Legislature(1993 - 1994)

03/13/1993 09:01 AM House ECO

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                        EXECUTIVE SUMMARY                                      
                                                                               
                LEGISLATIVE ECONOMIC DEVELOPMENT                               
                           TASK FORCE                                          
                         March 13, 1993                                        
                                                                               
                                                                               
  This executive summary contains recommendations to the                       
  Legislature on improving Alaska's business climate presented                 
  by the Alaskan business community to the Senate and House                    
  Economic Task Force during a public hearing held on March 13                 
  and through written testimony.                                               
                                                                               
  Ninety-four people testified during the hearing and many                     
  people submitted written testimony.  Their names are listed                  
  in Appendix 1 of this document.                                              
                                                                               
  This summary lists the specific recommendations made which                   
  relate directly to the Alaska State Legislature.  A summary                  
  of the testimony of each speaker and copies of written                       
  testimony along with the tapes of the hearing are on file in                 
  the offices of the Economic Task Force chairs Senator Tim                    
  Kelly and Representative Eileen Panigeo MacLean.                             
                                                                               
  The summary is organized into the industry sectors which                     
  were published in the agenda of the public hearing.                          
                                                                               
  The Economic Task Force will identify priority issues for                    
  passage during this year of the legislative session and will                 
  continue with other issues during the interim.  The Economic                 
  Task Force will hold additional hearings and continue to                     
  welcome written testimony to receive Alaskans' ideas on how                  
  to improve our economy.                                                      
                                                                               
                         SMALL BUSINESS                                        
                                                                               
   1.  Establish a small, focused task force to review areas                   
       where the private sector and the public sector are in                   
       competition.  Privatize those services which can be                     
       done by small business.  Examine competitive advantages                 
       of nonprofits acting in the private sector.                             
                                                                               
   2.  Establish a task force to conduct a complete review of                  
       existing regulations to eliminate redundancy and                        
       ineffective policy.                                                     
                                                                               
   3.  Encourage the Legislature to explore solutions to the                   
       high cost of health care insurance for employees in                     
       small businesses.                                                       
                                                                               
   4.  Support legislation to convert the Alaska Bidders                       
       Preference Program from a pre-bid to a bonus program to                 
       encourage the use of Alaska manufactured products and                   
       labor.                                                                  
                                                                               
   5.  Pass HB 14 Business and Industrial Development                          
       Corporation (BIDCO) capitalization to encourage the                     
       availability of capital for small businesses.                           
                                                                               
   6.  Pass HB 147/SB 122 to allow employers to disclose more                  
       complete information regarding an employee's job                        
       performance without fear of liability.                                  
                                                                               
   7.  Protect rural housing from overregulation and maintain                  
       flexibility in the rural housing guidelines in Alaska                   
       Housing Finance Corporation (AHFC) to take advantage of                 
       innovative technologies.                                                
                                                                               
   8.  Support SB 112 to update uniform commercial codes to                    
       meet present business needs.                                            
                                                                               
   9.  Pass SB 154/HB 220 to create an economic development                    
       matching grant program.                                                 
                                                                               
  10.  Continue support for programs such as the UA Small                      
       Business Development Center which helps small                           
       businesses with start-up, planning and growth.                          
                                                                               
                           OIL AND GAS                                         
                                                                               
   1.  Take steps to achieve sure and certain fees and tax                     
       stability.                                                              
                                                                               
   2.  Establish a standardized formula for computing taxation                 
       and royalty valuation.                                                  
                                                                               
   3.  Amend Title 38 to promote development through an                        
       orderly, aggressive and reliable leasing program.                       
                                                                               
   4.  Support exploration incentives through passage of HB
       200 and SB 151.                                                         
                                                                               
   5.  Streamline permitting process and regulatory process.                   
                                                                               
   6.  Promote oil industry growth by exploring new and                        
       innovative approaches to oil and gas leasing and                        
       development.                                                            
                                                                               
                            FISHERIES                                          
                                                                               
   1.  Pass legislation to create a specialty marketing fund                   
       within the Alaska Seafood Marketing Institute (ASMI)                    
       based on 1% of the gross value stated on fish tickets.                  
       Change the composition of ASMI's board to include                       
       fishermen representatives.  Give fisher representatives                 
       control over how funds are spent.                                       
                                                                               
   2.  Pass legislation allowing the Division of Investments                   
       in the Department of Commerce and Economic Development                  
       to refinance existing vessel and permit loans to                        
       reflect lower interest rates currently available.                       
                                                                               
   3.  Maintain adequate funding in Fish and Game budget to                    
       provide for proper management of marine resources.                      
                                                                               
   4.  Implement a landing tax on seafood products processed                   
       at sea to equalize operating expenses for processors                    
       operating in Alaskan waters.                                            
                                                                               
   5.  Pass legislation on air quality and other regulatory                    
       issues that does not unnecessarily burden the industry                  
       with paperwork and unreasonable regulations.                            
                                                                               
   6.  Send message to the federal government that there is                    
       opposition to the implementation of federal Individual                  
       Fishing Quota (IFQ) program.  There is equally strong                   
       testimony supporting the IFQ plan and the                               
       decision-making process of the North Pacific Fisheries                  
       Management Council (NPFMC).                                             
                                                                               
   7.  Pass HB 123/SB 132 making IFQ's eligible for loans                      
       under the state's Commercial Fishing Loan Fund.                         
   8.  Create an endowment of $50 million to generate funds                    
       for the development of new fisheries products and                       
       processes.  After 10 years, return the endowment to the                 
       general fund.                                                           
                                                                               
                        RURAL DEVELOPMENT                                      
                                                                               
   1.  Support legislation to create an economic development                   
       grant program to fund rural/urban economic development                  
       projects providing short and long term jobs and local                   
       control without state ownership.                                        
                                                                               
   2.  Pass SB 142/HB 198 to increase financial support to the                 
       ARDOR program.                                                          
                                                                               
   3.  Consolidate all state economic development programs                     
       within the Department of Commerce and Economic                          
       Development.                                                            
                                                                               
   4.  Maintain and expand the Small Business Development                      
       Center program to better serve rural Alaska.                            
                                                                               
   5.  Establish state small business loan program for rural                   
       business start ups and working capital.                                 
                                                                               
   6.  Recapitalize and refine the Rural Development                           
       Investment Fund loan program for developed small                        
       businesses.                                                             
                                                                               
   7.  Create Rural Tourism Council to maximize tourism                        
       benefits and opportunities to Alaskan interests.                        
                                                                               
   8.  Increase financial support of regional rural tourism                    
       development efforts.                                                    
                                                                               
   9.  Revise Title 38 to streamline the regulatory process to                 
       develop state natural resources.                                        
                                                                               
  10.  Encourage the provision of reliable, steady, affordable                 
       sources of power to rural Alaska.                                       
                                                                               
  11.  Pass SB 124 restructuring Alaska Energy Authority.                      
                                                                               
  12.  Support legislation studying potential right-of-way                     
       from Fairbanks to Seward Peninsula.                                     
                                                                               
  13.  Provide funds to maintain and improve highway and road                  
       system quality for tourism and resource development.                    
                                                                               
  14.  Support adequate funding for rural water and sewer                      
       systems.                                                                
                                                                               
  15.  Support legislation allowing natural game farming                       
       including moose and musk ox.                                            
                                                                               
  16.  Reinstate state grazing ranges as "open" ranges.                        
                                                                               
                        FOREST RESOURCES                                       
                                                                               
   1.  Provide adequate funding to the Department of Natural                   
       Resources to meet its constitutional mandate (Title 8)                  
       for sustained yield and multiple use of natural                         
       resources.                                                              
                                                                               
   2.  Take legislative action to assure timber supply for the                 
       industry through a designated land base.                                
                                                                               
   3.  Modify Title 38 to streamline the timber disposal                       
       process on state land.                                                  
                                                                               
   4.  Retain two-year review process as a step toward                         
       implementation of a timber disposal sale decision.                      
                                                                               
   5.  Support management of state forests to increase forest                  
       health through action against the spruce bark beetle                    
       mortality, and through management to increase the                       
       carrying capacity of moose in hardwood areas.                           
                                                                               
   6.  Fund the Department of Natural Resources or the                         
       Department of Commerce and Economic Development to do                   
       adequate forest inventory to obtain growth and yield                    
       data for lands classed as "forest."                                     
                                                                               
   7.  Support funding for the Alaska Regeneration Center to                   
       maintain Alaskan genetic diversity, conduct research,                   
       and supply seedlings to reestablish Alaskan forests                     
       after fires and insect infestation.                                     
                                                                               
   8.  Restructure the cost analysis of timber sales to                        
       properly attribute line items for fire suppression,                     
       public access road maintenance, personal firewood                       
       considerations, wildlife habitat maintenance and                        
       improvement, reforestation, and litigation and delay.                   
                                                                               
   9.  Enact legislation to implement long-term forest                         
       management agreements as a principal vehicle for timber                 
       disposal on state land.                                                 
                                                                               
  10.  Design a mechanism to return current stumpage fees from                 
       large state timber sales into a special fund for small                  
       sales, rather than return fees directly into the                        
       General Fund.                                                           
                                                                               
  11.  Encourage small, value-added business in the wood                       
       products industry through a strong primary industry.                    
                                                                               
                         MINERALS / COAL                                       
                                                                               
   1.  Direct the regulatory agencies to design and implement                  
       air and water quality standards which are based on                      
       science and reasonable/logical risk assessment rather                   
       than emotion.                                                           
                                                                               
   2.  Evaluate and streamline provisions in Title 38 so that                  
       land planning statutes and regulations do not work                      
       against the responsible development of the state's                      
       mineral and coal resources.                                             
                                                                               
   3.  Enact the Alaska Coal Policy to signal the industry and                 
       international markets of Alaska's intent to develop a                   
       competitive, world-class coal industry.                                 
                                                                               
   4.  Amend the current Alaska Mental Health Land Trust                       
       Settlement Act through adoption of SB 67 to clear legal                 
       challenges and costly delays of Chapter 66.                             
                                                                               
   5.  Change the administrative mineral closure laws to                       
       accomplish their intended use.                                          
                                                                               
   6.  Fund the Alaska Minerals Assessment Program.                            
   7.  Analyze and redesign the state's rental and royalty                     
       programs to retain active mineral and coal exploration                  
       on state lands.                                                         
                                                                               
   8.  Work with Alaska's Congressional Delegation in efforts                  
       to retain the Federal Mining Law of 1872 and support                    
       hard rock and placer mining on Alaska's federal land.                   
                                                                               
   9.  Fund Department of Law to assert RS 2477 rights-of-way                  
       and secure access for the development of areas                          
       currently off the Alaska road system.                                   
                                                                               
  10.  Support a waiver of the Jones Act for Alaskan coal                      
       shipments to Hawaii and the west coast of the "Lower                    
       48."                                                                    
                                                                               
  11.  Continue to fund the Alaska Minerals Commission and                     
       take advantage of the research and recommendations made                 
       in their annual report to the Legislature.                              
                                                                               
  12.  Amend Alaska Civil Code Rule 82 to include language                     
       making it more costly for plaintiffs to bring weak                      
       claims which often delay, or up the cost, of economic                   
       development projects.                                                   
                                                                               
                    TOURISM / TRANSPORTATION                                   
                                                                               
   1.  Increase highway marketing funds for Division of                        
       Tourism to help promote Alaska to the "rubber tire"                     
       travelers.                                                              
                                                                               
   2.  Evaluate AVA and ATMC plans to increase highway                         
       traffic.                                                                
                                                                               
   3.  Enact SB 154/SB 220 establishing a mechanism to ensure                  
       capital for infrastructure development, particularly as                 
       it relates to transportation.                                           
                                                                               
   4.  Develop and promote rural tourism.                                      
                                                                               
   5.  Review existing statutes to ensure state regulations                    
       are not hampering the state's ability to attract                        
       private business.                                                       
                                                                               
   6.  Amend Title 38 to help facilitate private capital                       
       investment on infrastructure on state lands.                            
                                                                               
   7.  Pass SB 85/HB 115 extending the Alaska Tourism                          
       Marketing Council.                                                      
                                                                               
   8.  Work with the tourism industry to establish a long-term                 
       funding source for the industry.                                        
                                                                               
   9.  Increase rest areas along the highway system.                           
                                                                               
  10.  Reduce state subsidies to parks, pass legislation to                    
       raise park fees.                                                        
                                                                               
  11.  Eliminate annual camping passes for nonresidents.                       
                                                                               
  12.  Provide additional tourism related signs on our roads                   
       and highway system.                                                     
                                                                               
  13.  Request the board composition of the Alaska Visitors                    
       Association (AVA) include a representative from the                     
       hunters' association.                                                   
  14.  Pass HJR 10/SJR 18 to establish a dedicated                             
       transportation fund.                                                    
                                                                               
  15.  Look at the options for using ISTEA funding for                         
       construction of pioneer access roads and for the Scenic                 
       Travel Enhancement program.                                             
                                                                               
                    SUMMARY OF COMMISSIONERS'                                  
                         RECOMMENDATIONS                                       
                                                                               
   1.  Capitalize and leverage Alaska's resources in order to                  
       generate an income stream for the state.                                
                                                                               
   2.  Require managers of the state's major accounts to                       
       establish offices and jobs in Alaska as a condition of                  
       their contracts.                                                        
                                                                               
   3.  Return some of the revenue generated by resource                        
       development on state land into an account to encourage                  
       additional resource development.                                        
                                                                               
   4.  The IFQ proposal has a split constituency, but there                    
       are major benefits in year-round supply of fish and                     
       solutions to safety and by-catch/waste issues.                          
                                                                               
   5.  Shellfish mariculture projects should be given access                   
       to the Agricultural Revolving Loan Fund.                                
                                                                               
   6.  Promotional efforts in tourism should focus on the                      
       maximum benefits to Alaskan businesses rather than just                 
       generating the greatest number of tourists.                             
       Advertising cannot be detrimental to other industries.                  
                                                                               
   7.  Incentives to value-added business should be analyzed                   
       in the context of tax and employment generators, rather                 
       than gifts to industry.                                                 
                                                                               
   8.  Native Only guiding of marine mammal hunts should be                    
       explored as a rural economic development project.                       
                                                                               
   9.  Governor's plan to restructure Alaska Energy Authority                  
       addresses major energy needs, especially faced by rural                 
       business.                                                               
                                                                               
  10.  Quality of life improvements in parts of Alaska can be                  
       justified if maintenance and operations skills are                      
       there to protect the state's investment.                                
                                                                               
  11.  The federal government must recognize that Alaska must                  
       be allowed to manage its resources in order to grow to                  
       full maturity.                                                          
                                                                               
                         SMALL BUSINESS                                        
                                                                               
  Jamie Parsons  *                                                             
  Alaska State Chamber of Commerce                                             
  Juneau                                                                       
                                                                               
       . . . This one, singular, unprecedented initiative by                   
       the Legislature sent shockwaves through the private                     
       sector.  You asked us to identify barriers hindering                    
       business, what needed to be done to correct the                         
       situation, and what the Legislature could do to spur                    
       economic development.  Simply by this action, the                       
       Legislature was setting a different tone and a new                      
       message that, at last, this state was going to become                   
       pro-business with a business-friendly attitude.  THANK                  
       YOU.                                                                    
                                                                               
   1.  Establish a small, focused task force to review areas                   
       where the private businesses are in competition with                    
       the public sector.                                                      
                                                                               
   2.  Recommend a business task force to conduct a complete                   
       review of existing regulations to eliminate redundancy                  
       and ineffective policy.   Take legislative action to                    
       streamline the regulatory/permitting process to                         
       establish a user-friendly environment for new business                  
       applicants.                                                             
                                                                               
   3.  Support Senate and House JR 11 which would place on the                 
       '94 ballot the opportunity for the Legislature to take                  
       action against state agencies which promulgate                          
       regulations which do not properly implement the tenor                   
       of the laws passed by the Legislature.                                  
                                                                               
   4.  Support the passage of HB 147 and SB 122 to allow                       
       employers to disclose more complete information                         
       regarding an employee's job performance without fear of                 
       legal liability.                                                        
                                                                               
   5.  Encourage the Legislature to explore solutions to the                   
       high cost of health care insurance for employees in                     
       small businesses.                                                       
                                                                               
   6.  Suggests that this Task Force conduct a series of                       
       hearings across the state during the interim in order                   
       to gain a true insight into the challenges of small                     
       business operating ion the state.                                       
                                                                               
  Senator Tim Kelly                                                            
  Chairman, Senate Economic Task Force                                         
                                                                               
       Before Commissioner Fuhs begins his testimony, I would                  
       like to thank the Commissioner, Wendy Mulder, and Chris                 
       Gates for their assistance in putting this conference                   
       together.  Thank you, Commissioner.                                     
                                                                               
  Paul Fuhs, Commissioner                                                      
  Department of Commerce and Economic Development                              
                                                                               
       Urge the Task Force to support passage of HB 14 to                      
       capitalize the BIDCO's in order to assist small                         
       business in acquiring capital and in obtaining hands-on                 
       management assistance.  This program would help keep                    
       IFQ's in the local communities, assist rural tourism                    
       projects, and other projects which have a difficult                     
       time obtaining traditional sources of capital.                          
                                                                               
  Peter Crandall                                                               
                                                                               
  Alaska Bankers Association                                                   
  Anchorage                                                                    
                                                                               
   1.  Protect rural housing from overregulation.  Look at any                 
       proposed regulations to determine if they are                           
       necessary.  Maintain flexibility in rural housing                       
       program guidelines in AHFC.                                             
                                                                               
   2.  Direct AHFC to consider new technology to solve rural                   
       water system problems and make provisions for                           
       site-specific options and ability to resale properties.                 
                                                                               
   3.  Urge support for SB 112 and SB 86 to update uniform                     
       commercial codes to meet present business needs.                        
                                                                               
   4.  Urge support for HB 180 which provides flexibility for                  
       rural housing inspections.                                              
                                                                               
   5.  Urge SB 122 and HB 147 which allow employers to                         
       disclose more complete information regarding an                         
       employee's job performance without fear of legal                        
       liability.                                                              
                                                                               
   6.  Overall guidelines . . . reduce spending, balance                       
       budgets, stable tax base, and a level playing field for                 
       Alaskan businesses to build a strong economy.                           
                                                                               
  Carol Heyman  *                                                              
  Anchorage Chamber of Commerce                                                
                                                                               
   1.  Promote the "Buy Alaska" program in all sectors of                      
       Alaska business and government.                                         
                                                                               
   2.  Continue support for programs such as the UA Small                      
       Business Development Center which helps small                           
       businesses with start-up, planning and growth.                          
                                                                               
  Don Kubley                                                                   
  Sunbelt Water                                                                
                                                                               
   1.  Urge support for the funding of the Department of                       
       Natural Resources and the Division of Water as his                      
       company moves ahead to fill the demand for water in                     
       California, Nevada, and Mexico markets.  Supports the                   
       use of water export fees and recognizes this new source                 
       of revenue for the state.                                               
                                                                               
   2.  Urge the support for SB 154 to create an economic                       
       development matching grant program.                                     
                                                                               
  George McCorkle  *                                                           
                                                                               
  City of Kodiak                                                               
       Support for SB 154.                                                     
                                                                               
                                                                               
  Jim Stimple                                                                  
  Nome Chamber of Commerce                                                     
                                                                               
       Urge support and encouragement for the rural mining                     
       interests. Regulations need to take into account that                   
       they can make an operation sub-economic.                                
                                                                               
  Dave Choquette                                                               
  Anchorage                                                                    
                                                                               
   1.  Support legislation which will convert the Alaska                       
       Bidders Preference Program from a pre-bid to a bonus                    
       program to encourage the use of Alaska manufactured                     
       products and labor.                                                     
                                                                               
   2.  Support the procurement bill (HB 228) recently                          
       introduced by the House Economic Task Force.                            
  Rupe Andrews  *                                                              
  Juneau                                                                       
                                                                               
       Support "Elder Business" through encouraging the                        
       continued residence of senior citizens in Alaska.                       
                                                                               
  Paul Seaton  *                                                               
  Homer                                                                        
                                                                               
       Oppose the IFQ's.  Urges the state to prevent the use                   
       of state funds and personnel to implement, administer,                  
       and enforce IFQ's.                                                      
                                                                               
  Hank Irelan  *                                                               
                                                                               
  Nome 1.Initiate a capital grant program for small                            
       eco-outfitter type businesses in order to increase                      
       visitor staying time in local areas.                                    
                                                                               
   2.  Assist nonprofits through a grant program to put on                     
       events which attract tourists over longer time periods,                 
       for example, the Iditarod.                                              
                                                                               
   3.  Encourage remote-site education to make business                        
       training and licenses more available in order to keep                   
       money from leaving local areas with skilled,                            
       nonresident work force.                                                 
                                                                               
                                                                               
  Fred Brown                                                                   
  Fairbanks                                                                    
                                                                               
       Urge support for HB 14, the BIDCO legislation, to                       
       encourage the availability of capital for start-up                      
       businesses                                                              
                                                                               
  Russell Heath  *                                                             
  Juneau                                                                       
                                                                               
   1.  Subsidize innovation.  Encourage the "noncore" economy                  
       which is generally more innovative than more                            
       established businesses.  Utilize the Alaska Science and                 
       Technology Foundation process.                                          
                                                                               
   2.  Have bureaucrats identify the problems and then remove                  
       them from the solution design process.  Use design                      
       competitions to let the private sector and the public                   
       come up with a solution.                                                
                                                                               
  Velma Ellyson  *                                                             
  Non-Profit Business                                                          
  Homer                                                                        
                                                                               
       Encourage support for capital matching grant programs                   
       for municipalities, nonprofit corporations and                          
       unincorporated communities.                                             
                                                                               
                                                                               
  Lloyd Schade  *                                                              
  Homer                                                                        
                                                                               
       Reduce funding to Departments of Law, Environmental                     
       Conservation, and Fish and Game, Habitat Division.  Get                 
       their attention.                                                        
  University of Alaska                                                         
  Small Business Development Center  *                                         
                                                                               
   1.  Review the recently completed recommendations of the                    
       Governor's Task Force on Regulatory Reform and                          
       implement those recommendations which help small                        
       business.                                                               
                                                                               
   2.  Consider legislation which would prohibit public                        
       agencies from competing with small business.                            
                                                                               
   3.  Consider incentive programs which encourage business                    
       expansion such as funds for employee training programs.                 
                                                                               
   4.  Continue funding business assistance programs which                     
       produce measurable results.                                             
                                                                               
   5.  Continue funding for "buyer/seller match-up" services                   
       which electronically network buyers and sellers in                      
       Alaska.                                                                 
                                                                               
   6.  Consider legislation to make state procurement                          
       requirements under $25,000 available on a centralized                   
       database accessible by modem for use by in-state                        
       businesses.                                                             
                                                                               
  Procurement Technical Assistance Center                                      
  Department of Defense  *                                                     
  Anchorage - Fairbanks - Juneau                                               
                                                                               
   1.  The Legislature should consider the establishment of a                  
       bonding guarantee program for small business.                           
                                                                               
   2.  The state should provide special funding, tax                           
       incentives, favorable land/lease for manufacturing                      
       companies to relocate or establish operations in                        
       Alaska.                                                                 
                                                                               
   3.  The state should continue government contracting                        
       assistance programs for small business.                                 
                                                                               
  Jackie Stewart  *                                                            
  The Great Alaska Catalogue                                                   
  Juneau                                                                       
                                                                               
   1.  Establish a private/public commission to review and                     
       evaluate commercial enterprises and services operated                   
       by state government.                                                    
                                                                               
   2.  Privatize income-producing enterprises such as                          
       utilities and corrections.                                              
                                                                               
   3.  Stop government contracts with nonprofits where the                     
       service could be provided by a for-profit business.                     
                                                                               
   4.  Stop direct government services which could be provided                 
       by private, for-profit businesses.                                      
                                                                               
                                                                               
  Neil Flatau  *                                                               
  AlasCan                                                                      
  Fairbanks                                                                    
                                                                               
       Examine existing regulations in housing (AHFC),                         
       sanitation technology, and municipalities to take                       
       advantage of innovative, low- cost systems which can                    
       solve problems and create demand for small business                     
       products which can be manufactured in Alaska.                           
                                                                               
                          OIL AND GAS                                          
                                                                               
  William Hopkins                                                              
  Executive Director                                                           
  Alaska Oil and Gas Association                                               
  Anchorage                                                                    
                                                                               
   1.  Adopt a consistent valuation mechanism to enable the                    
       taxpayer to predict, with certainty, what the cost of                   
       government regulation and taxation is going to be.                      
                                                                               
   2.  Reduce state spending to help bridge the fiscal gap.                    
                                                                               
   3.  Management of the 470 Emergency Spill Response Fund for                 
       the purposes it was intended.                                           
                                                                               
   4.  Amend Title 38 to promote development through an                        
       orderly, aggressive and reliable leasing program.                       
                                                                               
   5.  Encourage early exploration and development of state                    
       lands.                                                                  
                                                                               
   6.  Lobby for Alaska National Wildlife Refuge (ANWR)                        
       exploration.  State investment may be required.                         
                                                                               
   7.  Streamline the permitting and regulatory process                        
       through total project permitting in a single agency                     
       with a certain time frame.  Allow for permits to be                     
       extended with automatic renewals if performance                         
       criteria are met.                                                       
                                                                               
   8.  Promote oil industry growth through expansion of                        
       Alaska's existing incentive credit program and through                  
       extension of incentive credits for exploration                          
       activities on federal and private land in Alaska.                       
                                                                               
   9.  Accelerate the land acquisition process though a                        
       supplement to the traditional five year lease schedule.                 
                                                                               
                                                                               
  Carl Marrs                                                                   
  Cook Inlet Region Inc.                                                       
  Anchorage                                                                    
                                                                               
   1.  Stabilize the taxation and royalty valuation through a                  
       single mechanism to be used by both the Department of                   
       Natural Resources and Department of Revenue.                            
                                                                               
   2.  Provide exploration incentives through passage of HB
       200 and SB 151 this legislative session.                                
                                                                               
   3.  Support extending exploration credits on all lands in                   
       Alaska.                                                                 
                                                                               
   4.  Explore new and innovative approaches to oil and gas                    
       leasing and development through cross-assignment of                     
       interests between the state and Native landowners.                      
   5.  Enact legislation dealing with large block exploration.                 
                                                                               
  Governor Walter J. Hickel                                                    
  (impromptu remarks)                                                          
       Thank you for bringing this Economic Summit                             
       together.  I think making it statewide has a lot                        
       of educational value. It's time that we, as a                           
       state, allow people a chance to have input on what                      
       economic development could be. There's more to                          
       government than spending money or trying to save                        
       money.                                                                  
                                                                               
       We have to enhance revenue.  We have to promote                         
       economic development and be advocates of                                
       production.   That doesn't mean we can't be                             
       advocates  and protectors of the environment.  We                       
       know how to do this.  Again, thank you for                              
       bringing this into the public process and getting                       
       all the ideas you can.                                                  
                                                                               
       When you think of jobs and how far we've come, you                      
       think of oil and gas.  But, today when you think                        
       of the possibilities we have, don't forget                              
       value-added.  This is really important in the                           
       fishing industry, in the timber industry, in all                        
       industries.  It's so easy for a young country like                      
       Alaska to be exploited from the standpoint of just                      
       taking the raw materials out.  And, so I think                          
       what we've done collectively, with your help, (the                      
       CDQs are an example) is what creates jobs and                           
       gives hope to the people out there.                                     
                                                                               
       Keep in mind that somewhere down the road, or                           
       somewhere in another destination, they do the                           
       value-added work.  With our abundant amount of                          
       cheap energy, value-added makes a lot of economic                       
       sense.,                                                                 
                                                                               
       When you're looking at these issues today, keep                         
       these things in mind.  Again, I applaud your                            
       efforts and stand willing to assist you any way I                       
       can.                                                                    
                                                                               
  Joe Sonneman                                                                 
  Juneau                                                                       
                                                                               
   1.  Deemphasis on the extraction and production of raw                      
       natural resources.                                                      
                                                                               
   2.  Increased emphasis on the production of finished goods.                 
                                                                               
   3.  Increase severance tax on the extractive natural                        
       resource industries.                                                    
                                                                               
   4.  Extend tax credits or exemption to value-added                          
       industries.                                                             
                                                                               
                            FISHERIES                                          
                                                                               
  Jerry McCune  *                                                              
  President                                                                    
  United Fishermen of Alaska                                                   
                                                                               
  Juneau                                                                       
   1.  Pass legislation allowing the Department of Commerce                    
       and Economic Development, Division of Investments to                    
       refinance existing permit and vessel loans to reflect                   
       lower rates currently available.                                        
   2.  Fund Department of Fish and Game programs to assure the                 
       maximum sustained yield of all fisheries.                               
                                                                               
   3.  Continue Americanization of fishery through assistance                  
       to small processors and cold storage companies.                         
                                                                               
   4.  Take steps to increase year-round domestic market sales                 
       and decrease dependence on foreign markets.                             
                                                                               
  Richard Lauber  *                                                            
  Pacific Seafood Processors Assn.                                             
  Juneau                                                                       
                                                                               
   1.  Please do the industry no harm.                                         
                                                                               
   2.  Direct Alaska's bureaucrats to administer the Clean Air                 
       Act and the Clean Water Act in a manner that is not                     
       unjustly harsh, arbitrary and unreasonable.                             
                                                                               
   3.  Do not allow overregulation, and its accompanying                       
       paperwork, to create a negative business climate                        
       challenged by unnecessary government intervention.                      
                                                                               
  Joe Bluhmam  *                                                               
  Executive Director                                                           
                                                                               
  American Factory Trawler Assn.                                               
  Seattle                                                                      
                                                                               
   1.  Streamline the process required to enter the salmon and                 
       herring processing industry in state waters.                            
                                                                               
   2.  Modify state regulations designed for on-shore                          
       processors to meet the challenges of the modern or                      
       unique operational characteristics of on-shore                          
       processors.                                                             
                                                                               
  Chris Mitchell  *                                                            
  Alaska Fisheries Development Foundation                                      
  Anchorage                                                                    
                                                                               
       Create a Commercial Fisheries Development Endowment of                  
       $50 million from the recent oil royalty settlements.                    
       The interest from this fund would be allocated by the                   
       Legislature each year to undertake comprehensive,                       
       sustained, collaborative, focused, vertically                           
       integrated, market directed, industry designed and                      
       managed fishery programs.                                               
                                                                               
  Andy Golia                                                                   
  Dillingham                                                                   
                                                                               
   1.  Pass legislation assessing fishermen 1% gross value                     
       stated on fish tickets to fund marketing programs for                   
       salmon and herring, including bringing domestic U.S.                    
       buyers to Alaska (Bristol Bay), and encourage research                  
       into value-added products which can utilize salmon.                     
                                                                               
   2.  Establish a separate fund within ASMI to allow the                      
       local (Bristol Bay) fishermen to determine how the                      
       marketing dollars will be spent.                                        
                                                                               
  Nancy Lande                                                                  
                                                                               
  President                                                                    
  SouthCentral Alaska Longline Enterprise                                      
  Seward                                                                       
                                                                               
       Strongly opposed to the IFQ proposal.  Evaluate the                     
       impact to small businesses represented by the fishermen                 
       who will be out of the fishery.                                         
                                                                               
  Mike O'Callaghan                                                             
  Anchorage                                                                    
                                                                               
   1.  Pass legislation to require all boats to keep all catch                 
       and not dispose of "legal nontargeted species."                         
       Utilize part of the 15 million pounds of disposed fish                  
       to feed Alaskans.                                                       
                                                                               
   2.  Impose a 2% flat tax on the industry to benefit the                     
       owners of the "common property resource," i.e. the                      
       people of Alaska.                                                       
                                                                               
  Hank Irelan  *                                                               
                                                                               
  Nome                                                                         
       Supports the super exclusive fishing zone in Norton                     
       Sound.                                                                  
                                                                               
                                                                               
  Harvey Samuelson                                                             
  Dillingham                                                                   
                                                                               
       Make additional vocational and technical training                       
       available to Western Alaska.                                            
                                                                               
  Wayne Carpenter, Executive Director                                          
  Seward Chamber of Commerce                                                   
                                                                               
       Requests a stay of implementation on the IFQ plan.  The                 
       IFQ plan will eliminate many small fishermen from the                   
       industry.  Social and economic impact studies must be                   
       done.                                                                   
                                                                               
  Gerry Murray                                                                 
  Seldovia                                                                     
                                                                               
       Opposes the implementation of the IFQ plan in the                       
       halibut and sablefish fishery.  Please take action to                   
       make the Governor aware that there is opposition to the                 
       plan, as it must be stopped to retain flexibility in                    
       fishery management and to protect the small boat                        
       fishery which employs 10's of 1000's of Alaskans in                     
       coastal Alaska.                                                         
                                                                               
  Paul Seaton  *                                                               
  Homer                                                                        
                                                                               
   1.  Opposes IFQ's in the halibut and sablefish fisheries.                   
                                                                               
   2.  Requests that the state prevent the use of state funds                  
       or personnel to implement, administer and enforce this                  
       program.                                                                
                                                                               
   3.  Encourages the Legislature to investigate the                           
       constitutionality of this plan.                                         
                                                                               
  Brent Johnson  *                                                             
  Soldotna                                                                     
   1.  Maintain funding levels for the Department of Fish and                  
       Game.                                                                   
                                                                               
   2.  Continue funding for the Crooked Creek Hatchery until                   
       the Cook Inlet Aquaculture Association can afford to                    
       take it over.                                                           
                                                                               
  Linda Blake  *                                                               
  Sitka                                                                        
                                                                               
   1.  Opposes IFQ's.                                                          
                                                                               
   2.  Let the Secretary of Commerce know it is not uniformly                  
       supported and tell the fishermen what the results will                  
       be if the plan is implemented.                                          
                                                                               
  John Sevier  *                                                               
  Kodiak                                                                       
                                                                               
       Supports the concept of a Commercial Fisheries                          
       Development Endowment.                                                  
                                                                               
  Charles McKee  *                                                             
                                                                               
  Anchorage                                                                    
       Fisheries enforcement personnel (Troopers) are                          
       underpaid.                                                              
                                                                               
                                                                               
  Jessie Nelson  *                                                             
  Homer                                                                        
                                                                               
   1.  Fully supports the IFQ plan.                                            
                                                                               
   2.  Maintains that the IFQ's will bring sanity into the                     
       halibut derby.  In addition, it will increase demand                    
       for Alaskan product as halibut will be available                        
       year-round, the fish will be better cared for, and the                  
       fishermen will be able to crew for a longer period of                   
       time for a number of skippers rather than do it all in                  
       two days.                                                               
                                                                               
   3.  Feels it is important to support the NPFMC, now that it                 
       has examined the plan and given approval.                               
                                                                               
  Kris Norosz  *                                                               
  Petersburg Vessel Owners Association                                         
                                                                               
       Supports the IFQ plan as a good management system which                 
       will benefit the resource, the State of Alaska,                         
       resident commercial fishers, and Alaska's coastal                       
       communities.                                                            
                                                                               
  Ron Philemonoff  *                                                           
  TDX Corporation                                                              
  St. Paul                                                                     
                                                                               
   1.  Supports the enactment of a package combining Governor                  
       Hickel's capital projects grant program (HB 124 and SB
       88), with the concepts contained in the recent proposal                 
       to establish an economic development grant program (SB
       154), which will aid rural Alaska's ability to achieve                  
       additional success.                                                     
   2.  Urges the Legislature to sufficiently fund the matching                 
       grant program to ensure meaningful level of support for                 
       needed projects.                                                        
                                                                               
  Drew Scalzi  *                                                               
  Homer                                                                        
                                                                               
       Supports the expansion of the state's fishery loan                      
       program to encompass IFQ's (HB 123).                                    
                                                                               
  Frank Kelty and Mark Earnest  *                                              
  City of Unalaska                                                             
                                                                               
       Supports the creation of a shared landing fee for fish                  
       processed at sea and landed or transferred within state                 
       waters consistent with existing state raw fish tax                      
       programs.                                                               
                                                                               
                        RURAL DEVELOPMENT                                      
                                                                               
  Julie Kitka  *                                                               
                                                                               
  Alaska Federation of Natives                                                 
  Anchorage                                                                    
                                                                               
   1.  Make the economic development and diversification of                    
       rural Alaska a top priority of state government.                        
   2.  Empower a new or existing unit of state government to                   
       plan and implement rural economic development projects                  
       and support services.                                                   
                                                                               
   3.  Use community development model (village identifies its                 
       own economic barriers and options) for rural                            
       development projects.                                                   
                                                                               
   4.  For each village include public school career training                  
       and counseling to prepare Native children for post                      
       secondary education and for adult employment                            
       opportunities.                                                          
                                                                               
   5.  Create hands on technical assistance program for                        
       existing and potential rural entrepreneurs covering all                 
       aspects of business, using private sector expertise and                 
       funded public/private partnership.                                      
                                                                               
   6.  Increase the Exploration Incentive Credit (EIC)                         
       covering certain exploration activities on private                      
       lands in HB 200/SB 151 to a 50% tax credit.                             
                                                                               
   7.  Increase efforts to explore alternative sources of                      
       energy for local/regional projects in rural Alaska.                     
                                                                               
   8.  Create Rural Tourism Council to maximize tourism                        
       benefits and opportunities to Alaskan interests.                        
                                                                               
  Carl Berger, Director  *                                                     
  Co-Chair ARDOR Association                                                   
  Lower Kuskokwim Economic Development Council                                 
  Bethel                                                                       
                                                                               
   1.  Improve the abilities of Community Development Quota                    
       (CDQ) groups to implement on-shore development plans.                   
                                                                               
   2.  Establish and fund regionally based revolving loan                      
       funds administered by existing local organizations with                 
       support from local financial institutions.                              
                                                                               
   3.  Coordinate economic development with existing                           
       organizations; establishing new organizations causes                    
       confusion.                                                              
                                                                               
   4.  Establish state loans with low interest and adequate                    
       terms for small business, especially during the first                   
       two years of operation.                                                 
                                                                               
   5.  Allocate state funds regionally, based on need.  ARDOR                  
       organizations should be used to identify, evaluate, and                 
       recommend viable projects.                                              
                                                                               
   6.  Develop marketing materials on specific industries such                 
       as tourism and provide assistance in marketing                          
       techniques.                                                             
                                                                               
   7.  Promote cottage-type industries in rural Alaska.                        
                                                                               
  Marideth Sandler, Executive Director  *                                      
  Co-chair ARDOR Association                                                   
  Southwest Alaska Municipal Conference                                        
  Anchorage                                                                    
                                                                               
   1.  Consolidate all state economic development programs                     
       within the Department of Commerce and Economic                          
       Development.                                                            
                                                                               
   2.  Increase financial support to the ARDOR program by                      
       supporting HB 198/SB 142.                                               
                                                                               
   3.  Support SB 154 which establishes the economic                           
       development fund for economic development projects.                     
                                                                               
   4.  Provide adequate funding for management and development                 
       of existing, developed resources such as commercial                     
       fisheries.                                                              
                                                                               
   5.  Support Small Business Development Center; one-on-one                   
       counseling works best.                                                  
                                                                               
   6.  Establish a state loan program to provide seed money                    
       and working capital for start-up rural value-added                      
       seafood and other small businesses.                                     
                                                                               
   7.  Increase the capitalization of the Rural Development                    
       Investment Fund loan program for developed small                        
       businesses.                                                             
                                                                               
   8.  Increase financial support of regional rural tourism                    
       development efforts.                                                    
                                                                               
   9.  Simplify the Department of Environmental Conservation                   
       regulations covering small seafood processors and                       
       reduce the bonding requirements.                                        
                                                                               
  10.  Revise Title 38 to streamline the regulatory process to                 
       develop state natural resources.                                        
                                                                               
  11.  Encourage banks to support rural economic development                   
       by: changing credit card merchant policies to support                   
       catalog sales via modem; making financial services                      
       available in smaller hub communities; helping rural                     
       banking branches overcome perception that rural                         
       applicants for financing are high risk.                                 
                                                                               
  12.  Improve coordination between state agencies and banks                   
       to utilize same loan application form if feasible.                      
                                                                               
  Bart Watson  *                                                               
  Musk Ox Development Corporation                                              
  Juneau                                                                       
                                                                               
   1.  Establish state small business loan program.                            
                                                                               
   2.  Establish a health insurance pool for small businesses.                 
                                                                               
   3.  Correct competitive disadvantages of poor economics of                  
       scale for small businesses via legislation; for                         
       example:  tort reform.                                                  
                                                                               
   4.  Require, instead of allow boroughs to exempt nonprofit                  
       organizations from real estate and other taxes.                         
                                                                               
   5.  Revise state agricultural policy to allow farming of                    
       northern species such as musk ox.                                       
                                                                               
  Ben Barrera                                                                  
  National Bank of Alaska                                                      
                                                                               
   1.  Support the Small Business Development Center Program;                  
       it is necessary in both rural and urban Alaska.                         
                                                                               
   2.  Support Alaska Regional Development Organizations                       
       Program.                                                                
                                                                               
   3.  Refine and refund RDIF loan fund.                                       
                                                                               
   4.  Encourage Division of Tourism to work with rural Alaska                 
       on tourism benefits.                                                    
                                                                               
                                                                               
  Bill Noll, President                                                         
  Major International                                                          
  Anchorage                                                                    
                                                                               
       For economic development to occur, a reliable, steady,                  
       affordable source of power must be available to Alaska.                 
                                                                               
  Bill Simmons                                                                 
  Tok                                                                          
                                                                               
   1.  Support HB 182 studying potential right of way from                     
       Fairbanks to Seward Peninsula but prefer highway over                   
       railroad as mode of transportation.                                     
                                                                               
   2.  Tourism industry in region would benefit more from                      
       highway.                                                                
                                                                               
  Jim Stimpfle                                                                 
  Nome                                                                         
                                                                               
   1.  Favor railroad to Nome over road.                                       
                                                                               
   2.  Rural development depends upon an energy and                            
       transportation corridor.                                                
                                                                               
   3.  Affordable power to rural areas will bring economic                     
       development of Native village and regional corporations                 
       resources and still maintain subsistence life style.                    
                                                                               
  Kris Geldaker                                                                
  Southeast Stevedoring                                                        
  Ketchikan                                                                    
                                                                               
       Support SB 154 to create economic development grant                     
       program to fund rural/urban economic development                        
       projects providing short and long-term jobs, and local                  
       control without state ownership.                                        
                                                                               
  Don Clothier, Member                                                         
  Soil and Water Conservation Service Advisory Board                           
                                                                               
  Ketchikan                                                                    
   1.  Support development of U.S. Soil Conservation Service's                 
       Resource Development and Conservation Districts (RC &                   
       D) network in Alaska.                                                   
                                                                               
   2.  Support the BIDCO Act as a worthy approach to assist                    
       business start-ups.                                                     
                                                                               
                                                                               
  Roger Lewis                                                                  
  Juneau                                                                       
                                                                               
   1.  A myriad of Alaska products have been functionally                      
       developed but are not yet commercial.                                   
                                                                               
   2.  Commercial development of rural/Native products will                    
       create small manufacturing jobs in Alaska.                              
                                                                               
   3.  Establish a product development corporation in the                      
       Department of Community and Regional Affairs.                           
                                                                               
  Robert Logan                                                                 
  UAF Economics Dept.                                                          
  Fairbanks                                                                    
                                                                               
   1.  Property ownership in Alaska is "outlawed"; only 1.1%                   
       of the state land has been transferred to private                       
       ownership.                                                              
                                                                               
   2.  Economic development can't occur without private                        
       property ownership.                                                     
                                                                               
  Mark Mullens                                                                 
  Anchorage                                                                    
                                                                               
   1.  State should support natural game farming.                              
                                                                               
   2.  State should be a supporter of the entrepreneur, not a                  
       detractor.                                                              
                                                                               
                                                                               
  Bonnie Jenkins                                                               
  Tok                                                                          
                                                                               
       Need funds to improve highway and road system quality                   
       for tourism and resource development.                                   
                                                                               
  David Marshall                                                               
  Juneau                                                                       
                                                                               
   1.  Unemployment rate in the rural Alaska villages is as                    
       high now as 1979 because government does not know how                   
       to create long term jobs and rural labor force has                      
       grown.                                                                  
                                                                               
   2.  Need to evaluate which village job creating projects in                 
       the public and private sectors in villages have                         
       succeeded or failed and why; ask these questions of the                 
       Rural Economic Development Initiative Program.                          
                                                                               
   3.  Need to evaluate rural development planning programs:                   
       Alaska Regional Development Organizations (ARDOR)                       
       Program and the Alaska Rural Development Council.                       
                                                                               
   4.  There is too little funding remaining for rural                         
       recipients after high administration costs are removed                  
       for public sector rural development programs.                           
                                                                               
  Dale Judge                                                                   
  Tok                                                                          
                                                                               
   1.  State must adequately fund road maintenance for                         
       tourism.                                                                
                                                                               
   2.  State promotes tourism but once visitors arrive there                   
       are no places to dump garbage and no waysides                           
                                                                               
   3.  Better coordination between the Departments of                          
       Transportation and Public Facilities and Natural                        
       Resources is needed regarding roadside maintenance.                     
                                                                               
  Bob Keller                                                                   
  Fairbanks                                                                    
                                                                               
   1.  Lack of water and sewer is a problem for village                        
       tourism.                                                                
                                                                               
   2.  Need technical assistance, especially in marketing for                  
       rural economic development.                                             
                                                                               
  Don Schindler                                                                
                                                                               
  The Arctic Development Council, Inc.                                         
  Barrow                                                                       
                                                                               
   1.  Promote legislation regarding the formation of SBIC's                   
       to make loans to start up and expanding small business.                 
                                                                               
   2.  Provide other capital for:  rural start-ups,                            
       recapitalize the Rural Development Initiative Fund,                     
       technical assistance and business plan preparation,                     
       development of a regional tourism and art marketing                     
       council on the North Slope.                                             
                                                                               
   3.  Explore the potential for tax incentives for businesses                 
       exploring and development of natural resources that                     
       employ residents of the North Slope Borough.                            
                                                                               
  Larry Merculieff, City Manager                                               
  City of St. Paul                                                             
  Co-Chair, Safewater for All Alaskans Coalition                               
                                                                               
   1.  Inadequate facilities and program for rural water and                   
       sewer is the State's number one environmental health                    
       problem.                                                                
   2.  Support SB 154 since more public infrastructure is                      
       needed in rural Alaska to attract private capital for                   
       resource development.                                                   
                                                                               
  Roy Henry                                                                    
  Nome                                                                         
                                                                               
   1.  The state and federal governments must recognize the                    
       need for Alaska Natives to be given priority to harvest                 
       Alaska's traditionally hunted fish and game for                         
       subsistence as well as to use to inherent resources                     
       such as ivory, baleen, furs, and other animal parts to                  
       supplement their income.                                                
                                                                               
   2.  Main barriers to trade:  are cost of delivering goods                   
       to rural Alaska and that Native handicrafters may not                   
       be willing or able to deliver traders exactly what they                 
       want in quantity and quality.                                           
                                                                               
  Neil Flatau                                                                  
  AlasCan                                                                      
                                                                               
  Fairbanks                                                                    
   1.  Inadequate sanitation in rural Alaska is a major                        
       roadblock to rural development.                                         
                                                                               
   2.  Must be willing to try unconventional but not                           
       experimental methods to overcome challenges in rural                    
       Alaska.                                                                 
                                                                               
  Senator Frank Murkowski  * (written testimony)                               
  Washington, D.C.                                                             
                                                                               
       Poverty, sub-standard living conditions, and inadequate                 
       water and sanitation facilities hinder rural economic                   
       growth.                                                                 
                                                                               
  John Netzel                                                                  
  Valdez                                                                       
                                                                               
   1.  Allow 4th class cities of less than 25 people with                      
       limited powers.                                                         
                                                                               
   2.  Recognize a family as a business without the sole                       
       proprietorship/employee regulations.                                    
                                                                               
   3.  Stop all incentives/credits for oil and gas and timber                  
       and use the revenue for other needed costs.                             
                                                                               
  Rose Fosdick                                                                 
  Nome                                                                         
                                                                               
   1.  The state should continue to issue reindeer herding                     
       permits to use state land on the Seward Peninsula.                      
                                                                               
   2.  Reinstate state grazing ranges as "open" ranges.                        
                                                                               
   3.  Continue to support the rural economy by providing                      
       funding to reindeer projects.                                           
                                                                               
                        FOREST RESOURCES                                       
                                                                               
                                                                               
  Bob Loiselle  *                                                              
  Alaska Forest Association                                                    
  Juneau                                                                       
                                                                               
   1.  Allow state to manage land for timber.  "Below cost"                    
       sales will not continue with current high market price.                 
                                                                               
   2.  Examine regulations of forest industry to see if they                   
       are necessary for proper forest management.  Avoid                      
       those which do not achieve their intended protection of                 
       other resources and instead make Alaska forest products                 
       noncompetitive in the market.                                           
                                                                               
  Jim Kohler   *                                                               
  Southeast Conference                                                         
  Juneau                                                                       
                                                                               
   1.  Encourage small value-added business by having a                        
       strong, primary processing base.                                        
                                                                               
   2.  Take legislative actions to assure a wood supply for                    
       the industry through a designated land base.                            
                                                                               
  Mike Barton  *                                                               
  U.S. Forest Service                                                          
  Juneau                                                                       
                                                                               
   1.  Take actions to reduce transportation infrastructure                    
       costs.                                                                  
                                                                               
   2.  Increase options for obtaining capital to fund timber                   
       harvest and reforestation operations.  Bankers need                     
       indications of dependable timber supply when                            
       considering loan applications.                                          
                                                                               
   3.  Supports HB 536, Business Development Corporations.                     
                                                                               
   4.  Explore a timber marketing cooperative similar to                       
       Alaska Seafood Marketing Institute (ASMI) and Alaska                    
       Tourism Marketing Council (ATMC).                                       
   5.  Encourage a certified state timber grading service to                   
       make Alaskan wood products eligible to fulfill bid                      
       specifications.                                                         
                                                                               
   6.  Restructure Alaska building codes to define                             
       specifications in a way that leaves the option open to                  
       use Alaska wood products.                                               
                                                                               
   7.  Examine feasibility of requiring use of Alaskan wood                    
       products in construction of state-funded projects.                      
                                                                               
   8.  Explore legal avenues to require in-state processing of                 
       wood exported from state lands.  (Every seasonal                        
       logging job creates approximately three year-round                      
       processing jobs.)                                                       
                                                                               
   9.  Keep industry regulation to a minimum to protect the                    
       public interest and make permit acquisition timely.                     
                                                                               
                                                                               
  Ron Ricketts  *                                                              
  Fairbanks Industrial Development Corp.                                       
                                                                               
   1.  Streamline timber disposal process on state land.                       
                                                                               
       Repeal 1990 Title 38 timber sale amendments to require                  
       Best Interest Findings instead of two year scheduling                   
       of sales and detailed forest land use plans, similar to                 
       disposal of other resources.  Cuts administrative costs                 
       and increases flexibility.  Encourages long-term                        
       investment by private industry.                                         
                                                                               
   2.  Pass legislation to implement long-term forest                          
       management agreements as a principal vehicle for timber                 
       disposal on state lands.                                                
                                                                               
  Bruce Harding                                                                
  Wrangell                                                                     
                                                                               
       Allocate funds for small timber sales or return current                 
       stumpage fees from large sales into a special account                   
       rather than the General Fund.                                           
                                                                               
  James Morgan                                                                 
  Seward                                                                       
                                                                               
   1.  Encourage state to sell timber, especially beetle kill,                 
       rather than let it go to waste.                                         
                                                                               
   2.  Develop a state reforestation plan.                                     
                                                                               
  Al Schafer                                                                   
                                                                               
  Seward                                                                       
       Urge Legislature not to lock up viable timber stands                    
       and manage them wisely.                                                 
                                                                               
                                                                               
  Earl Stevens  *                                                              
  Alaska Reforestation Council                                                 
  Anchorage                                                                    
                                                                               
       Supports funding for Alaska Regeneration Center in                      
       order to maintain Alaska genetic diversity and                          
       reestablish Alaskan forests after fires and spruce bark                 
       beetle epidemics.                                                       
                                                                               
  John Raynor  *                                                               
  Society of American Foresters                                                
  Juneau                                                                       
                                                                               
       Establish new state forests with long-term multiple use                 
       plans committed to sustained yield management.                          
                                                                               
  John Alden  *                                                                
  Institute of Northern Forestry                                               
  Fairbanks                                                                    
                                                                               
       Support funding for Alaska Regeneration Center.                         
                                                                               
  Chip Thoma                                                                   
                                                                               
  Juneau                                                                       
                                                                               
       Examine the costs of timber sale subsidies.  Prevent                    
       revision of Title 38.                                                   
                                                                               
  Marie Beaver                                                                 
  Fairbanks                                                                    
                                                                               
   1.  Follow existing two-year review of timber disposals                     
       instead of best interest finding (30 day) process.                      
   2.  Continue "innovative and arduous negotiations" as were                  
       used in the Forest Practices Review process.                            
                                                                               
   3.  Oppose FMAs.                                                            
                                                                               
  Louis Bencarbino                                                             
  Assemblyman                                                                  
  Seward                                                                       
                                                                               
   1.  Agrees that change is needed for Title 38.                              
                                                                               
   2.  Wants state to make timber available for harvest.                       
                                                                               
   3.  Timber is key to direct jobs and jobs for truckers,                     
       etc.                                                                    
                                                                               
  Clarence Furbush  *                                                          
                                                                               
  Palmer                                                                       
   1.  Change regulations to use fire suppression funds to                     
       build pioneer roads.  Fire improves some wildlife                       
       habitat.                                                                
                                                                               
   2.  Put more state land into private ownership.                             
                                                                               
                                                                               
  Edmond Packee  *                                                             
  Fairbanks                                                                    
                                                                               
   1.  If timber sale costs are part of the decision-making                    
       (public) process, the cost-benefit analysis should                      
       break out fire suppression, road maintenance for public                 
       access, personal firewood sales, wildlife                               
       considerations, reforestation, and costs of litigation                  
       and delay.                                                              
                                                                               
   2.  Provide adequate funding to the Department of Natural                   
       Resources to meet constitutional mandate of Title 8 for                 
       sustained yield and multiple use.  (It has been cut to                  
       one-half the 1983 level.)                                               
                                                                               
   3.  Support management of forests to increase forest health                 
       (address spruce beetle mortality across state) and to                   
       increase carrying capacity for moose populations in                     
       hardwood areas.                                                         
                                                                               
   4.  Fund the Department of Natural Resources to allow for                   
       biodiversity management with regard to genetic,                         
       species, landscape, and stand structure diversity.                      
                                                                               
   5.  Fund the Department of Natural Resources or the                         
       Department of Commerce and Economic Development to do                   
       adequate forest inventory and obtain growth and yield                   
       data for state land classified as "forest."                             
                                                                               
   6.  Support forest regeneration center to maintain Alaska                   
       genetic material, provide clonebanks of selected seed                   
       sources, etc. to provide Alaskan seedlings for                          
       reforestation.                                                          
                                                                               
   7.  Utilize unemployed citizens and correction inmates as                   
       labor source to carry out reforestation plans.                          
                                                                               
   8.  Send Department of Natural Resources employees to                       
       British Columbia and Yukon Territory to study                           
       silvacultural techniques which are successful in the                    
       sub-arctic.                                                             
                                                                               
  Raeann Edwards  *                                                            
  Fairbanks                                                                    
                                                                               
       Provide adequate funding for Regeneration Center as                     
       seedlings play a key role in research and "applied"                     
       tree improvement.                                                       
                                                                               
                         MINERALS / COAL                                       
                                                                               
  Steve Borrell, Executive Director  *                                         
  Alaska Miners Association                                                    
  Anchorage                                                                    
                                                                               
   1.  The Legislature must take substantive actions to signal                 
       the U.S. and international mining industry that there                   
       is a positive business climate here to attract                          
       exploration and development investment.                                 
                                                                               
   2.  Direct the regulatory agencies to design and implement                  
       water quality standards which are based on science and                  
       reasonable/logical risk assessment, rather than                         
       emotion.                                                                
                                                                               
   3.  Evaluate and streamline provisions in Title 38 so that                  
       land planning statutes and regulations do not work                      
       against the responsible development of the state's                      
       mineral resources.                                                      
                                                                               
   4.  Amend the current Alaska Mental Health Land Trust                       
       Settlement Act through adoption of SB 67 to clear legal                 
       challenges and costly delays of Chapter 66.                             
                                                                               
   5.  Change the state's administrative mineral closure laws                  
       to accomplish their intended use, and prevent abusive                   
       lock-up of large tracts of land from any possibility of                 
       mineral development.                                                    
                                                                               
   6.  Enact a reasonable air quality bill this session in                     
       order to maintain state control of the administration                   
       of air quality issues in the state.  Monitor provisions                 
       to guarantee that federal standards are not exceeded.                   
                                                                               
   7.  Fund the Alaska Minerals Assessment Program (AMAP) to                   
       send an  immediate message to the international                         
       minerals industry that Alaska is serious about                          
       encouraging the development of its mineral resources.                   
                                                                               
   8.  Analyze and redesign the annual claim rental fee                        
       program to retain active exploration on state lands.                    
       Do not trade short-term income for a depletion of                       
       exploration interest and manpower.                                      
                                                                               
   9.  Design and implement a statutory provision to allow                     
       exploration expenditures to be deducted from state                      
       royalties.                                                              
                                                                               
  10.  Insure that a portion of the Department of                              
       Transportation and Public Facilities budget is invested                 
       in new road construction and road upgrades in rural and                 
       remote Alaska.                                                          
                                                                               
  11.  Work with Alaska's Congressional Delegation in efforts                  
       to retain the Federal Mining Law of 1872.  The current                  
       bills in Congress would challenge, if not eliminate,                    
       hardrock and placer mining on Alaska's federal land.                    
                                                                               
  12.  Fund the Department of Law sufficiently to assert RS                    
       2477 rights-of-way and establish future access to many                  
       areas of state land, native and private lands, and to                   
       isolated federal lands.                                                 
                                                                               
  Robert Stiles  *                                                             
  Alaska Coal Association                                                      
  Anchorage                                                                    
                                                                               
   1.  Enact an Alaska Coal Policy which expresses the state's                 
       will with regard to the growth and enhanced                             
       competitiveness of the Alaska coal industry.                            
                                                                               
   2.  Continue to move forward with consideration and                         
       enactment of amendments to the Chapter 66 resolution of                 
       the Mental Health Lands Trust issue.                                    
                                                                               
   3.  Demonstrate by whatever means are available to the                      
       Legislature, support for obtaining a Jones Act waiver                   
       for Alaskan coal shipments to Hawaii and the west coast                 
       of the "Lower 48."                                                      
                                                                               
   4.  Give consideration to means and methods by which the                    
       Legislature can help protect Alaskan coal's current                     
       small market share.                                                     
                                                                               
  Caryl Boehnert  *                                                            
  Alaskans for Juneau                                                          
  Juneau                                                                       
                                                                               
   1.  Urges Alaska to become more self-protective regarding                   
       mine development.                                                       
                                                                               
   2.  Retain strong budgets in regulatory agencies.                           
                                                                               
   3.  Monitor mining companies.                                               
                                                                               
  Del Ackels                                                                   
  Fairbanks                                                                    
                                                                               
   1.  Recommends that the Alaska Minerals Commission report                   
       be examined by the Legislature.                                         
                                                                               
   2.  RS 2477 provisions are key to tourism, timber industry,                 
       and mineral development.                                                
                                                                               
                                                                               
  Rudi Vetter                                                                  
  Fairbanks                                                                    
                                                                               
   1.  Supports the testimony of the Alaska Miners Association                 
       especially the comments about exploration expenditure.                  
                                                                               
   2.  Mineral royalties are counterproductive to state                        
       revenue as investment will diminish before the royalty                  
       income can come on-line.                                                
                                                                               
  Jim Kohler, Executive Director                                               
  Southeast Conference                                                         
  Juneau                                                                       
       Recommends that the Department of Commerce and Economic                 
       Development or the Department of Natural Resources                      
       analyze the feasibility of a base metals refinery in                    
       Alaska.                                                                 
                                                                               
  Rick Van Nieuwenhuyse  *                                                     
  Placer Dome U.S. Inc.                                                        
  Anchorage                                                                    
                                                                               
   1.  Legislature must take steps which indicate its                          
       pro-active role in the promotion of the mining industry                 
       throughout Alaska.  This can include the support of                     
       industry conventions and advertising initiatives which                  
       communicate the attributes and incentives of developing                 
       mineral properties in Alaska.                                           
                                                                               
   2.  Enact SB 67 as a workable solution to the Mental Health                 
       Trust Lands issue.                                                      
                                                                               
   3.  Support new industry-sponsored legislation before                       
       Congress which will resolve many of the controversial                   
       issues regarding the 1872 Mining Law, and allow mining                  
       companies operating on federal lands to stay in                         
       business and keep people employed.                                      
                                                                               
   4.  Keep as much state land as possible open to mineral                     
       entry by endorsing a multiple use land policy and by                    
       limiting mineral closures.                                              
                                                                               
   5.  Encourage exploration investment through incentives                     
       such as deducting expenditures from royalties or                        
       through "flow-through" financing incentives.                            
                                                                               
   6.  Support the Alaska Minerals Assessment Program funding                  
       in the FY 94 capital budget.                                            
                                                                               
   7.  Streamline regulatory process and support the business                  
       climate needs of the mineral industry as a means to                     
       increase the state's potential for a tax base and                       
       provide private sector employment opportunities across                  
       the state.                                                              
                                                                               
  Roger Eichman, Acting President                                              
  Juneau Mining District                                                       
                                                                               
   1.  Assurance of land status and access to mineral lands                    
       are both prerequisites for mineral development.                         
                                                                               
   2.  Take actions to resolve the Mental Health Lands issues.                 
                                                                               
   3.  Administrative mineral closures are very detrimental to                 
       the industry as it is counter to the multiple use                       
       provisions guiding state land use.  Recently over                       
       10,000 acres of land in the Juneau area were closed to                  
       mineral entry, the second closing order in the area in                  
       the last year.                                                          
                                                                               
   4.  State land law needs to change in order to give                         
       subsurface title to the land under the millsite, not                    
       title to the mineral itself, in order to encourage this                 
       major capital investment by the private sector.                         
                                                                               
  Senator Robin Taylor                                                         
                                                                               
       SB 67 is currently in the Senate Judiciary Committee.                   
       Work is going on with all parties in hopes of resolving                 
       the issue.  Intent of the Senate majority to resolve                    
       the Mental Health issue this year.                                      
                                                                               
  Dick Swainbank                                                               
  Fairbanks                                                                    
                                                                               
   1.  Create a $50 million, interest-bearing account to fund                  
       a decade of geophysical and other state-of-the-art                      
       mapping to identify mineral deposits on state land.                     
       When the state land data base is complete, return the                   
       principal to the state.                                                 
                                                                               
   2.  Debate the "public interest" criterion of Article 8                     
       Section 1 of the Constitution.  Issue a Joint                           
       House-Senate Resolution which clearly states that "it                   
       is the policy of the State of Alaska to develop its                     
       natural resources."                                                     
                                                                               
  Jerry Harmon                                                                 
  Echo Bay Alaska                                                              
  Juneau                                                                       
                                                                               
   1.  Echo Bay is committed to the AJ Project and is ready to                 
       begin construction, provided we can avoid lawsuits and                  
       can have favorable support from the regulatory                          
       agencies.  Over 500 direct, well-paying jobs waiting                    
       for Alaskans who are waiting for the opening of the                     
       mine.                                                                   
                                                                               
  Senator Tim Kelly                                                            
                                                                               
       Senator Rick Halford, who appointed the Senate members                  
       of the Task Force, and Senator Suzanne Little both                      
       prescheduled constituent hearings back home and were                    
       unable to be here today.  They indicated that they                      
       would be looking at the summary and supporting the                      
       efforts of the Task Force.                                              
                                                                               
                                                                               
  Jim Richardson                                                               
  Wasilla                                                                      
                                                                               
   1.  Bring about a balance between Environmental Protection                  
       Agency and the mining industry.                                         
                                                                               
   2.  Tourism and mining industries need to come together and                 
       then both can benefit.                                                  
                                                                               
  Meredith Marshall                                                            
  Southeast Alaska Cab Co., Inc.                                               
  Ketchikan                                                                    
                                                                               
       Amend Alaska Civil Rule 82 to include language making                   
       it more costly for plaintiffs to bring weak claims                      
       which often delay or up the cost of economic                            
       development projects.                                                   
                                                                               
  Randy Smith                                                                  
  Wasilla                                                                      
                                                                               
       Make funds available to small miners through investment                 
       assistance so they, in turn, can put people to work.                    
                                                                               
                             TOURISM                                           
  Robert Jacobsen                                                              
  Alaska Visitors Association, Juneau                                          
                                                                               
   1.  Initiate a multi-agency Denali Nation Park access plan.                 
                                                                               
   2.  Establish a dedicated transportation fund.                              
                                                                               
   3.  Increase Department of Transportation and Public                        
       Facilities (ISTEA) funding for the Scenic Travel                        
       Enhancement program.                                                    
                                                                               
   4.  Enact legislation allowing long-term state land leases                  
       for commercial tourism related development.                             
                                                                               
   5.  Consider "value-added" income when making decisions on                  
       the use of state-owned resources.                                       
                                                                               
   6.  Increase user fees on state parks and provide a funding                 
       source for maintenance of existing state parks.                         
                                                                               
   7.  Standardize definitions, classifications, and sites for                 
       wildlife viewing through the Department of Fish and                     
       Game.                                                                   
                                                                               
   8.  Work toward completion of the state and Native                          
       corporation land selections from the U.S. Bureau of                     
       Land Management.                                                        
                                                                               
   9.  Provide legislative support for a tourism element to be                 
       included regional plans such as the Turnagain Master                    
       plan.                                                                   
                                                                               
  10.  Complete the purchase of private land inholdings in                     
       Kachemak Bay State Park.                                                
                                                                               
  11.  Support extension of the Alaska Tourism Marketing                       
       Council through SB 85 and HB 115.                                       
                                                                               
  Mark Hickey                                                                  
  Hickey and Associates                                                        
  Juneau                                                                       
                                                                               
   1.  Pass legislation establishing a dedicated                               
       transportation fund.                                                    
                                                                               
   2.  Enacted SB 154 this legislative session to establish a                  
       mechanism to ensure capital for infrastructure                          
       development.                                                            
                                                                               
   3.  Review the April 1991 Department of Transportation and                  
       Public Facilities "Sustaining Alaska's Ports and                        
       Harbors" and implement the proposed solutions.                          
                                                                               
   4.  Ensure meaningful strategic planning by state agencies                  
       with special emphasis on way to support Alaska's                        
       economic development needs.                                             
                                                                               
   5.  Explore options for constructing "pioneer access" roads                 
       using federal ISTEA funding.                                            
                                                                               
   6.  Work against potential actions by new federal                           
       administration to restrict further access across and                    
       into federal lands.                                                     
                                                                               
   7.  Increase local district tourism through the Scenic                      
       Highway Enhancement Program.                                            
                                                                               
   8.  Continue to support expansion of all portions of the                    
       state's transportation system.                                          
                                                                               
  Linda Anderson                                                               
  Alaska Campground Owners' Association                                        
  Fairbanks                                                                    
                                                                               
   1.  Increase highway marketing funds to the Division of                     
       Tourism                                                                 
       -    Continue Alaska's participation in the joint                       
            highway marketing organization between Yukon                       
            Territory, Alaska and British Columbia                             
       -    Tourism North.                                                     
       -    Increase production and distribution of "North to                  
            Alaska"                                                            
       -    Re-establish the following elements of the                         
            "Tourism North Program"                                            
                                                                               
            a.   Conduct roadshow presentations at major RV                    
                 destinations in the lower 48.                                 
                                                                               
            b.   Interface with major Automobile Association                   
                 of America and Canadian Auto Association                      
                 offices to educate and inform staff about                     
                 highway travel to Alaska.                                     
                                                                               
            c.   Conduct training for Visitor Bureau staffs.                   
                                                                               
   2.  Reduce state park subsidies; pass legislation to raise                  
       park fees.                                                              
                                                                               
   3.  Enact legislation eliminating annual camping passes for                 
       nonresidents.                                                           
                                                                               
   4.  Eliminate overnight roadside camping.                                   
                                                                               
   5.  Pass HB 26 and SB 157 relating to control of outdoor                    
       advertising.                                                            
                                                                               
  Dick Shultz                                                                  
  Tok                                                                          
                                                                               
       Evaluate plans by ATMC and AVA to increases levels of                   
       "rubber tire" traffic into the state.                                   
                                                                               
  Paul Smith                                                                   
  Tok                                                                          
                                                                               
       Increase funding for Division of Tourism and Alaska                     
       Tourism Marketing Council for highway related                           
       promotion.                                                              
                                                                               
  Gary Kranenberg                                                              
  Tok                                                                          
                                                                               
   1.  More emphasis needs to be placed on major attractions                   
       that are not located along the major corporation                        
       corridors.                                                              
                                                                               
   2.  Make loans available to small businesses who, due to                    
       size and location, may not otherwise be eligible.                       
                                                                               
  Bonnie Jenkins                                                               
  Tok                                                                          
                                                                               
   1.  More funds need to be appropriated to highways that are                 
       heavily traveled in summer months by tourists.                          
                                                                               
   2.  More signage required on roads and highways.                            
                                                                               
   3.  Additional rest areas are required.                                     
                                                                               
   4.  Increased money for highway promotion.                                  
                                                                               
  Alan LeMasters                                                               
  Gakona                                                                       
                                                                               
   1.  Reduce the Department of Environmental Conservation                     
       personnel and trim their budget.                                        
                                                                               
   2.  Repeal Department of Environmental Conservation                         
       authority to develop a User Fee program.                                
                                                                               
   3.  Increase funding to promote "Alaska Adventure" tourism.                 
                                                                               
   4.  Increase production of Vacation Planner.                                
                                                                               
   5.  Support SB 106 - Interties.                                             
                                                                               
  Terry Lathan                                                                 
  Barrow                                                                       
                                                                               
       Develop rural tourism through low interest loans and                    
       matching grant funds.                                                   
                                                                               
  Joe Klutsch                                                                  
  Alaska Professional Hunters Association                                      
                                                                               
   1.  Representation from Hunters Association on AVA board                    
       needed.                                                                 
                                                                               
   2.  Problems for professional hunters with the destination                  
       Alaska study because they were not allowed to                           
       participate.  Problems with primary tourism zones, most                 
       favored economic activity determinations, consumptive                   
       verses non consumptive tourism, eco-tourism, trend                      
       toward wildlife viewing.                                                
                                                                               
  John Cooper                                                                  
  Matsu                                                                        
                                                                               
   1.  The Department of Natural Resources must be adequately                  
       funded to take care of the visitor properties that the                  
       state advertises to tourists.                                           
                                                                               
   2.  Recognize communities that are assuming a responsible                   
       role in self support via local taxes.                                   
                                                                               
   3.  Keep the concept of direct legislative grants alive and                 
       require full accountability.                                            
                                                                               
                                                                               
  John Litton                                                                  
  Sitka                                                                        
                                                                               
   1.  Pass HB 115 and SB 85 Extending the ATMC.                               
                                                                               
   2.  Work with industry to establish long-term funding                       
       source for tourism industry.                                            
  Russ Gresham                                                                 
  Anchorage                                                                    
                                                                               
       Requested support for capital projects at the Port of                   
       Anchorage.                                                              
                                                                               
  Phil Driver                                                                  
  Anchorage                                                                    
                                                                               
       Requested the AVA have a hunting guide as a member of                   
       the board.                                                              
                                                                               
  Don Dietz                                                                    
                                                                               
  Anchorage                                                                    
   1.  Analyze the Alaska Railroad  to recommend near and long                 
       term solutions to the high costs of rail                                
       transportation.                                                         
                                                                               
   2.  Review state statute to ensure present state                            
       regulations and permitting can enjoy a more aggressive                  
       openness to private investors for marketing our natural                 
       resources.                                                              
                                                                               
                                                                               
  Jerry McCutcheon                                                             
  Anchorage                                                                    
                                                                               
       Concerned about AJ mine and Red Dog mine.                               
       Alaska does not need jobs, it needs revenues.                           
                                                                               
  John George                                                                  
  Alaska Outdoor Council                                                       
  Juneau                                                                       
                                                                               
       Tourism marketing program is promoting Alaska as a                      
       theme park and Alaskans are employees.  We need to use                  
       tourism money to promote Alaska as we see Alaska to                     
       deter people from seeing only a pristine place that                     
       should be "locked up".                                                  
                                                                               
  Andrew Romanoff                                                              
  Lost Coast Coalition, Juneau                                                 
                                                                               
       Urges consideration of Lost Coast Coalition plan                        
       proposal as a substitute for the Yatagua Area Plan                      
       currently under development by the Department of                        
       Natural Resources.                                                      
                                                                               
  Nancy Lethcoe                                                                
  Alaska Wilderness Recreation & Tourism Assoc                                 
  Valdez                                                                       
                                                                               
   1.  Require legislation that requires the Departments of                    
       Natural Resources, Environmental Conservation, and Fish                 
       and Game to address the economic impact of existing and                 
       potential regulations and decisions on all segments of                  
       the tourism industry and to take this information into                  
       consideration when making a decision.                                   
                                                                               
   2.  Require that all new legislation look at the impacts to                 
       the tourism industry.                                                   
                                                                               
   3.  Support Alaska's Statewide Comprehensive Outdoor                        
       Recreation Plan 1992-1996 recommendation that "all                      
       state agencies should cooperatively develop a                           
       comprehensive commercial use permit policy."                            
                                                                               
  At the conclusion of the testimony, Co-Chairman Kelly                        
  recognized the three Commissioners who remained and offered                  
  them the opportunity to make a few comments.                                 
                                                                               
  Glenn A. Olds, Commissioner, Department of Natural Resources                 
                                                                               
  I am terribly grateful for what I've heard today, and I want                 
  to thank members of the House and Senate and those who have                  
  spoken . . . I am impressed with four generalizations which                  
  I take as mandates to the Department of Natural Resources                    
  and . . . to the Legislature.                                                
                                                                               
    1. Clear recognition . . . that the capital of Alaska is                   
       not money, but is natural resources.  We are the only                   
       state which has natural resource use mandated in our                    
       constitution.  We will be judged by what we do about                    
       that mandate, not what we say.  Many testifiers are                     
       troubled, as I am, that we have not put our money where                 
       our mandate is.                                                         
                                                                               
       We have successively reduced budgets that are concerned                 
       with the protection and value-added aspects of our                      
       natural resources while we have seen the escalation of                  
       the nonproductive features of our budget.                               
                                                                               
    2. We recognize that the regulatory mandates which have                    
       been put in place by the Legislature have become                        
       increasingly oppressive, and they need revisiting and                   
       radical simplification.  Our department is willing to                   
       work with the Legislature to revisit Title 38 and other                 
       regulatory requirements which have become very                          
       expensive to implement and very excessive in creating                   
       barriers which affect the development of our natural                    
       resources.                                                              
                                                                               
    3. There is . . . recognition that we are talking, not                     
       about protecting our assets, but properly investing in                  
       them in terms of our fiduciary responsibility                           
                                                                               
  Recommendations:                                                             
                                                                               
       1.   We need to capitalize our resources and leverage                   
            them into an enormous income for the state.                        
            Example: British Petroleum's use of Alaska's oil                   
            to finance their exploration and development of                    
            the Russian Far East.                                              
                                                                               
       2.   We ought to leverage the resources we have.  Our                   
            $13 billion savings account has no requirement                     
            that those who manage that account have offices                    
            and jobs in Alaska.  Leverage of capital, not the                  
            use of that capital . . . has not been done.                       
                                                                               
       3.   We were wise to save our resource-generated money,                 
            but we missed by not establishing a development                    
            fund to encourage more resource development.                       
                                                                               
  Paul Fuhs, Commissioner                                                      
  Department of Commerce and Economic Development                              
                                                                               
   1.  IFQ's:  United Fishermen of Alaska is unable to take a                  
       position on this issue as there are as many for as                      
       there are against the IFQ proposal.  It's stupid to                     
       catch all the fish on one day and then hold it in                       
       freezers.  You can buy fresh fish year round, but it's                  
       from Canada, not Alaska.  Fishing safety and by-catch                   
       and waste issues are important.                                         
                                                                               
   2.  Shellfish mariculture is a huge opportunity.  The                       
       Legislature should make shellfish mariculture available                 
       to use the Agricultural Revolving Loan Fund.                            
                                                                               
   3.  Division of Tourism needs to look not at how to get the                 
       maximum number of tourists in the state, but at how the                 
       tourism industry provides the maximum economic benefit                  
       to the people and businesses who live in Alaska.  And                   
       we need to make sure the advertising for tourism                        
       doesn't damage the other industries in Alaska.                          
                                                                               
   4.  Value added . . . we should look at some incentives.                    
       It needs to be analyzed in terms future tax revenues                    
       and jobs, not just as a gift to industry.                               
                                                                               
   5.  Rural Development . . . we should look at Native only                   
       guiding for marine mammal hunting of walrus or polar                    
       bears which are not endangered species.                                 
                                                                               
   6.  Energy Needs . . . the Governor's proposal for                          
       restructuring the Alaska Energy Authority is the only                   
       plan on the books which begins to address those energy                  
       needs.                                                                  
                                                                               
  Thank you for holding this meeting.                                          
                                                                               
  Representative MacLean                                                       
                                                                               
  Thanks to the Commissioner and the Department of Commerce                    
  and Economic Development, to Wendy Mulder, Chris Gates, and                  
  the rest of the staff for their help and support to the Task                 
  Force.                                                                       
                                                                               
  John Sandor, Commissioner, Department of Environmental                       
  Conservation                                                                 
                                                                               
  It's been very interesting to participate, listening to,                     
  this hearing.                                                                
                                                                               
  I liked the testimony from the gentleman in                                  
  Homer . . . perhaps we're not as responsive to our                           
  constituents as they would like us to be.  He said we ought                  
  to go into hiding . . . the only way we're going to achieve                  
  the quality of life we're all working toward is working                      
  together.  Certainly the leadership of the House and Senate,                 
  and this Task Force, has set the stage for all of us to do                   
  that.                                                                        
                                                                               
  My intent as the Commissioner of the Department of                           
  Environmental Conservation is to improve and protect the                     
  quality of life for all Alaskans.  All Alaskans do not have                  
  the quality of life that they deserve, mostly in the rural                   
  parts of Alaska.  We've spent money unwisely in the past.                    
  Money is not the answer.  We cannot put hundreds of millions                 
  of dollars in the bush without the maintenance and                           
  operations capability to protect that investment.                            
                                                                               
  I think it will take two decades for the federal government                  
  to wake up to the fact that Alaska is not a colony and that                  
  it should be treated as a full partner, and it deserves to                   
  grow to maturity and manage its resources.                                   
                                                                               
  We have tremendous opportunities and obligations with the                    
  Russian Far East, threatened by nuclear contamination. We                    
  need to build a partnership there as well . . . .                            
                                                                               
  The end of all of this is sustainable development, which                     
  literally means that we need to promote several economic                     
  development projects, projects which are environmentally                     
  sound.  We have the ability to do that, if we work together                  
  on it.                                                                       
                                                                               
  Alaska spends less than 1% of its General Fund budget on                     
  environmental protection, but that is a false statistic as                   
  that reflects only that money spent by the Department of                     
  Environmental Conservation.  The Departments of Fish and                     
  Game and Natural Resources spend money there as well.  This                  
  is part of the partnership objective . . . which includes                    
  the communities in the state, the people and the private                     
  sector.                                                                      
                                                                               
  It has been a pleasure being here today and I look forward                   
  to the substantive work of this Task Force and pledge the                    
  resources of the Department of Environmental Conservation to                 
  achieve the objective that we are all working for.                           
                                                                               
  Representative Eileen MacLean                                                
                                                                               
  We thank people for their testimony both in Juneau and at                    
  the teleconference sites. We plan to be very active                          
  throughout the session and throughout the interim.  Public                   
  hearings will be held.  This is just the initial start of                    
  the Task Force.  The Department of Commerce and Economic                     
  Development will be working with us in the preparation of a                  
  report which will be made available around the state so we                   
  can continue to advance this dialogue.                                       
                                                                               
  It is clear form today's testimony that there are a great                    
  many economic development issues that we need to consider.                   
  We look forward to a broad partnership effort that will lead                 
  to some meaningful improvements for Alaska's business.                       
                                                                               
  This will conclude this Economic Mini-Summit.                                
                                                                               
                   ORAL AND WRITTEN TESTIMONY                                  
                                                                               
  Del Ackels                                                                   
  1725 Roosevelt                                                               
  Fairbanks, AK 99709                                                          
                                                                               
  John Alden                                                                   
  Institute of Northern Forestry, UAF                                          
  1117 Galena St.                                                              
  Fairbanks, AK 99709                                                          
                                                                               
  Linda Anderson                                                               
  Alaska Campground Owners                                                     
  130 Seward Street, #503                                                      
  Juneau, AK 99801                                                             
                                                                               
  Rupe Andrews                                                                 
  AARP                                                                         
  Juneau, AK                                                                   
                                                                               
  Ben Barrera                                                                  
  Nat'l Bank of Alaska                                                         
  1420 Gwenn                                                                   
  Anchorage, AK                                                                
                                                                               
  Mike Barton                                                                  
  U.S. Forest Service                                                          
  Juneau, AK 99801                                                             
                                                                               
  Marie Beaver                                                                 
  Forest Rn. Ak Environ.                                                       
  218 Driveway                                                                 
  Fairbanks, AK 99701                                                          
                                                                               
  Louis Bencarbino                                                             
  Assemblyman                                                                  
  P.O. Box 2064                                                                
  Seward, AK                                                                   
                                                                               
  Carl Berger                                                                  
  Alaska Regional Development Organizations                                    
  Anchorage, AK 99503                                                          
                                                                               
  Linda Blake                                                                  
  1709 Halibut Pt. Rd. #33                                                     
  Sitka, AK 99835                                                              
                                                                               
  Joe Bluhmam, Executive Director                                              
  American Factor Trawlers Association                                         
  4039 21st Ave., West, Suite 400                                              
  Seattle, WA 98119                                                            
                                                                               
  Caryl Boehnert                                                               
  Alaskans for Juneau                                                          
  3406 Glacier Hwy.                                                            
  Juneau, AK 99801                                                             
                                                                               
  Steve Borell                                                                 
  Alaska Miners Association                                                    
  501 West Northern Lights, Suite 203                                          
  Anchorage, AK 99503                                                          
                                                                               
  Fred Brown                                                                   
  675 7th Ave., Ste. K                                                         
  Fairbanks, AK                                                                
                                                                               
  Wayne Carpenter, Executive Director                                          
  Seward Chamber of Commerce                                                   
  P.O. Box 749                                                                 
  Seward, AK 99664                                                             
                                                                               
  Former Representative Dave Choquette                                         
                                                                               
  Don Clothier                                                                 
  Rural Development                                                            
  131 Front St.                                                                
  Ketchikan, AK 99901                                                          
                                                                               
  John Cooper                                                                  
  P.O. Box 871840                                                              
  Wasilla, AK 99687                                                            
                                                                               
  Pete Crandall                                                                
  Alaska Bankers Association                                                   
  Anchorage, AK 99510                                                          
                                                                               
  Don Dietz                                                                    
  2000 Anc Port Rd.                                                            
  Anchorage, AK 99501                                                          
                                                                               
  Phil Driver                                                                  
  Anchorage, AK                                                                
                                                                               
  Roger Eichman                                                                
  Juneau Mining District                                                       
  P.O. Box 20765                                                               
  Juneau, AK 99802                                                             
                                                                               
  Velma Ellyson                                                                
  Nonprofits AK                                                                
  3935 Svedlund Street                                                         
  Homer, AK 99603                                                              
                                                                               
  Joe Fields                                                                   
  Kantishna Group                                                              
  P.O. Box 72419                                                               
  Fairbanks, AK 99707                                                          
                                                                               
  Paul Fuhs, Commissioner                                                      
  Department of Commerce and Economic Development                              
                                                                               
  Kris Geldaker                                                                
  General Manager                                                              
  Southeast Stevedoring                                                        
  P.O. Box 8080                                                                
  Ketchikan, AK 99901                                                          
                                                                               
  John George                                                                  
  AK Outdoor Council                                                           
  9515 Moraine Way                                                             
  Juneau, AK 99801                                                             
                                                                               
  Andy Golia                                                                   
  P.O. Box 663                                                                 
  Dillingham, AK 99576                                                         
                                                                               
  Russ Gresham                                                                 
  1717 Tidewater Rd                                                            
  Anchorage, AK 99510                                                          
                                                                               
  Bruce E. Harding                                                             
  P.O. Box 1062                                                                
  Wrangell, AK 99929                                                           
                                                                               
  Jerry Harmon                                                                 
  Echo Bay Alaska                                                              
  4322 Cone Place                                                              
  Juneau, AK 99801                                                             
                                                                               
  Russell Heath                                                                
  AK Environmental Lobby                                                       
  245 Marine Way                                                               
  Juneau, AK 99801                                                             
                                                                               
  Carol Heyman, President                                                      
  Alaska State Chamber of Commerce                                             
  441 W. 5th Ave, Ste 300                                                      
  Anchorage, AK 99501                                                          
                                                                               
  Mark Hickey                                                                  
  Hickey and Assoc.                                                            
  9091 Sheiye Way                                                              
  Juneau, AK 99801                                                             
  Bill Hopkins                                                                 
  Alaska Oil and Gas Association                                               
  121 W. Fireweed Lane, Suite 207                                              
  Anchorage, AK 99503                                                          
                                                                               
  Frank Irelan                                                                 
  Nome, AK                                                                     
                                                                               
  Bob Jacobsen                                                                 
  President                                                                    
  Wings of Alaska                                                              
                                                                               
  Bonnie Jenkins                                                               
  P.O. Box 149                                                                 
  Tok, AK 99780                                                                
                                                                               
  Brent Johnson                                                                
  34824 K-Beach Rd.                                                            
  Soldotna, AK 99669                                                           
                                                                               
  Dale Judge                                                                   
  P.O. Box 273                                                                 
  Glenallen, AK 99588                                                          
                                                                               
  Julie Kitka, President                                                       
  Alaska Federation of Natives                                                 
  1577 C Street, Suite 100                                                     
  Anchorage, AK 99501                                                          
                                                                               
  Joe Klutsch                                                                  
  King Salmon, AK                                                              
                                                                               
  Jim Kohler                                                                   
  Southeast Conference                                                         
  124 W. 5th St.                                                               
  Juneau, AK 99801                                                             
                                                                               
  Gary Kranenberg                                                              
  P.O. Box 508                                                                 
  Tok, AK 99780                                                                
                                                                               
  Don Kubley                                                                   
  Juneau, AK                                                                   
                                                                               
  Nancy Lande                                                                  
  P.O. Box 1952                                                                
  Seward, AK 99664                                                             
                                                                               
  Terry Lathan                                                                 
  P.O.  Box 189                                                                
  Barrow, AK 99723                                                             
                                                                               
  Rick Lauber                                                                  
  Pacific Seafood Processors Association                                       
  321 Highland Drive                                                           
  Juneau, AK 99801                                                             
                                                                               
  Alan LeMasters                                                               
  P.O. Box 222                                                                 
  Gakona, AK 99586                                                             
                                                                               
  Nancy Lethcoe                                                                
  P.O. Box 1353                                                                
  Valdez, AK 99686                                                             
                                                                               
  Robert V. Lewis                                                              
  Product Development Investors                                                
  635 Main St.                                                                 
  Juneau, AK 99801                                                             
                                                                               
  John Litton                                                                  
  P.O. Box 1001                                                                
  Sitka, AK 99835                                                              
                                                                               
  Robert Logan                                                                 
  UAF, Head of Economics Dept.                                                 
  7300 Chena Hot Springs                                                       
  Fairbanks, AK 99712                                                          
                                                                               
  Carl Marrs                                                                   
  Cook Inlet Regional Corporation                                              
  Oil & Gas                                                                    
  2525 C St                                                                    
  Anchorage, AK 99509                                                          
                                                                               
  David Marshall                                                               
  Marshall Assoc.                                                              
  1300 Mendenhall Peninsula Rd.                                                
  Juneau, AK 99801                                                             
                                                                               
  Meredith Marshall                                                            
  Southeast Alaska Cab Co., Inc.                                               
  P.O. Box 7418                                                                
  Ketchikan, AK 99901                                                          
                                                                               
  George McCorcle                                                              
  Port Director                                                                
  City of Kodiak                                                               
                                                                               
  Jerry McCune, President                                                      
  United Fisherman of Alaska                                                   
  211 4th Street, Suite 112                                                    
  Juneau, AK 99801                                                             
                                                                               
  Jerry McCutchen                                                              
  Anchorage, AK                                                                
                                                                               
  Charles McKee                                                                
  Banking                                                                      
  7800 Debarr Rd E #63                                                         
  Anchorage, AK 99504                                                          
                                                                               
  Chris Mitchell                                                               
  AK Fisheries Dev. Foundation                                                 
  508 W. 2nd #212                                                              
  Anchorage, AK 99501                                                          
                                                                               
  James Morgan                                                                 
  P.O. Box 2229                                                                
  Seward, AK 99664                                                             
                                                                               
  Mark Mullens                                                                 
  Anchorage, AK                                                                
                                                                               
  Jere Murray                                                                  
  P.O.  Box 237                                                                
  Seldovia, AK 99663                                                           
                                                                               
  Bill Noll                                                                    
  President, Major International                                               
                                                                               
  Mike O'Callaghan                                                             
  1540 Medfra                                                                  
  Anchorage, AK 99501                                                          
                                                                               
  Edmond Packee                                                                
  1977 Melanie Lane                                                            
  Fairbanks, AK 99709                                                          
                                                                               
  Jamie Parsons                                                                
  Alaska State Chamber of Commerce                                             
  Juneau, AK 99801                                                             
                                                                               
  John Raynor                                                                  
  Society of American Foresters                                                
  P.O. Box 210912                                                              
  Auke Bay, AK 99821                                                           
                                                                               
  Jim Richardson                                                               
  HC 31, Box 5126-F                                                            
  Wasilla, AK 99654                                                            
                                                                               
  Ron Ricketts                                                                 
  Fairbanks Industrial Development Corporation                                 
  515 7th Ave.                                                                 
  Fairbanks, AK 99701                                                          
                                                                               
  Andrew Romanoff                                                              
  234 Gold Street                                                              
  Juneau, AK 99801                                                             
                                                                               
  Harvey Samuelsen                                                             
  Fisheries                                                                    
  P.O.  Box 18                                                                 
  Dillingham, AK 99576                                                         
                                                                               
  Marideth Sandler                                                             
  Alaska Regional Development Organizations                                    
  Anchorage, AK 99503                                                          
                                                                               
  Lloyd Schade                                                                 
  35250 Schade Drive                                                           
  Homer, AK 99603                                                              
                                                                               
  Al Schafer                                                                   
  P.O. Box 610                                                                 
  Seward, AK 99664                                                             
                                                                               
  Dick Schultz                                                                 
  Tok, AK                                                                      
                                                                               
  Paul Seaton                                                                  
  KNS Marine                                                                   
  58360 Bruce Drive                                                            
  Homer, AK 99603                                                              
                                                                               
  John Sevier                                                                  
  Board Member                                                                 
  Fish Technology Center                                                       
  Kodiak, AK                                                                   
                                                                               
  Bill Simmons                                                                 
  P.O. Box 51                                                                  
  Tok, AK 99780                                                                
                                                                               
  Paul Smith                                                                   
  P.O. Box 559                                                                 
  Tok, AK 99780                                                                
  Dr. Joe Sonneman                                                             
  324 Willoughby Ave                                                           
  Juneau, AK 99801                                                             
                                                                               
  Marideth South                                                               
  P.O. Box 110800                                                              
  Juneau, AK 99811                                                             
                                                                               
  Earl Stephens                                                                
  6449 Village Parkway                                                         
  Anchorage, AK 99504                                                          
                                                                               
  Stan Stephens                                                                
  P.O. Box 1297                                                                
  Valdez, AK 99686                                                             
                                                                               
  Bob Loiselle                                                                 
  Alaska Forest Association                                                    
  111 Stedman, Suite 200                                                       
  Ketchikan, AK 99901                                                          
                                                                               
  Robert Stiles                                                                
  Alaska Coal Association                                                      
  D&R Ventures Inc.                                                            
  1227 West 9th Avenue, Suite 201                                              
  Anchorage, AK 99501                                                          
                                                                               
  Jim Stimpfle, President                                                      
  Nome Chamber of Commerce                                                     
  P.O. Box 729                                                                 
  Nome, AK 99762                                                               
                                                                               
  Dick Swainbank                                                               
  P.O. Box 81315                                                               
  Fairbanks, AK 99708                                                          
                                                                               
  Chip Thoma                                                                   
  Juneau, AK 99801                                                             
                                                                               
  Fred Triem                                                                   
  P.O. Box 129                                                                 
  Petersburg, AK 99833                                                         
                                                                               
  Rich Van Nieuwenhnyse                                                        
  10980 Corrie Way                                                             
  Eagle River, AK 99577                                                        
                                                                               
  Rudy Vetter                                                                  
  P.O. Box 70342                                                               
  Fairbanks, AK 99707                                                          
                                                                               
  Bart Watson                                                                  
  President                                                                    
  Musk Ox Development Corp.                                                    
  Juneau, AK 99801                                                             
                                                                               
  Mark Earnest                                                                 
  City Manager                                                                 
  City of Unalaska                                                             
  P.O. Box 89                                                                  
  Unalaska, AK 99685                                                           
                                                                               
  Raeann Edwards                                                               
  Fairbanks, AK                                                                
  Frank Kelty, Mayor                                                           
  City of Unalaska                                                             
  P.O. Box 89                                                                  
  Unalaska, AK 99685                                                           
                                                                               
  Jessie Nelson                                                                
  P.O. Box 130                                                                 
  Homer, AK 99603                                                              
                                                                               
  Kris Norosz                                                                  
  Petersburg Vessel Owners Assn.                                               
  P.O. Box 232                                                                 
  Petersburg, AK 99833                                                         
                                                                               
  Ron Philemonoff                                                              
  TDX Corp.                                                                    
  St. Paul, AK                                                                 
                                                                               
  Drue Scalzl                                                                  
  41685 Redoubt Cir.                                                           
  Homer, AK 99603                                                              
                                                                               
  Randy Smith                                                                  
  Rainbow Mining & Dev.                                                        
  Wasilla, AK                                                                  

Document Name Date/Time Subjects