Legislature(1995 - 1996)

01/26/1995 03:05 PM House ITT

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                   HOUSE SPECIAL COMMITTEE ON                                  
                 INTERNATIONAL TRADE & TOURISM                                 
                        January 26, 1995                                       
                           3:05 p.m.                                           
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Beverly Masek, Chairman                                        
 Representative Alan Austerman, Vice Chairman                                  
 Representative Jeannette James                                                
 Representative Pete Kott                                                      
 Representative Irene Nicholia                                                 
 Representative Brian Porter                                                   
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Caren Robinson                                                 
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 Organizational Meeting                                                        
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 None                                                                          
                                                                               
 ACTION NARRATIVE                                                              
 NO TAPE DUE TO A TECHNICAL PROBLEM                                            
                                                                               
 The House Special Committee on International Trade and Tourism                
 (ITT) was called to order by CHAIRMAN BEVERLY MASEK at 3:05 p.m.              
 Members present at the call to order were Representatives Masek,              
 Austerman, Kott, and Nicholia.  Members absent were Representatives           
 James, Porter, and Robinson.                                                  
                                                                               
 CHAIRMAN MASEK called the meeting to order and began to discuss the           
 agenda.  Her priority was to invite outside agencies to come before           
 the committee and present their accomplishments to date, and their            
 goals for the future.  She then asked for any comments from                   
 members.                                                                      
                                                                               
 Representative Jeannette James arrived at approximately 3:08 p.m.             
                                                                               
 REPRESENTATIVE ALAN AUSTERMAN noted that he had nothing to bring              
 forward at this time.  He offered that the committee should work              
 with the Community and Regional Affairs Committee and the                     
 Department of Commerce and Economic Development so as to ensure               
 that duplication doesn't occur, and to ask them to bring forward              
 any relevant information pertaining to the committee.                         
                                                                               
 Representative Brian Porter arrived at approximately 3:12 p.m.                
                                                                               
 CHAIRMAN MASEK stated she would take Representative Alan                      
 Austerman's remarks into consideration.                                       
                                                                               
 REPRESENTATIVE JEANNETTE JAMES offered that the committee should              
 look closely at the budget and make recommendations to the Finance            
 Committee.  From her own experiences, back-up documentation is                
 necessary to argue a case for funds for projects, especially when             
 international trade is concerned.                                             
                                                                               
 REPRESENTATIVE AUSTERMAN agreed with her.  He commented that the              
 Division of Tourism handles the foreign market whereas the Alaska             
 Tourism Marketing Council handles the domestic market.  He felt               
 that the percentage of money being spent on the domestic market and           
 the funding ratio on foreign tourism versus the budget  should be             
 looked into.  If there are no increases, then where is the money              
 going?                                                                        
                                                                               
 CHAIRMAN MASEK acknowledged that was a good point.  She mentioned             
 scheduling times for various agencies, that will accommodate the              
 members' schedules, for them to present overviews.  She said the              
 committee would meet to discuss these overviews and the                       
 possibilities they offer.  She said she would like each member to             
 bring their own personal, individual goals to the next meeting.               
 She referenced the committee guidelines placed before each member             
 and offered answers to any questions concerning them.  She                    
 introduced her committee aide, David Stancliff.  She expressed her            
 desire to make the ITT Committee important to Alaska.                         
                                                                               
 REPRESENTATIVE BRIAN PORTER stated that as far as overlap is                  
 concerned this is the only committee dealing with tourism.                    
                                                                               
 CHAIRMAN MASEK mentioned working, in particular, with the House               
 Special Committee on World Trade and Diplomacy as much as possible.           
                                                                               
 REPRESENTATIVE PORTER noted that there is plenty of tourism work.             
                                                                               
 REPRESENTATIVE AUSTERMAN concurred that tourism is the fastest                
 growing industry and that they should study group taxation issues             
 on that industry.  There are seven to ten issues/taxes that are               
 valid on tourism and need to be looked at.                                    
                                                                               
                                                                               
 REPRESENTATIVE JEANNETTE JAMES asked if we renewed the Alaska                 
 Tourism Marketing Council (ATMC); is it one year or longer?                   
                                                                               
 REPRESENTATIVE PETE KOTT answered that is for two years; we have              
 one more year currently left.                                                 
                                                                               
 REPRESENTATIVE JAMES asked if the Governor will fund it?                      
                                                                               
 REPRESENTATIVE PETE KOTT responded that the Governor has attended             
 many sessions and is very clear on where he's going.  The                     
 increase was no surprise from $4.5 million to $10 million.                    
 However, when it's reduced it's not in kind; it's incremental.                
                                                                               
 REPRESENTATIVE AUSTERMAN expressed that the ATMC is a small group             
 and not legislative.  We need to determine its effectiveness.  He             
 said $10 million is not a lot of money.                                       
                                                                               
 REPRESENTATIVE PORTER wanted to offer a few comments.  He and                 
 Representative Kott, at a campaign forum, were both candidates                
 supportive of tourism.  They both had an interest in it and know              
 people involved in tourism that can greatly impact the tourism                
 arena.  Alaska is one of the best potentials without a                        
 Disneyland.  With the appropriate tax structure, they can share               
 in the risks as well as the benefits.                                         
                                                                               
 REPRESENTATIVE JAMES announced that she is the best critic and                
 supporter of ATMC. She didn't like their advertising.  They paid              
 a price for depicting Alaska as only a pristine wilderness.                   
 There are people here as well.  She got her message across.                   
 Tourism needs to pay taxes.  It doesn't pay its own way.  Of                  
 course, it never will.  It can't pay for the energy, highway                  
 right of way, and accessibility.  Unfortunately, of most of the               
 taxes proposed, Alaska residents will pay as well.  Tour groups               
 will pull away if overtaxed but, we are a low participant state.              
 We have to be careful of a statewide sales tax.  Possibly a port              
 tax, i.e., at the Canadian border?                                            
                                                                               
 CHAIRMAN MASEK acknowledged that in traveling in Europe, at every             
 intersection she had to pay tolls.                                            
                                                                               
 REPRESENTATIVE JEANNETTE JAMES offered a never before suggested               
 idea of a car rental tax.                                                     
                                                                               
 CHAIRMAN MASEK advised investigating the press release in Seattle             
 in reference to the 10 million.                                               
                                                                               
 REPRESENTATIVE PETE KOTT indicated that we've already been                    
 through the process of finding a tax.  A tax on a particular                  
 aspect of the industry, like the car rental agencies, is not                  
 equitable and fair.  Tourism, as a whole, will not be opposed to              
 a tax as long as it's equitable.                                              
                                                                               
 CHAIRMAN MASEK noted a concern with the major operators.  They                
 bring in a lot of money but, how much of it stays in the state?               
                                                                               
 REPRESENTATIVE JAMES countered that although they do take away                
 money, they also spend here in spin-off arenas like building                  
 accommodations.                                                               
                                                                               
 CHAIRMAN MASEK asked if anyone has anything further.                          
                                                                               
 REPRESENTATIVE PORTER suggested that if we could determine how                
 Hawaii rips off non-constituents, we'd solve the budget problems.             
                                                                               
 CHAIRMAN MASEK related how the sports fishing in Kenai and the                
 Mat-Su Valley is increasing every year.  A German-owned outfit on             
 the Deshka river that runs excursion/vacation trips prepays all               
 expenses but their fishing licenses in Germany.   They then come              
 to Alaska, buy only licenses, and then leave with the fish!                   
 Ideas to think about.                                                         
                                                                               
 REPRESENTATIVE JAMES acknowledged that it is a statewide problem.             
                                                                               
 REPRESENTATIVE AUSTERMAN discussed a boroughwide permit system                
 and a study of how well resources are impacted, nothing for fish.             
 He mentioned introducing a bill requiring sport fishing guides to             
 report every type of fish caught and the numbers into a databank              
 for recording purposes.                                                       
                                                                               
 REPRESENTATIVE JAMES noted there is the same problem in                       
 Southeast.                                                                    
                                                                               
 CHAIRMAN MASEK began closing by announcing she would set the next             
 meeting, and set notice.  She asked the members to gather ideas               
 and said she would appreciate input.  She further stated that she             
 would prefer informal meetings for making visitors comfortable.               
                                                                               
 REPRESENTATIVE PORTER thought scheduling for committee meetings               
 should be scheduled around standing committee meetings.                       
                                                                               
 REPRESENTATIVE AUSTERMAN wanted to clarify that as noted in the               
 committee guidelines they would indeed be following Robert's                  
 Rules of Order.                                                               
                                                                               
 REPRESENTATIVE BRIAN PORTER said that, although confusing, it's               
 quite refreshing.                                                             
                                                                               
 REPRESENTATIVE AUSTERMAN felt thrown by the use of Robert's                   
 Rules.                                                                        
                                                                               
 REPRESENTATIVE JAMES said the transition is easy.                             
                                                                               
 REPRESENTATIVE PORTER stated the only real difference is with                 
 reconsiderations.                                                             
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 CHAIRMAN MASEK adjourned the meeting at 3:35 p.m.                             
                                                                               

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