Legislature(1995 - 1996)
01/26/1995 03:05 PM House ITT
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
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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