTED. CSSB 341(FIN) was REPORTED out of committee with individual recommendations and a zero fiscal note for the Department of Commerce & Economic Development. CS FOR SENATE BILL NO. 341(RES): An Act relating to the Alaska Tourism Marketing Council; and providing for an effective date. Co-chair Pearce announced that CSSB 241(RES) was before the committee. She said the Resources CS raised the contribution by Alaska Tourism Marketing Council (ATMC) from 15 to 25 percent, and the sunset date extended to 1996. In answer to Co-chair Frank, Co-chair Pearce said that under the powers of ATMC, they could provide space to a qualified trade association in publications and promotional materials developed by the Council. She read from the statutes and explained that for the Travel Planner that was out now, the production costs were around $400,000 and the "pro rata share" paid by the trade association was $200,000 or 50 percent. She understood that their contracted share was 50 percent but under the statute it referred to it as a "pro rata share". TOM DOW, Vice President of Hotels, Princess Tours, said that he was not expecting to testify on SB 341 but he offered information. He said the Vacation Planner contained advertising which was sold to raise money for the industry match, and the sale of labels were the two major fund raising mechanisms. Those pages dedicated to advertising were considered the "pro rata share" of the trade association to carry the cost of the contribution. If the book cost $400,000, and half of the book was advertising, then that was how the 50 percent cost was reached. Co-chair Pearce said that Bob Jacobson had just called those figures into the committee. After discussion was had by Co-chairs Pearce and Frank, and Mr. Dow regarding budget figures and the pro rata share, Mr. Dow indicated that the AA Board was in town tonight and would be willing to answer questions for the committee. Co- chair Frank asked what the pro rata share would be at 25 percent. Co-chair Pearce compared pro rata shares with House and Senate numbers. CLARK GRUENING, lobbyist for Alaska Visitors Association (AVA), said that 15 percent was presently in statute and that was calculated on the total amount of the budget which included the industry contribution. One of the problems AVA would face with a reduced state contribution was the ability to sell ads at the present rate which raised $1.3M for the current year. If the state share would go down (and it would with either the House or Senate numbers) the price of the ads would have to be raised and coverage would be reduced. Co-chair Frank said that if the budget was reduced, the amount of ads would not have to be raised. Mr. Gruening disagreed and said there would be slippage. Senator Sharp said that was under the assumption that they would want to reduce the program. Co-chair Pearce read from the statute AS 44.33.715(a). Co- chair Frank MOVED amendment 1 which deleted the word "not" to subsection (13). No objection being heard, amendment 2 was ADOPTED. End SFC-93 #81, Side 1 Begin SFC-93 #81, Side 2 Discussion was held by Co-chairs Frank and Pearce, and Senator Kelly regarding ad sales and label sales for ATMC matching money. Co-chair Frank MOVED for passage of CSSB 341(FIN) from committee with individual recommendations. No objection being heard, CSSB 341(FIN) was REPORTED OUT of committee with "individual recommendations," and a zero fiscal note for the Department of Commerce & Economic Development. Co- chairs Pearce and Frank signed "do pass." Senators Kelly, Rieger and Sharp signed "no recommendation."
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