Legislature(2009 - 2010)BARNES 124
04/05/2010 01:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB416 | |
| HCR21 | |
| HB389 | |
| SB269 | |
| SB272 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 416 | TELECONFERENCED | |
| + | HCR 21 | TELECONFERENCED | |
| + | HB 389 | TELECONFERENCED | |
| + | SB 269 | TELECONFERENCED | |
| + | SB 272 | TELECONFERENCED | |
HCR 21-ECONOMIC DEVELOPMENT PLANNING COMMISSION
1:35:00 PM
CHAIR OLSON announced that the next order of business would be
HOUSE CONCURRENT RESOLUTION NO. 21, Creating and relating to the
Economic Development Planning Commission. [Before the Committee
was the CSHCR 21(EDT).]
1:35:31 PM
ROB EARL, Staff, Representative Bob Herron, Alaska State
Legislature, introduced himself. He explained that the bill's
prime sponsors are Representative Herron and Munoz, but
commented that Representative Austerman's office has also been
instrumental in bringing this issue forward.
1:36:00 PM
MR. EARL referred to his PowerPoint. The bill would create a 10
member Economic Development Planning Commission (EDPC) in the
legislative branch [slide 2]. The EDPC would act as a bridge to
synthesize ideas and make policy recommendations and any draft
legislation necessary for the legislature to consider. The EDPC
would report to the Legislative Budget and Audit Committee, the
Governor, and Legislative Council. The bill would sunset on
June 30, 2012.
1:36:49 PM
ERIN HARRINGTON, Staff, Representative Alan Austerman, Alaska
State Legislature, reiterated that the purpose of HCR 21 is to
integrate the legislature into some of the ongoing economic
development planning processes. She referred to a report by
Alaska Forward, which was sent to legislators.
MS. HARRINGTON explained that this effort has been led by the
Alaska Partnership for Economic Development, which is an
umbrella organization representing the Alaska Regional
Development Organizations (ARDORs) [slide 3]. Many
organizations have been involved in the process, including the
Alaska State Chamber of Commerce. Alaska Forward received a
$500,000 grant from the Denali Commission for its Phase I
effort. Alaska Forward is currently working on funding for its
Phase II tasks, which will likely result in substantive
recommendations in the spring. Another ongoing process is the
Governor's Legacy initiative, which was established by an
administrative order from the Palin Administration. This
project is "morphing" under the current governor to align with
the Alaska Forward efforts as well as working in a "work group"
effort that has resulted in significant work products.
MS. HARRINGTON related that numerous entities are involved in
effort directed at long-term, strategic planning included in
"Alaska's Economic Development 'System'" [slide 4]. This slide
identified some of the different organizations involved in
economic development efforts at the state, regional, borough,
and municipal levels. Not all organizations have the
opportunity to work with the legislature, she stated
1:39:01 PM
MS. HARRINGTON asked the question, "Is there a need for an
Economic Development Planning Commission? [slide 5]." The
ongoing economic development efforts represent a significant
investment of effort and financial resources by Alaskans. This
commission gives the legislature the opportunity to be engaged
throughout the process, which ensures legislative action is
informed by private sector participation. The EDPC responds to
identified shortcomings in previous economic development
efforts. In reviewing and researching economic development in
Alaska, it was found that in some cases when legislature action
was needed, the legislature had not had an opportunity to
proactively participate in some of the processes.
1:40:57 PM
MS. HARRINGTON 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 [slide 6].
1:41:25 PM
MR. EARL presented slide 7, which displayed the appointment
authority for the membership of the commission. He pointed out
that eight legislators would appoint six public members, which
he hoped would lead to a diversity of geographical
representation, experience, and industry representation. 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.
1:41:56 PM
CHAIR OLSON asked whether the House Labor and Commerce Committee
chair has appointment authority.
MR. EARL answered no.
1:42:02 PM
REPRESENTATIVE T. WILSON asked which appointment would represent
Interior Alaska.
MS. HARRINGTON responded that the EDPC does not currently have
geographic definitions for the appointments. She explained that
with the Finance Co-Chairs of both bodies, the Senate President,
the House Speaker, and the House and Senate Minority Leaders
making appointments; the hope is to achieve diversity. As it
currently stands, there is not any geographic definition of the
membership.
1:42:48 PM
MR. EARL continued. He discussed a timeline for HCR 21 as
follows: March, 2010, Alaska Forward Phase I 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 II
report; December 15, 2011, second report deadline; June 30,
2012, sunset [slide 8].
1:43:48 PM
MR. EARL observed there is a consensus in the business community
that there is a "lack of cohesive thinking on economic
development in Alaska" [slide 9]. The Alaska Industrial
Development & Export Authority (AIDEA)'s Strategic Plan was
released this spring, the Alaska Forward's Phase I Executive
Summary, and the Alaska State Chamber of Commerce 2010 Position
Paper all mention the lack of statewide planning.
1:44:25 PM
MR. EARL reviewed the documents provided in the committee packet
[slide 10]. He referred to a Legislative Research Report:
Alaska Economic Development Organizations that Representative
Herron's office recently ordered. Additionally, Representative
Austerman has developed a website with an Economic Development
Library that he characterized as worthwhile.
1:44:54 PM
MR. EARL discussed a breakdown of the fiscal note: $130,000
total; $108,000 for commission staff; $11,000 for travel;
$11,000 for per diem [slide 11]. 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.
1:45:23 PM
REPRESENTATIVE T. WILSON asked for the bill's purpose. She
related her understanding that Alaska already has ARDORs working
together on economic development.
1:45:47 PM
MS. HARRINGTON responded that this organization does not have
any membership from the ARDORs. This proposed commission would
be comprised of legislators and private sector membership. The
goal of the proposed commission will be to develop the
legislative actions that result from recommendations of a number
of processes. This would allow the legislature to engage in
these processes proactively and make recommendations that could
be implemented through the legislative process, including
department restructuring if that would be deemed to be
appropriate.
1:46:34 PM
REPRESENTATIVE T. WILSON asked who in the administration is in
charge of economic development.
MS. HARRINGTON answered the Department of Commerce, Community, &
Economic Development (DCCED) works on economic development. She
provided some background information. Representative Austerman
chairs the DCCED Finance Subcommittee. During the course of
reviewing the department through his subcommittee's work, it
came to his attention that inadequate resources were being
applied to economic development, with only about a dozen people
dedicated to economic development. During the interim he worked
with the Department of Labor & Workforce Development CRA to
increase that effort. Thus, the EDPC is one recommendation to
proactively assist with economic development in the state.
1:47:55 PM
REPRESENTATIVE T. WILSON agreed 100 percent with knowledge of
economic development in the state. She related her concern with
the political aspect. She shared an additional concern that the
ARDORs, such as the one in Fairbanks, are not being utilized
instead of looking for other recommendations.
1:48:42 PM
MS. HARRINGTON explained that the 12 ARDORs in the state receive
less than $60,000 annually from the state. Ones that are
located in larger communities have been able to draw on other
resources, she stated. However, a number of them only employ
part-time staff to cover significant geographical areas. She
explained that the ARDORS work with different resources and are
not equipped to draft legislation to implement the ideas. This
commission would be able to draw on the legislator resources to
work to implement the recommendations made by the volunteer
organization.
1:50:10 PM
REPRESENTATIVE LYNN offered that all legislative members support
economic development. He thought it seems like just another
organization. He said he can already speak to anyone who wants
to work on economic development issues and many group
representatives currently approach him with ideas. He related
that the legislature already has a House Special Committee on
Economic Development, Trade, and Tourism. He asked if this is
actually the EDT committee's role and wondered about the
necessity of a commission sharing the same goal as other
committees.
REPRESENTATIVE LYNN asked whether it is necessary to enhance the
stage for economic development. He related that the fiscal note
is $130,000 for two years, which is a lot of money for something
that is already being done.
REPRESENTATIVE HOLMES agreed. She offered that this bill would
create a group, with one staff, comprised of unpaid people and
the volunteers that would meet three times a year. The
volunteers would have outside jobs. She stated that she
appreciates the idea of legislature's involvement and thinks the
concept is great. However, she is worried this bill would
create one more group that would "talk a little bit" but she
offered that she was not convinced the commission's efforts
would result in a product.
1:53:53 PM
CHAIR OLSON related that he did not intend to move the bill
today.
1:54:02 PM
REPRESENTATIVE HOLMES made a motion to adopt Amendment 1,
labeled 26-LS1446\P.1, Cook, 3/30/10, which read, as follows:
Page 2, line 30, following "designee":
Insert ";
(11) the president of the Alaska
Partnership for Economic Development, or the
president's designee"
CHAIR OLSON objected for purpose of discussion.
1:54:29 PM
MR. EARL offered his belief that president of the Alaska
Partnership for Economic Development would serve the proposed
commission well.
REPRESENTATIVE T. WILSON asked for clarification that this is to
add another person instead of the Commissioner of the Department
of Labor & Workforce Development.
MR. EARL answered this would be another person that would
automatically be added to serve on the proposed commission.
REPRESENTATIVE HOLMES assumed the goal was to further integrate
ongoing efforts.
MR. EARL agreed. He stated that this addition would integrate
the work performed by Alaska Forward with the proposed
commission.
1:55:56 PM
REPRESENTATIVE T. WILSON asked whether the Alaska Partnership
for Economic Development is a public or private group.
MS. HARRINGTON answered that the Alaska Partnership for Economic
Development is the umbrella organization formed by ARDORs. Up
until the formation of this group, the ARDORs did not have any
opportunity to meet and discuss work. This bill would provide
that ability. The Alaska Partnership for Economic Development
funds the Alaska Forward project.
CHAIR OLSON removed his objection.
There being no further objection, Amendment 1 was adopted
1:56:48 PM
REPRESENTATIVE HOLMES made a motion to adopt Amendment 2,
labeled 26-LS1446\P.2, Cook, 3/30/10, which read as follows:
Page 3, line 16:
Delete "and to the legislative budget and audit
committee"
Insert ", the Legislative Budget and Audit
Committee, the House Labor and Commerce Committee, and
the Senate Labor and Commerce Committee"
CHAIR OLSON objected.
MR. EARL related this was suggested by a member in the other
body. The suggestion was that the proposed commission report to
both of the Labor and Commerce Committees in addition to the
Legislative Budget and Audit Committee.
There being no objection, Amendment 2 was adopted.
[HCR 21 was held over.]