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
+ teleconferenced
= bill was previously heard/scheduled
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 |
|---|