Legislature(1993 - 1994)
03/05/1994 01:00 PM House ECO
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE ECONOMIC TASK FORCE
March 5, 1994
1:00 p.m.
MEMBERS PRESENT
Representative Eileen MacLean, Chair
Representative Jeannette James
Representative Bill Williams
Representative Carl Moses
Representative Al Vezey
MEMBERS ABSENT
Representative Joe Green
Representative Bettye Davis
Representative Bill Hudson
Representative Jerry Mackie
COMMITTEE CALENDAR
HJR NO.( ): Relating to the Western Alaska Community
Development Quota Program and the North
Pacific Fishery Management Council
Comprehensive Rationalization Program.
SCSCSHCR 9: Relating to state management of the
Western Alaska Community Development
Quota Program and state fisheries
development policy.
CSSB 212(FIN)am: "An Act relating to the giving of
procurement notices; changing the
content of the required procurement
reports to the legislature by the
commissioner of administration; relating
to publications produced by state
agencies; establishing an innovative
construction procurement methods pilot
program; and establishing legislative
findings, a legislative purpose, and
legislative intent for state
procurement; and providing for an
effective date."
SB 310: "An Act relating to the management and
sale of state timber; relating to the
classification of state land that would
preclude harvesting of timber or would
designate harvesting of timber as an
incompatible use; relating to the
administration of forest land, proposals
for state forest, and the determination
of sustained yield; and providing for
an effective date."
HB 436: "An Act prohibiting the Department of
Environmental Conservation from adopting
or enforcing a regulation that
establishes an ambient air quality
standard or emission standard that is
more stringent than a corresponding
federal standard; and providing for an
effective date."
WITNESS REGISTER
DAVID HARDING, Legislative Aide
Representative Eileen MacLean
Room 507, Capitol Building
Juneau, AK 99801
Phone: (907) 465-4833
POSITION STATEMENT: Provided information
CHERYL SUTTON, Legislative Aide
Representative Carl Moses
Room 204, Capitol Building
Juneau, AK 99801
Phone: (907) 465-4451
POSITION STATEMENT: Provided information
PAUL FUHS, Commissioner
Department of Commerce and Economic Development
PO Box 110800
Juneau, AK 99811
Phone: (907) 465-2500
POSITION STATEMENT: Provided information
CHRIS GATES, Director
Division of Economic Development
Department of Commerce and Economic Development
PO Box 110800
Juneau, AK 99811
Phone: (907) 465-2017
POSITION STATEMENT: Provided information
LOREN RASMUSSEN, Chief Design Construction Standards
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, AK 99801
Phone: (907) 465-2960
POSITION STATEMENT: Provided information
DUANE PEEPLES, Administrative Officer
Alaska Seafood Marketing Institute
1111 W 8th St., Suite 100
Juneau, AK 99801
Phone: (907) 465-5560
POSITION STATEMENT: Provided information
PREVIOUS ACTION
BILL: HCR 9
SHORT TITLE: COMMUNITY DEVELOPMENT FISHING QUOTAS
SPONSOR(S): REPRESENTATIVE(S) HOFFMAN, Ulmer, Mulder,
James, Menard
JRN-DATE JRN-PG ACTION
02/22/93 409 (H) READ THE FIRST TIME/REFERRAL(S)
02/22/93 409 (H) FISHERIES, RESOURCES, FINANCE
03/12/93 (H) FSH AT 08:30 AM CAPITOL 17
03/12/93 (H) MINUTE(FSH)
03/12/93 (H) MINUTE(FSH)
03/17/93 682 (H) FSH RPT CS(FSH) NEW TITLE
2DP 1NR
03/17/93 682 (H) DP: MOSES, OLBERG
03/17/93 682 (H) NR: PHILLIPS
03/17/93 682 (H) -ZERO FISCAL NOTE (F&G) 3/17/93
03/26/93 776 (H) RES RPT CS(FSH) NEW TITLE
6DP 2NR
03/26/93 777 (H) DP: HUDSON, JAMES, FINKELSTEIN,
DAVIES
03/26/93 777 (H) DP: MULDER, WILLIAMS
03/26/93 777 (H) NR: BUNDE, CARNEY
03/26/93 777 (H) -PREVIOUS ZERO FN (F&G) 3/17/93
03/26/93 807 (H) COSPONSOR(S): MULDER
03/17/93 (H) MINUTE(FSH)
03/24/93 (H) MINUTE(RES)
03/26/93 (H) RES AT 08:00 AM CAPITOL 124
03/26/93 (H) MINUTE(RES)
03/29/93 838 (H) COSPONSOR(S): JAMES
04/07/93 (H) FIN AT 02:30 PM HOUSE FIN 519
04/07/93 (H) MINUTE(FIN)
04/08/93 1101 (H) FIN RPT CS(FSH) NEW TITLE
8DP 2NR
04/08/93 1102 (H) DP: LARSON,PARNELL,GRUSSENDORF,
HOFFMAN
04/08/93 1102 (H) DP: NAVARRE,BROWN,HANLEY,FOSTER
04/08/93 1102 (H) NR: MARTIN, THERRIAULT
04/08/93 1102 (H) -PREVIOUS ZERO FN (F&G) 3/17/93
04/20/93 1373 (H) RULES TO CALENDAR 4/20/93
04/20/93 1373 (H) READ THE SECOND TIME
04/20/93 1373 (H) FSH CS ADOPTED UNAN CONSENT
04/20/93 1374 (H) AMENDMENT NO 1 BY ULMER
04/20/93 1374 (H) AM NO 1 ADOPTED UNAN CONSENT
04/20/93 1374 (H) PASSED Y40 N- HCR 9(FSH) AM
04/20/93 1387 (H) COSPONSOR(S): MENARD
04/20/93 1388 (H) TRANSMITTED TO (S)
04/21/93 1610 (S) READ THE FIRST TIME/REFERRAL(S)
04/21/93 1610 (S) RES, CRA, JUD
BILL: SB 212
SHORT TITLE: STATE PROCUREMENTS AND PUBLICATIONS
SPONSOR(S): LABOR & COMMERCE BY REQUEST OF SENATE ECONOMIC
TASK FORCE
JRN-DATE JRN-PG ACTION
05/07/93 2113 (S) READ THE FIRST TIME/REFERRAL(S)
05/07/93 2113 (S) LABOR & COMMERCE, FINANCE
11/17/93 (S) MINUTE(L&C)
01/27/94 (S) L&C AT 01:30 PM FAHRENKAMP
ROOM 203
02/03/94 (S) L&C AT 01:30 PM FAHRENKAMP
ROOM 203
02/08/94 (S) L&C AT 01:30 PM FAHRENKAMP
ROOM 203
02/08/94 (S) MINUTE(L&C)
02/09/94 2749 (S) L&C RPT CS 2DP 2NR NEW TITLE
02/09/94 2749 (S) FNS TO SB & CS PUBLISHED
(ADM, DOT)
02/09/94 2749 (S) ZERO FN TO SB & CS PUBLISHED
(ADM)
02/15/94 2859 (S) FIN RPT CS 5DP 1NR NEW TITLE
02/15/94 2859 (S) PREVIOUS FNS APPLY (ADM, DOT)
02/15/94 2859 (S) PREVIOUS ZERO FN APPLIES (ADM)
02/15/94 (S) FIN AT 09:00 AM SENATE FIN 518
02/22/94 (S) RLS AT 0:00 AM FAHRENKAMP
RM 203
02/22/94 (S) MINUTE(RLS)
02/28/94 2990 (S) RULES TO CALENDAR 3CAL 1NR
2/28/94
02/28/94 2996 (S) READ THE SECOND TIME
02/28/94 2996 (S) FIN CS ADOPTED UNAN CONSENT
02/28/94 2996 (S) AM NO 1 MOVED BY DUNCAN
02/28/94 2996 (S) MOTION TO HOLD TO 3/2 CAL
WITHDRAWN
02/28/94 2997 (S) AM NO 1 WITHDRAWN
02/28/94 2997 (S) AM NO 2 MOVED BY DONLEY
02/28/94 2997 (S) AM NO 2 ADOPTED Y11 N6 A3
02/28/94 2998 (S) ADVANCED TO THIRD READING
UNAN CONSENT
02/28/94 2998 (S) READ THE THIRD TIME
CSSB 212(FIN) AM
02/28/94 2998 (S) PASSED Y16 N1 A3
02/28/94 2998 (S) EFFECTIVE DATE SAME AS PASSAGE
02/28/94 2998 (S) Adams NOTICE OF RECONSIDERATION
03/02/94 3039 (S) RECONSIDERATION NOT TAKEN UP
03/02/94 3040 (S) TRANSMITTED TO (H)
03/04/94 2598 (H) READ THE FIRST TIME/REFERRAL(S)
03/04/94 2598 (H) LABOR & COMMERCE, FINANCE
BILL: SB 310
SHORT TITLE: STATE/PRIVATE/MUNI TIMBER OPERATION/SALE
SPONSOR(S): SENATOR(S) Frank, Taylor, Pearce, Sharp,
Miller, Kelly, Halford
JRN-DATE JRN-PG ACTION
02/14/94 2829 (S) READ THE FIRST TIME/REFERRAL(S)
02/14/94 2829 (S) RESOURCES
03/02/94 (S) RES AT 3:30 PM BUTRVICH RM 205
BILL: HB 436
SHORT TITLE: STRICTNESS OF AIR QUALITY REGS
SPONSOR(S): REPRESENTATIVE(S) VEZEY,Sitton
JRN-DATE JRN-PG ACTION
02/04/94 2255 (H) READ THE FIRST TIME/REFERRAL(S)
02/04/94 2255 (H) STATE AFFAIRS, RESOURCES
02/07/94 2291 (H) COSPONSOR(S): SITTON
02/24/94 2519 (H) STA RPT 2DP 3NR
02/24/94 2519 (H) DP: VEZEY, OLBERG
02/24/94 2519 (H) NR: KOTT, SANDERS, G.DAVIS
02/24/94 2519 (H) -ZERO FISCAL NOTE (DEC) 2/24/94
02/24/94 2519 (H) REFERRED TO RESOURCES
02/24/94 (H) STA AT 08:00 AM CAPITOL 102
02/24/94 (H) MINUTE(STA)
ACTION NARRATIVE
TAPE 94-05, SIDE A
Number 000
CHAIR EILEEN MACLEAN called the meeting to order at 1:30
p.m. She stated the purpose of the House Economic Task
Force meeting was to compile a list of bills to bring to the
Majority Caucuses to be expedited onto the House and Senate
floors,instead of waiting for the regular committee process.
She reviewed the status of the bills endorsed at the last
meeting.
DAVID HARDING, LEGISLATIVE AIDE TO REPRESENTATIVE EILEEN
MACLEAN, reviewed the status of the other bills previously
endorsed by the Task Force.
Number 141
CHAIR MACLEAN said there would be one more meeting of the
Task Force to conclude and compile into book form, the
recommended legislation for the Administration, the next
legislature, as well as this legislature.
Number 157
CHERYL SUTTON, LEGISLATIVE STAFF FOR REPRESENTATIVE CARL
MOSES, testified concerning an unnumbered House Joint
Resolution, Relating to the Western Alaska Community
Development Quota Program and the North Pacific Fishery
Management Council Comprehensive Rationalization Program.
She outlined the three options open to the North Pacific
Fishery Management Council as they moved forward with a
licensing program: 1) no Community Development Quota (CDQ)
allocation of crab or ground fish to any of the CDQ groups;
2) the preferred option, setting aside a range of 0-15
percent; and 3) a nontransferable license program, which was
not thought of as a good option. She said it was a simple
resolution just asking the council to insure that there was
an allocation which went to the CDQ groups.
Number 220
HCR 9 - COMMUNITY DEVELOPMENT FISHING QUOTAS
MS. SUTTON then discussed Senate CS for CS for HCR 9,
Relating to state management of the Western Alaska Community
Development Quota Program and state fisheries development
policy, stating that Representative Moses would probably be
happy to introduce the resolution.
Number 270
CHAIR MACLEAN stated this was a very harmless resolution and
she encouraged the Task Force to add this to their priority
legislation list. The members agreed, and REPRESENTATIVE
MOSES said he would introduce it.
CHAIR MACLEAN then discussed her priorities in the Rural
Development subcommittee, and stated she would like to
include the importance of subsistence to rural economy in
the report, but would not like to take any action.
Number 335
CHAIR MACLEAN referred to a letter in the members' packets
from Lee Gorsuch of the University of Alaska, Institute of
Social and Economic Research, which she would like to
include as an appendix to the final report. She stated
Alaska needed a policy to deal with rural issues.
Number 380
REPRESENTATIVE JEANNETTE JAMES mentioned the letter headed
"Best Practices in Canadian and US Rural Business
Development," and asked that it be included in the same
appendix.
CHAIR MACLEAN stated her belief that there needed to be one
single agency in the state to deal with all rural
development programs, and added there seemed to be agreement
that currently there were too many agencies with grants,
loans, and programs. She suggested working during the
interim to find out which agency would be the best one to
address all rural development programs. She also suggested
establishing a 1-800 phone number with information on all
loans, grants, and technical assistance programs in
existence, and stated she would like to include this
recommendation to the administration.
Number 430
CHAIR MACLEAN referred to a simplified loan form from
National Bank of Alaska in the members' packets, and said
this was the type of loan form that should be used instead
of complicated loan applications. She added that input was
needed from the banking industry.
Number 460
CHAIR MACLEAN next mentioned the final report should include
the need in rural communities for a very basic
infrastructure and for accurate unemployment statistics.
She recommended that an alternative mechanism be developed
for expressing joblessness in rural Alaska. She asked the
staff to get together one last time to compile the report.
Number 530
REPRESENTATIVE BILL WILLIAMS said he did not understand the
difficulty of reporting unemployment.
CHAIR MACLEAN said the federal statistics were not realistic
for rural Alaska, and this impacted the whole state of
Alaska's aid packages for disadvantaged areas.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, said an accurate survey was needed, and the
Department of Commerce would work with the Task Force in
developing this.
CHAIR MACLEAN stated that welfare figures from HESS would
also be valuable in counting the joblessness. The Task
Force members did not object to her including this
recommendation in the report.
Number 585
SB 212 - STATE PROCUREMENTS AND PUBLICATIONS
CHRIS GATES, DIRECTOR OF DIVISION OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, discussed
the CS for Senate Bill 212(FIN)am relating to procurement
notices. He stated this would make Alaskan product
preference a more usable process to encourage maximized use
of Alaskan products in state contracts and state
procurement. He said that previous bills have made the
penalties too severe for a contractor who used the process
and then did not use the Alaskan product specified. He said
the process has been much too complicated and almost
impossible to comply with; thus it had not been utilized.
He believed CSSB 212(FIN)am would solve this problem and
increase use of Alaskan products. He cited numerous
innovations in the bill which would accomplish this and
encourage local hire through incentives and bonuses. He
said the Department of Economic Development had been working
hard with Senator Kelly's staff on this bill.
TAPE 94-05, SIDE B
Number 026
CHAIR MACLEAN said the House Economic Task Force had
followed this bill, supported it fully, and considered it
one of the priority bills. She had spoken to Speaker
Barnes, who will give it as few referrals as possible.
Number 050
REPRESENTATIVE WILLIAMS asked about the incentive bonus
program, and how long it stayed in effect if a contractor
did not use an Alaskan company.
MR. GATES said the bonus lasted throughout the contract, and
if a contractor switched to an Alaskan supplier in the
middle of a contract, the bonus would apply.
Number 075
LOREN RASMUSSEN, CHIEF, DESIGN CONSTRUCTION STANDARDS,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
testified that this bill would not do away with the
competitive sealed bidding process, but would allow bonuses
for local products and local hire to apply to all contracts,
at the end rather than at the beginning of the contract.
Regulations could specify what a maximum bonus would be, for
example five percent.
Number 195
MR. HARDING asked for specific examples as to what
percentages would be given for what preferences.
MR. RASMUSSEN answered at the beginning there could be a
maximum of five percent. Of that five percent, maybe two
percent would go for local hire, two percent for local
products, and one percent for subcontractors.
Number 256
CHAIR MACLEAN asked if the pilot program was successful,
would it stop after two years?
MR. RASMUSSEN replied that it would stop after two years,
and legislative authority would have to be given again.
CHAIR MACLEAN stated there are too many different time
frames in the bill.
MR. GATES said all of the effective dates could be taken
care of after the first two years success.
Number 310
MR. HARDING asked about fiscal notes.
MR. RASMUSSEN said the Department of Transportation's fiscal
note is about $5,000 to do the regulations. Department of
Administration's fiscal note is more complex and will
contain added costs, mainly for printing.
Number 360
REPRESENTATIVE JAMES asked how much time would be needed on
the pilot program to determine if it is working. She added
that historically, the state has not given projects enough
time to determine if they work before abandoning them.
MR. RASMUSSEN agreed that two years was too short, but that
was the way the bill was drafted.
REPRESENTATIVE CARL MOSES said the Alaska Seafood Marketing
Institute had a potential amendment to the bill.
DUANE PEEPLES, ADMINISTRATIVE OFFICER, ALASKA SEAFOOD
MARKETING INSTITUTE, expressed the Alaska Seafood Marketing
Institute's wish to amend the procurement statutes to make
the Institute exempt from these restrictions, in order to
maximize their marketing activities.
Number 407
CHAIR MACLEAN suggested this amendment be submitted on the
Senate side and a meeting be scheduled with SENATOR KELLY,
sponsor of the bill, to speed up the process.
MR. PEEPLES replied this would be done next week.
Number 429
SB 310 - STATE/PRIVATE/MUNI TIMBER OPERATION/SALE
MR. GATES presented the Task Force with Senate Bill 310,
sponsored by Senator Frank, regarding forestry management
agreements. The administration has given Senator Frank some
amendments which will allow all agencies to work together
and have an administratively approved version of SB 310. He
admitted it was a very controversial bill but encouraged the
Task Force to look at it hard as a tremendous tool to create
a strong, vital forest industry in Alaska.
Number 465
REPRESENTATIVE JAMES commented that her concern with SB 310
was the public input was allowed after the RFP was
completed, which was discouraging to the developers when
their proprietary and competitive interests were invaded and
put at risk. She suggested that public scrutiny be allowed
earlier in the process.
MR. GATES responded that the administrative amendments deal
with this by having the public submit a list of concerns
after the proposal is submitted, then including these in the
contract. There would be no way to involve the public any
earlier, because it would not be known on which forests the
bids were focused or what issues were involved.
CHAIR MACLEAN said the Task Force would review the bill.
Number 515
COMMISSIONER FUHS distributed and discussed "The State of
the Economy", issued by Commerce and Economic Development,
which outlined the past and current economy of Alaska.
Number 574
REPRESENTATIVE MOSES pointed out that the document could be
misleading, because of the large influx of national retail
stores and military, which actually detract from the basic
economy, such as mom and pop stores because the money
doesn't stay in Alaska.
COMMISSIONER FUHS agreed and replied that is addressed in
the "new money" aspect of the report, and that value-added
processing is needed to create a balance.
Number 605
REPRESENTATIVE JAMES commented that the large retail stores
mainly create low paying jobs which then require Alaska to
spend its basic wealth to support them.
COMMISSIONER FUHS replied that some of the stores did cut
down on catalog shopping or people leaving Alaska to shop,
which did help keep some money in the state. He added the
intent was to diversify Alaska's economy as oil income
decreases, not necessarily to increase the population.
REPRESENTATIVE JAMES said she did not think it was possible
to just sustain; life is either growing or shrinking, and
plans should aim at either going up or down.
Number 640
REPRESENTATIVE WILLIAMS asked if tourism was included in the
report.
COMMISSIONER FUHS replied that there was no separate
statistical category for tourism, because the impact of
tourism was felt throughout all of the other industries.
REPRESENTATIVE WILLIAMS said he needed more information to
make decisions regarding the Governor's $3 million cut in
the Division of Tourism's budget.
COMMISSIONER FUHS stated, the cut reflected the
Administration's opinion that the tourism industry ought to
pay more of their own costs, rather than being supported by
the general fund. No other industry's advertising is paid
from the general fund like tourism has been. For example,
seafood marketing is paid almost entirely by the fishermen's
program receipts. The Division of Tourism's contract with
the Alaska Visitor's Association will expire in June 1994
and will have to be renegotiated, and input as to regional
advertising policies can be dealt with then.
TAPE 94-06, SIDE A
Number 000
HB 436 - STRICTNESS OF AIR QUALITY REGS
REPRESENTATIVE AL VEZEY discussed House Bill 436, dealing
with the Clean Air Act and prohibiting the Department of
Environmental Conservation from adopting stricter standards
than the federal standards. He explained the bill did not
prohibit the legislature from adopting stricter standards,
and said it would also apply to bulk fuel tanks. He added
that the Administration opposes this bill, because the
Department of Environmental Conservation wants the authority
to beat the federal government to stricter regulations and
thus preclude the federal government from adopting stricter
regulations.
Number 120
CHAIR MACLEAN suggested REPRESENTATIVE VEZEY bring this bill
to the caucus for discussion.
REPRESENTATIVE VEZEY agreed. His regulatory subcommittee
report will be held over until the next Task Force meeting.
Number 140
CHAIR MACLEAN said the priority Task Force legislation list
will be distributed to members via the minutes before the
next meeting.
Number 160
CHAIR MACLEAN adjourned the meeting at 3:10 p.m.
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