Legislature(1993 - 1994)

03/10/1993 05:00 PM House ECO

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                    HOUSE ECONOMIC TASK FORCE                                  
                         March 10, 1993                                        
                            5:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Eileen MacLean, Chair                                         
  Representative Jeannette James, Vice Chair                                   
  Representative Bettye Davis                                                  
  Representative Joe Green                                                     
  Representative Bill Hudson                                                   
  Representative Jerry Mackie                                                  
  Representative Carl Moses                                                    
  Representative Al Vezey                                                      
  Representative Bill Williams                                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Carl Moses                                                    
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Proposed committee legislation:                                              
                                                                               
  House Bill ?:  "An Act relating to publications produced by                  
  state agencies and to the procurement of property, property                  
  interests, and services, including the services of                           
  employees, by certain public entities."                                      
                                                                               
  House Concurrent Resolution ?:  Relating to establishing the                 
  coal policy of the state.                                                    
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-0, SIDE A                                                            
  Number 000                                                                   
                                                                               
  CHAIR MACLEAN called the meeting of the House Economic Task                  
  Force to order on March 10, 1993, at 5:15 p.m.  She reminded                 
  the committee about the Economic Task Force Mini-Summit on                   
  Saturday, March 13, stating that ads had been placed in the                  
  newspaper and radio and her office had a large volume of                     
  calls so she was expecting a huge turnout.                                   
                                                                               
  Number 020                                                                   
                                                                               
  CHAIR MACLEAN went through the members' packets, pointing                    
  out the most recent batch of letters from state businesses                   
  and the summary of the first two batches of letters, and                     
  minutes from two previous meetings.                                          
                                                                               
  Number 060                                                                   
                                                                               
  CHAIR MACLEAN called the committee's attention to their                      
  copies of current bills in their packets pertaining to oil                   
  and gas, as well as  fisheries and other subjects, and asked                 
  that the committee review them to decide which ones to                       
  endorse.  (A list of those bills is provided at the end of                   
  the minutes.  This list is also the same as the list of                      
  bills presented by the DCED.)                                                
                                                                               
  Number 100                                                                   
                                                                               
  CHAIR MACLEAN asked that the committee consider adopting a                   
  House Concurrent Resolution relating to establishing the                     
  coal policy of the state after having a chance to review the                 
  work draft in their packets.                                                 
                                                                               
  Number 128                                                                   
                                                                               
  REPRESENTATIVE JEANNETTE JAMES reviewed the previous week's                  
  presentation on the Western Arctic Coal project.                             
                                                                               
  Number 160                                                                   
                                                                               
  CHAIR MACLEAN read a shortened version of the coal policy                    
  which incorporated recommendations by Mr. Bob Stiles,                        
  President of the Alaska Coal Association:                                    
                                                                               
       "Be it resolved by the Alaska State Legislature that it                 
  is the official policy of the state to foster the                            
  responsible development and expansion of its domestic and                    
  export coal industry; and be it further resolved that the                    
  state shall exercise all prudent and expeditious means to                    
  maintain and expand Alaska's current and future coal                         
  production and export market share; and be it further                        
  resolved that the Alaska State Legislature shall work                        
  diligently with the Governor and the Governor's                              
  administration to identify unwarranted impediments to the                    
  growth of Alaska's coal industry, and shall develop                          
  strategies to eliminate or mitigate the adverse effects of                   
  these impediments; and be it further resolved that the                       
  state, in recognition of the benefits of a vibrant coal                      
  industry, shall endeavor to maintain stable royalty and coal                 
  industry taxation policies; and be it further resolved that                  
  the Alaska State Legislature respectfully requests that the                  
  Governor and the Governor's administration, particularly the                 
  Department of Commerce and Economic Development, assist the                  
  Legislature in taking a leadership role in the planning and                  
  evaluation of existing infrastructure and the need for                       
  development of new infrastructure, and in the review of                      
  transportation modes and rates in an effort to maximize                      
  efficient capacity utilization and reduce unit cost; and be                  
  it further resolved that the Alaska State Legislature                        
  respectfully requests the governor to assist the Legislature                 
  in seeking a waiver to the Jones' Act for bulk commodities                   
  of low unit value such as coal; and be it further resolved                   
  that the Alaska State Legislature respectfully requests the                  
  governor and the administration to assist it in fostering                    
  commercial demonstration of new coal technologies to meet                    
  the state's energy needs and that can produce value-added                    
  products from Alaska coal; and be it further resolved that                   
  it is in the best interest of the state for the state to                     
  maintain control over the coal regulatory program, to                        
  adequately fund the management and enforcement of the                        
  program, and to continue to review and update the coal                       
  regulatory program to insure that state primacy in coal                      
  regulation is maintained."                                                   
                                                                               
  CHAIR MACLEAN asked for questions or comments.                               
                                                                               
  Number 210                                                                   
                                                                               
  REPRESENTATIVE BILL HUDSON asked where this would go.                        
                                                                               
  CHAIR MACLEAN replied it would go just to the Governor.                      
                                                                               
  Number 220                                                                   
                                                                               
  REPRESENTATIVE HUDSON suggested that it also go to Alaska's                  
  federal delegation, Senators Stevens and Murkowski, and                      
  Congressman Young, as well as Governor Hickel.                               
                                                                               
  REPRESENTATIVE JAMES concurred.                                              
                                                                               
  Hearing no objections, CHAIR MACLEAN agreed to add the                       
  names.                                                                       
                                                                               
  Number 235                                                                   
                                                                               
  REPRESENTATIVE HUDSON moved to enter this House Concurrent                   
  Resolution as a resolution of this committee.                                
                                                                               
  Number 258                                                                   
                                                                               
  Hearing no objections, CHAIR MACLEAN agreed the resolution                   
  would be introduced the next day.                                            
                                                                               
  CHAIR MACLEAN asked committee members to consider a bill                     
  (HB 245) introduced last year which died in the Senate:                      
                                                                               
       "An Act relating to publications produced by state                      
       agencies and to the procurement of property,                            
       property interests, and services, including the                         
       services of employees, by certain public                                
       entities."                                                              
                                                                               
  Number 274                                                                   
                                                                               
  REPRESENTATIVE HUDSON said he worked on the bill last year                   
  and thought it would be an excellent pro-business message                    
  for this committee to be conveying, and recommended the                      
  committee introduce it as a House bill.                                      
                                                                               
  Number 287                                                                   
                                                                               
  CHAIR MACLEAN reviewed the six key components of the bill.                   
                                                                               
  Number 316                                                                   
                                                                               
  REPRESENTATIVE WILLIAMS asked why the bill failed to pass                    
  the Senate last year.                                                        
                                                                               
  CHAIR MACLEAN replied it was due to adjournment, but it had                  
  31 co-sponsors last year.                                                    
                                                                               
  REPRESENTATIVE WILLIAMS asked that item number six be                        
  reviewed, and stated he was concerned about cost control.                    
                                                                               
  CHAIR MACLEAN referred Representative Williams to the back-                  
  up included with the bill.                                                   
                                                                               
  Number 340                                                                   
                                                                               
  REPRESENTATIVE AL VEZEY stated that he saw points which                      
  would bring up a lot of controversy before the committees                    
  due to matters of procurement contracts.                                     
                                                                               
  REPRESENTATIVE HUDSON asked if it might be wise to address                   
  these concerns before publishing the bill.                                   
                                                                               
  REPRESENTATIVE VEZEY replied that nobody wanted to open the                  
  procurement "can of worms."  For example, requiring                          
  procurement officers to include administrative costs in                      
  evaluating a bid.  He stated that the U.S. Navy was                          
  currently doing this with resulting complaints that the                      
  process is not competitive because the agency can factor in                  
  subjective values based on considerations other than price.                  
  He said he would expect the bill to be delayed in committee.                 
                                                                               
  Number 382                                                                   
                                                                               
  REPRESENTATIVE HUDSON said these were the kinds of concerns                  
  which would get a good hearing in committee and would be                     
  amended or eliminated through the committee process, but the                 
  over-all purpose of the bill was what the committee wanted                   
  to foster, which was buying and hiring in-state and                          
  encouraging manufacturing in-state.                                          
                                                                               
  CHAIR MACLEAN asked for the wish of the committee.                           
                                                                               
  Number 398                                                                   
                                                                               
  REPRESENTATIVE HUDSON reminded the Chair that he had made a                  
  motion to file this House bill as a committee bill.                          
                                                                               
  (Chair MacLean noted the arrival of Representative Mackie.)                  
                                                                               
  REPRESENTATIVE JOE GREEN asked if there would be an                          
  advantage to allowing time for the committee to review the                   
  bill before recommending it.                                                 
                                                                               
  CHAIR MACLEAN asked for a time certain, cautioning that any                  
  delay could cause the bill to die due to adjournment.                        
                                                                               
  Number 428                                                                   
                                                                               
  REPRESENTATIVE MACKIE said he was familiar with this bill                    
  from last session and most of the controversial aspects were                 
  taken care of already, and committee substitutes could take                  
  care of new objections.                                                      
                                                                               
  Number 448                                                                   
                                                                               
  CHAIR MACLEAN asked if their were any objections to the                      
  motion to file this bill.  There were none.                                  
                                                                               
  CHAIR MACLEAN noted the Department of Commerce and Economic                  
  Development (DCED) recommended list of legislation already                   
  introduced and asked the committee to study these bills.                     
  (a copy of this list is on file)                                             
                                                                               
  Number 469                                                                   
                                                                               
  REPRESENTATIVE BETTYE DAVIS spoke about the BIDCO (Business                  
  and Industrial Development Corporation) program, referring                   
  to last year's BIDCO Act aimed at helping small companies                    
  start new businesses through low-interest loans and                          
  management assistance.  Last year there were no funds                        
  allocated except $2 million to set up the corporations; but                  
  this year there was a request to capitalize the BIDCOs and                   
  set them up.  She announced that Alaska Industrial                           
  Development Authority (AIDA) was interested in helping fund                  
  BIDCOs.  Currently, the needed funds were being requested                    
  through Science and Technology, but additional funds were                    
  needed from the legislature.                                                 
                                                                               
  Number 508                                                                   
                                                                               
  CHAIR MACLEAN asked for the amount of money requested.                       
                                                                               
  REPRESENTATIVE DAVIS replied that the amount in the bill she                 
  had filed (HB 14) was $10 million from Science and                           
  Technology.  She said she had received a reply saying                        
  Science and Technology was very supportive of the program                    
  but did not want to give more than the $2.5 million already                  
  specified.                                                                   
                                                                               
  Number 522                                                                   
                                                                               
  REPRESENTATIVE HUDSON said he believed the Science and                       
  Technology corpus was currently over $100 million, with $15                  
  million in interest available for allocation, and suggested                  
  getting this information.                                                    
                                                                               
  REPRESENTATIVE HUDSON noted that he had reviewed all of the                  
  House and Senate bills currently in the system and picked                    
  out ones which might improve economic opportunities for                      
  small business or stimulate business development.  He passed                 
  around his list for members to review and explained some of                  
  the bills he had picked.  (a copy of this list is on file)                   
                                                                               
  Number 578                                                                   
                                                                               
  REPRESENTATIVE DAVIS returned to the BIDCO bill (HB 14) and                  
  asked members to support it.                                                 
                                                                               
  CHAIR MACLEAN said she would like to first get the total                     
  dollar amount available from Science and Technology.                         
                                                                               
  REPRESENTATIVE DAVIS said the committee could support the                    
  bill without knowing this amount, adding that several banks                  
  were interested in lending support.                                          
                                                                               
  Number 606                                                                   
                                                                               
  REPRESENTATIVE MACKIE said the committee needed to get the                   
  bill into the process, and the funding source or amount                      
  could be changed in committees.  He moved that the Task                      
  Force endorse the BIDCO bill and add it to Chair's list of                   
  fast-track legislation.                                                      
                                                                               
  Number 615                                                                   
                                                                               
  REPRESENTATIVE HUDSON said he would like to see several                      
  bills reviewed and their concept, if not exact content,                      
  endorsed now as well.                                                        
                                                                               
  Number 655                                                                   
                                                                               
  REPRESENTATIVE MACKIE withdrew his motion in lieu of                         
  reviewing the entire DCED list of bills for Task Force                       
  endorsement.  Then he reported on his concept of regional                    
  divisions:  Southeast, Central, Northern, Western and                        
  Interior Alaska, with Task Force Representatives working                     
  during the interim with businesses in their region and                       
  assessing regional needs and having an entire package ready                  
  to present next session.                                                     
                                                                               
  Number 675                                                                   
                                                                               
  REPRESENTATIVE GREEN asked if the Task Force would meet                      
  during the interim.                                                          
                                                                               
  Number 680                                                                   
                                                                               
  CHAIR MACLEAN said that the Task Force would have interim                    
  meetings throughout the year to continue follow-up on                        
  legislation and have it already "in the hopper."                             
                                                                               
  REPRESENTATIVE MACKIE suggested that each Representative be                  
  directly responsible for bringing forth ideas from his or                    
  her own region.                                                              
                                                                               
  TAPE 93-0, SIDE B                                                            
  Number 000                                                                   
                                                                               
  REPRESENTATIVE GREEN brought up the Disney concept of brain-                 
  storming, pooling each Representative's ideas without                        
  initially discarding any idea but letting them flow freely,                  
  saying this could be successful during the interim when                      
  there was more time to come up with a really good product.                   
                                                                               
  REPRESENTATIVE JAMES said she had been trying to implement a                 
  cooperative effort with the environmentalists, and had even                  
  gotten a packet of economic development ideas from them.                     
  She stated she would like to see the same cooperation                        
  develop between the urban and rural people as well as the                    
  major landowners in Alaska, which are the state and the                      
  Native corporations.  She remarked that focus needed to be                   
  placed on finding a common ground as to what, how, and when                  
  to develop Alaska, working together.                                         
                                                                               
  Number 065                                                                   
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIR MACLEAN adjourned the meeting at 6:05 p.m.                             
                                                                               
  LIST OF BILLS IN MEMBERS' PACKETS AND ON DCED LIST:                          
                                                                               
  HB 14  APPROP:  BIDCO FUND                                                   
                                                                               
  OIL AND GAS                                                                  
                                                                               
  HB 199 OIL & GAS EXPLORATION LICENSES/LEASES                                 
  SB 150 OIL & GAS EXPLORATION LICENSES/LEASES                                 
                                                                               
  HB 200 OIL & GAS EXPLORATION INCENTIVE CREDITS                               
  SB 151 OIL & GAS EXPLORATION INCENTIVE CREDITS                               
                                                                               
  HJR 12 ENDORSING ANWR LEASING W/O ROYALTY CHANGE                             
  SJR 15 ENDORSING ANWR LEASING W/O ROYALTY CHANGE                             
                                                                               
  FISHERIES                                                                    
                                                                               
  HB 123 LOANS FOR IFQ'S                                                       
  SB 132 LOANS FOR IFQ'S                                                       
                                                                               
  HJR 17 MAGNUSON FISHERY CONSRV & MGT ACT                                     
  SJR 17 MAGNUSON FISHERY CONSRV & MGT ACT                                     
                                                                               
  HB 198 REGIONAL ECONOMIC ASSISTANCE GRANTS                                   
  SB 142 REGIONAL ECONOMIC ASSISTANCE GRANTS                                   
                                                                               
  SB 154 ECONOMIC DEVELOPMENT GRANT FUND                                       
                                                                               
  SB  46 AUTHORIZE MOOSE FARMING                                               
                                                                               
  SB 124 ALASKA ENERGY AUTH POWERS & FINANCES                                  
                                                                               
  SB 125 APPROP: ENERGY AUTHORITY REVOLVING FUND                               
                                                                               
  HB  50 AUTHORIZING POWER TRANSMISSION INTERTIES                              
  SB 106 AUTHORIZING POWER TRANSMISSION INTERTIES                              
                                                                               
  SB 126 APPROP: POWER TRANSMISSION INTERTIES                                  
                                                                               
  MINERALS/COAL                                                                
                                                                               
  HB 132 EXTEND RESOURCE EXTRACTION PERMIT/LEASE                               
                                                                               
  HB  60 FY 94 CAPITAL BUDGET                                                  

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