Legislature(2011 - 2012)HOUSE FINANCE 519
03/01/2011 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Confirmation: Department of Commerce, Community & Economic Development, Commissioner | |
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* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
March 1, 2011
8:10 a.m.
MEMBERS PRESENT
HOUSE COMMUNITY AND REGIONAL AFFAIRS
Representative Cathy Engstrom Munoz, Chair
Representative Neal Foster, Vice Chair
Representative Alan Austerman
Representative Alan Dick
Representative Dan Saddler
Representative Sharon Cissna
HOUSE ECONOMIC DEVELOPMENT, INTERNATIONAL TRADE AND TOURISM
Representative Bob Herron, Chair
Representative Neal Foster
Representative Reggie Joule
Representative Cathy Engstrom Munoz
Representative Steve Thompson
MEMBERS ABSENT
HOUSE COMMUNITY AND REGIONAL AFFAIRS
Representative Berta Gardner
HOUSE ECONOMIC DEVELOPMENT, INTERNATIONAL TRADE AND TOURISM
Representative Kurt Olson, Vice Chair
Representative Wes Keller
Representative Berta Gardner
Representative Chris Tuck
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Department of Commerce, Community & Economic Development, Acting
Commissioner
Susan Bell - Juneau
- CONFIRMATION(S) ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SUSAN BELL, Acting Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Speaking as the appointed Acting
Commissioner of DCCED, reviewed her background.
ACTION NARRATIVE
8:10:51 AM
CHAIR CATHY ENGSTROM MUNOZ called the joint meeting of the House
Community and Regional Affairs Standing Committee and the House
Special Committee on Economic Development, International Trade
and Tourism to order at 8:10 a.m. Representatives Austerman,
Foster, Dick, Saddler, Munoz, Herron, Thompson, Joule, and
Cissna were present at the call to order.
^Confirmation: Department of Commerce, Community & Economic
Development, Commissioner
Confirmation Hearing(s): Department of Commerce, Community &
Economic Development, ACTING COMMISSIONER
8:10:57 AM
CHAIR MUNOZ announced that the only order of business would be
the confirmation hearing of the Susan Bell, Acting Commissioner
of the Department of Commerce, Community & Economic Development.
8:11:10 AM
SUSAN BELL, Acting Commissioner, Department of Commerce,
Community & Economic Development (DCCED), speaking as the
appointed Acting Commissioner of DCCED, informed the committee
that she has been a Southeast Alaska resident for a little over
20 years. Although she was originally from Nome and stayed
there until she was six years old, she mainly grew up in the
Fairbanks area. Prior to taking her current position as
appointed commissioner, Acting Commissioner Bell worked in the
governor's office. She said that working in state government
provided her the opportunity to get to know the department and
the issues. With a little over a year-and-a-half in state
government, Acting Commissioner Bell said she felt new to state
government in many ways. Prior to working in state government,
Acting Commissioner Bell was a principal with the McDowell Group
for 8.5 years. During her time with the McDowell Group she
managed a wide array of projects throughout the state, which
provided insight into many of the issues and people she is
working with as acting commissioner. Prior to her time with the
McDowell Group, Acting Commissioner Bell was the Vice President
of Goldbelt. The aforementioned provided a unique opportunity
for Acting Commissioner Bell to work for a for-profit
corporation with a unique combination of economic and social
responsibilities. Acting Commissioner Bell related that she was
also fortunate to have a long career in the visitor industry,
which started when she was attending college in the Interior.
During her time working in the visitor industry she worked in
business operations, management, and marketing all of which
provided skill sets that are transferable and applicable to lots
of businesses.
8:14:28 AM
REPRESENTATIVE SADDLER inquired as to what Acting Commissioner
Bell would identify as the strengths and weaknesses in Alaska's
economy. He further inquired as to what she would do to address
those.
ACTING COMMISSIONER BELL opined that Alaska was somewhat
insulated from the 2008 economic crash. While Alaska's
unemployment was higher than normal, it wasn't the precipitous
decreases in terms of employment or decline in the housing
market. In terms of the recovery of the nation, it's important
to realize that sometimes Alaska doesn't participate in the
pickup. Therefore, she opined that it's important for the state
to think about Alaska's competitiveness and responsiveness and
position itself well during the change. She then highlighted
the tremendous challenge the state faces from the federal
government. As a resource state it's important for Alaska to
preserve the decision-making authority and basic functions of
the state. Acting Commissioner Bell further opined that Alaska
is well positioned with great resources and people to grow and
diversify the state's economy. The aforementioned requires good
communication and nimble responses. She expressed the need for
DCCED to be as effective as possible in terms of using its
marketing, financing, and business development tools.
8:17:03 AM
CHAIR HERRON asked if of the seven questions he provided Acting
Commissioner Bell there was one of particular interest.
ACTING COMMISSIONER BELL answered that the question that is
worth addressing is the relationship of the Division of
Community & Regional Affairs (DCRA) within DCCED. Approximately
11 years ago the Department of Community & Regional Affairs,
with a staff of about 200, was combined with the Department of
Commerce and Economic Development [to form the Department of
Commerce, Community & Economic Development]. Although there are
examples of why that combination is working well, there remain
areas for improvement. She then highlighted that DCRA and the
Division of Economic Development have complimentary and
interrelated roles and working toward the common goal of
economic opportunity. With DCRA housed in DCCED there are
excellent opportunities for collaboration. For example, the
Division of Economic Development staff has worked with DCRA
staff with regard to grant opportunities or other resources for
economic development projects, such as for fish plants. She
provided other examples of the collaborative efforts within
DCCED. She then highlighted two projects with overarching
applications throughout the department: Village Resume, which
is funded by the Denali Commission as a demonstration project to
determine whether contractors understand the employment and
other resources available within a community; Connect Alaska,
which is a broadband project. Acting Commissioner Bell opined
that it's beneficial to have existing working relationships
within the department. Although she acknowledged that there's
the opportunity to grow, there is much value in how the
department currently works.
8:21:46 AM
CHAIR HERRON mentioned HB 160, which addresses tourism marketing
to encourage people to come to Alaska and market fish. However,
there's a need to go beyond that. Chair Herron then related
that 52 percent of Canadians believe the Arctic is important to
their identity, whereas 2 percent of Americans believe Alaska
and the Arctic are important. Therefore, he inquired as to how
to market Alaska, beyond tourism and purchasing fish, to be a
better place for country.
ACTING COMMISSIONER BELL began by relating that the question
speaks to an area that the department has been discussing. She
then highlighted the state's contract with the Alaska Seafood
Marketing Institute (ASMI) as well as the smaller marketing
programs of Made in Alaska, Silver Hand, and Alaska Grown.
Acting Commissioner Bell concurred with the need for more of an
overarching presence for Alaska. As the department enters the
next budget cycle, it will review its internal resources as well
as the possibility of realigning some of the department's
programs. It's critical, she opined, to ensure people
understand what the state has to offer. Furthermore, the state
needs to think more globally with regard to the image of the
state such that the state is competitive, responsive, and
proactive in terms of positioning the state for economic and
community development. The department has had internal
discussions, which she expected would be more robust in the next
budget cycle.
CHAIR HERRON recalled that the governor has said HB 160 is a
priority for him, which Chair Herron interpreted as part of the
overarching approach of painting a better picture of the
importance of Alaska.
8:25:58 AM
REPRESENTATIVE AUSTERMAN inquired as to how DCCED interfaces
with ADF&G to develop underutilized or non utilized fishing
industry resources. He related that approximately 2,500
permits/applications for mainly economic development projects
are languishing in DNR. He then inquired as to how DCCED works
with other departments to address some of the problems with
economic development.
ACTING COMMISSIONER BELL answered that there are a few formal
ways in which DCCED engages as commissioners, such as through
the various subcabinets and a group led by the attorney general
that focuses on various projects across departments. One such
project, worked on in conjunction with ADF&G, DCCED, and the
Department of Law (DOL), focuses on the Endangered Species Act
and the biological information necessary as well as the social
impacts. She related that as DCCED's team came together, there
has been a commitment and leadership from the governor to ensure
the department works together. Acting Commissioner Bell relayed
confidence that DCCED will breakdown some of the barriers, silos
to accomplish work. With regard to the DNR permits, she related
that Commissioner Sullivan is very focused on that, although it
will take staff resources and a culture change. Addressing
issues across department lines will be more tangible as the
administration proceeds.
REPRESENTATIVE AUSTERMAN remarked that many of the fixes, DNR
permitting in particular, are fairly easy. He then suggested
that DNR could make some simple regulation changes to address
the five-year timeframe requirement for permits. For example,
when [Kodiak] was interested in building a dock it was told it
would take five years to obtain a lease. Although [DNR] said it
could provide a permit, the dock would have to be built such
that it could be taken down in 24 hours. However, a simple
regulation change could require a bond to take the dock down
rather than the 24-hour requirement. He suggested that such
changes could be led by commissioners.
8:31:32 AM
REPRESENTATIVE DICK remarked that by the time information or
concepts move from the legislature to the location, often
there's a breakdown. He related that once the programs and
grants reach the small rural areas, constituents complain that
they are competing against their own government. In other
situations, government actually funds the very dysfunction the
local area is trying to rid itself of. Therefore, he expressed
the need to have accountability. Representative Dick inquired
as to whether a [process] can be developed such that residents
in the area of a project have an avenue to speak with [the
departments] regarding implementation at the local level and
whether it's working.
ACTING COMMISSIONER BELL mentioned that Representative Dick's
discussions with herself and Mr. Ruby have led to discussions
regarding the department's roles, particularly in the Division
of Community & Regional Affairs. The division has
sustainability measures and audits, which provide
accountability. She then turned attention to the importance of
regional hubs from which it's easier to understand the reality
of the smaller surrounding communities.
8:35:38 AM
REPRESENTATIVE JOULE highlighted that since the Alaska Native
Claims Settlement Act (ANCSA) Alaska Native Corporations have
grown to a position from which they contribute heavily to
Alaska's economy. He then inquired as to the future role of
DCCED with these corporations.
ACTING COMMISSIONER BELL recalled her prior roles in which she
worked with Goldbelt Corporation and the McDowell Group where
she had the opportunity to engage with the for-profit
corporations. She then informed the committee that DCCED has
increased its engagement with ANCSA corporations, community
leaders, and business leaders in order to understand and
compliment their needs. To a lesser degree, DCCED has increased
its engagement with communities. She pointed out that many of
the ANCSA corporations are engaged in multiple disciplines,
which provides a diversification that's valuable to understand.
Although the dividends and employment opportunities that ANCSA
corporations provide to their shareholders are smaller, the
educational opportunities they offer are tremendous.
Personally, as a shareholder of Bering Strait and Sitanasuak
Native Corporations, she related that she is proud of what the
corporations are doing. In terms of the department, Acting
Commissioner Bell expressed the need for the department to be
engaged at the regional level as well as the village level,
which she characterized as a key piece of DCCED's strategy going
forward.
8:39:50 AM
REPRESENTATIVE FOSTER mentioned his appreciation for Acting
Commissioner Bell's diverse background in the urban and rural
environments and her work experience in the private and public
sectors as well as with Native corporations. With regard to
engaging with the Native corporations, he recalled seeing the
state interface with NANA Corporation and the film industry.
ACTING COMMISSIONER BELL informed the committee that the
department has the Economic Advisory Council, which is an
informal group that would function as a sounding board for her
and DCCED's directors. The council includes a number of Native
corporation leaders. Having sat in on and reviewing some of the
transition team reports, she recalled that many of the ANCSA
corporations were part of that. The ANCSA corporations are part
of the fabric of Alaska's economy and are valued. Therefore,
there's no question that the ANCSA corporations will be part of
the department's engagement going forward.
8:41:46 AM
REPRESENTATIVE CISSNA related that her recent travels have taken
her to rural Alaska, where she has viewed the tribal aspect [of
rural Alaska]. She opined that it seems that DCCED doesn't
focus on the tribal part [of rural Alaska] as it partners with
the ANCSA corporations. The tribal health [organizations] are
doing an amazing job, she remarked. Still, in many of the
communities she has visited, she has observed that oftentimes
items are sent to rural Alaska that no one knows how to use.
Furthermore, oftentimes the safe water systems and energy
systems aren't working together and no one knows how they work.
Although she has come to understand that there are training
programs, they aren't [available] where she's traveled.
Representative Cissna related that her travels have illustrated
the large amounts of expenditures in federal and state funds,
which aren't coordinated. Furthermore, there are different
world views between Bush and urban Alaska. She inquired as to
how to address the differing world views, that is a non economic
world rather than a monetary world. "We've got this economic
thing in places where people are trying to subsist, but they've
got too many impediments that are things we sent," she pointed
out.
ACTING COMMISSIONER BELL said that while DCRA doesn't interact
with the breadth of entities Representative Cissna mentioned,
many of the government services they provide, in terms of
technical assistance, training, and grant administration, are at
the tribal government level. Therefore, some of the basic
municipal function occurs at the tribal government level. Some
of what Representative Cissna mentioned DCCED does address
through the Alaska Energy Authority and DEC addresses through
the Village Safe Water program. She then highlighted that the
Rural Subcabinet through last year made an effort to take
commissioners and the attorney general out to a number of
communities in the state in order for them to understand those
communities across departments. In many instances it was the
first time or the first time in a while that commissioners had
been to those communities. Acting Commissioner Bell agreed with
Representative Cissna that things can't be done in isolation.
To that end, she noted that [DCCED] has worked closely with
Commissioner Sullivan, who is completing a document that relates
what [the Rural Subcabinet] saw and heard and viewed in other
documents. The DCCED has focused on moving forward with an
action plan.
8:49:06 AM
REPRESENTATIVE SADDLER asked if Acting Commissioner Bell would
want to emulate the style or program of any of the previous
commissioners of DCCED.
ACTING COMMISSIONER BELL related her observation that the past
several DCCED commissioners have had very different
personalities, strengths, and energy. She related that she
strives to work with the DCCED leadership team regarding finding
synergies between the department's community focus and economic
development focus in order that both sides of the department are
addressed simultaneously as synergies across the department are
identified.
8:51:18 AM
REPRESENTATIVE AUSTERMAN noted that he's been critical of DCCED
in the past, particularly with regard to economic development.
However, he related that he is pleased with the appointment of
Acting Commissioner Bell and the governor's other appointees.
He further related that Acting Commissioner Bell's background in
rural Alaska will bode well for the community and regional
affairs side of the department. He concluded by thanking Acting
Commissioner Bell for the work she does.
8:52:01 AM
CHAIR MUNOZ wished Acting Commissioner Bell success in this
role. She noted that she has observed Acting Commissioner Bell
in various roles in which she has always excelled. Therefore,
she opined that the state is fortunate to have her in this
position.
8:52:43 AM
ADJOURNMENT
There being no further business before the committees, the joint
meeting of the House Community and Regional Affairs Standing
Committee and House Special Committee on Economic Development,
International Trade and Tourism was adjourned at 8:52 a.m.
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