Legislature(1993 - 1994)

03/05/1994 01:00 PM ECO

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                    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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