11/06/1993 09:00 AM House ECO

                                                                               
                    HOUSE ECONOMIC TASK FORCE                                  
                         WORK SESSION ON                                       
              REGULATION AND GOVERNMENT OPERATIONS                             
                        November 6, 1993                                       
                            9:00 a.m.                                          
                                                                               
                                                                               
  REPRESENTATIVE AL VEZEY chaired the meeting and made                         
  introductory comments about the purpose of the task force                    
  and goals of this work session.  He opened the session to                    
  public comment.                                                              
                                                                               
                                                                               
  CLIFF BURGLIN, Fairbanks, criticized the Department of                       
  Natural Resources' (DNR) land leasing policies.  He said the                 
  state could bring in $100 million - $1 billion a year in                     
  lease payments.  He recommended a greatly accelerated                        
  leasing program at $1 per acre, and said there would be a                    
  tremendous response to such a program.                                       
                                                                               
  MR. BURGLIN said DNR does not work in the best interests of                  
  the state.  Its employees come from the big oil companies                    
  and serve their interests.  He cited the case of Stewart                     
  Petroleum as an example of hardships visited on smaller                      
  producers by the state bureaucracy.                                          
                                                                               
  MR. BURGLIN recommended leasing lands on behalf of the                       
  University of Alaska and the Mental Health Lands Trust.  He                  
  said that if such entities could offer such lands for lease                  
  before the big oil companies got them, it would greatly                      
  increase development and would provide cash for                              
  organizations that otherwise require general fund dollars.                   
                                                                               
  MR. BURGLIN said a more aggressive leasing program would                     
  assure that lands were open to companies wishing to explore.                 
  Now such lands are not available if a company wants to                       
  explore.                                                                     
                                                                               
                                                                               
  JOE SCHOENER, North Pole, said jobs are created when                         
  government gets out of the way.  He said we are now living                   
  in a torture chamber of regulations, and cited an Alaska                     
  Department of Fish & Game (ADF&G) regulation that makes it a                 
  crime with a stiff penalty to toss a carrot to a moose.  He                  
  said the Department of Environmental Conservation (DEC) soon                 
  won't need any funding; they will be able to live off their                  
  fines and permit charges.                                                    
                                                                               
                                                                               
  DON CLOTHIER, Ketchikan, said Alaska lacks finance systems                   
  that are available to small business in other states.  He                    
  mentioned the Washington Investors Network, which links                      
  interested investors with entrepreneurs who need investment                  
  capital.  He said states can also authorize and control                      
  stock offerings up to $5 million.                                            
                                                                               
  MR. CLOTHIER said the Small Business Administration business                 
  financing programs are not available in Alaska as widely as                  
  in other places.  He also discussed a range of other                         
  economic development opportunities, including small business                 
  incubators, an Alaskan products store, the federal Resource                  
  Conservation and Development program, and the International                  
  Trade Opportunities program.  He said we don't need to spend                 
  more on economic development, but we need to use what                        
  already exists.  He said Alaska needs to provide support                     
  systems for new businesses.                                                  
                                                                               
  MR. CLOTHIER pointed out that Alaska manufactures very few                   
  products for the tourism industry.  He suggested there is                    
  demand for certain  kinds of products that can be                            
  manufactured in Alaska.  The tourism industry is an ideal                    
  opportunity as a manufacturing outlet, because the tourist                   
  pays the cost of shipping the goods to the Lower 48.  He                     
  said Alaskans need to think like merchandisers, because that                 
  will give us a road map for developing demand.                               
                                                                               
  REPRESENTATIVE VEZEY thanked the participants and reminded                   
  them of the task force's schedule for producing a final                      
  report to the legislature.