02/08/2011 01:00 PM House MILITARY & VETERANS' AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB27 | |
| Eo 115 - Realigning the Oversight Authority of the Alaska Aerospace Corporation | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 27 | TELECONFERENCED | |
| + | SB 33 | TELECONFERENCED | |
| *+ | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS
February 8, 2011
1:03 p.m.
MEMBERS PRESENT
Representative Dan Saddler, Co-Chair
Representative Steve Thompson, Co-Chair
Representative Carl Gatto, Vice Chair
Representative Alan Austerman
Representative Bob Lynn
Representative Sharon Cissna
Representative Bob Miller
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 27
"An Act relating to the disposition of remains of a member of
the military if the member dies while in a duty status."
- MOVED CSHB 27(MLV) OUT OF COMMITTEE
EO 115 - REALIGNING THE OVERSIGHT AUTHORITY OF THE ALASKA
AEROSPACE CORPORATION
- EXECUTIVE ORDER 115 ADVANCED
SENATE BILL NO. 33
"An Act relating to the disposition of remains of a member of
the military if the member dies while in a duty status."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 27
SHORT TITLE: DISPOSITION OF SERVICE MEMBERS' REMAINS
SPONSOR(s): REPRESENTATIVE(s) THOMAS, HERRON, FEIGE, SADDLER
01/18/11 (H) PREFILE RELEASED 1/7/11
01/18/11 (H) READ THE FIRST TIME - REFERRALS
01/18/11 (H) MLV, STA
02/08/11 (H) MLV AT 1:00 PM CAPITOL 120
WITNESS REGISTER
CECILE ELLIOTT, Staff
Representative Bill Thomas
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 27 on behalf of one of the co-
prime sponsors, Representative Bill Thomas.
MARK SAN SOUCI, Regional Liaison Northwest
Defense State Liaison Office
Office of the Deputy Assistant Secretary of Defense
Deputy Under Secretary of Defense (Military Community and Family
Policy)
U.S. Department of Defense
Tacoma, Washington
POSITION STATEMENT: Testified in support of HB 27.
VERDIE BOWEN, Director
Office of Veteran Affairs
Department of Military & Veterans' Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Testified in support of HB 27.
RIC DAVIDGE, President
Vietnam Veterans of America
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 27.
DALE NASH, Chief Executive Officer
Alaska Aerospace Corporation (AAC)
Department of Commerce, Community, and Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of EO 115.
CRAIG CAMPBELL, President and Chief Operating Officer Designee
Alaska Aerospace Corporation (AAC)
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of EO 115.
MIKE FORD, Assistant Attorney General & Legislative Liaison
Legislation & Regulations Section
Department of Law (DOL)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on EO
115.
CURTIS THAYER, Deputy Commissioner
Office of the Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of EO 115.
MAJOR GENERAL TOM KATKUS, Adjutant General/Commissioner
Department of Military & Veterans' Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Testified in support of EO 115.
MCHUGH PIERRE, Deputy Commissioner/Chief of Staff
Office of the Commissioner
Department of Military & Veterans' Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Answered a question during the hearing on
EO 115.
ACTION NARRATIVE
1:03:51 PM
CO-CHAIR DAN SADDLER called the House Special Committee on
Military and Veterans' Affairs meeting to order at 1:03 p.m.
Representatives Saddler, Thompson, Gatto, Austerman, Lynn, and
Miller were present at the call to order. Representative Cissna
arrived as the meeting was in progress.
HB 27-DISPOSITION OF SERVICE MEMBERS' REMAINS
1:04:53 PM
CO-CHAIR SADDLER announced that the first order of business
would be HOUSE BILL NO. 27, "An Act relating to the disposition
of remains of a member of the military if the member dies while
in a duty status."
1:05:01 PM
CO-CHAIR THOMPSON moved to adopt the committee substitute (CS)
for proposed HB 27, Version B, 27-LS0191\B, Bannister, 1/26/11,
as the working document. There being no objection, Version B
was before the committee.
1:05:34 PM
CECILE ELLIOTT, Staff, Representative Bill Thomas, Alaska State
Legislature, explained that HB 27, Version B, would close a
loophole in statute in order to acknowledge and support the
wishes of those who are serving our country. The Department of
Defense requires all service members, reservists, and guard
members complete a record of emergency data - DD Form 93 or
CG2020D - which directs and authorizes the disposition of human
remains. Alaska state law does not currently recognize either
form, and this ambiguity can add an additional layer of stress
to grieving families. Much care and honor is given to a
deceased soldier, and CSHB 27 allows for a smooth transition at
home and follows the service members' directives.
1:06:51 PM
REPRESENTATIVE GATTO asked if there is a difference between the
terms "armed services" and "armed forces."
MS. ELLIOT responded that the term "armed services" was
incorporated in the CS to encompass the U. S. Coast Guard
(Guard).
1:07:30 PM
CO-CHAIR SADDLER called attention to a memo found in the
committee packet from Representative Thomas that clarifies the
changes in the CS regarding the Guard.
1:07:45 PM
MARK SAN SOUCI, Regional Liaison for Military Families -
Northwest, Defense State Liaison Office, Office of the Deputy
Assistant Secretary of Defense, Deputy Under Secretary of
Defense (DUSD), U.S. Department of Defense, informed the
committee this issue has surfaced because military people fill
out a federal form that is frequently not aligned with state
statutes. He gave an example of a service member, estranged from
his wife, who picked his brother to be responsible for his
remains if he died. State law, however, defaults the
responsibility to the surviving spouse and, after his death, a
conflict within the family arose. Corrective measures by other
states have been endorsed by the National Funeral Directors
Association; in fact, a majority of states already recognize DD
Form 93, or are currently considering amendments to their
statutes to do so. He noted that the Senate companion bill
passed.
1:10:01 PM
CO-CHAIR SADDLER surmised the CS aligns the House and Senate
versions of the bill.
1:10:09 PM
MR. SAN SOUCI credited Alaska legislative staff with correcting
the omission of the Guard.
1:10:27 PM
VERDIE BOWEN, Director, Office of Veteran Affairs, Department of
Military & Veterans' Affairs (DMVA), related that an incident
similar to the example given occurred in Alaska, and he opined
passage of the proposed legislation would prevent this from
happening.
1:11:46 PM
RIC DAVIDGE, President, Vietnam Veterans of America, expressed
his appreciation to legislative staff for amending the bill to
include Guard members. He explained that notifying next of kin
can be very difficult; in fact, his organization is sometimes
called upon to recognize the passing of a veteran if family
members cannot be located. Local funeral homes and the National
Cemetery Association are very helpful in these circumstances.
Mr. Davidge urged the committee to pass the bill out of
committee as soon as possible.
1:13:07 PM
REPRESENTATIVE GATTO described a situation in which a soldier's
burial wishes were ignored. He said that type of situation
would be prevented by the passage of the bill.
1:14:08 PM
CO-CHAIR SADDLER said he was impressed with the military's
efforts to take care of its own.
1:14:22 PM
CO-CHAIR SADDLER closed public testimony.
1:14:32 PM
CO-CHAIR THOMPSON moved to report the committee substitute for
HB 27, Version 27-LS0191\B, Bannister, 1/26/11, out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, CSHB 27(MLV) was reported from
the House Special Committee on Military and Veterans' Affairs
Committee.
1:15:18 PM
The committee took an at-ease from 1:15 p.m. to 1:17 p.m.
1:17:33 PM
^EO 115 - Realigning the Oversight Authority of the Alaska
Aerospace Corporation
EO 115 - Realigning the Oversight Authority of the Alaska
Aerospace Corporation
1:17:33 PM
CO-CHAIR SADDLER announced that the final order of business
would be Executive Order 115 which would transfer the Alaska
Aerospace Corporation (AAC) from the Department of Commerce,
Community, and Economic Development (DCCED) to the Department of
Military and Veterans Affairs (DMLV). He stated there are three
options when hearing an Executive Order (EO): 1. Do nothing,
thus the EO takes effect 60 days from transmittal; 2. Approve;
3. Disapprove, with a special concurrent resolution.
Furthermore, no amendments or changes can be made to an EO, and
it differs from a bill in that there are no individual
recommendations by committee members.
1:18:42 PM
DALE NASH, Chief Executive Officer, Alaska Aerospace Corporation
(AAC), Department of Commerce, Community, and Economic
Development (DCCED), informed the committee AAC is a state-owned
independent corporation - similar to the Alaska Railroad or the
Alaska Housing Finance Corporation - which currently is
administered through DCCED. At the time AAC was created, the
vision was for it to launch satellites and rockets out of the
Poker Flat Research Range (PFRR) facility; however, there are
populations downrange of that launch complex endangered by
stages of rockets falling back to earth. In the U.S. orbital
launch facilities such as Cape Canaveral, Florida, and Wallops
Flight Facility, Virginia, are situated so that rockets with
equatorial orbits launched from west to east fall back into the
ocean. Similarly, Vandenberg Air Force Base in California is
positioned as far west as possible. Therefore, even though
Alaska is sparsely populated, there was a reluctance to launch
rockets into orbit from PFRR as rocket stages could fall on the
North Slope oil fields or on the Anchorage and Mat-Su areas.
After further research by aerospace engineers, the Kodiak Launch
Complex (KLC) was developed.
1:21:29 PM
MR. NASH continued to explain that at the time of AAC's
inception, it was also envisioned by the corporation, the U.S.
Air Force (USAF), other space research agencies, and other
states that there would be a huge a market for commercial
rockets and the government would be the secondary market. This
was the rationale for placing AAC in DCCED. However, currently
85-90 percent of launches that go worldwide are government
launches: in fact, in the U.S. most rockets are launched by the
USAF, the National Aeronautics and Space Administration (NASA),
the Department of Defense (DOD), the National Oceanic and
Atmospheric Administration (NOAA), and the DOD Missile Defense
Agency (MDA). He stated that the 15 launches by KLC were
closely tied to the aforementioned customers, and this market
requires AAC to be aligned with DMVA. He said:
It helps us look more like a federal range. We are
state-owned; as we launch for the Air Force we need to
look like the Air Force to Vandenberg Air Force Base.
We launch for NASA we need to look like NASA, we
launch for Missile Defense, we need to look like
Missile Defense. Very often discussions come about
about our close interface with the, if we need
support, for responsive launches, or for security,
because the satellites are a high priority government
asset, who do we rely upon?
MR. NASH recalled his previous contact with former Adjutant
General Campbell regarding National Guard (Guard) operators at
Fort Greely who, in the case of a responsive launch, could be
cross-trained to help AAC's range safety system during the
launch of a high priority, high security satellite. As a matter
of fact, one of the biggest factors in support of cross-training
is that the Guard works closely with the Eastern Range space
processing and launch infrastructure. Mr. Nash stressed that
AAC wants to maintain a close relationship with DCCED and the
transfer to DMVA will not preclude completing commercial
launches, because commercial customers often own and operate
rockets under contracts with DOD or NASA. He concluded that the
transfer to DMVA "is a very good fit and can help add to several
opportunities for working together, teaming together, and
synergy as we move forward."
1:25:16 PM
CRAIG CAMPBELL, President and Chief Operating Officer designee,
Alaska Aerospace Corporation (AAC), Department of Commerce,
Community & Economic Development (DCCED), stressed that the move
to DMVA is an administrative, not an operational, move and
explained that AAC has a separate board of directors to provide
oversight and direction. Thus, oversight provided by the
department within government is primarily to ensure that AAC
complies with state law, and to provide a conduit to the budget.
Furthermore, federal funding for KLC was administered through
DMVA, and was a "pass through" from DMVA to DCCED. Mr. Campbell
opined that DOD questioned this structure, and he supported the
move to properly align AAC for better understanding by the
federal government.
1:26:55 PM
CO-CHAIR THOMPSON stated his support for the transfer, but
questioned the accuracy of the zero fiscal note.
1:27:32 PM
MR. CAMPBELL affirmed there is a zero fiscal note for the
transfer from DCCED to DMLV, however, there may be impacts on
the state budget for operations; for example, AAC has a funding
request for $4 million in the capital budget.
1:27:50 PM
REPRESENTATIVE AUSTERMAN asked whether there are any "bright
stars" in the private sector market.
1:28:29 PM
MR. NASH said AAC still believes there are opportunities in the
commercial market; for example, there are two rockets under
development by NASA's Commercial Orbital Transportation Services
(COTS) program. The program has paid $1.5 billion each to
Orbital Sciences Corporation (Orbital) and SpaceX to develop
rockets to resupply the International Space Station (ISS) and to
replace the Delta II rocket, which is the most-launched medium-
lift rocket, weighing about 12,000-14,000 pounds and lifting to
low-Earth orbit. Currently, AAC launches small-lift, 80-foot
rockets weighing 4,000 pounds to low-Earth orbit. The Delta II
rocket has launched about 148 times, putting up approximately
250 satellites, and launched Meridian and NAVSTAR Global
Positioning System (GPS) satellites. The rockets under
development are SpaceX's Falcon 9 and Orbital's Taurus II, both
of which launch from east coast facilities; however, 40 percent
of launches are polar orbits launched from west coast sites and
AAC wants to win one of these contracts. An Iridium
Communications Inc. satellite is scheduled to be launched to
polar orbit on the SpaceX Falcon 9, and there are negotiations
underway about launching from KLC.
1:31:36 PM
MR. NASH turned to discussions with Orbital about the Taurus II
and noted AAC has toured its Virginia facilities; in fact, KLC's
last launch was an Orbital rocket and another is scheduled for
May. He pointed out that those rockets will launch GPS,
Iridium, communication satellites, and many military payloads.
He re-stated that 60 percent of launches are equatorial orbits
from the east coast and 40 percent are west coast. A contract
for launching either rocket is "a win" for a generation. Both
companies have west coast launches contracted in 2014.
Moreover, winning one of these bids for one or two launches per
year would establish a tenant customer "for as far as the eye
can see." Mr. Nash indicated that KLC's new and modern
technology makes for quicker scheduling and response than is
possible at Vandenberg Air Force Base, and can ensure that a
rocket is safe or destroy it in a day or two. Also, rockets
launched from Kodiak fly directly into orbit versus a dog-leg
flight pattern, and can have a 15-20 percent payload advantage.
1:34:13 PM
MR. NASH assured the committee KLC has several other advantages
such as accommodating medium-lift rockets that launch 40-80
percent of the satellites.
1:35:11 PM
REPRESENTATIVE AUSTERMAN asked Mr. Nash to explain further why
AAC must have a "look alike federal side of it," when it is much
easier to launch from a complex like KLC.
1:35:42 PM
MR. NASH said, "We want [customers] to think we look like
Vandenberg, but realize how different we are in our
responsiveness and flexibility." He noted that launch
procedures are unique and KLC can make changes and decisions in
days that may take 60-180 days at large, well-established
ranges, because they are a bureaucracy. The interest in KLC is
because of its responsive nature - although KLC abides by the
same regulations, it keeps to the basics without adding overhead
and bureaucracy.
1:38:07 PM
REPRESENTATIVE AUSTERMAN then referred to page 1, line 8, of the
EO that adds a new chapter. He asked for clarity as to the
contents of the original chapter, pointing out the name change
from the Alaska Aerospace Development Corporation to the Alaska
Aerospace Corporation.
1:38:57 PM
MIKE FORD, Assistant Attorney General & Legislative Liaison,
Legislation & Regulations Section, Department of Law (DOL),
directed attention to page 19, line 29, section 4, of the
executive order, which listed the repealed statutes. He
explained that the executive order repeals existing law and
creates a new chapter with "one small difference." The initial
statutes of the corporation were put in Title 14 because of the
corporation's original connection with the University of Alaska
(UA). With the new direction and organization of the
corporation, the intention is to move the relevant statutes to
Title 26, which is the DMVA title. He advised the only
significant change in language is in the composition of the
board, which now includes the adjutant general of DMVA. In
further response to Representative Austerman, he said the
addition of the adjutant general did not increase the size of
the board, but replaced the position of the commissioner of
DCCED.
1:41:45 PM
REPRESENTATIVE GATTO referred to page 1, line 13, asked for
clarification of the language, "affiliated with the University
of Alaska but with a separate and independent legal existence."
MR. FORD said abovementioned language is existing law, and he
opined the reference is in keeping with the original educational
goals and duties of the university and AAC; however, the
language does not have significance other than that it was a
part of the existing mission of the corporation.
1:43:04 PM
MR. FORD, in further response to Representative Gatto, said he
is not aware of any problems created by this language since it
is just recognition of a past association. No new duties or
obligations are created.
REPRESENTATIVE GATTO then asked for clarification of page 1,
line 15, of the executive order that read:
(b) The corporation may not be terminated as long as
it has bonds, notes, or other obligations outstanding.
MR. FORD explained that this language is intended to recognize
legal obligations; for instance, if a corporation is terminated
without satisfying its legal obligations, other legal issues
arise.
1:44:32 PM
CO-CHAIR SADDLER concluded a corporation could cease operations
if its legal obligations are "paid off."
1:44:49 PM
REPRESENTATIVE AUSTERMAN called attention to page 5, line 7, of
the executive order regarding the six purposes of the
corporation and pointed out that two purposes are not related to
the university, and four purposes are related. He observed that
AAC's scope of work has changed over the years in terms of
unmanned flights, and he asked where that is incorporated in the
new language; in fact, in the new chapter there is not a
stronger presence of the future of AAC, beyond its affiliation
with UA.
MR. NASH expressed his understanding that the change in the
initial legislation deals with the movement from DCCED to DMVA.
He recalled that the name of the corporation was changed from
the Alaska Aerospace Development Corporation to ACC two years
ago at the withdrawal from PFRR and UA. Initially, there was an
understanding that all rockets would be launched from PFRR;
however, Kodiak is one of the best locations on Earth from which
to launch polar orbits. He acknowledged that a rewrite of the
purpose of ACC is needed, and that the corporation has become
"an unbelievable world-class launch facility on a rock in
Kodiak." He gave his personal reasons for working at ACC.
1:49:04 PM
MR. NASH continued, saying KLC is the essential core of AAC and,
like Florida and its space program, there are related industries
such as aircraft, radar, and communication built around the
complex. He expressed his view that KLC is an "enabler" to
create an Alaska aerospace industry, and has teamed with
Lockheed Martin in a partnership that he hopes will result in a
ground base defense system with a sizeable workforce in the
Delta Junction area. There are also plans to team with the UA
system to win research projects and grants, and with the
National Guard to attract launches of USAF unmanned aircraft
systems to help with homeland security, fisheries enforcement,
weather monitoring, and other tasks. Mr. Nash concluded that
AAC's new chapter is based around DOD government contracts and
AAC will grow, at Kodiak and beyond, to build Alaska's aerospace
industry to rival its military presence.
1:51:50 PM
MR. CAMPBELL expressed his interest in joining Mr. Nash and the
board of directors to develop a future for AAC. The first step
is to draft a strategic plan that encompasses the larger
aerospace industry in Alaska, and that defines how to achieve
its plan. The strategic plan will also refine the transition
from the original Alaska Aerospace Development Corporation to
the new AAC.
1:52:55 PM
REPRESENTATIVE AUSTERMAN stated it is not his goal to reject the
EO.
1:53:05 PM
REPRESENTATIVE CISSNA spoke of Alaska's strategic geographic
position; in fact, Cold Bay is an alternate landing location for
NASA. She asked, "Does that tie into this in some way?"
MR. CAMPBELL said it could. He recalled his past experience and
efforts to have DMVA develop a strategic plan to identify what
needs to be done in the future. The development of a strategic
plan requires everyone to contribute and evaluate their
thoughts. At that point all of the possibilities along the
spectrum of human space flight are open; although KLC will
probably not launch the space shuttle, or resupply missions,
there are plenty of other possibilities.
1:54:32 PM
CO-CHAIR SADDLER turned attention to line 27, paragraph 6, page
5, of EO 115, that called for "developing of a state strategy to
encourage space-related business." He asked whether there is
currently a strategy extent that will be changing in the future.
MR. NASH said yes. He added that AAC will continue to build on
that strategy to include emerging opportunities, a statewide
focus, and partnerships with UA and prime contractors like
Lockheed and others. The strategic plan is expected to be
released in another month after it is reviewed by the board of
directors.
1:55:44 PM
REPRESENTATIVE GATTO asked how many manmade satellites and
pieces of "space junk" are circling the Earth.
MR. NASH estimated 1,000-2,000 manmade satellites are in orbit;
in fact, satellites break away from Earth at the same speed as
gravity is pulling them back, so objects tend to remain in
orbit. About 1,500-2,000 satellites have been launched and
about 15,000-20,000 pieces of golf ball-sized debris are being
tracked. Additionally, there is transitory debris from asteroid
belts and natural sources. He recalled a collision three years
ago when China destroyed one of its own satellites to
demonstrate its offensive capability. This event raised
interest in KLC because of its "responsive nature in space." He
concluded that space is congested and contested, thus the open
orbits possible from KLC are desirable.
1:58:26 PM
CO-CHAIR SADDLER asked whether EO 115 holds any changes in the
disposition of personnel, assets, or money.
MR. NASH indicated no.
1:59:37 PM
REPRESENTATIVE GATTO asked if all satellites travel in the same
direction.
MR. NASH explained that orbits travel in the same direction -
whether launched north or south on a Polar orbit - so a launch
may be delayed for a short time to avoid an intercept.
2:01:04 PM
CURTIS THAYER, Deputy Commissioner, Office of the Commissioner,
Department of Commerce, Community & Economic Development
(DCCED), explained that he is the commissioner's designee on
AAC's board of directors. The department is fully supportive of
the development and growth of AAC, and of the aerospace industry
in Alaska. He recalled his first visit to the Kodiak launch
site in 1995, and the growth that has taken place up to its
latest launch in November 2010. The department has overseen AAC
since its inception, supporting its significant development,
progress and growth; in fact, an early study found the
facility's contribution to the economy to be $28.7 million in
direct and indirect spending, 235 jobs, and $12.5 million in
payroll. Furthermore, 260 Alaska firms provided goods and
services to the Alaska aerospace industry in Fiscal Year 2008
(FY 08). Launch periods increase economic development even
more, clarifying AAC's role in economic development. In order
for this growth to continue, AAC needs to expand its core
mission to encompass U.S. government, military-supported
operations. For this reason, Mr. Thayer explained, switching
oversight authority to DMVA will better support AAC's continued
growth and growth of the aerospace industry. Furthermore, DMVA
has the capacity to partner with ACC's ongoing operations, as
well as the development of new infrastructure. He opined
changing the oversight authority will mean better access to the
federal military command structure, and a greater opportunity to
attract the military contracts that will directly support KLC.
Additionally, the change will provide related private sector
opportunities and will give AAC a clear opportunity for contacts
to secure future launches. He concluded that because DCCED
wants AAC to be successful, the department would like to retain
a seat on the board of directors in order to support and
cultivate the economic development components of AAC's
operations.
2:04:51 PM
REPRESENTATIVE AUSTERMAN asked whether a seat for DCCED on the
board of directors requires changes within the current statute.
MR. THAYER said no. The EO transfers the seat between the two
commissioners, but does not add a seat.
2:05:43 PM
CO-CHAIR SADDLER asked for an estimate of the economic benefit
to Kodiak and Alaska.
MR. THAYER deferred to Mr. Nash.
2:06:26 PM
MR. NASH stated the benefit has been as high as $54 million in
one year during construction of infrastructure and the Kodiak
Kenai Fiber Link. Annual economic studies reveal an economic
benefit of from $20-$30 million in a typical year. The
corporation contributes approximately 11 percent of Kodiak's
economy. Benefits also accrue to Anchorage and Cordova due to
AAC's off axis site in Cordova.
2:08:00 PM
REPRESENTATIVE AUSTERMAN added the benefits of Kenai's learning
center and the downlink stations in Fairbanks.
MR. NASH confirmed that ACC operations led to downlink stations
in Fairbanks and radar sites in Juneau. He noted that the
Challenger Learning Center is an excellent addition to Kenai.
In addition, AAC tries to support 40 UA scholarships per year;
in fact, UAA is one of 50 NASA space grant universities, and the
money given to UAA is matched by NASA for space-related student
activities. He concluded that the launch complex itself is a
multi-use facility that supports grazing buffalo and cattle, and
recreational use.
2:10:05 PM
REPRESENTATIVE MILLER referred to page 7, line 18, indicating
that the corporation can apply to the federal government for a
grant allowing the designation of corporation territory as a
foreign trade zone. He asked for a definition of "corporate
territory" and the ramifications of the designation as a foreign
trade zone.
MR. NASH deferred to DOL on the definition of "corporate
territory." However, he first explained that although AAC has
not launched any foreign satellites, the designation of free
trade zone means that foreign satellites can be launched without
charging a tariff.
2:11:43 PM
MR. FORD opined "corporate territory" is land that the
corporation owns and that could be designated as a foreign trade
zone.
2:12:05 PM
REPRESENTATIVE MILLER assumed that a privately-owned corporation
with its own territory and relief from taxes would no longer
fall under the jurisdiction of the state.
MR. NASH responded that AAC has long-term leases with the state
as that is more cost effective than owning land. The Alaska
Railroad Corporation is the model AAC is using regarding
facilities and assets. The corporation supports its status as a
tax-free zone, and would also like to qualify as an economic
development zone so it may apply for new market tax credits. He
provided an example of the financing capabilities of tax credits
and how they are used to build capital infrastructure. Mr. Nash
was unsure about sovereign territory and said, "We very much
like, when we go in we say, 'We have the State of Alaska behind
us,' just like Florida likes to go in and say, 'We're Florida,
Incorporated' and Virginia does the same."
2:14:54 PM
REPRESENTATIVE MILLER maintained his question about the
application and meaning of the abovementioned two phrases.
MR. FORD offered to provide answers at a later date. He asked
whether AAC has received a grant or has been designated as a
foreign trade zone.
2:15:41 PM
MR. NASH confirmed that AAC has been designated as free trade
zone. In addition, AAC receives federal grants; in fact, the
most recent grant helped pay for paving a road. However,
further meaning surpasses his understanding.
2:16:29 PM
REPRESENTATIVE AUSTERMAN recalled the designation of corporate
territory and land and advised that the objective was to bring
in satellite components so that satellites can be built in
Kodiak and then launched on rockets. The ability to have a
duty-free zone as a tax base keeps costs down, and encourages
business.
REPRESENTATIVE MILLER asked for a legal clarification.
2:17:35 PM
MR. FORD will provide clarification.
2:17:55 PM
MAJOR GENERAL TOM KATKUS, Adjutant General/Commissioner,
Department of Military & Veterans' Affairs (DMVA), expressed his
support of the move. He observed that changes in technology
make the military AAC's best customer base, and the military
also has "a sense of comfort, [when] dealing with fellow
military members." This is true in administrative functions,
control, and looking out for the welfare of the state and of
developing businesses. Major General Katkus expressed his
interest in the challenge ahead and his expectation of working
closely with the commissioner of DCCED. He concluded that the
executive order creates synergy and will move an advanced
product into the marketplace.
2:19:17 PM
CO-CHAIR SADDLER asked whether EO 115 makes any personnel or
structural changes to DMVA, with the exception of the change to
the board of directors.
MAJOR GENERAL KATKUS assured the committee "it's a zero cost
movement from one department to the other."
2:19:59 PM
CO-CHAIR SADDLER closed public testimony.
2:20:13 PM
REPRESENTATIVE AUSTERMAN asked whether the language of an
executive order can be changed or amended.
CO-CHAIR SADDLER expressed his belief that the committee cannot
change the text of an executive order; the options are to
approve, disapprove, or do nothing.
REPRESENTATIVE AUSTERMAN was unsure whether Alaska statutes can
be changed by an executive order without participation by the
legislature.
2:21:19 PM
REPRESENTATIVE CISSNA opined after two years the legislature can
create laws to overcome even executive orders.
2:21:42 PM
MR. FORD confirmed that the options for the committee are
acceptance or rejection, without amendment. However, the
legislature can always introduce bills to change existing laws.
2:22:06 PM
MCHUGH PIERRE, Deputy Commissioner/Chief of Staff, Office of the
Commissioner, Department of Military & Veterans' Affairs (DMVA),
in response to Representative Austerman, explained that the
existing DMVA statute does not have an existing chapter to
facilitate housing this body of language, thus DOL created
Chapter 27 of Title 26, which is a new chapter.
2:22:54 PM
REPRESENTATIVE AUSTERMAN moved to advance EO 115, 27-GH1013\A,
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, EO 115 was
advanced from the House Special Committee on Military and
Veterans' Affairs.
2:23:28 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Military and Veterans' Affairs meeting was
adjourned at 2:23 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 27.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| CSHB 27.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| CSHB 27 changes ltr head.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| MEMO hearing req HB27.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| DD Form 93.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| DOD Support.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| List of states.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| HB 27 Testifier List.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| EO 115.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| EO 115 Transmittal Memo from Clerk.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| EO 115 Transmittal Ltr from Governor.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| EO 115 Fiscal Notes.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| Sponsor Statement HB 27.pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| HB027-DMVA-VS-2-7-11 v2.pdf |
HMLV 2/8/2011 1:00:00 PM |
HB 27 |
| 2-7-11 ltr of support for HR27 (2).pdf |
HMLV 2/8/2011 1:00:00 PM |
|
| 2-7-11 ltr of support to House for HR27.pdf |
HMLV 2/8/2011 1:00:00 PM |