For the first time since the cruise line industry sued the state 4 days ago on the $46 cruise ship passenger tax, all parties around this issue went face to face.

The House Judiciary Committee heard from Alaska Cruise Association and the State of Alaska on Tuesday.

The meeting was originally scheduled weeks before the lawsuit came down.

"I'm curious as to why you filed the lawsuit just days before we had this previous scheduled hearing," asked Rep. Bob Lynn, R - Anchorage.

According to the Alaska Cruise Association, which represents 9 cruise lines, timing had nothing to do with it. "Realistically, the suit probably would have been filed long time ago if we would have gotten all members together to understand all of this very complicated issue," said Bob Stone, with the Alaska Cruise Association.

Alaskans approved a cruise ship initiative in 2006, placing a $46 tax on all cruise ship passengers in Alaska. "This cruise ship tax fee was designed to, with regards to the cruise industry, have good, safe, efficient wharfs. That is good sidewalks, so you don't have all these people falling into the streets. If they need a covered area because a lot of places are in Southeast are in coastal rain forests, that we take care of efficiently and safely for our guests," said Joe Geldohf, with the group that sponsored the initiative, Responsible Cruising in Alaska.

But ACA says the head tax is unconstitutional and has been a burden to

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the industry, leaving no other choice but to move forward with the lawsuit. "We thought we made our point, we didn't get any traction and I think with the economy effects on what's driving business and how that has affected Alaska," said Stone, "when we see that business dwindling based on this, it finally came to a decision."

But the state did not agree with that and said it believed the cruise ship head tax has a solid legal footing moving forward, "Two years after implementation of the tax, passenger visits, at least through Juneau continued to increase," said Attorney General Dan Sullivan, "So in 2007 they were up by 65 thousand passengers, in 2008 up an additional 15 thousand and 2009 obviously a very difficult year for economic growth but even with that down turn, there was a recent announcement of additional cruise lines looking to come to Alaska."

And though the litigation sits in the hands of the U.S. District Court, lawmakers felt it was still important to follow through with the meeting. "There were some that wanted the meeting cancelled but in doing some research into the issue, precedent set forth on different things and I felt it was important the meeting go on," said Judiciary Vice-Chair, Rep. Nancy Dahlstrom, R - Eagle River.

After hearing public testimony, the committee met behind closed doors in an executive session under the legislature's uniform rule, with the Department of Law and Legislative Council to discuss matters which would have adverse effect with the state's finances and other issues that may, by law, require confidentiality.

The committee plans to continue working with interested parties and the state to find a way to administer out the tax without calling into question its legality.

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