Legislature(2015 - 2016)BELTZ 105 (TSBldg)

02/24/2015 01:30 PM Senate LABOR & COMMERCE

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01:32:15 PM Start
01:33:12 PM Confirmation Hearings
01:48:42 PM SB33
01:51:18 PM SB34
01:58:05 PM SB39
03:00:52 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Board and Commission Appointees: TELECONFERENCED
Alaska Workers' Compensation Board
Board of Certified Real Estate Board
Board of Massage Therapists
State Medical Board
Board of Examiners in Optometry
-- Public Testimony --
Moved SB 33 Out of Committee
Moved SB 34 Out of Committee
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
            SB  39-REPEAL FILM PRODUCTION TAX CREDIT                                                                            
1:58:05 PM                                                                                                                    
CHAIR   COSTELLO  reconvened   the  meeting   and  announced   the                                                              
consideration of SB 39. "An Act repealing the  film production tax                                                            
credit;  providing   for  an  effective  date  by   repealing  the                                                              
effective  dates  of  secs.  31  -  33,  ch.  51,  SLA  2012;  and                                                              
providing for an effective date."                                                                                               
She stated  that Jared  Meyer would  give brief  remarks and  then                                                              
public  testimony  would  be  heard  until  3:00.  She  asked  for                                                              
individual testimony to be limited to three minutes.                                                                            
1:59:19 PM                                                                                                                    
JARED  MEYER, Fellow,  Manhattan  Institute  for Policy  Research,                                                              
Washington, D.C.,  summarized the purpose of the  film tax credits                                                              
and  questioned   whether  the  program  had  been   effective  in                                                              
stimulating  the overall  economy rather  than just  for the  film                                                              
industry. He said  the data from other states and  the Alaska Film                                                              
Office suggest that  film tax credits fail to  pay for themselves.                                                              
The  credits  aren't  linked  to  profit but  to  the  amount  the                                                              
filmmaker  spends  on qualified  expenses  during  production.  He                                                              
also pointed out  that the credits are more valuable  than typical                                                              
deductions because  they can be sold  to another taxpayer  or sold                                                              
back to  DOR for  75 percent of  their value.  He described  SB 39                                                              
and Governor Walker's  proposal to suspend the  program as welcome                                                              
steps because  targeted tax breaks  - especially ones  targeted at                                                              
the film industry, are problematic.                                                                                             
MR.  MEYER   warned  that   states  that   choose  to   enter  the                                                              
competitive arena  of offering  film tax credits  are in  a losing                                                              
battle and  will have  to continually  increase the incentives  to                                                              
keep the  film companies  from moving to  other states  that offer                                                              
better deals.  He maintained that  studies cited by  proponents of                                                              
film tax  credits are flawed. For  example, a study funded  by the                                                              
Motion Picture  Association assumed  that every dollar  in credits                                                              
creates  $17.75  in  economic  activity  and  leads  to  $1.88  in                                                              
increased  tax  revenue.   He  said  that  is   pure  fantasy.  He                                                              
referenced independent  studies that  found that film  tax credits                                                              
are  not  effective   at  creating  permanent  jobs   or  economic                                                              
development  and only  generate about  30 cents  for every  dollar                                                              
spent.  Other states  are taking  notice of this  problem and  the                                                              
proposed legislation  indicates that Alaska  is as well.  He noted                                                              
that  in  2010,   40  states  spent  $1.4  billion   on  incentive                                                              
programs,  but   since  then  many   states  have   eliminated  or                                                              
suspended their  credits. For  example, Connecticut suspended  its                                                              
film  production  tax  credits  for  two  years  due  to  mounting                                                              
questions  about whether  the program  paid for  itself. Even  the                                                              
Federal Reserve  Bank of Boston  concluded the program  didn't pay                                                              
for itself when  lost tax revenue is taken into  account. He noted                                                              
that some  states are  ignoring the  economic  cost and racing  to                                                              
see who  can most heavily  subsidize Hollywood. He  described this                                                              
as  a battle  that benefits  film  producers but  one that  states                                                              
can't win.                                                                                                                      
MR.  MEYER reviewed  the most  recent  report by  the Alaska  Film                                                              
Office  and stated  that  the numbers  support  the argument  that                                                              
there   are  better   uses  of   scarce   taxpayer  dollars   than                                                              
subsidizing  films, especially  reality  TV shows.  He also  cited                                                              
data from the  [DCCED] program that shows that  only eight percent                                                              
of the total  qualified expenditures went to Alaska  residents. He                                                              
stressed that  the jobs coming  to Alaska  are not worth  the cost                                                              
of foregoing  tax revenue  to try  to bring in  a new industry  to                                                              
the state, especially in the face of falling revenues.                                                                          
MR.  MEYER  summarized  his comments  stating  that  the  economic                                                              
literature,  trends in  other  states, and  data  from the  Alaska                                                              
Film Office  all suggest that  subsidizing Hollywood  producers is                                                              
neither fair nor smart economic policy.                                                                                         
2:08:43 PM                                                                                                                    
SENATOR STEVENS  asked Mr.  Meyer to give  some background  on the                                                              
Manhattan  Institute including  how  it's funded  as  well as  his                                                              
personal education and experience.                                                                                              
MR. MEYER  said the Manhattan  Institute is a 501(c)(3)  nonprofit                                                              
that works  on policies  to promote  economic growth. He  attended                                                              
school  at Saint  John's  University  in New  York  City where  he                                                              
studied  finance. His  current focus  is  primarily on  regulation                                                              
and how tax breaks affect the economy.                                                                                          
CHAIR COSTELLO  asked  for a copy  of the  independent studies  he                                                              
MR. MEYER  agreed to provide  the information. He  reiterated that                                                              
those  findings  stand  in  stark  contrast  to  what  the  Motion                                                              
Picture Association  of America concludes when it  does studies on                                                              
the effect of film tax credits.                                                                                                 
CHAIR COSTELLO thanked Mr. Meyer for the broad view.                                                                            
2:10:39 PM                                                                                                                    
RON  HOLMSTROM,  representative,   SAG-AFTRA,  Anchorage,  Alaska,                                                              
testified in  opposition to  SB 39. He spoke  of having  to defend                                                              
his  livelihood  every year,  of  the  incentives that  have  been                                                              
eliminated   since   the   program    started,   and   the   local                                                              
entrepreneurs that  have given up  their plans to  build ancillary                                                              
businesses  for  the film  industry.  He  pointed out  that  there                                                              
hasn't been  a major motion  picture in  Alaska in over  three and                                                              
one-half  years and  that while  membership in  SAG quadrupled  in                                                              
the  first two  years  of  the program,  it  has added  just  four                                                              
members since the program was changed.                                                                                          
MR.  HOLMSTROM  suggested  that  now  was  an  excellent  time  to                                                              
diversify  the  Alaskan  economy.  He pointed  to  Louisiana,  New                                                              
Mexico,   Georgia   and   British    Columbia   as   examples   of                                                              
jurisdictions that  are thriving on  the film industry.  They have                                                              
built  the  necessary  infrastructure  to  support  the  industry,                                                              
which Alaska has not done.                                                                                                      
He concluded  saying  that while  film production  may not  be the                                                              
golden  goose, it could  be one  golden goose  in these  difficult                                                              
economic times.                                                                                                                 
2:15:08 PM                                                                                                                    
KAREN  TALLENT, representing  herself,  Anchorage, Alaska,  stated                                                              
that  she is  intimately  knowledgeable of  the  film industry  in                                                              
Alaska  and she is  adamantly opposed  to SB  39. She  understands                                                              
why Governor Walker  suspended the program, but  believes it would                                                              
be  a  costly  mistake  to  repeal  the  program  altogether.  She                                                              
pointed out  that the  film industry  brings much-needed  money to                                                              
the state  and this is  the kind of  economic diversity  the state                                                              
needs  in the  current fiscal  situation. For  example, the  small                                                              
budget  film "Big  Miracle" spent  $16 million  during filming.  A                                                              
larger budget  film scheduled  to film in  Whittier in  the spring                                                              
has the potential  to bring in much more while  providing jobs for                                                              
Alaskans  and   economic  opportunity   for  Alaskan   businesses.                                                              
Revenue from  this industry  could help  to improve the  financial                                                              
health  of  Alaska.   However,  if  the  tax  credit   program  is                                                              
repealed,  producers  won't  come  and the  state  will  lose  the                                                              
chance to  build a viable  and sustaining  industry that  is badly                                                              
needed to diversify the economy in Alaska.                                                                                      
MS. TALLENT characterized  SB 39 as unnecessary  and shortsighted.                                                              
It would  kill a growing  industry that  brings needed  revenue to                                                              
the  state,  diversifies  the  economy,   and  provides  jobs  and                                                              
economic opportunities for Alaskan businesses.                                                                                  
2:20:29 PM                                                                                                                    
D.K. JOHNSTON,  Tri-Seven Pictures,  Anchorage, Alaska,  testified                                                              
in opposition  to SB 39.  He stated that  it is time  to diversify                                                              
the Alaskan  economy not limit it  further. He described  the film                                                              
production  community  in  Alaska  as alive  with  creativity  and                                                              
determination.  He  said  this Alaskan  workforce  is  growing  in                                                              
anticipation of  the future in  the film and television  industry.                                                              
There  are  increases  in  educational   opportunities,  community                                                              
organizations,  and  small  businesses  that  are  rising  to  the                                                              
challenge  of  keeping the  industry  going.  He related  that  he                                                              
recently attended  a production  education safety training  course                                                              
in Whittier.  It was  attended by  welders, carpenters,  painters,                                                              
fishermen,  and helicopter  pilots  as well  as  Alaskans who  are                                                              
production  oriented. This  is a  small sample  of the variety  of                                                              
jobs and  professions that is needed  to bring a  large production                                                              
to life.                                                                                                                        
MR.  JOHNSTON  asked  the  committee  to  carefully  consider  the                                                              
consequences of  repealing the film  incentives and vote no  on SB
2:22:37 PM                                                                                                                    
ERIC  ULZER,   Business  Manager,  IATSE  local   918,  Anchorage,                                                              
Alaska,  testified  in opposition  to  SB  39. He  explained  that                                                              
local  918  is  the  film  labor   union  comprised  of  painters,                                                              
carpenters,  welders, and  caterers. He described  what the  union                                                              
is doing in Whittier  to provide an offseason bump  for locals. He                                                              
said  this  demonstrates  that  the  film  tax  incentive  program                                                              
benefits many people who aren't from Hollywood.                                                                                 
2:25:10 PM                                                                                                                    
DANIEL  JOSEPH   LEE,  representing  himself,   Unalaska,  Alaska,                                                              
testified in opposition  to SB 39. He told the  committee that for                                                              
three years  he paid his mortgage  with reality TV and  it allowed                                                              
his  wife to  continue  her  post-grad  degree in  psychology  and                                                              
education.  He pointed  out  that individuals  that  work in  film                                                              
production and  reality TV develop  intangible skills that  are an                                                              
asset  in  any  field.  They  become  goal  oriented  and  focused                                                              
workers who show up on time and come prepared to work.                                                                          
MR. LEE  concluded that his  family has  been in Alaska  for three                                                              
generations  and it  would  break his  heart  if he  had to  leave                                                              
because the film industry fell apart                                                                                            
2:26:54 PM                                                                                                                    
LISA ROBERTS,  representing herself,  Unalaska, Alaska,  testified                                                              
in  opposition to  SB 39.  She said  she  has worked  in the  film                                                              
industry  for  about  six years  and  she  is  an example  of  the                                                              
success  of  the  film  tax  incentive   program.  Film  companies                                                              
trained  her as  opposed to  importing qualified  workers and  she                                                              
has  trained  others. She  said  the  incentive program  is  about                                                              
putting Alaskans  to work  and SB 39  kills that opportunity.  She                                                              
urged the committee not to squash opportunities for Alaskans.                                                                   
2:28:18 PM                                                                                                                    
BETH  SKABAR, Original  Productions,  Unalaska, Alaska,  testified                                                              
in opposition  to  SB 39. She  said that  since the  start of  the                                                              
incentive program  she has seen  the film community  come together                                                              
to grow an  industry. New businesses have flourished,  new careers                                                              
have started,  and friends  and colleagues  have worked  their way                                                              
up through  the ranks  in the  industry. She  emphasized that  the                                                              
film  incentives  are working.  There  are Alaska  businesses  and                                                              
resources  to  support  productions   that  weren't  here  before.                                                              
Alaskans are  working on productions  and in jobs  that previously                                                              
would  have gone  to someone  from New  York. She  pointed to  the                                                              
large  production  on  her  front  lawn that  is  ready  to  spend                                                              
millions  of   dollars  in  wages,   goods,  and   services.  This                                                              
demonstrates that the film incentives are working.                                                                              
MS.  SKABAR  concluded  that  SB  39  would  unreasonably  stop  a                                                              
successful program  that aims to  diversify the economy,  which is                                                              
what Alaska needs.                                                                                                              
2:30:22 PM                                                                                                                    
MATT  SZUNDY,   Glacier  Film   Productions,  Anchorage,   Alaska,                                                              
testified in opposition  to SB 39. He provided  a personal example                                                              
of the  unquantifiable blue sky benefits  of the film  industry in                                                              
Alaska. In the past  year he had two film industry  contracts. One                                                              
was  specifically for  production  and the  other  was a  contract                                                              
with  DCCED  to serve  as  the  state film  representative.  As  a                                                              
result  of that  work,  he  was able  to  put three  employees  on                                                              
salary in  tourism. That  shows the  trickledown effect  of income                                                              
in  the  state  via  film.  He  advised  that  a  number  of  film                                                              
productions   are  watching  this   legislation.  They   represent                                                              
millions of dollars in jobs and services to the state.                                                                          
MR. SZUNDY  concluded that the  incentive program  brings economic                                                              
benefit to  the state, which is what  the law says it  is supposed                                                              
to do.  It doesn't  say it  is to  bring economic  benefit to  the                                                              
state government.                                                                                                               
DAVID   MCGOVERN,   representing   himself,   Anchorage,   Alaska,                                                              
testified  in opposition  to SB  39.  He pointed  out that  states                                                              
that support  the film  industry all have  sin taxes,  which bring                                                              
funds into the state  budget. He suggested that a  sales tax might                                                              
be  something to  consider. He  noted  that Alaskans  have had  to                                                              
fight  for  the  incentive  program  every year  and  one  of  the                                                              
biggest issues  is the  concern that the  film industry  will make                                                              
Alaskans look  bad. He questioned  the merit of that  concern when                                                              
the  state  already  has  a  reputation  to  overcome  because  it                                                              
already has the  highest per capita rates for rape  and suicide in                                                              
the  nation  He suggested  the  committee  consider the  jobs  the                                                              
industry will bring.                                                                                                            
2:34:56 PM                                                                                                                    
KEN   FANKHAUSOR,   representing   himself,   Anchorage,   Alaska,                                                              
testified  in opposition  to SB  39. He  said that  now isn't  the                                                              
time to  shut the door  on economic  diversity. Rather,  it's time                                                              
to  make new,  viable  opportunities  and  jobs for  Alaskans.  He                                                              
described the  incentive program as  a hand-up, not a  handout. He                                                              
related  that about  three years  ago he began  moving up  through                                                              
the industry  by learning on-the-job  skills from people  who have                                                              
come  to Alaska  to  make films  and  television  shows. Today  he                                                              
works  as a  camera operator  or  an assistant.  He stressed  that                                                              
getting that  type of work in  Alaska is only possible  because of                                                              
the tax  incentive. If SB  39 passes, he  and many other  Alaskans                                                              
will have to leave the state because the industry won't survive.                                                                
2:36:56 PM                                                                                                                    
LOIS  SIMENSON,   representing  herself,   Eagle  River,   Alaska,                                                              
testified in opposition  to SB 39. She said she  realizes that the                                                              
decision on SB 39  will be based on dollars and  cents and whether                                                              
the film incentive  will continue to benefit Alaska.  She said she                                                              
is speaking  as an  Alaskan who has  worked on  most of  the major                                                              
films in Alaska.  These projects are bridge builders  that provide                                                              
jobs for  Alaskans and bring the  community together in  ways that                                                              
cannot  be captured  on an Excel  spreadsheet.  She said the  film                                                              
industry gave  Alaskans hope for  a diversified economy  and paved                                                              
the  way for  an  explosion  of local  film  makers  to enter  the                                                              
industry.  These films promote  Alaska and  its tourism  industry.                                                              
They  increase revenue  for  the support  infrastructure,  hotels,                                                              
catering, and transportation businesses.                                                                                        
MS. SIMENSON  urged the  committee not to  eliminate the  film tax                                                              
incentives which  would send  jobs out of  state and  force actors                                                              
like herself to leave Alaska.                                                                                                   
2:39:48 PM                                                                                                                    
DAVID BOYLE,  representing himself,  Anchorage, Alaska,  testified                                                              
in support of SB  39. He described the tax credit  as a subsidy to                                                              
the film industry  and a shining example of crony  capitalism that                                                              
subsidizes  outside companies  and extracts  money from the  state                                                              
treasury.  He  maintained  that   Alaska's  subsidy  is  the  most                                                              
generous  of the  40 states  that  offer film  subsidies. He  said                                                              
these subsidies  don't pay  for themselves  and they reduce  funds                                                              
that could support  education, public safety,  and infrastructure.                                                              
He said a  review of the approved  tax credits shows that  most of                                                              
the  jobs  are  nonresident.  For  example,  the  Deadliest  Catch                                                              
production  employed 8 residents  and 35  nonresidents and  reaped                                                              
$691,000  in  tax  credits.  He cited  several  more  examples  to                                                              
support  the  point   that  the  program  isn't   about  employing                                                              
Alaskans.  Rather,  it's  about hiring  nonresidents  and  sending                                                              
Alaska money to  outside companies while reducing  tax liabilities                                                              
for Alaskan  corporations. He  discussed an  audit that  shows the                                                              
film tax  subsidy cost  Alaska more than  $19.9 million  from 2008                                                              
to  2012. The  same audit  shows  that from  2008  to 2011  Alaska                                                              
direct  hires represented  just  16 percent  of  the total  direct                                                              
hires,  and that Alaskans  received  about 15  percent of the  $52                                                              
million in wages  paid. According to the Northern  Economic Study,                                                              
$21.2  million in  tax credits  generated  economic activity  that                                                              
resulted  in an  estimated $1.2  million in  additional taxes  and                                                              
MR. BOYLE urged the committee to pass SB 39.                                                                                    
2:44:24 PM                                                                                                                    
MARY  KATZKE,  Affinity  Films, Anchorage,  Alaska,  testified  in                                                              
opposition  to  SB  39.  She  told  the  committee  she  has  been                                                              
producing films in  Alaska since 1980. This is work  she loves and                                                              
it's difficult  to put  a value  on that.  She told the  committee                                                              
that there  is a  rising pool of  talent in  Alaska and  she would                                                              
like  that  to  continue.  She  said  she  respects  the  economic                                                              
perspective  of  the testifier  from  the Manhattan  Institute  of                                                              
Public Policy,  but she  doesn't believe  he understands  the film                                                              
business. She  said the  average film takes  7-10 years  from idea                                                              
to  the screen.  The highly  criticized reality  shows are  always                                                              
the  first to  arrive but  the goal  is a  television series  that                                                              
lasts five  seasons.  That means  nine months  of steady work  for                                                              
people.  She and  others have  been  working toward  this for  the                                                              
last  three and  one-half  years and  they had  a  master plan  in                                                              
place until four weeks ago.                                                                                                     
MS.  KATZKE likened  getting  a film  incentive  program going  to                                                              
planting a  forest. She  said the seedlings  are starting  to come                                                              
up and  to send a  mower in  and knock everybody  down is  not the                                                              
way to  nurture them.  She reminded the  members that  this fiscal                                                              
crisis will pass and urged them not to kill the industry.                                                                       
2:47:29 PM                                                                                                                    
RANDY DALY,  President elect,  Alaska Film  Group, Kenai,  Alaska,                                                              
testified in opposition  to SB 39. He said he is  the publisher of                                                              
the Alaska  film industry  news magazine and  producer of  a daily                                                              
show, which  has allowed him  to hire an  editor, a  sales person,                                                              
and a  "second talent."  He  described SB  39 as  a bad idea  that                                                              
does not  decrease spending  this  year but harms  the future.  He                                                              
said SB  39 won't solve  the state's  long-term budget  problem of                                                              
spending  more than  it generates,  but  diversifying the  economy                                                              
will. The  Alaska film incentive  provides some of  that diversity                                                              
and  it is  competitive.  He  said  the legislature  designed  the                                                              
program and if it  is allowed to operate, the state  will have the                                                              
opportunity  to harvest  revenue  benefits from  business done  in                                                              
the state in  the future. However,  if SB 39 passes the  money and                                                              
sweat equity  invested in the program  be lost and  future revenue                                                              
will go  away. The  fact that  the legislature  has vacillated  on                                                              
the status  of the program each  year has caused some  projects to                                                              
leave the state and others to not come at all.                                                                                  
MR. DALY  suggested the  committee think of  the program  in terms                                                              
of a  corn crop. Some of  the corn will  be sold and some  will be                                                              
used  as feed,  but first  the  farmer sets  aside  seed for  next                                                              
year's crop.  This is  sustainable into  the future. By  contrast,                                                              
SB 39 would  have the State of  Alaska eat its seed and  starve in                                                              
the future. He asked that SB 39 be withdrawn.                                                                                   
2:51:01 PM                                                                                                                    
MARTIN  WEISER,  Managing  Partner, Fireside  Media  Group  (FMG),                                                              
Anchorage,  Alaska,   testified  in   opposition  to  SB   39.  He                                                              
cautioned that  repealing the film  production tax  credit program                                                              
will reverse  what has already  been accomplished and  destroy any                                                              
future possibility  for Alaska to  claim its share of  the growing                                                              
entertainment  and  technology  industries  that  otherwise  would                                                              
train Alaskans  for state of the  future jobs, return  hundreds of                                                              
millions  of dollars  to Alaska  businesses,  and secure  Alaska's                                                              
financial future without relying on oil.                                                                                        
He  described  a  team of  film  and  TV  producers,  Alaska-based                                                              
Hollywood executives,  artists, educators,  and some  business and                                                              
civic leaders  who have made  a significant capital  investment in                                                              
the  past  two years  to  lay  the foundation  for  a  sustainable                                                              
entertainment and  information technology industry in  Alaska. The                                                              
Alaska film  tax incentive is key  to this plan, but  they utilize                                                              
the program differently  than the majority of other  producers and                                                              
out of state productions.                                                                                                       
MR.  WEISER explained  that  the strategy  is  to couple  physical                                                              
production  with post production,  which is  what happens  after a                                                              
film is  shot. This phase  often lasts up  to a year  and includes                                                              
film editing,  music scoring,  audio engineering, visual  effects,                                                              
and the  data management and encoding  necessary to take  the film                                                              
to  market.  These  post-production  jobs are  grounded  in  local                                                              
businesses  such  as  FMG  that   might  be  working  on  multiple                                                              
projects  at any given  time. The  jobs appeal  to young  Alaskans                                                              
who  are looking  for ways  to take  their  experience with  video                                                              
games,  social media,  and mobile  computing  into the  workforce.                                                              
They also appeal  to working Alaskans looking for  a career change                                                              
that will provide skills that reach far beyond movie making.                                                                    
He  reviewed   the  accomplishments   over  the  last   12  months                                                              
including a  partnership with the  University of Alaska  System to                                                              
provide  students and  faculty with  real  world opportunities  to                                                              
learn  from some  of Hollywood's  prominent directors,  producers,                                                              
and production  staff. Another  partnership  has brought film  and                                                              
TV scores  to the  Alaska Symphony  Orchestra,  many of which  are                                                              
for  productions filmed  outside Alaska.  This has  made Alaska  a                                                              
global contender  for music and  audio services that  typically go                                                              
to symphonies in L.A. New York, London, and Eastern Europe.                                                                     
MR. WEISER  reported that they are  close to signing  a multi-year                                                              
service  agreement  with  some of  Hollywood's  major  studios  to                                                              
pipeline a  portion of the  post-production work to  Alaska, which                                                              
would create  a sustainable  and long-lasting  workload for  their                                                              
labor force.  They have also  established Alaska's first  film and                                                              
TV financing  syndicate to help  co-finance certain  projects that                                                              
either  film  their  physical production  and/or  do  their  post-                                                              
production work in  Alaska. He said this goes far  beyond what the                                                              
legislature envisioned  when it  passed the legislation.  Alaskans                                                              
will not only  benefit from the production dollars  spent here but                                                              
also capture a share of the global revenues of these projects.                                                                  
MR. WEISER  said the  recent announcement  that the tax  incentive                                                              
program likely  will not  continue has brought  all the  hard work                                                              
by their  staff and  partners to screeching  halt. He  warned that                                                              
time is  of the essence to  restore market confidence  that Alaska                                                              
is still open for business.                                                                                                     
2:56:42 PM                                                                                                                    
DEREK MUSTO,  representing himself,  Anchorage, Alaska,  testified                                                              
in  opposition  to  SB  39.  He works  as  a  business  agent  for                                                              
Teamsters  Local 959  that represents  the  motion picture  studio                                                              
industry in  Alaska. He  described the  suspension of the  program                                                              
as  a sensible  approach given  the current  fiscal situation.  It                                                              
gives  the state  the  time needed  to  work through  tough  times                                                              
without  closing the  door  on the  film industry.  He  emphasized                                                              
that  passing SB  39 won't  save the  state dollars,  but it  will                                                              
permanently  cripple  a  growing   industry  in  Alaska  that  can                                                              
operate  anywhere it  chooses. Keeping  the program  on the  books                                                              
will  leave Alaska's  door open  to an  industry that  diversifies                                                              
the  economy and  provides jobs.  He  urged the  committee not  to                                                              
pass SB 39.                                                                                                                     
CHAIR COSTELLO  announced she  would hold SB  39 in committee  and                                                              
keep public testimony open.                                                                                                     
2:59:51 PM                                                                                                                    
SENATOR ELLIS  expressed  appreciation for  the time, energy,  and                                                              
passion that Mary  Katzke has put into episodic  television, which                                                              
is the big prize.  "My heart goes out to her and  her efforts," he                                                              

Document Name Date/Time Subjects
2015.02.24 L&C Agenda.pdf SL&C 2/24/2015 1:30:00 PM
Unser, Amanda - Board of Massage Therapists.pdf SL&C 2/24/2015 1:30:00 PM
Williams, Lake - Worker's Comp Board.pdf SL&C 2/24/2015 1:30:00 PM
Edwards-Smith, David - Board of Massage Therapists.pdf SL&C 2/24/2015 1:30:00 PM
Gibbs, Ron - Board of Massage Therapists.pdf SL&C 2/24/2015 1:30:00 PM
Gilmour, Traci - Board of Massage Therapists.pdf SL&C 2/24/2015 1:30:00 PM
Governor's Board Appointments - 1.30.15.pdf SL&C 2/24/2015 1:30:00 PM
Humphreys, Steven - State Medical Board.pdf SL&C 2/24/2015 1:30:00 PM
Nelson, Shirley - Board of Massage Therapists.pdf SL&C 2/24/2015 1:30:00 PM
Piszczek, Renee - Real Estate Appraisers.pdf SL&C 2/24/2015 1:30:00 PM
Stralka, Stephen - Board of Examiners in Optometry.pdf SL&C 2/24/2015 1:30:00 PM