Legislature(2015 - 2016)BARNES 124
01/22/2015 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
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| Start | |
| Overview: Department of Commerce, Community & Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
January 22, 2015
8:02 a.m.
MEMBERS PRESENT
Representative Cathy Tilton, Chair
Representative Paul Seaton, Vice Chair
Representative Shelley Hughes
Representative Benjamin Nageak
Representative Lora Reinbold
Representative Harriet Drummond
Representative Dan Ortiz
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF COMMERCE~ COMMUNITY & ECONOMIC
DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
FRED PARADY, Acting Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Presented an overview of DCCED.
LAWRENCE BLOOD, Acting Director
Division of Community & Regional Affairs
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: During the overview of DCCED, answered
questions.
ACTION NARRATIVE
8:02:53 AM
CHAIR CATHY TILTON called the House Community and Regional
Affairs Standing Committee meeting to order at 8:02 a.m.
Representatives Hughes, Nageak, Reinbold, Ortiz, Drummond,
Seaton, and Tilton were present at the call to order.
8:03:03 AM
Committee members introduced themselves and expressed their
interest in being a member of the committee.
^OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC
DEVELOPMENT
OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC
DEVELOPMENT
8:07:52 AM
CHAIR TILTON announced that the only order of business would be
an overview from the Department of Commerce, Community &
Economic Development.
8:08:17 AM
FRED PARADY, Acting Commissioner, Department of Commerce,
Community & Economic Development (DCCED), directed attention to
a handout entitled "Department Overview for House Community &
Regional Affairs." He then turned to page 2 and reviewed the
department's organizational chart, which highlights the
department's six divisions: Administrative Services; Banking &
Securities; Community & Regional Affairs; Corporations, Business
& Professional Licensing; Economic Development; and Insurance.
The department also includes the following corporate entities:
Alaska Energy Authority; Alaska Gasline Development Corporation;
Alaska Industrial Development & Export Authority; Alaska
Railroad Corporation; Alaska Seafood Marketing Institute;
Alcoholic Beverage Control Board; and Regulatory Commission of
Alaska (RCA). The latter two, he clarified, are regulatory
entities. As illustrated on the pie chart on page 3, 59 percent
of DCCED's funding flows through corporations while 41 percent
flows through the department's core agencies. The pie chart on
page 4 provides a breakdown of DCCED's budget by the
department's management plan, core services. Consumer
protection accounts for 17 percent, economic growth 29 percent,
strong communities 14 percent, and affordable energy 40 percent.
He pointed out that half of the affordable energy expenditure is
power cost equalization (PCE).
ACTING COMMISSIONER PARADY then directed the committee's focus
to page 5 and the Division of Banking and Securities, the
purpose of which is to regulate financial markets and protect
consumers of financial services while promoting safe and sound
financial systems. The Division of Banking and Securities has a
budget of about $3.6 million, but collected $13.4 million in
fees and assessments. Therefore, the division is a net
generator of revenue to the general fund. In the last year, the
key accomplishments of the Division of Banking and Securities
were to develop electronic filing for certain securities and
joining the electronic filing depository national filing system,
which is a clearing house that improves efficiencies for banking
businesses. The division is also developing new financial
tools. He noted that there is a thread of the marijuana issue
that will reside in this division as it deals with the interplay
between federal regulations on drug money and a new business
climate that will develop in the state.
ACTING COMMISSIONER PARADY moved on to the Division of
Insurance, which also generates more in revenue to the general
fund than what it costs to run the division. The Division of
Insurance generates $64 million in fees while its budget is $7.6
million. He then related that there are over 1,100 insurers
admitted to conduct business in Alaska; over $3.4 billion in
total premiums written in the last calendar year; and almost
50,000 individual licensed insurance brokers in the state. The
division opened and closed 245 complaints, opened 79 and closed
115 investigations, and issued 21 disciplinary orders in fiscal
year 2014. He reminded the committee that the Division of
Insurance is a consumer protection and regulatory function
division.
8:13:10 AM
ACTING COMMISSIONER PARADY turned attention to the Division of
Corporations, Business and Professional Licensing, page 7. He
explained that at the legislature's directive, the division
regulates 43 professions of which behavior analysts, massage
therapists, and contractors were added last year. There are
67,000 individual professional licenses and 50,000 business
licenses. The Division of Corporations, Business and
Professional Licensing has a $12.4 million budget and returns
about $6.6 million in business license fees to the general fund.
He highlighted the importance of the quality of the division's
information technology systems and administrative support and
the ability to do good data management. The division has
increased corporate entities in good standing from 60 to 93
percent and much more data is available online for business
license renewals, professional licensing, and quarterly reports.
He pointed out that a key component of professional licensing is
that the legislature mandates that each profession be self-
supporting. Therefore, how indirect costs are allocated and how
the individual solvency of each of the 43 different licensing
categories is maintained is a balancing act. He highlighted
that the Legislative Budget and Audit Committee has performed
considerable work on the aforementioned topic in the last year.
He then noted that the division has bar-coded all of the
professional license renewal applications, which has decreased
the receipt timelines from three weeks to three days.
Furthermore, the division has improved its efficiency in
investigative caseloads as the open-to-close time has been
shortened by over 50 percent. Acting Commissioner Parady
commented that the division has a particularly effective leader.
ACTING COMMISSIONER PARADY continued his overview with the
Alcoholic Beverage Control Board, page 8, which transitioned to
DCCED in FY 2013. The aforementioned was a source of
considerable discussion across the state with regard to whether
alcohol control belongs in a public safety or health context or
in DCCED. Acting Commissioner Parady opined that Cynthia
Franklin, Director, Alcoholic Beverage Control Board, has
managed to balance the fact that alcohol is an industry that
needs to be regulated and promoted while doing so responsibly as
alcohol carries a host of social issues. He informed the
committee that a complete rewrite of Title 4, that balances the
aforementioned perspectives, will come before the legislature.
He emphasized that DCCED is eager to modernize these statutes
and bring them before the legislature.
ACTING COMMISSIONER PARADY then addressed the Regulatory
Commission of Alaska (RCA), which has worked diligently to
improve their processes. In the past, 10 paper copies of a
utility rate filing were required, whereas now no paper copies
are required as it's performed online. The ability to file
online is being extended to the small rural telephone utilities
as well. In fact, that should be achieved within the next 45
days. He informed the committee that many of the administrative
components of the PCE Fund are handled through the RCA. The RCA
ensures that the utilities meet the filing requirements. He
explained that the PCE Fund subsidizes the first 500 kilowatt
hours of high cost power to consumers across Alaska. In order
to qualify for that funding, the utility has to meet certain
criteria, such as minimum line loss.
8:17:47 AM
ACTING COMMISSIONER PARADY moved on to the Division of Economic
Development. The new Alaska Maritime Industrial Support Sector
analysis assesses the age of Alaska's fishing fleet, status of
the state's shipyards, and how the needs of the fleet match
those of the shipyards. The aforementioned involves workforce
and finance questions. This division has 261 loans that amount
to almost $30 million across 10 loan programs, the heart of
which is 237 loans in the Commercial Fishing Revolving Loan
Fund. The Commercial Fishing Revolving Loan Fund is solvent and
vital to the state's commercial fishing fleet. The division
runs the tourism marketing, which generates 800,000 information
requests, 220,000 trips, and 700,000 visitors. He noted that
the newly established Alaska Tourism Marketing Board had its
first meeting in January. Tourism, he emphasized, is a vital
industry as it has spread throughout the state. He recalled the
birding tourists in Barrow who were interested in seeing the
spectacled eider, which is an endangered species. Due to the
28th Alaska State Legislature's House Concurrent Resolution 15
there is a new statewide strategy with the University of Alaska
Fairbanks (UAF) regarding unmanned aerial drones. Alaska, he
explained, is a proving ground for that technology in terms of
commercial applications because the state has air space
available. The division is partnering with industry and UAF to
support resource development efforts, including the Minerals
Commission report on the mining of rare earth minerals in Bokan
Mountain. The division also supports manufacturing through the
Made in Alaska and Alaska Product Preference programs. He
mentioned that there was an exciting Made In Alaska Home Show in
Anchorage this past fall during which everything in the home was
made in Alaska. The aforementioned was an effort to illustrate
to builders how products manufactured in Alaska could be used.
ACTING COMMISSIONER PARADY turned attention to the Alaska
Seafood Marketing Institute (ASMI) and noted that fisheries is
the number one employer in the state with an export value that
is up nearly 85 percent to $3.2 billion in 10 years. He opined
that the Responsible Fisheries Management Initiative is central
to the fishing industry. He then informed the committee that
an environmental non-governmental organization (NGO) has made an
effort to create a sustainable fishery certification. However,
that certification has become politicized from both an
environmental and international perspective. A Russian pollock
fishery was certified as meeting the standard of the
environmental NGO, which devalued the Alaska pollock industry.
He highlighted that the Responsible Fisheries Management
Initiative was successful in working with Wal-Mart to certify
that Alaska's fisheries are sustainably managed and meet the
procurement requirement for large corporate distribution chains.
He highlighted that ASMI continues to collaborate with Alaska
Tourism and Marketing, Alaskan Grown, and Nutritious Alaskan
Foods in Schools programs. He also noted that the fishing
industry has a voluntary fish tax. Although the voluntary fish
tax can reach up to .6 percent of the ex-vessel value, it's
currently at .5 percent of the ex-vessel value and generates
roughly $12 million.
8:22:33 AM
REPRESENTATIVE HUGHES inquired as to what the percentage of the
pie chart on the upper-right hand side represents.
ACTING COMMISSIONER PARADY clarified that on page 11, the 29
percent represents the percent of the department's overall
budget in the category of economic growth. He informed the
committee that 17 percent of the department's budget is in the
category of consumer protection.
8:23:11 AM
ACTING COMMISSIONER PARADAY, returning to his overview, directed
attention to the Alaska Industrial Development and Export
Authority (AIDEA), page 12, which is a vital organization to the
state as it generates a dividend back to the state. The fiscal
year 2016 dividend in the amount of $17.6 million has been
approved. The financing that's afforded through AIDEA has
leveraged a projected $700 million in private sector investment.
Furthermore, AIDEA is projected to create/retain nearly 1,500
construction jobs and over 1,000 permanent jobs. For example,
the first phase of the Mustang Oil Field development field in
Prudhoe Bay has been completed and the second phase has recently
been approved by the board. Acting Commissioner Parady informed
the committee that AIDEA has a financing package that supports a
redevelopment in central Anchorage.
ACTING COMMISSIONER PARADAY continued on to page 13 regarding
the Alaska Energy Authority (AEA), which is from where the PCE
grant payments are disbursed. Nearly $40 million were disbursed
to 188 communities in fiscal year 2014. There is roughly $900
million in the PCE Endowment Fund and efforts are ongoing to
determine whether the management of those funds can be
strengthened in order to strengthen the returns and provide
support for the program. He pointed out that AEA also handles
the upgrades to rural power systems of which 53 of 114 rural
power system upgrades have been completed. There is an Emerging
Energy Technology Fund. The board, he indicated, is trying to
find the right hybrid power systems that can improve power
production in the state's villages. The annual fuel savings
from the Renewable Energy Fund is projected to be 20 million
gallons of diesel by 2016. There has been an impact, albeit a
slow build-up of the utility infrastructure in rural Alaska.
ACTING COMMISSIONER PARADAY then addressed the Alaska Gasline
Development Corporation (AGDC), page 14, which is working
diligently to align with the administration's new directives
while also working to synchronize the timing of the Alaska
liquefied natural gas (AKLNG) and the Alaska Stand-Alone
Pipeline (ASAP) projects. He recalled the following quote from
Dan Fauske, President, AGDC: "Only in Alaska would a $7 billion
pipeline be considered small."
8:26:18 AM
ACTING COMMISSIONER PARADY moved on to page 15, which highlights
the Division of Community and Regional Affairs (DCRA). He
recalled traveling to Hoonah with regard to a legislative grant
for the construction of a new dock in Hoonah that will service
the tourism industry. Hoonah has changed from a timber and
fishing based community to a tourism based community. He
recalled his first day on the job when Lawrence Blood, Acting
Director, DCRA, showed him Article 10, Section 14, of the Alaska
Constitution which is the requirement to support local
communities and their capacity. To that end, DCRA provides
assistance to over 200 communities and runs the Rural Utility
Business Advisor (RUBA) program through which 147 communities
were assisted and nearly 200 rural utility managers trained. He
emphasized that running a utility in rural Alaska is no small
task. The Local Boundary Commission (LBC) approved the
incorporation of Edna Bay, Alaska's first new city in 10 years.
The DCRA supports local communities by writing election codes
and ordinances. He noted that due to a statutorily directed
grant new cities receive a $50,000 payment and then a $25,000
payment in order to have funds with which to organize. He told
the committee that DCRA distributed over $85 million to 307
communities through revenue sharing and other programs. Cross
training of staff is also occurring. Acting Commissioner Parady
highlighted the opportunity to break down silos. For example,
banking and insurance are merging activities across much of the
country. Therefore, the question becomes whether synergies can
be achieved by cross training. The heart of breaking down silos
is using Local Government Specialists (LGS), which he
characterized as "the tip of the state spear." He noted that
there are 6 regional offices and roughly 40 LGS or grant
specialists. Therefore, the division had the logistical
infrastructure and was able to travel to approximately 130
communities with those specialists. The notion is that the LGS
should be able to address DCRA issues, such as utility
assistance, LBC, municipal code, and election code, while being
aware of the Public Employees' Retirement System (PERS)
arrearages and energy projects of the area. Cross training
would achieve the aforementioned, he said. Being able to more
comprehensively communicate the range of issues across state
government allows the LGS to make the most of their visits and
break down silos. He noted that the LGS deal with bulk fuel
loans and thus there is a linkage with AEA, which deals with
bulk fuel projects.
8:33:00 AM
ACTING COMMISSIONER PARADY continued with page 17 regarding the
Community Aid and Accountability Section. He reminded the
committee that last year community revenue sharing was reduced
from $60 million to $52 million for fiscal year 2015. He
explained that community revenue sharing has a balance of about
$172 million and on June 30th of each year one-third of the
balance of the fund is distributed to communities, which
amounted to a total distribution of $57.3 million. If the
community revenue sharing program was zero funded in the coming
year, the balance would decrease to $114.7 million on June 30th
and the distribution would decrease to $38.2 million.
Therefore, because the community revenue sharing program has a
rolling balance forward, it doesn't immediately zero out but
drops significantly. Acting Commissioner Parady pointed out
that the Federal Secure Rural Schools program wasn't
reauthorized for fiscal year 2015. Although it may be
reauthorized, the immediate impact would be the loss of $12
million in federal funds to 33 municipalities for their schools
and roads from the Tongass and Chugach National Forests. The
Federal Payment in Lieu of Taxes (PILT) were extended for one
year in fiscal year 2015 such that approximately $28 million
will be disbursed across 95 municipalities.
8:35:07 AM
REPRESENTATIVE REINBOLD asked if the department would support
the land transfer rather than the PILT.
ACTING COMMISSIONER PARADY characterized that as a complex
question for which he would await direction from his
administrative supervisors.
8:35:47 AM
ACTING COMMISSIONER PARADY directed attention to page 18
regarding the Local Government Assistance/RUBA program, which
helps local utilities with QuickBooks, preventative maintenance
programs, structure, and to build capacity in order to sustain
the reliability of the utility infrastructure. The RUBA
collaborated with the Department of Environmental Conservation
(DEC) to create a best practices method to assess the technical,
managerial, and financial capacity of communities in order to
prioritize funding. He highlighted that at the legislature's
direction, there are roughly 1,800 grants and $2 billion in
project funding that flow through DCRA's grant division to
support various community level services. However, he noted his
expectation that those capital funds will be restricted in the
coming years. He then pointed out that marijuana is arising as
a topic when LGS visits cities and villages. The questions from
local governments are in regard to how marijuana businesses will
be regulated and used as a revenue source. At this time,
marijuana regulations are being developed in the Alcoholic
Beverage Control group as there is a cross-departmental task
force that is working on the matter. The initiative specifies
that nine months are allowed for the promulgation of those
regulations. Anyone with local government questions regarding
marijuana is referred to the Frequently Asked Questions section
of the ABC Board web site. He informed the committee that local
government assistance staff work with communities on elections.
However, due to a court case there is no longer the need for
Department of Justice (DOJ) pre-clearance for changes to
election codes or special elections.
ACTING COMMISSIONER PARADY then moved on to page 19 regarding
the Local Boundary Commission (LBC), which essentially
supervises the process of annexation and petitions to become
incorporated. Edna Bay was the first city to incorporate since
2004. Allakaket annexed territory to the city, which enabled
residents who had relocated to higher ground after the 1994
flood to once again be city residents. Although the Alaska
Superior Court upheld the LBC's 2012 decision approving
incorporation of the Petersburg Borough, it's on appeal to the
Alaska Supreme Court. He noted that LBC staff traveled to
Houston and Big Lake to address questions regarding the
consolidated Big Lake incorporation and Houston annexation
petitions.
ACTING COMMISSIONER PARADY continued with the Office of the
State Assessor, page 20, and highlighted that Alaska is one of
the few states that doesn't require the reporting of sales data
for [any] real estate transactions. The state assessor performs
full value determinations for cities located within boroughs.
The full value determination of a borough as a whole is only
used in the required local contribution program. Therefore, one
could argue that it's unnecessary to perform a full value
determination in individual cities. Discontinuation of that
work is being considered because it doesn't tie itself to a
state formula or capitalization, but feedback from the public is
necessary. He noted that [the Division of Insurance] is
considering personal rate filings because the insurance industry
is competitive.
8:41:32 AM
ACTING COMMISSIONER PARADY, continuing his presentation,
informed the committee that the Ketchikan Gateway Borough
decision will be addressed legislatively as the consequences are
germane to education funding. The decision involves the state
assessor because of the required local contribution calculation.
He then pointed out that the state assessor has been working to
decrease travel while maintaining training to local communities
by providing the training at regional and state conferences to
groups rather than individually.
ACTING COMMISSIONER PARADY concluded his overview with the
Planning Section, page 21. He highlighted that the Federal
Emergency Management Agency (FEMA) flood studies have been
completed for the Kenai Peninsula Borough and City of Cordova,
while the studies for Aniak, Bethel, Kwethluk, and Emmonak are
forthcoming. Work is also being done to develop natural hazard
resiliency plans in Kivalina, Shaktoolik, and Shishmaref. The
Planning Section is working with the Department of Military &
Veterans' Affairs (DMVA) on an application submitted to FEMA to
relocate homes to a new village site in Newtok.
8:43:09 AM
REPRESENTATIVE NAGEAK requested clarification of the natural
hazard resiliency plans.
ACTING COMMISSIONER PARADY deferred to Mr. Blood.
8:43:28 AM
LAWRENCE BLOOD, Acting Director, Division of Community &
Regional Affairs, Department of Commerce, Community & Economic
Development, explained that the resiliency plans are through the
federal Risk Mapping, Assessment, and Planning (MAP) program,
the basic objective of which is to do planning to make the next
storm less severe. Two planners located in Anchorage are
dedicated to these resiliency plans. In further response to
Representative Nageak, Mr. Blood opined that there is a broad
range of outcomes that might result from one of the resiliency
plans, but only the planning is associated with the Risk MAP
program. However, that plan can be used to seek funding from
other sources to carry out the resiliency activities identified
in the plan.
8:45:19 AM
ACTING COMMISSIONER PARADY returned to the overview of the
Planning Section of DCCED. He explained that the Municipal Land
Trustee (MLT) program is one in which lands are held in trust
for the development of a future community. The Planning Section
works with tribal governments to establish site control for
local infrastructure, such as a landfill. He clarified that
site control refers to control of the underlying lease or
ownership of the land. Under this program, leases for landfills
have been provided to Iliamna, Koliganek, and Takotna to support
local efforts to meet DEC permitting requirements. The Planning
Section has worked with DMVA on the Galena flood recovery, which
has resulted in the elevation of 30 homes at risk of future
flooding, with an additional 10 homes scheduled [for elevation].
Acting Commissioner Parady highlighted that there are new photo-
based community profile maps for all 11 communities in the
Northwest Arctic Borough (NWAB) as well as 22 communities
statewide. The maps are overlaid with surveyed plat data, and
therefore show general ownership to aid future projects and
completion of the Alaska Native Claims Settlement Act (ANCSA)
14(c) settlement applications.
8:47:10 AM
REPRESENTATIVE SEATON referred to page 2 of the overview, and
pointed out that Alaska Aerospace is not listed as one of the
regulatory agencies.
ACTING COMMISSIONER PARADY related his understanding that Alaska
Aerospace resides in the Department of Transportation & Public
Facilities (DOT&PF).
8:47:42 AM
REPRESENTATIVE SEATON recalled Acting Commissioner Parady's
comments regarding marijuana and the Division of Banking &
Securities. He then inquired as to how state chartered
institutions are similar to the Bank of North Dakota being
separate from federal [institutions]. He further inquired as to
whether it's a mechanism that could be used in Alaska to allow
the completion of financial transactions. Would a state
credit/debit card be issued from those institutions that would
be excluded from the federal prohibitions on federally chartered
banks, he asked.
ACTING COMMISSIONER PARADY deferred to the Division of Banking
and Securities, which could provide the committee with an
answer.
REPRESENTATIVE SEATON requested that the aforementioned be an
official request from the chair such that the entire committee
receives clarification as to how to handle that portion of the
marijuana initiative that could be problematic.
The committee took a brief at ease.
8:50:19 AM
REPRESENTATIVE SEATON restated his request for the chair to
request from DCCED analysis of the banking capabilities of state
chartered banks or other financial institutions in terms of
whether those financial institutions, such as the Bank of North
Dakota, might be exempt from the provisions that do not allow
federally chartered banks to handle any marijuana assets or
financial transactions. He further asked whether the
aforementioned could be expanded to debit or credit cards issued
by those institutions.
CHAIR TILTON confirmed she will request the aforementioned.
8:51:29 AM
CHAIR TILTON mentioned that this committee will review the
marijuana issue in terms of how it impacts municipalities in
upcoming meetings. In fact, the committee will likely propose
legislation regarding marijuana and how it pertains to
municipalities.
8:52:11 AM
ACTING COMMISSIONER PARADY informed the committee that DCCED has
been tracking which municipalities have asked what regarding the
marijuana initiative and would be happy to share it with the
committee.
8:52:41 AM
ACTING COMMISSIONER PARADY, in response to Representative
Seaton, clarified that there are 67,000 professional licenses
and 50,000 business licenses of which the largest group of
professional licenses is nursing with about 8,000 licenses. He
noted that the Division of Corporations, Business and
Professional Licensing doesn't license teachers. He reiterated
that the division now regulates 43 professions.
8:53:48 AM
REPRESENTATIVE SEATON surmised that from the department's view
many of the licenses are to promote safety, although licensing
has a severe anti-competitive aspect as there isn't open
competition since everyone has to go through a board that may
not want to expand eligibility of participants. He asked if the
department has reviewed whether the more licenses that are
created actually restricts the competitiveness of those wishing
to provide those services and how that balances with safety.
ACTING COMMISSIONER PARADY answered that the aforementioned
hasn't been studied, but has been discussed in the context of
whether there are professions that are candidates for
deregulation. He identified the aforementioned as a policy
question. Upon review of national data, Alaska falls in the
middle range in terms of how many professions are regulated, he
reported.
8:55:50 AM
CHAIR TILTON asked if the Division of Economic Development
interfaces with the Alaska Energy Authority (AEA).
ACTING COMMISSIONER PARADY responded that although he presumes
the two entities do interface, he didn't know and will have to
investigate and share the answer with the committee.
8:56:19 AM
REPRESENTATIVE HUGHES expressed interest in how the Alaska
Regional Development Organization (ARDORs) interact with local
communities and governments.
ACTING COMMISSIONER PARADY offered that the department could
provide a briefing on ARDORs.
REPRESENTATIVE HUGHES clarified that her question is in relation
to how the ARDORs interact with the local governments, which she
opined is important in terms of the earlier mentioned need to
break down silos.
8:57:49 AM
REPRESENTATIVE HUGHES recalled that Palmer has set aside a town
site in Point MacKenzie, and asked whether the LBC has been
involved with this process.
ACTING COMMISSIONER PARADY deferred to Mr. Blood.
MR. BLOOD replied that Point MacKenzie hasn't hit his radar in
terms of it being a current activity of the LBC. However, staff
has routine contact with communities on various topics and thus
it's possible there have been conversations with the LBC that
haven't reached the level of submitting a draft petition for
review, assistance, or comments. In further response to
Representative Hughes, Mr. Blood explained that there is a
population threshold in order to become an incorporated
community. To become a second class city, at least 25 residents
must sign the petition while to become a first class city 400
residents are required.
8:59:35 AM
REPRESENTATIVE SEATON highlighted the difficulty of housing in
rural Alaska for those visiting the area, such as those in the
education and public safety fields. When visitors have to stay
in the local school gym, it disrupts the entire school. He
asked if the department has considered Alaska-made yurts with a
composting toilet and a heater that could be accessible for
those state government employees and officials who visit to work
with the community.
ACTING COMMISSIONER PARADY said he is familiar with the
itinerant housing issues in villages, but isn't familiar with
housing within the context of DCRA. Therefore, he suggested
that perhaps the question would be better directed to the Alaska
Housing Finance Corporation (AHFC).
MR. BLOOD said that he has no knowledge of such discussions in
the department. As an LGS who has slept on the floors, in the
jails, and the tables in the clinics, he said he would love to
have a yurt available for housing.
REPRESENTATIVE SEATON offered that across departments there is a
need for housing, and thus he encouraged discussion of solutions
for housing such as yurts with a composting toilet as well as
heat and water access that can be turned off when not in use.
ACTING COMMISSIONER PARADY agreed to discuss the topic during
the [department's] breaking silos discussions.
9:05:02 AM
REPRESENTATIVE HUGHES pointed out that the budget will be an
overarching theme of this legislative session. During these
lean times, it's a good time for legislators to review how they
can address things that could save communities. To that end,
she requested feedback from the department with regard to
possible statutory changes that could relieve some burden on the
communities.
ACTING COMMISSIONER PARADY characterized Representative Hughes
request as a wonderful suggestion that would be great as an
afternoon work session for the Alaska Municipal League (AML),
which he said he will suggest to Kathy Wasserman and
departmental LGS.
9:07:27 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 9:07 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DCCED Overview HCRA 1-22-15.pdf |
HCRA 1/22/2015 8:00:00 AM |
Overview of the Dept. of Commerce, Community and Economic Development |