05/11/2007 09:00 AM Senate FINANCE

9:34:37 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 144(STA)                                                                                            
     "An  Act  relating  to  matching   funds  in  state  tourism                                                               
     marketing  contracts with  trade associations;  establishing                                                               
     the  Alaska  Tourism  Marketing   Funding  Task  Force;  and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
9:34:55 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  directed attention  to a  new fiscal  note from                                                               
the Department of Commerce, Community and Economic Development.                                                                 
                                                                                                                                
9:35:08 AM                                                                                                                    
                                                                                                                                
Senator Elton  announced he  would not  object to  reporting this                                                               
bill  from Committee.  However he  would  object to  implications                                                               
that the cruise ship industry  might not contribute to the Alaska                                                               
Travel  Industry  Association in  protest  of  the passenger  tax                                                               
approved by voters in the  last general election. The cruise ship                                                               
industry  has  contributed  approximately   $2  million  to  this                                                               
"generic marketing program" and should  continue to do so. To not                                                               
participate would "bootstrap" small businesses.                                                                                 
                                                                                                                                
Senator Elton spoke  of the "market test" in  which State funding                                                               
would be  appropriate. He exampled  the Alaska  Seafood Marketing                                                               
Institute's promotion  of certain fisheries, such  as winter king                                                               
salmon.                                                                                                                         
                                                                                                                                
9:37:46 AM                                                                                                                    
                                                                                                                                
Senator  Elton  stressed  the  need   to  market  to  independent                                                               
travelers. He reiterated his disapproval  of the possibility that                                                               
the  cruise industry  could "withdraw"  $2  million from  generic                                                               
marketing of travel to Alaska.                                                                                                  
                                                                                                                                
9:38:19 AM                                                                                                                    
                                                                                                                                
Senator Elton  considered this  legislation a  one-year temporary                                                               
solution,  which he  was  willing to  tolerate.  However, he  was                                                               
critical of  any future  action to appropriate  State funds  to a                                                               
generic marketing program if all  participants do not contribute.                                                               
Cruise ship industry participation is "extremely important."                                                                    
                                                                                                                                
9:39:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  offered  a  motion to  report  the  bill  from                                                               
Committee with individual recommendations and new fiscal note.                                                                  
                                                                                                                                
9:39:29 AM                                                                                                                    
                                                                                                                                
Senator Huggins  objected to the  motion to thank the  sponsor on                                                               
behalf of  constituents in the  Mat-Su Valley region that  do not                                                               
have the benefit of large  cruise ships bringing many visitors to                                                               
the area. He removed his objection.                                                                                             
                                                                                                                                
9:40:07 AM                                                                                                                    
                                                                                                                                
There was no  further objection and CS SB 144  (STA) was REPORTED                                                               
FROM  COMMITTEE with  a new  fiscal  note dated  5/9/07 from  the                                                               
Department of Commerce, Community and Economic Development.