Legislature(2003 - 2004)
02/06/2003 08:05 PM House CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
February 6, 2003
8:05 p.m.
MEMBERS PRESENT
Representative Carl Morgan, Chair
Representative Kelly Wolf, Vice Chair
Representative Tom Anderson
Representative Mike Chenault
Representative Ralph Samuels
Representative Sharon Cissna
MEMBERS ABSENT
Representative Albert Kookesh
OTHER LEGISLATORS PRESENT
Representative Richard Foster
COMMITTEE CALENDAR
CONFIRMATION HEARING
Commissioner, Department of Community & Economic Development
Edgar Blatchford - Anchorage
- CONFIRMATION(S) ADVANCED
PREVIOUS ACTION
No previous action to record
WITNESS REGISTER
Edgar Blatchford, Commissioner
Department of Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified as the appointed commissioner of
the Department of Community & Economic Development.
REPRESENTATIVE RICHARD FOSTER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Related his belief that Commissioner
Blatchford could do much good for Alaska.
ACTION NARRATIVE
TAPE 03-2, SIDE A
Number 0001
CHAIR CARL MORGAN called the House Community and Regional
Affairs Standing Committee meeting to order at 8:05 p.m.
Representatives Morgan, Wolf, Anderson, Samuels, Chenault, and
Cissna were present at the call to order. Representative Foster
was also in attendance.
CONFIRMATION HEARING
Commissioner, Department of Community & Economic Development
CHAIR MORGAN announced that the only order of business would be
the confirmation hearing on the appointment of Edgar Blatchford
as commissioner of the Department of Community & Economic
Development (DCED).
Number 0223
EDGAR BLATCHFORD, Commissioner, Department of Community &
Economic Development, related that he considers it an honor and
a pleasure to serve in state government. Public service is
probably the highest calling one can have in the community.
Commissioner Blatchford informed the committee that he was born
in Nome, but has spent most of his life in the Seward area where
he remains a resident. Mr. Blatchford reviewed his educational
background, which is specified in his resume in the committee
packet. After obtaining his Juris Doctor in the School of Law
at the University of Washington, Commissioner Blatchford
returned to Alaska, where he felt he could make the greatest
contribution. At that time the Alaska Native Claims Settlement
(ANCSA) was being implemented and Commissioner Blatchford was
involved through his regional corporation, Chugach Natives, Inc.
At that time, the intent of ANCSA seemed to revolve around
trying to do something with the resources to create economic
activities for local people and to develop opportunities and
jobs for the class of people at which ANCSA was aimed.
Commissioner Blatchford noted that [he helped create economic
activities] by purchasing a small newspaper in Seward.
COMMISSIONER BLATCHFORD informed the committee that in 1990,
Governor Hickel invited him to be a member of his cabinet. He
served as the commissioner of the Alaska Department of Community
& Regional Affairs (DCRA) for four years. Although that
position was taxing at times, it was always very fulfilling and
rewarding. After leaving the state's service, he taught at the
University of Alaska - Fairbanks for a semester in rural
development and then transferred to the University of Alaska
with the Department of Journalism and Public Communications. He
is now a tenured professor at the University of Alaska -
Anchorage.
COMMISSIONER BLATCHFORD turned to his appointment as
commissioner of DCED, which is a larger department than when he
was commissioner of DCRA eight years ago. He pointed out that
now DCED is charged with regulatory responsibilities through the
Division of Insurance; the Division of Banking, Securities, &
Corporations; and the Division of Occupational Licensing as well
as being an advocate for a positive business climate in rural
Alaska or other parts of Alaska, including the urban centers.
Commissioner Blatchford viewed being an advocate and regulator
as a unique opportunity to move forward with Governor
Murkowski's initiative to create jobs and economic
opportunities, which he viewed as a welcome challenge. He
mentioned that earlier this week he was in Kotzebue attending
the Northwest Arctic Economic Development Summit. The concerns
[expressed at the summit] are similar to concerns across the
state. He expressed the need to create local opportunities for
local people.
COMMISSIONER BLATCHFORD pointed out that DCED provides many
opportunities through the Division of Investments and the
Division of Occupational Licensing. The responsibility of the
Division of Banking, Securities, & Corporations is to work in a
fair and honest manner with the corporations and the banking
industry by always promoting the best interest of the consumer
while ensuring that those in the industry are treated by
government in a consistently fair manner.
COMMISSIONER BLATCHFORD highlighted that the responsibilities of
the old DCRA come from the constitution, which specifies that
there shall be a local government agency dedicated to delivering
government services to the unorganized borough. The state
legislature sits as the assembly for the unorganized boroughs
and DCED is the administrator. This is a large responsibility,
he said. He added that these responsibilities also include
business development, whether working with local communities or
local businesses or people.
Number 0937
COMMISSIONER BLATCHFORD turned to the Division of International
Trade and Market Development, which has the mission of promoting
Alaska's products. He pointed out that Anchorage is within
eight or nine hours of 70 percent of the earth's population.
Therefore, there is the opportunity to review how to serve other
countries with Alaska's products [and services.] He then moved
on to the Division of Insurance, which is a regulatory division
that is charged with protecting the consumer and ensuring that
the industry is treated fairly. The Division of Administrative
Services is the watchdog of the department; and this division is
audited closely by the legislature. Commissioner Blatchford
noted that [the entire department] has 500 employees throughout
the state, with a budget of approximately $150 million, of which
only 2 percent comes from the general fund.
COMMISSIONER BLATCHFORD commented that as one looks to the
future framed with what is happening with the [state's]
revenues, one realizes that population of the state continues to
grow. Furthermore, the responsibilities of government need to
be maintained. Commissioner Blatchford offered to answer
questions.
Number 1194
REPRESENTATIVE WOLF inquired as to Commissioner Blatchford's
thoughts on the development of regional branding programs such
as the Kenai Wild program.
COMMISSIONER BLATCHFORD said that the department is supportive
of any program that ensures local opportunities are enjoyed by
local residents. With the fishing industry in its current state
of crisis, all aspects of the fishing industry have to be
analyzed. Commissioner Blatchford reiterated his support of
programs in which the locals enjoy the opportunities and
protection of the habitat and resource. Therefore, he announced
his support of "that" [the development of regional branding
programs].
Number 1292
REPRESENTATIVE CISSNA requested that Commissioner Blatchford
discuss the breadth of the definition of "industry and economic
growth." She related that in her district the industries of
health and education are [prominent]; yet those industries
[haven't] exported their knowledge because of larger problems.
She pointed out that the Division of Occupational Licensing
plays a part in regard to how industries' workers relate to the
citizens of the state. Also, the Division of Insurance has some
important roles to play.
COMMISSIONER BLATCHFORD remarked that much attention is given to
health care in Alaska due to the [related] social problems. He
pointed out that Alaska is the wealthiest state in the U.S.,
even during these budget shortfalls. Furthermore, Alaska has
had the opportunity to be creative in addressing problems that
seem to migrate from rural Alaska to the urban centers.
Commissioner Blatchford related his belief that the best social
program is a job. With regard to health care, Alaska has a
unique opportunity with the delivery of health care services.
Alaska could be a model in the delivery of health care services,
he said.
COMMISSIONER BLATCHFORD informed the committee that the
Department of Labor & Workforce Development projects that rural
Alaska's population will increase to about $200,000 by the year
2020 or so, which is a huge increase. At one time, all
residents of rural Alaska were employed with jobs related to
subsistence activities. However, when the number of jobs are
reduced, the government has an obligation to replace those jobs
with another economic activity. Without the basic
infrastructure [in rural Alaska] for jobs and economic
development, there is an escalation in unemployment as well as
social ills. Therefore, economic development must be a two-fold
approach with the delivery of health care services and the
creation of jobs and economic development, both of which must
work hand-in-hand.
Number 1629
COMMISSIONER BLATCHFORD highlighted that the state shouldn't
build barriers to employment opportunities. In DCED there are
licensing boards, which include industry folks and professional
folks who always work toward the best interest of the people.
In rural Alaska there is a shortage of health care professionals
and many of the problems of Alaska originate in rural Alaska, he
said. Therefore, the health care profession must be reviewed
closely. He mentioned that the insurance industry is watching
Alaska closely.
Number 1689
CHAIR MORGAN inquired as to how Commissioner Blatchford viewed
the consolidation of DCRA and DCED. He asked if Commissioner
Blatchford felt it was working.
COMMISSIONER BLATCHFORD reiterated that the merging of the
departments created a merging of functions. From DCRA came the
function of an advocate for the unorganized borough while DCED's
main function was as a regulator. Commissioner Blatchford said
that he hasn't had time to do an in-depth analysis with regard
to whether the consolidated department works well. However, he
assured the committee that the department does its best to
create a healthy business climate while representing the
municipalities and the unorganized boroughs. He emphasized that
government is a large player/business in Alaska.
REPRESENTATIVE WOLF related that Governor Murkowski made a
wonderful choice with Commissioner Blatchford.
REPRESENTATIVE ANDERSON noted that he has worked with
Commissioner Blatchford for many years and was excited to hear
that Commissioner Blatchford was appointed. He also noted his
support of Commissioner Blatchford's confirmation.
Number 1924
REPRESENTATIVE RICHARD FOSTER, Alaska State Legislature,
expressed his pride in having Commissioner Blatchford back.
Representative Foster said that he knew Commissioner Blatchford
could do much good for the state.
CHAIR MORGAN recalled that Governor Murkowski had mentioned that
he wanted to work with Alaska National Interest Lands
Conservation Act (ANILCA) corporations, which are one of the
largest private landholders in the state. He inquired as to how
Commissioner Blatchford viewed working with the various
entities, whether the entity is a village corporation or a major
regional corporation.
COMMISSIONER BLATCHFORD said that he never forgets that he works
for the governor and at the will of the governor, his immediate
superior. With regard to Alaska's Native corporation,
Commissioner Blatchford said that they have an awesome
responsibility in which state and federal government plays a
large role. Commissioner Blatchford noted that he was eager to
accept this appointment, in part, because of his commitment to
assist the land-based [Native] corporations in Alaska. He
pointed out that Alaska Native corporations are one of the
largest employers in the state. Without the regional or village
corporations, there would be a large unemployment rate in the
state. Commissioner Blatchford explained that DCED would first
approach the corporations and ask if they have any priorities
and whether the state can do anything for them. Governor
Murkowski has consented to consolidate three departments to form
a sub-cabinet in order to review ways to ensure economic
development and opportunities, Commissioner Blatchford related.
He further related that Governor Murkowski has instructed the
cabinet departments of DCED, the Department of Transportation &
Public Facilities, and the Department of Natural Resources (DNR)
to meet and review ways in which the departments can assist
land-based corporations if invited to do so. Commissioner
Blatchford said that he would work closely with the other
commissioners and have people assigned in the department to
review ways in which to streamline government regulations, and
perhaps review what the Division of Investments can do.
Number 2194
REPRESENTATIVE WOLF moved that committee recommend that the
committee's recommendations with regard to Commissioner
Blatchford's appointment to DCED be forwarded to the full House.
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:37 a.m.
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