Legislature(2009 - 2010)CAPITOL 106
03/23/2010 05:15 PM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| HCR21 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HCR 21 | TELECONFERENCED | |
HCR 21-ECONOMIC DEVELOPMENT PLANNING COMMISSION
5:17:56 PM
CHAIR RAMRAS announced the only order of business would be HOUSE
CONCURRENT RESOLUTION NO. 21, Creating and relating to the
Economic Development Planning Commission. He identified
Committee Substitute to HCR 21, 26-LS1446\S, Cook, as the
document before the committee.
5:18:43 PM
ROB EARL, staff, Representative Bob Herron, Alaska State
Legislature, informed the committee that HCR 21 is sponsored by
the House Community and Regional Affairs Committee that is co-
chaired by Representatives Munoz and Herron. The resolution
creates a ten-member Economic Development Planning Commission
that would act as a task force in the legislative branch of
government, and that is funded through the Alaska Legislative
Council budget. He advised an HCR is a "letter from the
legislature to itself," and thus does not need to be signed by
the governor, nor is it subject to veto. The intent of the
resolution is to create a bridge between economic development
ideas and the action necessary to finalize related legislation.
The resolution includes a 6/30/12 sunset date for the
commission.
5:22:23 PM
ERIN HARRINGTON, staff, Representative Alan Austerman, Alaska
State Legislature, said HCR 21 fulfils two purposes: (1)
creates a tool by which the legislature can monitor ongoing
economic development initiatives; (2) creates a mechanism by
which the legislature can collaborate with the private sector
and identify where state government can support economic
development. Ms. Harrington pointed out that the resolution is
also a response to shortcomings found in previous economic
development efforts and processes. One of the current statewide
processes is Alaska Forward, which is led by the Alaska
Partnership for Economic Development (ADEP), a partnership
between the Alaska Regional Development Organizations (ARDORs),
and other groups. Alaska Forward received $500,000 from the
Denali Commission and is working on funding for its Phase 11
tasks. Another ongoing process is Legacy, which was established
by an administrative order from the Palin Administration, and
that is another effort directed at long-term, strategic planning
for economic development. She displayed slide 5 titled,
"Alaska's Economic Development 'System'" that identified some of
the different organizations involved in economic development
efforts at the state, regional, borough, and municipal levels.
Slide 6 listed the kinds of opportunities the commission may
identify such as: financial tools that need to be set in place
by statutory action; targeting industry "clusters"; preparing
the legislature in advance of the session to address the needs
of economic development organizations; restructuring of
departments that relate to economic development.
5:28:14 PM
MR. EARL presented slide 7 that displayed the appointment
authority for the membership of the commission. He pointed out
that the commissioners of the Department of Commerce, Community,
& Economic Development (DCCED) and the Department of Labor &
Workforce Development (DLWD) are appointed automatically, and
are ex officio, non-voting members. In addition, all members
serve until the sunset date of 6/30/12. Slide 8 displayed a
timeline for HCR 21 as follows: March, 2010, Alaska Forward
Phase 1 Report; April 30, 2010, or when members are appointed,
whichever is earlier, commission begins work; January 30, 2011,
first legislative report deadline; 2011 (tentative), Alaska
Forward Phase 11 report; December 15, 2011, second report
deadline; June 30, 2012, sunset. Mr. Earl observed that there
is a consensus in the business community that there is a "lack
of cohesive thinking on economic development in Alaska," and
although Alaska Forward is making progress, the commission would
help implement the ideas advanced by Alaska Forward. Slide 10
reviewed the documents provided in the committee packet. Slide
11 was a breakdown of the fiscal note: $130,000 total; $108,000
for commission staff; $11,000 for travel; $11,000 for per diem.
The fiscal note was written under the following assumptions:
three meetings require travel; one Anchorage meeting and two
Fairbanks meetings; per diem for two days per travel meeting;
three Anchorage-based members, one Fairbanks-based member. Mr.
Earl concluded his testimony.
5:32:26 PM
REPRESENTATIVE CRAWFORD expressed his disappointment at the lack
of input from the minority side of the legislature. In response
to Chair Ramras, he clarified that he referred to minority
members, not minority party members.
5:33:47 PM
REPRESENTATIVE NEUMAN asked whether there is a provision in the
resolution that would prevent the Speaker of the House, the
Senate President, or the co-chairs from appointing a minority
member.
MS. HARRINGTON said no.
5:34:33 PM
REPRESENTATIVE CHENAULT, in his role as Speaker of the House,
assumed that either the [Speaker of the House] or the President
of the Senate would choose the members to serve on the
committee, and not the finance committee co-chairs.
5:35:21 PM
CHAIR RAMRAS identified the relevant provision of the resolution
at page 2, lines 4-6, and suggested an amendment may be required
to correlate with the PowerPoint presentation.
5:36:01 PM
MR. EARL clarified that the information presented in the
PowerPoint coincides with Version S.
5:36:21 PM
REPRESENTATIVE CHENAULT misunderstood "chair" to be the chair of
the legislative council.
5:36:46 PM
CHAIR RAMRAS opened the hearing for public testimony.
5:37:26 PM
SUSAN BELL, Special Staff Assistant, Office of the Governor,
stated that she is working with the Department of Revenue (DOR),
and the Department of Commerce, Community, & Economic
Development (DCCED), on four fronts related to economic
development. Firstly, while representing the governor's office,
she served on the steering committee of Alaska Forward and was
involved in the Legacy process as well. Secondly, at the
departmental level, there has been a bolstering of staff for the
Office of Economic Development within DCCED, and interest in
"where the division is going." Thirdly, Ms. Bell pointed out
the number of bills relating to economic development that have
been introduced by the governor, and she said the fourth part of
the governor's plan is to preserve some elements from Legacy,
the economic development planning process established by former
Governor Palin. She continued to explain that Governor Parnell
is interested in preserving the Legacy element of a sub-cabinet
planning team consisting of: the commissioners or designees of
DCCED, the Department of Labor & Workforce Development (DLWD),
and the Department of Transportation & Public Facilities
(DOT&PF); the executive directors of the Alaska Housing Finance
Corporation (AHFC), the Alaska Energy Authority (AEA), and the
Alaska Industrial Development & Export Authority (AIDEA); the
president of the University of Alaska (UA); a representative
from the Office of the Governor. In fact, further revisions to
the administrative order are in progress. The Legacy process
also organized 13 industry-specific workgroups that have
produced interim reports that have been reviewed by DCCED and
the governor's staff. Referring again to Alaska Forward, she
advised that the workgroups from Legacy will be merged with
"industry cluster groups," under Alaska Forward, to bring state,
regional, and industry leaders from the private sector together
with state agencies. Ms. Bell advised that at this time, the
administration is reviewing reports produced by Legacy, forming
hoc groups to meet with the governor, bolstering staff, and
advancing legislation. She concluded that the commission will
be "another body that will be very instrumental in helping us
implement things that are coming out of a number of these
different initiatives, as well as our own department."
5:42:31 PM
MS. BELL, in response to Representative Neuman, further
described the efforts to bring Legacy and Alaska Forward
together, rather than having two independent sets of workgroups
working on tasks. The logical point at which to do this is in
Phase 11 of Alaska Forward, where the governor can interact with
the groups at a personal level, and also preserve the
subcabinet.
5:43:41 PM
WAYNE STEVENS, President and CEO, Alaska State Chamber of
Commerce, informed the committee the Alaska State Chamber of
Commerce is a statewide, non-profit, membership-funded
organization, and its mission is to promote a positive business
environment in Alaska. The Chamber's members represent a broad
spectrum of Alaskan businesses, from the resource and tourism
industries, the service and transportation sector, Native
corporations, and a variety of other business interests. Mr.
Stevens said the development of a strategic economic development
plan has been a top legislative priority of his organization.
He spoke in support of Legacy, Alaska Forward, and HCR 21, and
pointed out that strategic economic development cannot happen in
a vacuum; in fact, it is critical that the legislature, the
administration, the business community, and the university work
collaboratively to create a strategic economic development plan
for Alaska's future. He advised the Alaska State Chamber of
Commerce supports HCR 21.
5:46:22 PM
ANDY VARNER, Executive Director, Southwest Alaska Municipal
Conference (SWAMC), informed the committee that the Southwest
Alaska Municipal Conference (SWAMC) is an Alaska Regional
Development Organization (ARDOR), and a founding and board
member of the Alaska Partnership for Economic Development
(APED), the organization that undertook the Alaska Forward
initiative. Mr. Varner encouraged the committee to review the
Phase 1 report issued by Alaska Forward. He stated that SWAMC's
mission is to advance economic development in Southwest Alaska,
and is responsible for the region's economic development plan.
Regarding the resolution, SWAMC supports HCR 21 and the
establishment of an economic development planning committee to
oversee visions and strategies, and to serve as a clearing house
for the legislature regarding economic development activities in
the state. The commission's value to lawmakers is that it would
serve as a starting point for necessary policy changes, or
regulatory and management discussions, arising from the Alaska
Forward or Legacy initiatives. Most importantly, the commission
would be a mutual partnership between state government and the
private sector, and is structured so that both parties are
"marching step-in-step." Mr. Varner summarized that this effort
to streamline activities that strengthen and diversify the
state's economy is the reason SWAMC is in support of HCR 21.
5:48:44 PM
MARTY METIVA, Executive Director, Mat-Su Resource Conservation &
Development (RC&D); President, Alaska Partnership for Economic
Development (APED), stated he was testifying as the president of
APED. He gave a brief update of the Alaska Forward project and
clarified that Phase 1 completed a situational analysis of
"where we are now," by hiring consultants and conducting
surveys. Of interest was the response of over 300 business and
community leaders that indicated: 52 percent felt the state's
economic development efforts are ineffective; 61 percent felt
the outlook for Alaska's economy in the next 10 years is
uncertain; 2.5 percent felt the economic development efforts are
very effective; 6 percent felt the outlook for economic
development efforts are very good; they felt there is a lack of
leadership at the state level. He opined HCR 21 addresses this
issue by developing the private and public partnership that is
needed for economic development, as has been proven in other
states. Mr. Metiva expressed his support of the implementation
process within the resolution, because this is the part that has
always been missing. He concluded that APED and the Mat-Su RC&D
fully support the resolution.
5:53:44 PM
REPRESENTATIVE NEUMAN inquired as to the lack of leadership.
5:54:08 PM
MR. METIVA explained that many respondents to the on-line survey
mentioned this in their general comments in the questionnaire.
5:54:46 PM
CHRISTI BELL, Executive Director, Center for Economic
Development, University of Alaska Anchorage (UAA), University of
Alaska (UA), informed the committee the mission of the Center
for Economic Development is to leverage the UA system to support
statewide economic development. Ms. Bell stated she was a
member of the steering committee on the Alaska Forward project,
that her organization is a member of APED, and that she was
closely involved with the Legacy process. She expressed her
support of HCR 21 as a bridge that brings the legislative body
into the economic development conversation, and encourages the
legislature to be more engaged in a collaborative approach to
economic development. Ms. Bell agreed with the previous
speakers that the process should be more inclusive, not only of
the private industry and private entities, but of state
agencies, the legislature, institutes of higher learning,
economic development organizations, and others. She encouraged
the incorporation of language into HCR 21 that ensures the
participation of nonprofit organizations, Alaska Forward, and
Legacy.
5:57:47 PM
CURTIS THAYER, Deputy Commissioner, Office of the Commissioner,
Department of Commerce, Community, & Economic Development
(DCCED), said, "Legislation such as this, I feel is needed."
Presently, the Office of Economic Development (OED) and his
department have established an 120-day action plan that began
with an inventory of over 100 economic development projects,
from this and previous administrations. The DCCED also
completed an analysis of economic challenges, and is working
with Alaska Forward to create a non-governmental structure for
an economic board. Mr. Thayer said his department is in support
of funding in the amount of $100,000 for Alaska Forward.
Furthermore, the department has hired a new director of the OED,
and identified a business outreach officer to facilitate
projects with the private sector, and to serve as an ombudsman.
The DCCED is working with other state agencies to remove
impediments for growth and to promote investment in the state,
is reviewing Legacy and its future combination with Alaska
Forward, and is working with a community outreach plan to
encourage community involvement. The department is also meeting
with the Alaska Industrial Development & Export Authority
(AIDEA), the Alaska Seafood Marketing Institute (ASMI), the
Alaska Travel Industry Association (ATIA), and other state-
funded organizations. There are also fishing, mining, and
mariculture opportunities to be explored. He pointed out that
the department's participation with the Alaska Alliance for
Cruise Travel (AlaskaACT) at the Seatrade Cruise Shipping
conference in Florida, was an example of a private and public
partnership working to bring tourism back to Alaska. Mr. Thayer
concluded "we have a fairly new team in place, we're making some
changes within the staffing structure of OED within the [DCCED],
so we're more pro-active."
6:02:27 PM
REPRESENTATIVE NEUMAN asked for information on Alaska Forward.
6:02:44 PM
MR. THAYER explained that Alaska Forward was funded by the
Denali Commission and looks at economic planning for the state.
In fact, Legacy will transition into Alaska Forward. He
cautioned that related entities should not be in competition,
and opined Alaska Forward, because it utilizes private sector
and regional input, is "where the state needs to go." Mr.
Thayer advised that Governor Parnell's vision is not "the state
leading the effort; we can foster economic development, but also
the State of Alaska needs to know when to step back and stay out
of the way." He concluded that projects with private
involvement are most likely to success.
6:04:00 PM
REPRESENTATIVE NEUMAN asked whether Alaska Forward will work
with the private sector.
6:04:46 PM
MR. THAYER indicated yes.
6:04:58 PM
REPRESENTATIVE NEUMAN suggested increases to funding for ASMI
might be shared with entities that promote sport fishing.
MR. THAYER said he cannot speak for ASMI, although the OED could
look at that.
CHAIR RAMRAS closed public testimony.
6:07:54 PM
REPRESENTATIVE NEUMAN moved to report HCR 21, Version [S] out of
committee with individual recommendations and the accompanying
fiscal notes.
REPRESENTATIVE TUCK objected.
6:08:30 PM
REPRESENTATIVE TUCK offered Conceptual Amendment [1] to change
Version S, page 2, [paragraphs 3 and 4], to allow one public
member to be appointed by a minority leader in the Senate, and
one public member to be appointed by a minority leader in the
House.
6:09:07 PM
CHAIR RAMRAS announced that Conceptual Amendment 1 was before
the committee. Seeing no objection, Conceptual Amendment 1 was
adopted. The committee substitute for HCR 21, Version S, as
amended, was before the committee.
6:09:15 PM
REPRESENTATIVE TUCK removed his objection to the Committee
Substitute to HCR 21, Version S, as amended.
6:09:52 PM
There being no objection, CSHCR 21(EDT) was reported from the
House Special Committee on Economic Development, International
Trade and Tourism.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Alaska Forward Project Executive Summary.pdf |
HEDT 3/23/2010 5:15:00 PM |
HCR 21 |
| Briefing Paper Economic Development in State Government.pdf |
HEDT 3/23/2010 5:15:00 PM |
HCR 21 |
| Chart of Econ Dev Orgs.PDF |
HEDT 3/23/2010 5:15:00 PM |
HCR 21 |
| FN HCR21-LEG-COU-3-11-10.pdf |
HEDT 3/23/2010 5:15:00 PM |
HCR 21 |
| HCR 21 sponsor statement final.doc |
HEDT 3/23/2010 5:15:00 PM |
HCR 21 |