03/15/2001 04:15 PM House EDT
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC
DEVELOPMENT, TRADE AND TOURISM
March 15, 2001
4:15 p.m.
MEMBERS PRESENT
Representative Lesil McGuire, Chair
Representative Jeannette James
Representative Carl Morgan
Representative Harry Crawford
Representative Gretchen Guess
MEMBERS ABSENT
Representative Joe Green
Representative Beverly Masek
Representative Norman Rokeberg
Representative Fred Dyson
COMMITTEE CALENDAR
INTRODUCTION OF YUKON DELEGATION
HOUSE BILL NO. 36
"An Act relating to enterprise zones."
- MOVED HB 36 OUT OF COMMITTEE
PREVIOUS ACTION
BILL: HB 36
SHORT TITLE:ENTERPRISE ZONES
SPONSOR(S): REPRESENTATIVE(S)HAYES
Jrn-Date Jrn-Page Action
01/08/01 0033 (H) PREFILE RELEASED 1/5/01
01/08/01 0033 (H) READ THE FIRST TIME -
REFERRALS
01/08/01 0033 (H) EDT, CRA, FIN
02/09/01 0287 (H) COSPONSOR(S): GUESS
02/22/01 (H) EDT AT 5:00 PM CAPITOL 124
02/22/01 (H) Heard & Held
MINUTE(EDT)
03/15/01 (H) EDT AT 4:00 PM CAPITOL 120
WITNESS REGISTER
MIKE McLARNON, Member of the Legislative Assembly
for Whitehorse Centre
Yukon Legislative Assembly
Box 2703
Whitehorse, Yukon, Canada Y1A 2C6
POSITION STATEMENT: Spoke briefly to the committee; expressed
desire for an Alaska Highway route for a gas pipeline.
GARY McROBB, Member of the Legislative Assembly
for Kluane
Yukon Legislative Assembly
Box 2703
Whitehorse, Yukon, Canada Y1A 2C6
POSITION STATEMENT: Spoke briefly to the committee; urged
members to continue cooperative efforts relating to tourism and
economic development; expressed support for options such as a
pipeline or railroad extension.
ERIC FAIRCLOUGH, Member of the Legislative Assembly
for Mayo-Tatchun
Yukon Legislative Assembly
Box 2703
Whitehorse, Yukon, Canada Y1A 2C6
POSITION STATEMENT: Spoke briefly to the committee; expressed
the desire to build relationships with neighboring provinces as
well as Alaska; expressed the need to work together on
environmental issues relating to wildlife that cross the border;
offered experience with First Nations.
REPRESENTATIVE JOE HAYES
Alaska State Legislature
Capitol Building, Room 422
Juneau, Alaska 99801
POSITION STATEMENT: Testified as sponsor of HB 36.
ACTION NARRATIVE
TAPE 01-11, SIDE A
Number 0001
CHAIR LESIL McGUIRE called the House Special Committee on
Economic Development, Trade and Tourism meeting to order at 4:15
p.m. Members present at the call to order were Representatives
McGuire, Morgan, Crawford, and Guess. Representative James
arrived as the meeting was in progress. Chair McGuire noted
that Representatives Green and Masek were excused.
INTRODUCTION OF YUKON DELEGATION
Number 0062
CHAIR McGUIRE introduced three members of the Yukon Territory's
legislative delegation who had been invited to talk to the
committee briefly: Mike McLarnon, Eric Fairclough, and Gary
McRobb.
Number 0129
MIKE McLARNON, Member of the Legislative Assembly (MLA) for
Whitehorse Centre, Yukon Legislative Assembly, noted that this
is becoming an annual event and said he looked forward to seeing
[Alaskan legislators] come to the Yukon as well. He expressed
the desire to share ideas and find common areas for working
together, especially now that discussions of a gas pipeline are
on the table. He stated:
This trip has an especially important purpose to us,
because we are really trying to promote the idea that
the Alaska Highway is the most economical and best -
the least environmentally impacting - option in front
of both of our governments.
We know it ends up becoming a decision by the users -
whether it's going to happen - but we certainly would
promote ... our legislative colleagues in Alaska to
consider the impacts, and also ... the diplomatic
treaties that exist between Canada and the United
States regarding the routing of the Alaska Highway.
We've appreciated the support of the Alaskans up to
this point, and we're here to thank you for that
support, and hope that it continues.
Number 0219
GARY McROBB, Member of the Legislative Assembly for Kluane,
Yukon Legislative Assembly, explained that the Kluane region
extends from the Alaskan border, both on the Haines road and the
Alaska Highway, to the city limits of Whitehorse. The Critic
for Tourism and Renewable Resources in the official opposition
in Yukon Territory's legislative body, he expressed appreciation
for the wonderful hospitality shown to the delegation by
Alaskans. Noting that this is his second trip to Juneau in
three years, he said he is aware of several ongoing cooperative
efforts regarding tourism and economic development; he urged
committee members to continue those programs with the Yukon
Territory government. Noting that larger projects on the
horizon include a potential pipeline and a railroad [extension],
he expressed support for those options as well. He encouraged
having continued and better relations in the future.
Number 0332
ERIC FAIRCLOUGH, Member of the Legislative Assembly for Mayo-
Tatchun, Yukon Legislative Assembly, informed committee members
that his district runs from just south of Dawson City to north
of Carmacks, itself about 80 miles north of Whitehorse. Leader
of the Official Opposition and of the New Democratic Party (NDP)
of the Yukon, he expressed the desire to build relations with
the neighbors, including the Northwest Territories, British
Columbia, and Alaska, in order to benefit from economic
development and tourism. He mentioned environmental concerns,
noting that development - including that [proposed in] the
Arctic National Wildlife Refuge (ANWR) - is of great interest
because of the effects on wildlife that cross the border; he
commented that the federal government is passing laws regarding
endangered species. He also highlighted his experience with
First Nations, having been a chief who negotiated land-claims
agreements. He offered to share information with Alaskans.
Number 0460
CHAIR McGUIRE expressed her appreciation to the three delegates,
noting that they would meet individually with other Alaska
legislators in the next couple of days. She asked whether there
were questions; none were offered. She also voiced the hope
that as things progress, legislators can call upon those
delegates' special skills.
REPRESENTATIVE CRAWFORD expressed his thanks for hospitality in
the Yukon Territory over the years. He added, "I really
appreciate the good neighbors that you've been."
HB 36 - ENTERPRISE ZONES
Number 0543
CHAIR McGUIRE turned attention to HOUSE BILL NO. 36, "An Act
relating to enterprise zones." She noted that at the previous
hearing, some questions had arisen from committee members.
Number 0581
REPRESENTATIVE JOE HAYES, Alaska State Legislature, sponsor of
HB 36, offered a quick recap of his intentions with the bill.
Emphasizing the desire to help impoverished "economic zones" in
Alaska, Representative Hayes said he is looking at areas in
Anchorage, Fairbanks, Wrangell, Ketchikan, and anywhere else
that could use any of the four criteria established in HB 36 to
help spur development.
REPRESENTATIVE HAYES told members there is substantial proof
that this concept works both in urban and rural settings. Prime
examples in rural settings are Metlakatla and Pine Ridge, South
Dakota. He referred to a document named "List of Champion
Communities," pointing out that it has information on rural
economic development and empowerment zones.
REPRESENTATIVE HAYES reported that in Metlakatla, where he had
talked to Paul Brindaball (ph), two projects were either
heightened or brought in because of its being an enterprise
zone: one was water-related, and one was mining-related. The
two companies involved were particularly interested in the tax
incentives. Representative Hayes informed members that he had
been unable to get anyone from Metlakatla to testify, but said
"they are very supportive." He offered to answer questions
about the bill and how it could bring an economic boom to
Alaska.
Number 0710
CHAIR McGUIRE advised the committee that although some members
who had questions at the previous hearing were not present
currently, she understood that Representative Hayes had spoken
to people individually about those concerns. One focus [of the
questions] had related to tax incentives, with concern that the
rural areas, which might need the economic benefits the most,
might have nothing to give in that regard. She noted that
[Representative Hayes] had pointed out that there are really
four benefit areas.
CHAIR McGUIRE also said Representative Hayes had addressed the
other line of questioning - about how the areas which have
utilized the federal enterprise zones have benefited - very
well. She noted that Metlakatla and Mountain View [in
Anchorage] were the two areas specifically mentioned.
Number 0581
REPRESENTATIVE HAYES clarified that he doesn't believe [Mountain
View] to be part of the federal program as far as being an
"enterprise zone"; to his understanding, Mountain View had
applied, but was denied. He continued:
They have a new region that's called the "renaissance
zone, and they're doing ... a lot of the things that
an enterprise zone would do, but ... not all of the
things an enterprise zone would do. ... As of right
now, I do not believe they have any economic
development going on in that particular zone. ... It
is simply a defined area for which they are
concentrating their efforts on HUD [U.S. Department of
Housing and Urban Development] assistance.
REPRESENTATIVE HAYES said he believes HB 36 would really help
open up an opportunity for [Mountain View] to get a full
enterprise zone, because HB 36 proposes a statewide process.
The statewide process would be the first step, after which [a
community] would apply to HUD "or whatever the case may be," and
then would be eligible, hopefully, to apply for federal monies.
Number 0850
REPRESENTATIVE GUESS noted that she represents the Mountain View
area, then clarified, "They did apply to be a renaissance zone;
unfortunately, the ball dropped in the former mayor's office.
So, there wasn't a denial, but, unfortunately, it didn't
happen." She stated that a bill like this would be very
beneficial for areas such as Mountain View, South Mountain View,
Fairview, or Russian Jack, where she herself lives, in order to
try to get the type of economic development needed, rather than
just pawnshops and liquor stores. She thanked Representative
Hayes for introducing HB 36.
REPRESENTATIVE GUESS remarked that the nice thing about HB 36 is
that it allows municipalities freedom to do some things, and it
allows the state some freedom regarding incentives. She asked,
"Would those be done on a case-by-case basis? Is there kind of
a toolbox that they can pull out for each one, or would they set
up certain reductions ... in fees for any enterprise zone?"
REPRESENTATIVE HAYES answered that a local area is able to use
any of the four criteria. There is no mandate, so the community
can pick and choose what is believed to be the most
advantageous. "X" amount of communities would apply. The bill
would authorize the governor to designate up to four enterprise
zones each year from a prioritized list; that designation would
last for 20 years. He stressed the local option aspect
regarding the four criteria.
Number 0966
REPRESENTATIVE GUESS sought further clarification. She referred
to HB 36, page 2 [beginning at lines 30-31], which read as
follows [followed by the four listed criteria on page 3]:
Sec. 44.33.319. Local incentives. A qualifying
municipality may identify as incentives under AS
44.33.315
She also called attention to subsection (d) [page 3, beginning
at line 24], which read:
(d) The department may recommend to the governor and
the legislature incentives to enterprise zones that
include
(1) reduction of state permit or user fees;
(2) credits on state income taxes or exemptions
from the taxes; and
(3) the proposed lease or sale to private persons
of the state's real property that is not designated or
otherwise targeted for public use.
REPRESENTATIVE GUESS asked how it would work. Would it be the
same for all enterprise zones? Or could the Municipality of
Anchorage, for example, say that Mountain View is an enterprise
zone that needs a particular "package," whereas Muldoon is
another enterprise zone that needs another type of package, in
order to be the most beneficial?
REPRESENTATIVE HAYES said that is what he is envisioning. He
then noted that representatives from Legislative Legal and
Research Services, the Alaska Municipal League (AML), and the
Department of [Community] and Economic Development were
available to answer questions.
CHAIR McGUIRE asked whether anyone else wished to testify; there
was no response. She asked whether there were further questions
or comments from the committee; none were offered.
Number 1129
REPRESENTATIVE CRAWFORD made a motion to move HB 36 out of
committee with individual recommendations and the attached
fiscal note. There being no objection, HB 36 was moved out of
the House Special Committee on Economic Development, Trade and
Tourism.
ADJOURNMENT
Number 1142
There being no further business before the committee, the House
Special Committee on Economic Development, Trade and Tourism
meeting was adjourned at 4:31 p.m.
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