Legislature(1993 - 1994)
03/05/1994 01:00 PM ECO
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE ECONOMIC TASK FORCE March 5, 1994 1:00 p.m. MEMBERS PRESENT Representative Eileen MacLean, Chair Representative Jeannette James Representative Bill Williams Representative Carl Moses Representative Al Vezey MEMBERS ABSENT Representative Joe Green Representative Bettye Davis Representative Bill Hudson Representative Jerry Mackie COMMITTEE CALENDAR HJR NO.( ): Relating to the Western Alaska Community Development Quota Program and the North Pacific Fishery Management Council Comprehensive Rationalization Program. SCSCSHCR 9: Relating to state management of the Western Alaska Community Development Quota Program and state fisheries development policy. CSSB 212(FIN)am: "An Act relating to the giving of procurement notices; changing the content of the required procurement reports to the legislature by the commissioner of administration; relating to publications produced by state agencies; establishing an innovative construction procurement methods pilot program; and establishing legislative findings, a legislative purpose, and legislative intent for state procurement; and providing for an effective date." SB 310: "An Act relating to the management and sale of state timber; relating to the classification of state land that would preclude harvesting of timber or would designate harvesting of timber as an incompatible use; relating to the administration of forest land, proposals for state forest, and the determination of sustained yield; and providing for an effective date." HB 436: "An Act prohibiting the Department of Environmental Conservation from adopting or enforcing a regulation that establishes an ambient air quality standard or emission standard that is more stringent than a corresponding federal standard; and providing for an effective date." WITNESS REGISTER DAVID HARDING, Legislative Aide Representative Eileen MacLean Room 507, Capitol Building Juneau, AK 99801 Phone: (907) 465-4833 POSITION STATEMENT: Provided information CHERYL SUTTON, Legislative Aide Representative Carl Moses Room 204, Capitol Building Juneau, AK 99801 Phone: (907) 465-4451 POSITION STATEMENT: Provided information PAUL FUHS, Commissioner Department of Commerce and Economic Development PO Box 110800 Juneau, AK 99811 Phone: (907) 465-2500 POSITION STATEMENT: Provided information CHRIS GATES, Director Division of Economic Development Department of Commerce and Economic Development PO Box 110800 Juneau, AK 99811 Phone: (907) 465-2017 POSITION STATEMENT: Provided information LOREN RASMUSSEN, Chief Design Construction Standards Department of Transportation and Public Facilities 3132 Channel Drive Juneau, AK 99801 Phone: (907) 465-2960 POSITION STATEMENT: Provided information DUANE PEEPLES, Administrative Officer Alaska Seafood Marketing Institute 1111 W 8th St., Suite 100 Juneau, AK 99801 Phone: (907) 465-5560 POSITION STATEMENT: Provided information PREVIOUS ACTION BILL: HCR 9 SHORT TITLE: COMMUNITY DEVELOPMENT FISHING QUOTAS SPONSOR(S): REPRESENTATIVE(S) HOFFMAN, Ulmer, Mulder, James, Menard JRN-DATE JRN-PG ACTION 02/22/93 409 (H) READ THE FIRST TIME/REFERRAL(S) 02/22/93 409 (H) FISHERIES, RESOURCES, FINANCE 03/12/93 (H) FSH AT 08:30 AM CAPITOL 17 03/12/93 (H) MINUTE(FSH) 03/12/93 (H) MINUTE(FSH) 03/17/93 682 (H) FSH RPT CS(FSH) NEW TITLE 2DP 1NR 03/17/93 682 (H) DP: MOSES, OLBERG 03/17/93 682 (H) NR: PHILLIPS 03/17/93 682 (H) -ZERO FISCAL NOTE (F&G) 3/17/93 03/26/93 776 (H) RES RPT CS(FSH) NEW TITLE 6DP 2NR 03/26/93 777 (H) DP: HUDSON, JAMES, FINKELSTEIN, DAVIES 03/26/93 777 (H) DP: MULDER, WILLIAMS 03/26/93 777 (H) NR: BUNDE, CARNEY 03/26/93 777 (H) -PREVIOUS ZERO FN (F&G) 3/17/93 03/26/93 807 (H) COSPONSOR(S): MULDER 03/17/93 (H) MINUTE(FSH) 03/24/93 (H) MINUTE(RES) 03/26/93 (H) RES AT 08:00 AM CAPITOL 124 03/26/93 (H) MINUTE(RES) 03/29/93 838 (H) COSPONSOR(S): JAMES 04/07/93 (H) FIN AT 02:30 PM HOUSE FIN 519 04/07/93 (H) MINUTE(FIN) 04/08/93 1101 (H) FIN RPT CS(FSH) NEW TITLE 8DP 2NR 04/08/93 1102 (H) DP: LARSON,PARNELL,GRUSSENDORF, HOFFMAN 04/08/93 1102 (H) DP: NAVARRE,BROWN,HANLEY,FOSTER 04/08/93 1102 (H) NR: MARTIN, THERRIAULT 04/08/93 1102 (H) -PREVIOUS ZERO FN (F&G) 3/17/93 04/20/93 1373 (H) RULES TO CALENDAR 4/20/93 04/20/93 1373 (H) READ THE SECOND TIME 04/20/93 1373 (H) FSH CS ADOPTED UNAN CONSENT 04/20/93 1374 (H) AMENDMENT NO 1 BY ULMER 04/20/93 1374 (H) AM NO 1 ADOPTED UNAN CONSENT 04/20/93 1374 (H) PASSED Y40 N- HCR 9(FSH) AM 04/20/93 1387 (H) COSPONSOR(S): MENARD 04/20/93 1388 (H) TRANSMITTED TO (S) 04/21/93 1610 (S) READ THE FIRST TIME/REFERRAL(S) 04/21/93 1610 (S) RES, CRA, JUD BILL: SB 212 SHORT TITLE: STATE PROCUREMENTS AND PUBLICATIONS SPONSOR(S): LABOR & COMMERCE BY REQUEST OF SENATE ECONOMIC TASK FORCE JRN-DATE JRN-PG ACTION 05/07/93 2113 (S) READ THE FIRST TIME/REFERRAL(S) 05/07/93 2113 (S) LABOR & COMMERCE, FINANCE 11/17/93 (S) MINUTE(L&C) 01/27/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 02/03/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 02/08/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 02/08/94 (S) MINUTE(L&C) 02/09/94 2749 (S) L&C RPT CS 2DP 2NR NEW TITLE 02/09/94 2749 (S) FNS TO SB & CS PUBLISHED (ADM, DOT) 02/09/94 2749 (S) ZERO FN TO SB & CS PUBLISHED (ADM) 02/15/94 2859 (S) FIN RPT CS 5DP 1NR NEW TITLE 02/15/94 2859 (S) PREVIOUS FNS APPLY (ADM, DOT) 02/15/94 2859 (S) PREVIOUS ZERO FN APPLIES (ADM) 02/15/94 (S) FIN AT 09:00 AM SENATE FIN 518 02/22/94 (S) RLS AT 0:00 AM FAHRENKAMP RM 203 02/22/94 (S) MINUTE(RLS) 02/28/94 2990 (S) RULES TO CALENDAR 3CAL 1NR 2/28/94 02/28/94 2996 (S) READ THE SECOND TIME 02/28/94 2996 (S) FIN CS ADOPTED UNAN CONSENT 02/28/94 2996 (S) AM NO 1 MOVED BY DUNCAN 02/28/94 2996 (S) MOTION TO HOLD TO 3/2 CAL WITHDRAWN 02/28/94 2997 (S) AM NO 1 WITHDRAWN 02/28/94 2997 (S) AM NO 2 MOVED BY DONLEY 02/28/94 2997 (S) AM NO 2 ADOPTED Y11 N6 A3 02/28/94 2998 (S) ADVANCED TO THIRD READING UNAN CONSENT 02/28/94 2998 (S) READ THE THIRD TIME CSSB 212(FIN) AM 02/28/94 2998 (S) PASSED Y16 N1 A3 02/28/94 2998 (S) EFFECTIVE DATE SAME AS PASSAGE 02/28/94 2998 (S) Adams NOTICE OF RECONSIDERATION 03/02/94 3039 (S) RECONSIDERATION NOT TAKEN UP 03/02/94 3040 (S) TRANSMITTED TO (H) 03/04/94 2598 (H) READ THE FIRST TIME/REFERRAL(S) 03/04/94 2598 (H) LABOR & COMMERCE, FINANCE BILL: SB 310 SHORT TITLE: STATE/PRIVATE/MUNI TIMBER OPERATION/SALE SPONSOR(S): SENATOR(S) Frank, Taylor, Pearce, Sharp, Miller, Kelly, Halford JRN-DATE JRN-PG ACTION 02/14/94 2829 (S) READ THE FIRST TIME/REFERRAL(S) 02/14/94 2829 (S) RESOURCES 03/02/94 (S) RES AT 3:30 PM BUTRVICH RM 205 BILL: HB 436 SHORT TITLE: STRICTNESS OF AIR QUALITY REGS SPONSOR(S): REPRESENTATIVE(S) VEZEY,Sitton JRN-DATE JRN-PG ACTION 02/04/94 2255 (H) READ THE FIRST TIME/REFERRAL(S) 02/04/94 2255 (H) STATE AFFAIRS, RESOURCES 02/07/94 2291 (H) COSPONSOR(S): SITTON 02/24/94 2519 (H) STA RPT 2DP 3NR 02/24/94 2519 (H) DP: VEZEY, OLBERG 02/24/94 2519 (H) NR: KOTT, SANDERS, G.DAVIS 02/24/94 2519 (H) -ZERO FISCAL NOTE (DEC) 2/24/94 02/24/94 2519 (H) REFERRED TO RESOURCES 02/24/94 (H) STA AT 08:00 AM CAPITOL 102 02/24/94 (H) MINUTE(STA) ACTION NARRATIVE TAPE 94-05, SIDE A Number 000 CHAIR EILEEN MACLEAN called the meeting to order at 1:30 p.m. She stated the purpose of the House Economic Task Force meeting was to compile a list of bills to bring to the Majority Caucuses to be expedited onto the House and Senate floors,instead of waiting for the regular committee process. She reviewed the status of the bills endorsed at the last meeting. DAVID HARDING, LEGISLATIVE AIDE TO REPRESENTATIVE EILEEN MACLEAN, reviewed the status of the other bills previously endorsed by the Task Force. Number 141 CHAIR MACLEAN said there would be one more meeting of the Task Force to conclude and compile into book form, the recommended legislation for the Administration, the next legislature, as well as this legislature. Number 157 CHERYL SUTTON, LEGISLATIVE STAFF FOR REPRESENTATIVE CARL MOSES, testified concerning an unnumbered House Joint Resolution, Relating to the Western Alaska Community Development Quota Program and the North Pacific Fishery Management Council Comprehensive Rationalization Program. She outlined the three options open to the North Pacific Fishery Management Council as they moved forward with a licensing program: 1) no Community Development Quota (CDQ) allocation of crab or ground fish to any of the CDQ groups; 2) the preferred option, setting aside a range of 0-15 percent; and 3) a nontransferable license program, which was not thought of as a good option. She said it was a simple resolution just asking the council to insure that there was an allocation which went to the CDQ groups. Number 220 HCR 9 - COMMUNITY DEVELOPMENT FISHING QUOTAS MS. SUTTON then discussed Senate CS for CS for HCR 9, Relating to state management of the Western Alaska Community Development Quota Program and state fisheries development policy, stating that Representative Moses would probably be happy to introduce the resolution. Number 270 CHAIR MACLEAN stated this was a very harmless resolution and she encouraged the Task Force to add this to their priority legislation list. The members agreed, and REPRESENTATIVE MOSES said he would introduce it. CHAIR MACLEAN then discussed her priorities in the Rural Development subcommittee, and stated she would like to include the importance of subsistence to rural economy in the report, but would not like to take any action. Number 335 CHAIR MACLEAN referred to a letter in the members' packets from Lee Gorsuch of the University of Alaska, Institute of Social and Economic Research, which she would like to include as an appendix to the final report. She stated Alaska needed a policy to deal with rural issues. Number 380 REPRESENTATIVE JEANNETTE JAMES mentioned the letter headed "Best Practices in Canadian and US Rural Business Development," and asked that it be included in the same appendix. CHAIR MACLEAN stated her belief that there needed to be one single agency in the state to deal with all rural development programs, and added there seemed to be agreement that currently there were too many agencies with grants, loans, and programs. She suggested working during the interim to find out which agency would be the best one to address all rural development programs. She also suggested establishing a 1-800 phone number with information on all loans, grants, and technical assistance programs in existence, and stated she would like to include this recommendation to the administration. Number 430 CHAIR MACLEAN referred to a simplified loan form from National Bank of Alaska in the members' packets, and said this was the type of loan form that should be used instead of complicated loan applications. She added that input was needed from the banking industry. Number 460 CHAIR MACLEAN next mentioned the final report should include the need in rural communities for a very basic infrastructure and for accurate unemployment statistics. She recommended that an alternative mechanism be developed for expressing joblessness in rural Alaska. She asked the staff to get together one last time to compile the report. Number 530 REPRESENTATIVE BILL WILLIAMS said he did not understand the difficulty of reporting unemployment. CHAIR MACLEAN said the federal statistics were not realistic for rural Alaska, and this impacted the whole state of Alaska's aid packages for disadvantaged areas. PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, said an accurate survey was needed, and the Department of Commerce would work with the Task Force in developing this. CHAIR MACLEAN stated that welfare figures from HESS would also be valuable in counting the joblessness. The Task Force members did not object to her including this recommendation in the report. Number 585 SB 212 - STATE PROCUREMENTS AND PUBLICATIONS CHRIS GATES, DIRECTOR OF DIVISION OF ECONOMIC DEVELOPMENT, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, discussed the CS for Senate Bill 212(FIN)am relating to procurement notices. He stated this would make Alaskan product preference a more usable process to encourage maximized use of Alaskan products in state contracts and state procurement. He said that previous bills have made the penalties too severe for a contractor who used the process and then did not use the Alaskan product specified. He said the process has been much too complicated and almost impossible to comply with; thus it had not been utilized. He believed CSSB 212(FIN)am would solve this problem and increase use of Alaskan products. He cited numerous innovations in the bill which would accomplish this and encourage local hire through incentives and bonuses. He said the Department of Economic Development had been working hard with Senator Kelly's staff on this bill. TAPE 94-05, SIDE B Number 026 CHAIR MACLEAN said the House Economic Task Force had followed this bill, supported it fully, and considered it one of the priority bills. She had spoken to Speaker Barnes, who will give it as few referrals as possible. Number 050 REPRESENTATIVE WILLIAMS asked about the incentive bonus program, and how long it stayed in effect if a contractor did not use an Alaskan company. MR. GATES said the bonus lasted throughout the contract, and if a contractor switched to an Alaskan supplier in the middle of a contract, the bonus would apply. Number 075 LOREN RASMUSSEN, CHIEF, DESIGN CONSTRUCTION STANDARDS, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, testified that this bill would not do away with the competitive sealed bidding process, but would allow bonuses for local products and local hire to apply to all contracts, at the end rather than at the beginning of the contract. Regulations could specify what a maximum bonus would be, for example five percent. Number 195 MR. HARDING asked for specific examples as to what percentages would be given for what preferences. MR. RASMUSSEN answered at the beginning there could be a maximum of five percent. Of that five percent, maybe two percent would go for local hire, two percent for local products, and one percent for subcontractors. Number 256 CHAIR MACLEAN asked if the pilot program was successful, would it stop after two years? MR. RASMUSSEN replied that it would stop after two years, and legislative authority would have to be given again. CHAIR MACLEAN stated there are too many different time frames in the bill. MR. GATES said all of the effective dates could be taken care of after the first two years success. Number 310 MR. HARDING asked about fiscal notes. MR. RASMUSSEN said the Department of Transportation's fiscal note is about $5,000 to do the regulations. Department of Administration's fiscal note is more complex and will contain added costs, mainly for printing. Number 360 REPRESENTATIVE JAMES asked how much time would be needed on the pilot program to determine if it is working. She added that historically, the state has not given projects enough time to determine if they work before abandoning them. MR. RASMUSSEN agreed that two years was too short, but that was the way the bill was drafted. REPRESENTATIVE CARL MOSES said the Alaska Seafood Marketing Institute had a potential amendment to the bill. DUANE PEEPLES, ADMINISTRATIVE OFFICER, ALASKA SEAFOOD MARKETING INSTITUTE, expressed the Alaska Seafood Marketing Institute's wish to amend the procurement statutes to make the Institute exempt from these restrictions, in order to maximize their marketing activities. Number 407 CHAIR MACLEAN suggested this amendment be submitted on the Senate side and a meeting be scheduled with SENATOR KELLY, sponsor of the bill, to speed up the process. MR. PEEPLES replied this would be done next week. Number 429 SB 310 - STATE/PRIVATE/MUNI TIMBER OPERATION/SALE MR. GATES presented the Task Force with Senate Bill 310, sponsored by Senator Frank, regarding forestry management agreements. The administration has given Senator Frank some amendments which will allow all agencies to work together and have an administratively approved version of SB 310. He admitted it was a very controversial bill but encouraged the Task Force to look at it hard as a tremendous tool to create a strong, vital forest industry in Alaska. Number 465 REPRESENTATIVE JAMES commented that her concern with SB 310 was the public input was allowed after the RFP was completed, which was discouraging to the developers when their proprietary and competitive interests were invaded and put at risk. She suggested that public scrutiny be allowed earlier in the process. MR. GATES responded that the administrative amendments deal with this by having the public submit a list of concerns after the proposal is submitted, then including these in the contract. There would be no way to involve the public any earlier, because it would not be known on which forests the bids were focused or what issues were involved. CHAIR MACLEAN said the Task Force would review the bill. Number 515 COMMISSIONER FUHS distributed and discussed "The State of the Economy", issued by Commerce and Economic Development, which outlined the past and current economy of Alaska. Number 574 REPRESENTATIVE MOSES pointed out that the document could be misleading, because of the large influx of national retail stores and military, which actually detract from the basic economy, such as mom and pop stores because the money doesn't stay in Alaska. COMMISSIONER FUHS agreed and replied that is addressed in the "new money" aspect of the report, and that value-added processing is needed to create a balance. Number 605 REPRESENTATIVE JAMES commented that the large retail stores mainly create low paying jobs which then require Alaska to spend its basic wealth to support them. COMMISSIONER FUHS replied that some of the stores did cut down on catalog shopping or people leaving Alaska to shop, which did help keep some money in the state. He added the intent was to diversify Alaska's economy as oil income decreases, not necessarily to increase the population. REPRESENTATIVE JAMES said she did not think it was possible to just sustain; life is either growing or shrinking, and plans should aim at either going up or down. Number 640 REPRESENTATIVE WILLIAMS asked if tourism was included in the report. COMMISSIONER FUHS replied that there was no separate statistical category for tourism, because the impact of tourism was felt throughout all of the other industries. REPRESENTATIVE WILLIAMS said he needed more information to make decisions regarding the Governor's $3 million cut in the Division of Tourism's budget. COMMISSIONER FUHS stated, the cut reflected the Administration's opinion that the tourism industry ought to pay more of their own costs, rather than being supported by the general fund. No other industry's advertising is paid from the general fund like tourism has been. For example, seafood marketing is paid almost entirely by the fishermen's program receipts. The Division of Tourism's contract with the Alaska Visitor's Association will expire in June 1994 and will have to be renegotiated, and input as to regional advertising policies can be dealt with then. TAPE 94-06, SIDE A Number 000 HB 436 - STRICTNESS OF AIR QUALITY REGS REPRESENTATIVE AL VEZEY discussed House Bill 436, dealing with the Clean Air Act and prohibiting the Department of Environmental Conservation from adopting stricter standards than the federal standards. He explained the bill did not prohibit the legislature from adopting stricter standards, and said it would also apply to bulk fuel tanks. He added that the Administration opposes this bill, because the Department of Environmental Conservation wants the authority to beat the federal government to stricter regulations and thus preclude the federal government from adopting stricter regulations. Number 120 CHAIR MACLEAN suggested REPRESENTATIVE VEZEY bring this bill to the caucus for discussion. REPRESENTATIVE VEZEY agreed. His regulatory subcommittee report will be held over until the next Task Force meeting. Number 140 CHAIR MACLEAN said the priority Task Force legislation list will be distributed to members via the minutes before the next meeting. Number 160 CHAIR MACLEAN adjourned the meeting at 3:10 p.m.