Legislature(1993 - 1994)
02/18/1993 05:00 PM House ITT
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT MEETING OF THE
HOUSE SPECIAL COMMITTEE ON
INTERNATIONAL TRADE & TOURISM
THE HOUSE TRANSPORTATION STANDING COMMITTEE
February 18, 1993
5:00 p.m.
MEMBERS PRESENT FROM THE SPECIAL COMMITTEE ON INTERNATIONAL
TRADE & TOURISM
Representative Jeannette James, Chair
Representative Joe Green
Representative Terry Martin
Representative Curt Menard
Representative Jim Nordlund
Representative Jerry Sanders
Representative Cynthia Toohey
MEMBERS ABSENT
None
MEMBERS PRESENT FROM THE HOUSE TRANSPORTATION COMMITTEE
Representative Al Vezey
Representative Curt Menard
Representative Bill Hudson
MEMBERS ABSENT
Representative Richard Foster, Chair
Representative Eldon Mulder
Representative Jerry Mackie
COMMITTEE CALENDAR
*HB 115 "An Act extending the termination date of the
Alaska Tourism Marketing Council; and providing
for an effective date."
CS MOVED OUT OF COMMITTEE WITH A DO PASS
RECOMMENDATION
*HJR 20 Urging modification of the North American Free
Trade Agreement
NOT HEARD
Presentation by:
Jim Ayers RE: Alaska Marine Highway
David Orr RE: Northern Sea Route
(* first public hearing)
WITNESS REGISTER
Representative Bill Hudson
Capitol Building, Room 108
Juneau, AK 99801
(907) 465-3744
POSITION STATEMENT: Explained HB 115
Dazee, Executive
Baker Aviation
P.O. Box 487
Nome, AK 99762
(907) 443-2605
POSITION STATEMENT: In favor of tourism promotion
Tina Lundgren, Executive Director
Alaska Tourism Marketing Council
3601 C Street #700
Anchorage, AK 99503
(907) 563-2289
POSITION STATEMENT: Supported HB 115
Jim Ayers, System Director
Alaska Marine Highway System
1591 Glacier Avenue
Juneau, AK 99801
(907) 465-3950
POSITION STATEMENT: Provided information regarding the
Alaska Marine Highway
David Orr, Northern Sea Route Program Coordinator
Department of Commerce and Economic Development
P.O. Box 110800
Juneau, AK 99811
(907) 465-2500
POSITION STATEMENT: Provided information regarding the
Northern Sea Route
PREVIOUS ACTION
BILL: HB 115
SHORT TITLE: EXTEND TOURISM MARKETING COUNCIL
BILL VERSION:
SPONSOR(S): LABOR & COMMERCE
TITLE: "An Act extending the termination date of the Alaska
Tourism Marketing Council; and providing for an effective
date."
JRN-DATE JRN-PG ACTION
02/03/93 213 (H) READ THE FIRST TIME/REFERRAL(S)
02/03/93 213 (H) TRADE & TOURISM, LABOR & COMM,
FINANCE
02/18/93 (H) ITT AT 05:00 PM CAPITOL 102
BILL: HJR 20
SHORT TITLE: AMEND N. AMERICAN FREE TRADE AGREEMENT
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) BROWN
TITLE: Urging modification of the North American Free Trade
Agreement.
JRN-DATE JRN-PG ACTION
01/29/93 176 (H) READ THE FIRST TIME/REFERRAL(S)
01/29/93 176 (H) INTERNATIONAL TRADE & TOURISM,
RESOURCES
02/18/93 (H) ITT AT 05:00 PM CAPITOL 102
ACTION NARRATIVE:
TAPE 93-2, SIDE A
Number 000
CHAIRWOMAN JEANNETTE JAMES called the joint meeting of the
Special House Committee on International Trade and Tourism
and the House Committee on Transportation to order on
February 18, 1993, at 5:00 p.m.
Number 021
REPRESENTATIVE BILL HUDSON understood the joint committee
would not be taking up the transportation-related bill and
asked if that was correct.
Number 025
CHAIRWOMAN JAMES replied that the committee would not be
taking up HJR 20, related to the modification of the North
American Free Trade Agreement; this was postponed until
March 4, 1993.
Number 029
REPRESENTATIVE HUDSON asked if the business at hand was
HB 115.
CHAIRWOMAN JAMES replied in the affirmative.
Number 032
REPRESENTATIVE HUDSON stated that, as the Chairman of the
House Labor and Commerce Committee, he was prepared to
present HB 115, which was sponsored by that committee. He
explained that HB 115 amended the statute to allow for the
continuation of the Alaska Tourism Marketing Council (the
Council), until 1996. The Council was due to expire on June
30, 1993. He believed this was a necessary function if this
important council was to continue to operate under the
statutes of the state of Alaska.
REPRESENTATIVE HUDSON noted there had been considerable work
and interest in amending HB 115. He then presented a
committee substitute (CSHB 115), which he asked the
committee to adopt. He was prepared to explain the
differences between HB 115 and CSHB 115.
Number 093
REPRESENTATIVE CYNTHIA TOOHEY asked that the discussion be
delayed until the committee members could get copies of the
proposed changes.
Number 101
REPRESENTATIVE AL VEZEY asked if he was the only person
present that was not a member of the International Trade &
Tourism Committee.
Number 109
REPRESENTATIVE JOE GREEN commented that the members had two
sets of fiscal notes and asked Representative Hudson if he
planned to use both in his presentation.
Number 112
REPRESENTATIVE HUDSON replied that he would address that
later.
Number 113
CHAIRWOMAN JAMES noted the arrival of Representative Jim
Nordlund.
Number 136
REPRESENTATIVE JIM NORDLUND asked why the extension was
three years instead of four.
REPRESENTATIVE HUDSON said that would be clear when the
copies arrived.
Number 145
CHAIRWOMAN JAMES handed out Representative Nordlund's
statement of goals for the committee.
Copies of CSHB 115 were distributed.
Number 160
REPRESENTATIVE HUDSON apologized for not having copies of
CSHB 115 earlier and stated that "after discussion with the
industry and the various state departments, I felt it was
better for me to bring you a work product that you could
work directly off of and explain why I am proposing to the
committee that you adopt a new committee substitute for
House Bill 115 and subsequently in the form that I have
presented to you."
REPRESENTATIVE HUDSON pointed out the title of HB 115 had
been substantially modified in CSHB 115, which he said was
necessary in order to accommodate some of the other changes
that were being proposed. He noted Section 1 amended
current law by removing "substantially" with regard to a
board member's involvement in the visitor and recreation
business so the board member no longer had to be
"substantially involved", but only had to be "involved in a
visitor or recreation business". He disclosed this had been
suggested by the industry to broaden participation on the
Council.
REPRESENTATIVE HUDSON pointed out further on Page 2, line
12, "the director is a member of the board;" was ADDED
before "the governor" and "other" was ADDED before "board
members" on line 13, which essentially added one more member
to the board, so instead of there being ten members there
would be eleven, and the eleventh would be the director of
the Council. He noted that currently the statute provided
for the governor to appoint ten members, but the Council and
the Division of Tourism preferred to have the Council's
board elect their own presiding officer from its members
rather than the director automatically filling that
position.
Number 228
REPRESENTATIVE GREEN asked if the "11" had been "10" before
and should thus have been underlined.
Number 230
REPRESENTATIVE HUDSON clarified the language was taken right
out of the statutes and, therefore, was not a change.
Number 232
REPRESENTATIVE GREEN asked if that meant there had been 11
votes required before, and if it was currently only 10,
where was the 11th vote.
Number 238
REPRESENTATIVE HUDSON responded "Damned if I know. I
understand your question. Why was it 11 before when there
were only 10 board members?"
Number 248
CHAIRWOMAN JAMES noted the arrival of Representative Curt
Menard.
Number 250
REPRESENTATIVE HUDSON continued with his overview of CSHB
115. He noted on line 21, page 2, this draft removed from
existing language "the director serves as presiding officer
of the board;" which explained the title change and why the
bill had expanded to some extent. He noted further that on
Page 2, line 22 AFTER "elect" "a presiding officer and" had
been ADDED. The last change was on Page 3, Line 20, where
"1993" had been CHANGED to "1997".
REPRESENTATIVE HUDSON requested the committee either take
questions or further testimony at this time, and hoped the
committee would consider adoption of CSHB 115.
Number 282
REPRESENTATIVE GREEN again asked about the fiscal note.
Number 285
REPRESENTATIVE HUDSON said, "The fiscal note is an error and
will be reissued, and it will be zero. What happened was
the fiscal note from Commerce and Economic Development
simply picked up last year's budget, and we do have it, and
so this fiscal note should not be adopted, and I would ask
that it not be...."
Number 295
REPRESENTATIVE TOOHEY asked if there were twenty-one members
on the board.
Number 300
REPRESENTATIVE HUDSON replied in the affirmative.
Number 302
REPRESENTATIVE TOOHEY inquired whether anyone from the
Alaska Visitors' Association (AVA), the Tourism Marketing
Council, the Anchorage Convention and Visitors' Bureau
(ACVB), or any of the convention and visitors' bureaus were
present.
Number 305
DAZEE said that she was a member of the AVA, Baker Aviation,
and the ARDER Executive for Bering Straits Region. She
wondered how much Bush representation was on the Council's
board. She understood one had to be a "heavy-duty" investor
to be on the board and wondered if the term "substantially"
also covered the financial amount required.
Number 315
REPRESENTATIVE HUDSON responded, "I think one of the primary
reasons to the question asked is for that very purpose, to
give greater flexibility in appointing someone who only has
to be involved in the visitor and recreation business. And
I think that's a fair assessment. This bill doesn't say
who, from what region, or anything else. It just simply
sets up the original language, so all we're doing is
removing 'substantially' so as to provide greater
flexibility and perhaps to accomplish the very thing that
you're talking about. As a matter of fact, I know that's
the case."
Number 328
TINA LUNDGREN introduced herself as the Executive Director
of the Alaska Tourism Market Council.
CHAIRWOMAN JAMES asked whether it was proper for the
committee to be discussing CSHB 115 prior to having a motion
to substitute it for the original bill.
Number 333
REPRESENTATIVE HUDSON explained it was proper for him to
present CSHB 115, then for the committee to either adopt it
or go back to the original version, that being HB 115.
Number 335
REPRESENTATIVE TOOHEY MOVED that the committee ADOPT CSHB
115, as a working draft. Without objections, IT WAS SO
ORDERED.
Number 340
MS. LUNDGREN stated the purpose of CSHB 115 was to extend
the Council, and noted the Council had been working for the
state of Alaska for the last four years. She pointed out
Alaska had a unique arrangement in its cooperative venture
between the state and private industry, which was the envy
of many other destinations. She reiterated Representative
Hudson's explanation of CSHB 115 with regard to the director
being a member of the board and the board being allowed to
choose its own chair. The program allowed small businesses
access to a market to which they otherwise would not have
access on their own, without which the large companies could
continue their access at the expense of the smaller
companies, she said.
MS. LUNDGREN added CSHB 115 had the support of the
administration, the tourism community, and the Council
itself.
Number 370
REPRESENTATIVE TOOHEY pointed out she was a member of the
Anchorage Convention and Visitors' Bureau and asked if that
Bureau had been notified and was comfortable with CSHB 115.
Number 375
MS. LUNDGREN replied that Bill Lelander, the ACVB'S CEO, sat
on the Council and was very supportive.
Number 378
REPRESENTATIVE GREEN MOVED that the committee accept CSHB
115, with the zero fiscal note.
Number 383.
CHAIRWOMAN JAMES asked if there were any objections. There
were none. She then stated CSHB 115 would be MOVED out of
this committee, and circulated the committee report for
members' signatures. She then introduced Jim Ayers.
Number 406
JIM AYERS, SYSTEM DIRECTOR, ALASKA MARINE HIGHWAY SYSTEM,
presented information on the Alaska Marine Highway. First
he showed photos of the fleet's eight vessels, pointing out
the fleet's oldest vessel had recently been sold, the others
were being refurbished, and a new ocean-going vessel was now
in the governor's budget. He stated there were thirty-two
ports, and the importance of the Marine Highway to Tourism
and Trade had increased considerably, being responsible for
$145 million annually, $18 to $20 million of that being in
Anchorage alone, having 1,000 employees, and being the
seventh largest business in the state.
MR. AYERS said one of every twelve visitors to Alaska used
the Marine Highway System and passengers spent an average of
sixteen nights. The System could be sold to private
investors, but that would not be beneficial to the state, he
said. He stated the Inside Passage was "the number one
visited area" in Alaska, and marine travel was growing
across the world.
MR. AYERS reported the Marine Highway System worked closely
with industries such as lumber, construction, and fishing,
to the extent of even having community representatives help
establish schedules. He reported further that the Marine
Highway had become an integral part of Alaska's economy, on
which many businesses had come to rely.
Number 611
REPRESENTATIVE TOOHEY asked what vessel would be used in the
Aleutian Chain.
Number 614
MR. AYERS replied, "The Tustamena."
Number 620
REPRESENTATIVE NORDLUND asked when the new ship would be
built and how it would be financed.
Number 621
MR. AYERS responded that the legislature had appropriated
$7.5 million in 1992 and an additional $7.5 million had been
requested for 1993, for a total of $15 million of the
approximately $75 to $85 million that it would take to build
the new ship.
TAPE 93-2, SIDE B
Number 000
MR. AYERS continued that he was working with Senator Stevens
on acquiring discretionary money. The ship would pay its
own operating costs and some of its administrative costs, he
said, and reported that much of their operation depended on
the legislature's action on this year's capital budget.
Number 069
REPRESENTATIVE GREEN asked that Mr. Ayers be scheduled to
return to address the committee in detail on the new
proposed ferry.
MR. AYERS agreed and passed out information about the Marine
Highway's budget.
Number 090
CHAIRWOMAN JAMES noted the arrival of Representative Terry
Martin, and introduced David Orr to talk about the Northern
Sea Route. Walt Wilcox passed out relevant information.
Number 115
DAVID ORR, NORTHERN SEA ROUTE PROGRAM COORDINATOR,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT (DCED),
presented pictures and information regarding the Northern
Sea Route, between the Bering Strait and Mermansk, Russia.
He stated that Russia began this route 600 years ago, but
the real emphasis started in the early 1900's and was
subsequently developed by Russia starting in the 1960's.
MR. ORR reported that Russia currently provided year-round
services on the northern sea route, and Alaska's current
interest was based on the closeness to ports in Europe,
which could cut distances in half from Alaskan ports. He
discussed and showed pictures of Russia's ice-breakers,
which allowed year-round use of the route, pointing out that
much of the ice-breaking technology came from Finland.
MR. ORR disclosed that last October, he witnessed the
signing of an agreement between Alaska and the Mermansk
Shipping Company to begin moving two cargo shipments from
Alaska to Europe via the Northern Sea Route in 1993. This
will be announced by the businesses concerned, and more
shipments will be forthcoming via this route, he added. He
noted feasibility studies had been requested from the Corps
of Engineers regarding extending the navigation season in
the Bering Sea as far north as Barrow, and on the Yukon and
Kuskokwim Rivers, for freight as well as passenger ferries.
Break-up could also be more controlled along Alaska's rivers
using ice-breakers, he added.
Mr. ORR pointed out the enormous opportunities available for
Western Alaska because the Yukon River and all points north
of the Yukon River were exempt from the Jones Act. Bethel
and/or Nome could become major ports using passenger ships
and also barges on the Yukon and Kuskokwim Rivers which
could then be loaded directly onto large ocean-going ships,
he said. He also informed the committee that hydrofoils
could be outfitted with ice-breaking capabilities. Pictures
of ice roads were used to show how large ships equipped with
their own cranes could be loaded and unloaded during winter.
Mr. ORR reported that Russia had twenty-five million people
living north of the Arctic Circle and thus required this
technology, whereas Alaska had the choice to take advantage
of these developments.
ANNOUNCEMENTS
Number 550
WALTER WILCOX, COMMITTEE AIDE, announced that the meeting
previously scheduled for next Tuesday had been cancelled;
and the next scheduled meeting for the International Trade &
Tourism Committee would be Thursday, February 25, at 5:00
p.m., in Room 102.
ADJOURNMENT
CHAIRWOMAN JAMES thanked Mr. Orr for his presentation and
adjourned the meeting at 6:45 p.m.
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