Legislature(2011 - 2012)BARNES 124

02/07/2012 10:15 AM ECON. DEV., TRADE & TOURISM


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10:18:56 AM Start
10:19:51 AM HCR19
10:34:57 AM Presentation: the Department of Commerce, Community & Economic Development Updates
11:39:37 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ DCCED Updates: TELECONFERENCED
- Alaska Broadband Task Force
- Division of Economic Development
- Tourism Development Section
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HCR 19 OIL & GAS POLICY/NORWAY TOUR TELECONFERENCED
Moved CSHCR 19(EDT) Out of Committee
              HCR 19-OIL & GAS POLICY/NORWAY TOUR                                                                           
                                                                                                                                
10:19:51 AM                                                                                                                   
                                                                                                                                
CHAIR HERRON announced  that the first order of  business would be                                                              
HOUSE  CONCURRENT RESOLUTION  NO.  19, Acknowledging  the  lessons                                                              
learned  from  the   2011  Norway  Policy  Tour   and  encouraging                                                              
investment in the state's oil and gas industry.                                                                                 
                                                                                                                                
10:20:04 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KELLER moved  Amendment M.2  which read  [original                                                              
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 4, line 5, after "benefit" insert                                                                                     
                                                                                                                                
        "private sector job expansion, affordable energy                                                                        
     options, value-added options,"                                                                                             
                                                                                                                                
10:20:13 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  OLSON  objected.   He  opined that  the  amendment                                                              
included items  that are  not related to  the original  purpose of                                                              
the resolution.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  KELLER  said  the  proposed  amendment  was  fully                                                              
aligned with  the intent of  the sponsor.   He read  the amendment                                                              
and explained that  the reason for the amendment  was that private                                                              
sector job expansion  was listed as one of desirable  goals on the                                                              
comprehensive  list of  goals presented  during  testimony on  the                                                              
2011 Norway  Policy  Tour.  He  characterized  the amendment  as a                                                              
friendly amendment.                                                                                                             
                                                                                                                                
REPRESENTATIVE OLSON removed his objection.                                                                                     
                                                                                                                                
10:22:25 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK  objected for the  purpose of discussion.   He                                                              
said  he was  unsure  whether Statoil  -  the partnership  between                                                              
Norway  and the oil  industry -  employees are  private or  public                                                              
sector employees,  and offered  an amendment  to Amendment  M.2 to                                                              
say "jobs."                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KELLER said  the emphasis  of those attending  the                                                              
2011  Norway Policy  Tour has  been  to the  expansion of  private                                                              
sector jobs.                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  withdrew his amendment to Amendment  M.2, and                                                              
removed his objection.                                                                                                          
                                                                                                                                
10:23:54 AM                                                                                                                   
                                                                                                                                
There being no further objection, Amendment M.2 was adopted.                                                                    
                                                                                                                                
10:24:08 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   TUCK,  on  behalf   of  Representative   Gardner,                                                              
offered   Amendment   M.3   which   read   [original   punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
     On page 2, line 21, insert a new sentence:                                                                                 
     "(13)  Norway has  developed a  free, comprehensive  and                                                                   
     rigorous  educational  system   spanning  pre-school  to                                                                   
     graduate  school  that provides  professional  expertise                                                                   
     for  the  oil  and  gas  sector  and  contributes  to  a                                                                   
     vibrant national economy; and"                                                                                             
                                                                                                                                
CHAIR HERRON objected for the purpose of discussion.                                                                            
                                                                                                                                
10:25:25 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  OLSON expressed his  opposition to Amendments  M.3                                                              
and M.4 because they  do not have any bearing on  the scope of the                                                              
tour or on  the intent of  the resolution.  The  amendment labeled                                                              
M.4 read [original punctuation provided]:                                                                                       
                                                                                                                                
     On Page 4, after Line 6, INSERT a new sentence:                                                                            
                                                                                                                                
     "FURTHER  RESOLVED  that the  Alaska  State  Legislature                                                                   
     shall explore  measures to support in-state  educational                                                                   
     systems  and  training  programs  necessary  to  provide                                                                   
     world-class, professional  expertise in the  oil and gas                                                                   
     sector to  Alaska, and potentially  to other  states and                                                                   
     nations: and be it"                                                                                                        
                                                                                                                                
REPRESENTATIVE  TUCK said  a key to  a strong  economy is  a solid                                                              
educational system,  and this was  made clear on the  Norway tour;                                                              
in fact,  as a result  of Norway's  investment in its  educational                                                              
system, it sends  experts in the oil and gas field  to work around                                                              
the world.  This  is an important component to  what Alaska should                                                              
be  striving  for:  graduating  people of  the  best  caliber  and                                                              
leaders in technology, and promoting a stronger economy.                                                                        
                                                                                                                                
CHAIR HERRON  referred to Amendment  M.4 and its placement  in the                                                              
resolution.                                                                                                                     
                                                                                                                                
REPRESENTATIVE TUCK  confirmed that Amendments M.3  and M.4 "[are]                                                              
a 'whereas'  and then  the 'further  resolved,'  to go along  with                                                              
that."                                                                                                                          
                                                                                                                                
CHAIR HERRON  asked Representative  Olson whether his  concern "is                                                              
with the  'resolve' or  was it  a concern  with the 'whereas'  and                                                              
the 'resolve'?"                                                                                                                 
                                                                                                                                
10:27:48 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE OLSON  restated that neither have a  bearing to the                                                              
intent of the work  product.  The intent of the  tour was to "find                                                              
out what  Norway was doing different  and how we might  learn from                                                              
their experience."   He  opined that there  are many  other things                                                              
Norway  does  that   may  be  explored  at  some   time,  but  the                                                              
amendments  have   no  bearing   on  this  particular   topic.  He                                                              
expressed his support of the resolution in its present form.                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  agreed with  the amendment, but  also agreed                                                              
that legislators  must stay  consistent with  the title of  a bill                                                              
or  a  resolution.    She  pointed  out  that  the  title  of  the                                                              
resolution  encourages  investment  in  the state's  oil  and  gas                                                              
industry,  and is  not  dealing with  an  education policy  issue.                                                              
She  said  she  is  not  in  support  of  including  the  proposed                                                              
language.                                                                                                                       
                                                                                                                                
10:29:12 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KELLER  also agreed  with the objection,  and noted                                                              
that one  of the  differences between  Norway  and Alaska  is that                                                              
Norway has a  "cradle to grave welfare system,"  and including the                                                              
amendment is distracting to the purpose of the bill.                                                                            
                                                                                                                                
REPRESENTATIVE  JOULE observed  that the  amendment may create  an                                                              
expectation  "by   implying  that  we  should  go   in  a  certain                                                              
direction  to be  supportive of  the oil  and gas  industry."   In                                                              
addition to  job opportunities,  efforts are currently  being made                                                              
in the  areas of education,  health care,  and others.   He agreed                                                              
with  Representative   Olson,  and  mentioned   several  education                                                              
programs currently  underway.  He said  he did not want  to create                                                              
an  expectation  that may  not  ever  be fulfilled;  however,  "it                                                              
doesn't diminish  my support  for these kinds  of things  in other                                                              
venues.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  TUCK  opined  the  amendments are  the  result  of                                                              
hearing testimony  that 36  percent of  Norway's residents  have a                                                              
post-graduate  degree or  higher, as  compared to  9.8 percent  in                                                              
Alaska.   He  said he  always supports  an educational  component;                                                              
however,   the  comments   heard  caused   him  to  withdraw   the                                                              
amendments on behalf of Representative Gardner.                                                                                 
                                                                                                                                
10:32:33 AM                                                                                                                   
                                                                                                                                
CHAIR HERRON suggested  the amendment could be  offered to another                                                              
committee, or on  the floor of the House.  There  being no further                                                              
amendments, he asked for discussion on the resolution.                                                                          
                                                                                                                                
REPRESENTATIVE  OLSON commended  the work  product from those  who                                                              
participated  in the 2011  Norway Policy  Tour.   As an  aside, he                                                              
noted  that Norway  has  a 38  percent  value-added  tax, and  the                                                              
highest personal income tax in Europe.                                                                                          
                                                                                                                                
REPRESENTATIVE OLSON  moved to report  HCR 19, as amended,  out of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
fiscal notes.                                                                                                                   
                                                                                                                                
10:34:22 AM                                                                                                                   
                                                                                                                                
There  being  no  objection,  HCR  19(EDT)  was  reported  out  of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
fiscal notes.                                                                                                                   

Document Name Date/Time Subjects
HCR 19 - Fiscal Note 1-25-12.pdf HEDT 2/7/2012 10:15:00 AM
HCR 19
EDT 2.7.12 - DCCED - 2012 OverviewFINAL.pdf HEDT 2/7/2012 10:15:00 AM
HCR 19 -Keller amendment M.2.pdf HEDT 2/7/2012 10:15:00 AM
HCR 19
HCR 19, Norway Policy Tour - Answers to Rep. Tuck Questions.pdf HEDT 2/7/2012 10:15:00 AM
HCR 19