03/17/1999 05:05 PM House EDT

    HOUSE SPECIAL ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE                                                                    
                         March 17, 1999                                                                                         
                           5:05 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
* HOUSE JOINT RESOLUTION NO. 20                                                                                                 
Urging the Congress to amend the Internal Revenue Code of 1986 to                                                               
eliminate the marriage penalty by providing that income tax rate                                                                
bracket amounts, and the amount of the standard deduction, for                                                                  
joint returns shall be twice the amounts applicable to unmarried                                                                
individuals.                                                                                                                    
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PFD INVESTMENT STRATEGIES AND OVERVIEW                                                                                          
                                                                                                                                
TAPE                                                                                                                            
                                                                                                                                
99-3, SIDE(S) A & B                                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
CHAIR GAIL PHILLIPS called the House Special Economic Development                                                               
and Tourism Committee to order at 5:05 p.m.                                                                                     
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Committee members present at the call to order were Representatives                                                             
Cissna, Dyson, Halcro and Kerttula. Representatives Barnes and                                                                  
Rokeberg joined the meeting at 5:14 p.m. and 5:25 p.m.,                                                                         
respectively.                                                                                                                   
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
CHAIR PHILLIPS announced that HJR 20 would be heard at the next                                                                 
meeting.                                                                                                                        
                                                                                                                                
JAMIE KENWORTHY, Director, Alaska Science and Technology Foundation                                                             
(ASTF), spoke to the committee about its long-term economic                                                                     
development strategy for Alaska, which is part of its mission. With                                                             
the immediate dislocations caused by the decline of oil revenues,                                                               
ASTF believes it is important to turn its attention to the longer                                                               
term and more fundamental issues of the state's economic                                                                        
development.  Mr. Kenworthy emphasized: diversification of the                                                                  
economy by replacing and expanding imports; key competitive issues                                                              
in different sectors; industry structure changes; technology and                                                                
global competition.  He briefly discussed the challenges and assets                                                             
in the areas of mining, forest products, seafood and technology.                                                                
Mr. Kenworthy concluded with several key points: develop a broad                                                                
economic base; private sector leads; need infrastructure to add                                                                 
value; grow own economy; reduce dependence on outside investment in                                                             
long-term projects; expand local firms to increase business,                                                                    
resource and development capability.                                                                                            
                                                                                                                                
MARK HODGINS, Legislative Assistant to Senator Jerry Ward, Alaska                                                               
State Legislature, presented the committee with a paper, which he                                                               
authored, on encouraging the corporations in which the Alaska                                                                   
Permanent Fund Corporation (APFC) invests to come to Alaska.  He                                                                
believes that the APFC investments should be a strong motivator for                                                             
this corporate sector to conduct business or outsource components                                                               
of its business in Alaska.  Mr. Hodgins would like to encourage                                                                 
Alaska's administration and legislators to facilitate contacts                                                                  
between Alaskan interests and those corporate entities that would                                                               
be most likely to promote and/or develop Alaska business                                                                        
opportunities.                                                                                                                  
                                                                                                                                
JIM KELLY, Research and Liaison Officer, Alaska Permanent Fund                                                                  
Corporation, and GINNY FAYE, Legislative Liaison, Department of                                                                 
Commerce and Economic Development (DCED), discussed the present and                                                             
future programs intended to attract partnerships with APFC                                                                      
corporate holdings.  Additionally, they discussed the Memorandum of                                                             
Understanding between the APFC and the DCED to share Alaska's                                                                   
promotional opportunities within the APFC real estate holdings.                                                                 
                                                                                                                                
CHAIR PHILLIPS told the presenters that because of the limited time                                                             
for this meeting, she would invite them back to a future meeting to                                                             
elaborate on these topics further.  She asked committee members to                                                              
forward their areas of interest to the committee aide for future                                                                
consideration.                                                                                                                  
                                                                                                                                
COMMITTEE ACTION                                                                                                                
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business, the House Special Committee on                                                                 
Economic Development and Tourism was adjourned at 6:10 p.m.                                                                     
                                                                                                                                
NOTE:                                                                                                                           
                                                                                                                                
The meeting was recorded and handwritten log notes were taken.  A                                                               
copy of the tape(s) and log notes may be obtained by contacting                                                                 
the House Records Office at 130 Seward Street, Suite 211, Juneau,                                                               
Alaska 99801-1182, (907) 465-2214, and after adjournment of the                                                                 
second session of the Twenty-first Alaska State Legislature, in                                                                 
the Legislative Reference Library.