Legislature(2019 - 2020)BARNES 124
03/14/2019 11:00 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s):|| Commissioner, Department of Commerce, Community, and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,
ECONOMIC DEVELOPMENT, AND TOURISM
March 14, 2019
11:02 a.m.
MEMBERS PRESENT
Representative Sara Hannan, Chair
Representative Zack Fields
Representative Jonathan Kreiss-Tomkins
Representative Chris Tuck
Representative Josh Revak
Representative Sara Rasmussen
MEMBERS ABSENT
Representative John Lincoln
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Commissioner, Alaska Department of Commerce, Community, and
Economic Development
Julie Anderson - Anchorage
- CONFIRMATION(S) ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JULIE ANDERSON, Commissioner-Designee
Department of Commerce, Community, and Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Testified as appointee to the position of
Commissioner of the Department of Commerce, Community, and
Economic Development.
ACTION NARRATIVE
11:02:20 AM
CHAIR SARA HANNAN called the House Special Committee On Arctic
Policy, Economic Development, and Tourism meeting to order at
11:02 a.m. Representatives Revak, Rasmussen, Tuck, and Hannan
were present at the call to order. Representatives Kreiss-
Tomkins and Fields arrived as the meeting was in progress.
^CONFIRMATION HEARING(S):
^Commissioner, Department of Commerce, Community, and Economic
Development
11:03:29 AM
CHAIR HANNAN announced that the only order of business would be
a confirmation hearing for Julie Anderson, the governor's
appointment to Commissioner of the Department of Commerce,
Community, and Economic Development (DCCED).
11:04:02 AM
JULIE ANDERSON, Commissioner-Designee, Department of Commerce,
Community, and Economic Development (DCCED) read the following
prepared testimony [original punctuation provided]:
Good morning! Madame Chairman and members of the
Committee, my name is Julie Anderson, Commissioner-
Designee for the Department of Commerce, Community and
Economic Development.
I want to thank the Committee for your time in
visiting with me individually and for this hearing
today. I also want to express my appreciation to
Governor Dunleavy for his confidence in choosing me
for this position.
Since we have met individually and and spent time with
together, I will abbreviate my personal history but
put just a few details on the record:
? I am of Athabaskan descent on my father's side and
my mother's grandparents moved to in Eagle in 1898,
where she resides today.
? I grew up all over the Interior, worked pipeline
construction out of high school, later went to college
? Beyond my life experiences, my education includes a
bachelor's in business from UAF and a master's from
the Thunderbird School of Global Management. I also
obtained Certification as an Economic Development
Professional.
? As to my career, in the mid-90's I worked to
implement the Community Development Quota (CDQ)
Program. I also worked for Alyeska Pipeline Service
Company managing a team of employees and contractors
to successfully deliver contractor management, HSE and
supply chain functions, facilities, aviation and
crisis management operations. Following my time there,
I worked for AEA on the Susitna-Watana hydro project.
Having worked both in DCRA and AEA, and worked with a
variety of economic development efforts, I have a good
working knowledge of the department, its divisions and
programs, with much more to learn.
I care deeply about the future of the state and look
forward to working with administration to create
economic opportunity for future generations. The
Governor has assembled an outstanding, diverse
cabinet, and I am honored to be a part of it.
Which brings me to my vision for our Department. To
create economic opportunity requires bringing fresh
ideas and new perspectives to both our role in
economic development and in administering the statutes
that the Legislature has given us to implement.
One of our top goals is to encourage new investment in
the state and grow our economy by repealing
unnecessary regulatory burdens, by not increasing
taxes, and by creating stability. We intend to
strengthen key industries while supporting the free
enterprise system, building a diverse economy through
business assistance, financing, promotion, and public
policy. At DCCED, we are working aggressively to break
out of government silos and make sure our employees
and divisions are pulling together for Alaskans.
We are looking at opportunities to modernize, use
existing data and work smarter. An example is an
effort underway to link the new Community Database
Online (CDO) in the Division of Community and Regional
Affairs with a whole host of other data on business
licensing, land ownership, resources and economic
development, to help provide region specific
information for those looking to invest in Alaska.
There is a presentation on the CDO in House Community
and Regional Affairs scheduled for Tuesday, March 26th
at 8:00 AM
We are also intensely focused on jobs and capital it
takes investment to generate jobs, and jobs are what
generate healthy people and healthy communities. We
are taking a deep look at what helps or hinders
investment that creates jobs, across everything we do.
We need to focus on Alaska's competitive advantages,
reduce barriers, and let industry know that Alaska is
open for business.
We've already met with dozens of local venture capital
experts, business owners and industry leaders to
explore ways in which the department can help foster
Alaska's growth. We are listening to suggestions and
seeking their valuable ideas to implement as quickly
as possible.
Additionally, our Department is committed to doing a
better job administering the statutes that the
Legislature has given us to implement, we've reviewed
thousands of pages of statutes and regulations with an
eye to reducing burdens on citizens and businesses
We realize that a healthy regulatory environment is
necessary for a strong economy. Regulation that is
reasonable, balanced and efficient is my solution. We
must strike the proper balance between economic
development and public safety and protection. We are
actively reviewing professional licensing requirements
and the best way to fulfill our duty to protect
Alaskans while trying to lighten requirements that are
barriers to growth.
We continue to work to find this kind of balance
across our programs, and are critically looking at
licensing to see if any of them have outlived their
usefulness, and for ways to modernize, digitize and
streamline to make licensing easier to do here than
anywhere else.
We are at a point where it is imperative that we focus
on our core services at the same time we grow the
economy. I am excited to have the opportunity to help
improve how the government encourages business
development and delivers high quality services more
efficiently to Alaska's citizens and businesses.
As I said in my opening, my background includes
fifteen years with Alyeska Pipeline, running my own
business, time working on the Susitna-Watana Hydro
Project, and working to get the CDQ program in place
for communities in Western Alaska. I know what
Alaskans can do when they put their mind to it.
Let me close with this: we all share those visuals
the world's fascination with Alaska, our wild and
scenic brand, our unparalleled beauty, our extensive
coastline, our vast stores of natural resources, our
fish, our native cultures and corporations, and our
center in trans-pacific trade. Our airport is the
fourth busiest cargo hub in the world, our place as
America's entry in the arctic, our robust public and
private corporations, and our millions of acres of
land.
Visualize all that, and then our people, and ask
yourself what is holding us back. It is truly our
ability to visualize and build a better future, for
ourselves, our kids, and our grandkids. I believe
Alaskan are up to the challenge!
I am looking forward to helping in this effort to
provide efficient services to the residents and
businesses in the state and doing what we can to
improve our economy for future generations.
Thank you for your time today.
11:10:46 AM
REPRESENTATIVE FIELDS praised Commissioner Anderson's experience
and thanked her for bringing that experience to state service.
He noted that there are national groups that lobby to eliminate
licensing requirements. He shared an anecdote about a
constituent who requested new licensing requirements for
interior designers. He recalled the previous legislature
working with massage therapy establishments to strengthen
licensing requirements in order to protect against human
trafficking and illicit massage parlors. He asked that
Commissioner Anderson consider the many cases in which
businesses have supported licensing requirements for consumer
transparency, to ensure quality, and to address underlying
issues. He asked for her thoughts on the unintended
consequences of any proposed deregulation of licensure.
COMMISSIONER ANDERSON said DCCED would review regulations
through a risk-based lens to determine if they are protecting
consumers as intended or impeding business with no real effect
on protecting the consumer.
11:12:43 AM
REPRESENTATIVE FIELDS asked her to consider the impact [of
licensure] on wages. He noted that plumbing and electrical jobs
are strong, middle-class jobs in part due to licensing
regulations. He asked her to consider whether changing
licensing requirements might unintentionally change the
marketplace for given occupations and prevent workers with those
occupations from supporting a family.
COMMISSIONER ANDERSON stated that DCCED would definitely
consider those impacts. She noted that this is the first time
she has heard someone bring up plumbing and electrical licenses.
She said she would look into those.
REPRESENTATIVE FIELDS reiterated the importance of those
licensure programs.
11:13:30 AM
REPRESENTATIVE RASMUSSEN stated for the record that she is a
professional license holder. She asked for information about
current licensing requirements for pull-tab operators and bingo
operators, and "what kind of economic drivers those currently
are.
COMMISSIONER ANDERSON said she did not have that information off
the top of her head. She added that this is the first time that
topic has been brought to her attentions. She said she would
look into it. She noted that pull-tabs are pervasive throughout
Alaska.
11:14:19 AM
REPRESENTATIVE KREISS-TOMKINS asked her to share her vision for
the future of the Commercial Fishing Revolving Loan Fund.
COMMISSIONER ANDERSON said she believes it is a very important
program that serves many rural Alaskans. She stated that DCCED
intends to continue operating it. She praised the team charged
with managing it.
REPRESENTATIVE KREISS-TOMKINS asked for confirmation that the
fund would continue to be managed within the Division of
Investments.
COMMISSIONER ANDERSON answered "no." She said she is evaluating
all divisions in DCCED to identify efficiencies. She noted that
process is currently in the analysis stage.
REPRESENTATIVE KREISS-TOMKINS noted that he misstated the
division that manages the fund and said it actually falls under
the Division of Economic Development. He asked what other
options are on the table for managing the fund.
COMMISSIONER ANDERSON said the department is currently in the
evaluation phase and has not come to any decision. She noted
that the fund presents some difficulties because "they're the
only ones that can actually use the permits as collateral for a
loan, so that creates some barriers."
REPRESENTATIVE KREISS-TOMKINS asked that he remain apprised of
the department's conclusions and the direction it elects to go
with the fund.
COMMISSIONER ANDERSON said she would keep him apprised.
11:17:02 AM
REPRESENTATIVE TUCK asked her to repeat a question posed in her
opening statement.
COMMISSIONER ANDERSON said she wants everyone to consider the
question, What can we do across the state ... [to] envision a
new future and put our efforts toward developing new ideas and
new opportunities?"
REPRESENTATIVE TUCK asked her to share her economic vision for
Alaska.
COMMISSIONER ANDERSON said she wants to continue to support
industries within the state. She cited a need to diversify the
state's economy and bring in new industries. She claimed that
there are untapped areas such as agriculture and new technology.
She said one major impediment she would like to address is the
lack of broadband internet access across the state. She noted
that Apple recently came to Alaska to run coding academies in
three different communities. She said that she would like to
see individual clusters of coding communities across the state
and stressed that they would need access to high-speed internet.
She stated that she has put a team together to assess the
challenges in diversifying the whole state's economy.
11:19:12 AM
REPRESENTATIVE RASMUSSEN said she is working on an E-rate bill
to raise the minimum megabyte-per-second speed of internet in
the state from 10 to 25. She added that it would bring more
federal dollars to Alaska and increase internet speeds in rural
Alaska. She said she agrees with Commissioner Anderson
regarding the expansion of agriculture to generate new revenue.
She noted that, at the beginning of statehood, 60 percent or
more of Alaska's food was grown in-state. She added that the
state now imports over 95 percent of its food. She shared her
concern that Governor Michael J. Dunleavy's fiscal year 2020
budget proposal drastically cuts the [Division of] Agriculture
and some of the state's key programs for promoting agriculture.
She asked if DCCED could absorb some of those losses.
COMMISSIONER ANDERSON said it is a good idea and that she would
look into it. She recalled years ago seeing large gardens in
villages and communities. She said she no longer sees that.
She added that she worries about food security.
11:20:51 AM
REPRESENTATIVE REVAK asked to what extent Commissioner Anderson
sees the cost of energy as a barrier to entry for economic
diversification and value-added manufacturing. He asked what
she intends to do about the cost of energy.
COMMISSIONER ANDERSON stated that the cost of energy is a
critical component to attracting industry. She said the Alaska
Energy Authority continues to look at ideas to reduce high
energy costs. She referenced different ideas submitted to DCCED
on how to implement new technology in rural areas to reduce the
cost of energy. She stated that DCCED is evaluating those
ideas. She said there is not yet a "magic bullet" solution.
11:22:15 AM
REPRESENTATIVE TUCK said a previous legislature passed
legislation to allow spouses of military members to have their
licenses reciprocated for a short period to enable them to
obtain Alaska licenses. He stated that SOA is behind on
implementing this. He recalled a past hearing in the House
Special Committee on Military and Veterans' Affairs during which
DCCED officials said they were trying to work on it. He asked
for verification that, within Governor Dunleavy's proposed
budget, DCCED would be able to ensure military families are
taken care of regarding licensing and helping discharged members
find work.
COMMISSIONER ANDERSON said it is a high priority and that the
Division of Corporations, Business and Professional Licensing is
looking to allow for universal temporary licensing. She noted
that the current [statutory] language reads "the board may issue
a temporary license." She said she wants the language changed
to "the board shall" to remove ambiguity.
REPRESENTATIVE TUCK noted that the previous administration felt
restricted by a lack of resources. He said he wants to ensure
that, under the governor's proposed budget, DCCED would have the
necessary resources to focus on the issue.
COMMISSIONER ANDERSON said the department feels it has the
necessary resources.
11:24:53 AM
CHAIR HANNAN noted that proposed cuts to the Department of
Natural Resources would not only cut the Division of Agriculture
but also a pilot project to develop industrial hemp in Alaska.
She asked if Commissioner Anderson sees that as something DCCED
can take on. She said many people speculate industrial hemp
could be a multimillion-dollar industry.
COMMISSIONER ANDERSON answered that she sees it as an
opportunity. She said there are some rich agriculture grants in
the state that should be utilized. She conceded that she does
not know anything about growing industrial hemp but stated that
it appears there are not high barriers to entry. She said the
department would look into it.
CHAIR HANNAN referenced Senate Bill 6 [passed in the Thirtieth
Alaska State Legislature] that established a $10,000 pilot
project to develop pilot regulations and to sanction one pilot
program. She said that project has been zeroed out in the
governor's proposed budget. She added that it is the view of
many that $10,000 is a very small investment that could
potentially lead to substantial returns. She noted that,
without the pilot project and initial regulations, the
opportunity is at a standoff. She said it was encouraging to
hear that Commissioner Anderson understands the potential
economic return to SOA.
11:27:08 AM
The committee took a brief at-ease at 11:27 a.m.
11:27:24 AM
CHAIR HANNAN opened public testimony on Commissioner Anderson's
appointment. After ascertaining no one wished to testify, Chair
Hannan closed public testimony.
11:27:45 AM
COMMISSIONER ANDERSON thanked the committee. She welcomed ideas
from the committee members and their constituents.
11:28:35 AM
REPRESENTATIVE TUCK stated that the House Special Committee On
Arctic Policy, Economic Development, and Tourism has reviewed
the qualifications of the governor's appointee and recommends
Julie Anderson's name be forwarded to a joint session of the
House and Senate for consideration for Commissioner of the
Department of Commerce, Community, and Economic Development. He
said signing the committee report does not reflect intent by any
of the members to vote for or against this individual during any
further sessions for the purpose of confirmation.
CHAIR HANNAN said Commissioner Anderson's name would be
forwarded to other committees and to the joint session.
11:29:44 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee On Arctic Policy, Economic Development, and
Tourism meeting was adjourned at 11:30 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Julie Anderson Resume (002).pdf |
HAET 3/14/2019 11:00:00 AM |
Commissioner Designee Julie Anderson Resume |