Legislature(2011 - 2012)HOUSE FINANCE 519
01/30/2012 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB282 | |
| Budget Overview: Department of Fish and Game | |
| Budget Overview: Department of Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 282 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
January 30, 2012
1:33 p.m.
1:33:33 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:33 p.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
Representative David Guttenberg
ALSO PRESENT
Representative Alan Austerman; Aaron Schroder, Staff,
Veterans Caucus; Chris Christensen III, Associate Vice
President for State Relations, University of Alaska; Cora
Campbell, Commissioner, Department of Fish and Game; Kevin
Brooks, Administrative Director, Division of Administrative
Services, Department of Fish and Game; Susan Bell,
Commissioner, Department of Commerce, Community and
Economic Development.
PRESENT VIA TELECONFERENCE
Sara Chambers, Program Coordinator, Division of
Professional Licensing, Department of Commerce, Community
and Economic Development; Mark, Sansouci, Regional Liaison,
Northwest Military Families, United States Department of
Defense (DOF), Tacoma.
SUMMARY
HB 282 MILITARY TRAINING CREDIT/TEMP. LICENSE
OPERATING BUDGET OVERVIEWS:
Department of Fish and Game
Department of Commerce, Community and Economic
Development
1:33:33 PM
HOUSE BILL NO. 282
"An Act relating to applying military education,
training, and service credit to occupational licensing
and certain postsecondary education and employment
training requirements; and providing for a temporary
occupational license for qualified military service
members."
Co-Chair Thomas MOVED to ADOPT a proposed committee
substitute for HB 282, work draft 27-LS1116\T.
Co-Chair Stoltze OBJECTED for purpose of discussion.
AARON SCHRODER, STAFF, VETERANS CAUCUS, provided an
overview of the proposed committee substitute. He noted
that there were five changes to the legislation, none of
which affected policy:
· Page 1, line 13 - added "substantially" to allow the
department more objectivity when assessing military
training;
· Page 2, line 12 - deleted "while on active duty" to
broaden the training that could be recognized by the
department;
· Page 2, line 18 - added "degree" to recognize the
degree from an accredited military institution;
· Page 5, line 28 - deleted "promulgate" and inserted
"adopt"; and
· Page 5, Section 6 - added the effective date of
December 31, 2012.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
FURTHER OBJECTION, work draft 27-LS1116\T was adopted.
1:36:13 PM
Mr. Shroeder explained that the goal of House Bill 282 was
to assist the transition of service members from active
duty to civilian life. He said that 1,200 members separated
from the armed services into the state of Alaska in 2010.
The Department of Defense (DOD) listed the legislation as
one of their top priorities in 2012. He noted that the
national unemployment rate for post 9/11 veterans (age 18-
24) was just fewer than 22 percent.
Mr. Shroeder explained that HB 282 asked the Division of
Professional Licensing, University of Alaska, and
Department of Labor to evaluate military training and
education, and assign civilian credit where it was
appropriate. He emphasized that the department, University
of Alaska and several licensing boards had already
implemented the practice. He asked for statutory backing in
recognition of the military credit.
1:39:03 PM
Representative Costello questioned whether applicants would
have to reapply after the 180 days [granted under a
temporary license] and resubmit additional paperwork.
Mr. Shroeder deferred the question to the Department of
Commerce, Community and Economic Development (DCCED).
1:40:08 PM
Representative Neuman asked how military qualification
would be approved for certification with the state.
Mr. Shroeder explained that the intent was to ask the DCCED
Division of Licensing or the University of Alaska or other
school institutions to look at the military equivalent and
decide comparability.
Representative Neuman concluded that a certificate would be
awarded if there were merit.
1:41:37 PM
Representative Costello reiterated her previous question.
SARA CHAMBERS, PROGRAM COORDINATOR, DIVISION OF
PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT (via teleconference), clarified
that each program that issued a temporary license could
have a slightly different process. There were thirteen
programs that offered temporary licenses. Ten had a board
or commission to oversee the process. A temporary license
could be a separate application, or could be folded into a
permanent biannual license. She clarified that the
legislation would allow application to any temporary
professional license managed through the Division of
Corporations, Business and Professional Licenses, and would
apply to temporary licenses that had been authorized
through regulation. Not every program had established a
temporary license. The legislation would require that
military credit be applied to current or future authorized
licenses.
Representative Costello understood that the legislation
would allow for a temporary license for any type of license
issued by the state.
Ms. Chambers replied that the bill would apply to any
temporary professional license authorized through
regulation that was managed through the Division of
Corporations, Business and Professional Licenses. She said
that not every program had established a temporary license
through regulation. She shared that the bill would require
that military credit be applied where authorization
currently existed, or may exist in the future.
1:44:15 PM
MARK, SANSOUCI, REGIONAL LIAISON, NORTHWEST MILITARY
FAMILIES, UNITED STATES DEPARTMENT OF DEFENSE (DOD), TACOMA
(via teleconference), testified in support. He noted the
high number of unemployed veterans: one million in 2011.
The post 9/11 unemployment rate was 13.3 percent. The
current unemployment rate for age 18-24 veterans was 21.9
percent. He observed that DOD had asked states to give
separating service members credit so that they were not
held back from finding employment or finishing a degree.
Legislative leaders were asked to establish policies that
ensure separating service members did not have to repeat
requirements completed during their military career, and
would allow them to obtain academic credit or an
occupational license. Four states had enacted new laws to
help grant that veterans received credit toward licensing
and/or academics. In 2012, there were already 27 bills in
15 other states that resembled HB 282.
Mr. Sansouci observed that DOD only sought credit where
credit was due. He pointed out that citizens had already
paid for veterans' training within DOD schools and for
military experience through federal tax dollars. Granting
veterans credit would also help open school slots to other
students. The DOD had worked with the United States
Department of Labor to link service transcripts of military
occupations with civil private sector licensure
requirements and had asked state regulatory authorities in
pilot states (Washington, Illinois and Maryland) to review
select military occupations to determine if military
experience was sufficient to be useful in rendering
licensure credit. Alaska houses thousands of veterans and
remained a retirement choice for many; 1,286 military
separated back to Alaska in 2010. In 2011, the state of
Washington passed two bills: one for medical occupations
and one for non-medical occupations. House Bill 282 was
modeled after Washington's and would be considered best
practice legislation.
1:49:31 PM
CHRIS CHRISTENSEN III, ASSOCIATE VICE PRESIDENT FOR STATE
RELATIONS, UNIVERSITY OF ALASKA, spoke to Section 2, which
directed the university's president to adopt policies and
procedures to award credit for military training,
education, and service. He noted that the university was
committed to offering quality educational experiences to
active military, veterans, and their dependents.
Mr. Christensen observed that GI Jobs Magazine, which was a
magazine and web portal that existed specifically to serve
people who were transitioning from the military back to
civilian life, had designated both the University of
Alaska, Anchorage (UAA) and the University of Alaska,
Fairbanks (UAF) as "military friendly schools". Only 15
percent of all the colleges, universities, and vocational
schools in the country had received the designation, which
he felt was a sad commentary on the lower 48, and one of
the reasons the DOD has pushed legislation.
Co-Chair Stoltze interjected that there had been a general
association [between the state of Alaska and the military]
for a decade.
Mr. Christensen observed that the web portal
"guidetoonlineschools.com," which billed itself as the most
comprehensive authority on distance education and online
learning, released its 2012 rankings of the most military-
friendly online colleges in the country. The University of
Alaska was ranked five of the multitude of schools. The
University was proud of its ranking and felt that
legislators should also be proud as the entity that made
that rating possible through funding decisions.
Mr. Christensen spoke to transfer of credit, as an
important issue. He noted that the subject aroused great
passion, and military transfer credit was a piece of the
bigger issue. The board of regents had adopted a written
policy on transfer of credit. All three campuses had
established transfer credit policies designed to give
maximum credit for courses and training taken elsewhere,
including in the military. The University believed that
awarding appropriate credit for military training was one
of the university's responsibilities, and another way it
could show commitment to recruit and retain military and
veteran students.
Mr. Christensen felt that there were a lot of
misconceptions about what the university actually did for
military students. He maintained that there was a great
deal of uniformity in the system. All three campuses
transfer credit based on recommendations made by "ACE,"
which was the acronym for the American Council of
Education. He explained that ACE had had an agreement with
the defense department since the end of WWII to review
military training and experience for the award of
equivalent college credits. The American Council of
Education's recommendations on equivalent college credits
were utilized by thousands of universities across the
country. All three Alaskan campuses had written agreements
with DOD to follow the ACE guidelines.
1:54:08 PM
Mr. Christensen observed that all three campuses were also
members of the Service Members Opportunity Colleges (SOC)
consortium, which is a consortium of over 1,900 colleges
and universities that enroll active duty military,
veterans, and dependents in special degree programs, both
on-campus and through distance learning. The purpose of SOC
was to let the military get degrees, rather than just
accumulate credits as they moved from base to base. The
University of Alaska signed written agreements to follow
specific guidelines in accepting military transfer of
credit from member schools and to limit the number of
credits military students had to earn at UA, in order to
get a UA degree. For example, military students working on
a SOC degree at UAA only needed 3 UAA credits to earn the
degree; UAA would take all the rest of the credits from
other schools in the SOC consortium.
1:56:26 PM
Mr. Christensen explained that the university was currently
accepting approximately 51 credits per student from those
military students who attended regionally accredited
military institutions such as: service academies, the
Community College of the Air Force, the Defense Language
Institute and others.
Mr. Christensen pointed out that a military student could
use approximately 30 credits of typical training for the
bachelor of emergency management degree, which was setup
with military students in mind. Neither UAA nor UAF had any
limitation on the number of military transfer credits.
Limitations were eliminated at UAA in the past year as part
of their continual process to review the system and make it
more student-friendly.
Mr. Christensen observed that UAA alone accepted over
15,000 hours of military transfer credit for training, for
education, and even for time spent in the service in 2011.
In 2011, approximately 99.5% of the students who requested
military transfer credits received those credits.
Mr. Christensen emphasized that Alaska was widely known to
service members as a state that welcomed and appreciated
the military. The university, as demonstrated by existing
credit transfer policies, reflected the state's positive
prevailing social values.
Representative Doogan asked if there was a recognized
appeals process.
Mr. Christensen affirmed and stressed that military credit
appeals would be handled in a timely manner.
Vice-chair Fairclough observed that 99 percent of military
transfers were accepted. She queried if credits were
transferred toward a degree or elective credits.
Mr. Christensen clarified that there were some of each.
Whether credits were applied as an elective or requirement
depended on several factors.
Vice-chair Fairclough noted that it was easy to except
electives but more difficult to accept credits toward
requirements.
Vice-chair Fairclough asked if the university felt it could
implement a policy with satisfactory evidence.
Mr. Christensen affirmed and indicated that they already
had such a policy in place. He pointed out that the
university's hands were tied by the written agreements that
had been signed with DOD.
1:59:00 PM
Co-Chair Stoltze commented that it would be a shame if UAF
accepted credits that were not transferable to UAA.
Mr. Christensen acknowledged the importance of the issue
among legislator's constituents and asked representatives
to forward any constituent concerns so that they could be
addressed.
Vice-chair Fairclough looked forward to seeing the first
diploma received.
2:00:46 PM
Co-Chair Stoltze noted that there were several zero fiscal
notes. [Co-Chair Stoltze later noted that a new fiscal note
would be forthcoming from the Department of Commerce,
Community and Economic Development.]
Co-Chair Thomas MOVED to report CSHB 282 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 282 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with three previously published
fiscal notes (#1, #2, and #3); and a new "forthcoming"
fiscal note from the Department of Commerce, Community and
Economic Development.
2:01:56 PM
AT EASE
2:05:08 PM
RECONVENED
^BUDGET OVERVIEW: DEPARTMENT OF FISH AND GAME
2:05:56 PM
CORA CAMPBELL, COMMISSIONER, DEPARTMENT OF FISH AND GAME,
introduced staff and provided members with PowerPoint
presentation: Alaska Department of Fish and Game Overview,
House Finance Committee, January 30, 2012 (copy on file).
She observed that the department's mission statement was
based upon the Alaska State Constitution (Article 8) and
Alaska Statutes (Title 16):
To protect, maintain, and improve the fish, game, and
aquatic plant resources of the state, and manage their
uses and development in the best interest of the
economy and the well-being of the people of the state,
consistent with the sustained yield principle.
Commissioner Campbell reviewed the department's six core
services:
· Harvest Management: provide opportunity to utilize
fish and wildlife resources
· Stock Assessment: Ensure sustainability and
harvestable surplus of fish and wildlife resources
· Customer Service: Provide information to all
customers
· Public Involvement: Involve the public in management
of fish and wildlife resources
· State Sovereignty: Protect the state's sovereignty
to manage fish and wildlife resources
· Habitat Protection: Protect important fish and
wildlife habitat during permit and project review
2:08:28 PM
Co-Chair Stoltze referred to issues faced by the public
when obtaining or entering drawings for permits for hunting
and fishing. He believed the department could improve
public relations.
Commissioner Campbell believed the department had worked to
improve the draw program. She said that the draw program
had been a source of frustration for the department. She
shared that the department was trying to provide a lot of
information to a lot of Alaskans. She said that the
department had faced challenges in establishing an on-line
program to be more user friendly. She stated that she would
be interested in hearing any constituent suggestions that
had been relayed to committee members.
2:10:37 PM
Co-Chair Stoltze stressed the level of complaints and the
magnitude of the issue.
Vice-chair Fairclough referred to a constituent unable to
participate in an on-line drawing due to a power outage.
She wondered about an appeals process that people could go
through if they were unable to comply based on situations
beyond their control.
Commissioner Campbell acknowledged that the deadline fell
on a weekend in 2011, which was not optimal. She explained
that the department had considered moving the deadline to a
weekday to allow people the alternative of calling or
visiting a fish and game office to complete their
application should they have difficulty getting into the
online system.
Vice-chair Fairclough noted that there could be extenuating
circumstances due to climate that would make meeting the
application deadline difficult.
2:14:14 PM
Representative Joule wondered about the issue of
subsistence was being handled in the relationship between
the department and the federal government.
Commissioner Campbell thought that there was some
inefficiency and confusion that stemmed from the two sets
of regulations. She felt that the federal system had been
considered as temporary, but as time has gone on that was
not the case. She said that the department had worked to
make the two management systems work for users.
Representative Joule wondered why the federal regulations
had been considered temporary.
Commissioner Campbell replied that many thought the federal
government regulations would be temporary while the state
found a way to come into compliance with the Alaska
National Interest Lands Conservation Act (ANILCA). She
acknowledged that it had been 20 years since the
"temporary" program had come into effect. She reiterated
that the department worked to make the two systems as user
friendly as possible. She noted that it was difficult to
work with the two different regulatory systems.
2:18:12 PM
Commissioner Campbell reviewed the department's structure:
Under the Office of the Commissioner:
Board Support Section
Division of Commercial Fisheries
Division of Sport Fish
Division of Wildlife Conservation
Division of Habitat
Division of Subsistence
Division of Administrative Services
Commissioner Campbell added that the Exxon Valdez Oil Spill
and the Commercial Fisheries Entry Commission were attached
to the department for administrative purposes. She noted
the map on page 6, which detailed where the department
offices were located around the state.
2:19:06 PM
Representative Costello asked if the department would be
willing to work with the Department of Motor Vehicle (DMV)
concerning offering renewals of fishing licenses at DMV
offices.
Commissioner Campbell stressed the department had an
interest to make renews as easy as possible, as the revenue
from license sales was an important contributor to the
department's budget. She said that she would talk to the
Commissioner of Administration about the practicality of
the proposal.
2:20:03 PM
Commissioner Campbell continued with her presentation:
Commissioner's Office
Commissioner Cora Campbell
10 permanent full time positions
$1,850.4 FY13 Operating Request
1% of ADF&G's Operating Budget
Commissioner Campbell relayed that the office was
responsible for providing support and policy direction
to the department programs, as well as budget and
planning coordination.
Commissioner Campbell continued:
Commercial Fisheries
Director Jeff Regnart
309 permanent full time positions
431 permanent part time/seasonal positions
$70,456.8 FY 13 Operating Budget Request
34 percent of ADF&G's operating budget
Commissioner Campbell added that the division was
responsible for stock assessment, research and management
for commercial fisheries, and some subsistence fisheries,
as well as in charge of permitting for aquaculture projects
throughout the state.
2:21:01 PM
Commissioner Campbell continued:
Sport Fish
Director Charlie Swanton
218 permanent full time positions
184 permanent part time/seasonal positions
$49,738.5 FY13 Operating Request
24 percent of ADF&G's Operating Budget
Commissioner Campbell noted that the division was
responsible for management and stock assessment for sport
fisheries, as well as most personal use fisheries. She
shared that the division provided additional recreational
opportunities through production of hatchery fish and was
responsible for protecting and improving public access to
recreational fisheries resources. The division's funding
came primarily from sale of fishing licenses and stamps, as
well as from federal excise taxes.
Commissioner Campbell continued:
Wildlife Conservation
Acting Director Doug Vincent-Lang
191 permanent full time positions
60 permanent part time/seasonal employees
$44,483.3 FY13 Operating Request
21% of ADF&G's Operating Budget
Commissioner Campbell shared that the division was
responsible for management of wildlife and wildlife stock
assessments. She said that the division also provided
hunter safety education and participated in the Board of
Game process, as well as managed the state's wildlife
refuges, critical habitat areas and wildlife sanctuaries.
Commissioner Campbell highlighted the smaller divisions:
Subsistence
Director Hazel Nelson
24 permanent full time positions
14 permanent part time/seasonal positions
$7,442.8 FY13 Operating Request
4 percent ADF&G's Operating Budget
Commissioner Campbell stated that the division was a
research division that was primarily responsible for the
amount, quantity and usage of subsistence resources by
Alaskan's.
2:22:49 PM
Commissioner Campbell continued:
Habitat
Director Randy Bates
49 permanent full time positions
2 permanent part time/seasonal positions
$6,767.1 FY13 Operating Request
3 percent of ADFG's Budget
Commissioner Campbell added that the division was primarily
a permitting division that was responsible for reviewing
development projects, authorized by other agencies, for
compatibility for protection of fish and wildlife habitat.
Administrative Services
Director Kevin Brooks
70 permanent full time positions
11 permanent part time/seasonal positions
$12,431.0 FY13 Operating Request
$7,138.8 FY13 Facility Related Components
9 percent of ADF&G's Operating Budget
Commissioner Campbell stated that the division administered
the fish and game licensing program and provided overall
logistical support.
Boards Support Section
Executive Director Monica Wellard
6 permanent full time positions
5 permanent part time/seasonal positions
$2,106.8 FY13 Operating Request
1 percent of ADF&G's Operating Budget
Commissioner Campbell explained that the section was
important for public involvement. She said that the section
provided support for the activities for the Board of Fish
and the Board of Game, as well as the 82 local advisory
committees.
2:24:18 PM
Commissioner Campbell spoke to the department's independent
agencies:
Commercial Fisheries Entry Commission
Bruce Twomley, Chairman
28 permanent full time positions
2 permanent part time/seasonal positions
$4,291.3 FY13 Operating Request
2 percent of ADF&G's Operating Budget
Exxon Valdez Oil Spill Trustee Council
Elise Hsieh, Executive Director
6 permanent full time positions
$2,602.7 FY13 Operating Request
1 percent of ADF&G's Operating Budget
Commissioner Campbell noted that the agencies were a small
part of the overall budget.
Representative Gara asked if the state had reopened the
Exxon Valdez settlement litigation in order to collect on
unexpected additional damages due to the disaster.
Commissioner Campbell replied that the question should be
referred to the Department of Law.
2:26:07 PM
Commissioner Campbell spoke to Slide 16, which was a pie
chart that broke down the FY 2013 budget by division and
fund source. She highlighted that the biggest funding
sources for the department were general funds, federal
funds and fish and game funds. She continued to Slide 17,
which charted the FY 2013 budgeted positions. She pointed
out to the committee that the department had 911 full time
positions; but 1,690 total positions, which reflected the
departments reliance on seasonal staff.
Representative Edgmon asked about 288 vacant positions that
had been eliminated.
Commissioner Campbell noted that positions had been vacant
for a long time and did not think there would be an impact
on existing programs. She stated that vacancies would be
handled more carefully in the future.
KEVIN BROOKS, ADMINISTRATIVE DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME, added
that 59 total positions, vacant for at least 11 months, had
been eliminated. He said that flexibility had been given to
the department to decide which vacancies should be
eliminated. He assured the committee that no jobs had been
lost and no projects were directly impacted.
2:29:43 PM
Representative Edgmon understood that of the 59 positions
the majority were temporary or seasonal.
Mr. Brooks replied that it was 15 permanent fulltime and
approximately 40 permanent part-time positions. He said
that the vast majority were seasonal part time positions.
Representative Neuman wondered if there were unfilled
positions that the department expected funding for in the
FY 2013 budget.
Mr. Brooks explained the way the budget worked: if the
division had 100 positions, funding would be received for
94 percent of them. He said that the department had a
vacancy factor of 6 to 10 percent built in, so position
funding through the operating budget Representative Salmon
not 100 percent. He stated that the department was not
requesting funding for unfilled positions.
Representative Neuman asked about the funding ability for a
"true up." He thought that the department had created a new
problem by eliminating the positions.
Mr. Brooks replied that if the department was able to
receive federal grants some positions could be added. He
said that the general fund allocations for positions had
been fully allocated. He added that were there were known
federal dollars coming in the positions had all been
filled.
Representative Gara asked how many biologist positions had
been lost.
Mr. Brooks stated that a listing could be provided to the
committee at a later date.
Representative Gara stated that the state needed biologists
for permitting, habitat protection and federal level
representation. He understood that federal level biologists
made a higher income because of the cost of living
adjustment (COLA). He asked what the department did to
competitively attract biologists.
2:34:00 PM
Mr. Brooks responded that the department was actively
reviewing the issue.
2:34:48 PM
Commissioner Campbell referred to department's issues and
challenges for FY 2013 listed on Slide 18:
Issues and Challenges for FY 2013
The department's FY 2013 budget request will address
the following issues:
· Yukon River Chinook Salmon Fisheries
· South-central Chinook Salmon Fisheries
· Susitna and Cook Inlet Sockeye Salmon Stocks
· State Sovereignty and Endangered Species Issues
· Invasive Species - Tunicates in Whiting Harbor
· New Sport Fish hatcheries in Anchorage and
Fairbanks
· Fish and Game Fund Revenue from License Sales
· Federal Aid Funding (DJ and PR funds) for SF and
WC
· Loss of federal funds for core programs -- $1
million per year (FY 2014)
Co-Chair Thomas asked about the first three bullet points.
He queried the effectiveness of bycatch resolutions passed
by the legislature. He wondered which villages had mid-
water trawlers that could be impacted by the Yukon and
other river systems. He said that the state should not be
complaining about a lack of fish if it was directly
responsible for the impact.
Representative Doogan asked about the abbreviations in the
second to last bullet point.
Commissioner Campbell replied that DJ and PR stood for
Dingell-Johnson and Pittman-Robertson, respectively, and
were federal aid funding sources. She explained that the
funds were for sport fish and wildlife conservation. She
said that the funds were generated by excise taxes from
people purchasing fishing tackle, ammunition, or supplies
related to sport fisheries or wildlife conservation. She
highlighted that the funds were variable.
Representative Doogan understood that the last two items
were related.
Commissioner Campbell answered that the department wanted
to plan for the loss of federal funds for core programs,
approximately $1 million per year (FY 2014).
2:39:56 PM
Representative Doogan pointed to positions that would need
to be back-filled due to declining federal dollars. He
opined that the federal government could spend more money
than the state could provide.
Representative Costello asked about invasive species
related to Salmon Lake in Anchorage. She wondered whether
the department had a comprehensive list related to invasive
species problems.
Commissioner Campbell replied that the department had an
invasive species program coordinator working on the issue.
She stressed that the program was small and was short of
being a comprehensive, proactive, state-wide approach to
invasive species. She referred to the marine invasive
species in Whiting Harbor in Sitka. She said that the
department made a specific capital budget request in FY13
out of concern that the species could spread to other
waters if it was not eradicated. She clarified that this
was not the only invasive species issue that the department
had recognized.
Representative Wilson asked for an update on the cost of
heating the fish hatchery in Fairbanks.
Commissioner Campbell replied that the exact numbers on
what it was going to cost to operate the hatchery were not
immediately available. She offered to provide the numbers
at a later date.
Co-Chair Stoltze demanded open, candid, and transparent
dialogue between the department's and the committee to
address issues and increases in licensing costs. He wanted
common sense, understandable and clear proposals for the
public. He said that terms like "balancing the books" and
"shifting some funds around" really meant the extension of
revenue bonds.
Commissioner Campbell reported that the bonds had been
refinanced in the fall.
2:44:58 PM
Mr. Brooks explained that the terms on the bonds had been
reduced, not extended. He offered to provide further
details.
2:48:12 PM
Representative Gara queried the progress on increasing fish
counting capacity on the Yukon River and what efforts the
department was making to restore commercial fisheries on
the river.
Commissioner Campbell directed attention to Slide 19, which
listed the Tanana River Sonar Project as a budgetary
highlight. She stated that the biggest interest was to have
another data source between the sonar pilot station and the
sonar at Eagle. She said that data about run strength on
the Tanana would help to understand what was going on with
the Yukon fisheries as a whole. She stated that this was
the best project that the department could come up with to
answer outstanding questions about the assessment projects
on the Yukon River. She added that in the meantime the
department was looking to provide opportunities for a
fishery on Chum Salmon.
2:51:35 PM
Representative Gara asked if there was anything that can be
done additionally to restore the King Salmon fishery on the
Yukon.
Commissioner Campbell responded that the department had
worked to understand the reason for the low runs. She felt
that there were a variety of contributing factors to the
problem. She asserted that until it could be concluded what
the root cause of the problem was, it was difficult to set
about restoring the runs. She stated that the department
was focused on approving assessment in the area and then
would provide opportunity on other, more abundant types of
salmon.
2:53:10 PM
Co-Chair Thomas shared that the department was looking to
repeal the reciprocating license between Canadians and
Alaskans. He worried that the change would put pressure on
Lynn Canal and Icy Strait fisheries. He understood that
Canadians had no problem with paying for the non-resident
license.
Representative Doogan asked what the word "tunicate",
listed on Slide 21, meant.
Commissioner Campbell responded that a tunicate was an
invasive species in Whiting Harbor, also referred to as
"sea vomit."
2:55:47 PM
Commissioner Campbell directed attention to Slide 20 the
presentation:
Division of Subsistence
$317.1 - Funding for Core Services
$60.0 - Lower Kuskokwim Caribou Harvest Study
$1,100.0 - I/A Receipts from DNR, Pipeline Corridor
Harvest Surveys
Commissioner Campbell explained that it had been recently
discovered that the information that the division collected
was critical to the decision making process for resource
development and transportation projects.
Boards Support Section
$191.5 - Funding for Core Services, Boards and
Advisory Committees
Commissioner Campbell stated that the section had had a
baseline budget for many years and had absorbed cost
increases, which had limited that funding for advisory
committees.
Habitat Division
$353.5 - Title 16 and 41 Project Reviews, Permitting,
Monitoring
$200.0 - I/A Receipts from DNR, Right-of-Way Work
Commissioner Campbell relayed that the division's workload
had increased in the areas of project reviews, permitting
and monitoring. She said that funding for the division had
been stable, but that some areas had lost funding.
2:57:33 PM
Representative Joule noted that a Board of Game made a
decision several years ago with regard to out-of-state take
on the Central Arctic Caribou Herd. He wondered whether
data had come in that could prompt revisiting the issue.
Commissioner Campbell responded that she did not have a
recent update on the decision.
Representative Joule observed that the Alaska National
Wildlife Refuge (ANWAR) had been mentioned on the floor. He
said that one of the issues touted in discussions about
ANWAR centered on how caribou herds had grown. He found it
unfortunate that the board's decisions did not reflect
their touted accomplishments.
Representative Edgmon asked for more information regarding
the $353.5 for Title 16 and 41 Project Reviews, Permitting,
Monitoring. He asked if it pertained to expediting
backlogged permits.
Commissioner Campbell replied that there was a combination
of issues due to a loss of funding. She explained that the
Habitat Division had received some funds from the
Department of Natural Resources in association with the
Alaska Coastal Management Program (ACMP), which they were no
longer receiving. She asserted that it was more effective
for the division to be involved early on in the process
because projects could be shaped early on to minimize
interactions or impacts to fish and wildlife habitat.
3:01:20 PM
Representative Edgmon asked if the division was absorbing
some of the employees from the defunct ACMP.
Commissioner Campbell explained that the division had
received a reimbursable service agreement (RSA) from the
ACMP. When the ACMP program ended the RSA was discontinued,
but the work involved in permitting remained.
3:02:34 PM
Representative Neuman asked about ocean zoning at the
federal level would affect the state.
Commissioner Campbell replied that the issue had been
nebulous; National Oceans Policy: Coastal Marine Spatial
Planning could mean many things. She said that it had been
difficult to get details from the federal government about
how the program would be implemented here in Alaska. She
opined that the department had yet to receive a clear
answer from the federal government to any questions about
how the new policy interacted with existing federal law,
what it meant to the existing federal decision making
processes, and what kind of representation the state was
going to have on regional planning bodies.
3:05:26 PM
Representative Joule pointed out that Alaska's
congressional delegation opposed Coastal Marine Spatial
Planning. He that the current practice as it related to
working in arctic waters was initiated through an executive
order from former President Bush and that the current Obama
Administration was building off of that. He understood that
funding for the program had yet to be considered by
congress.
3:07:09 PM
Commissioner Campbell reviewed FY 13 capital projects
requests listed on Slide 21:
New Projects and Initiatives
· Kenai River King Salmon Sonar Assessment Program;
$1,813.0 GF
· Wild/Hatchery Salmon Management Tools; $2,500.0
CFEC Receipts
· Susitna River Sockeye Salmon Migration; $625.0
CFEC Receipts
· Upper Cook Inlet Chinook Salmon Harvest Patterns;
$789.0 CFEC Receipts
· Replacement of Research Vessel Resolution;
$3,700.0 GF
· Research of Endangered Species Act Candidate
Species; $1,550.0 GF
· Boards of Fisheries and Game Sound System
Replacement; $100.0 GF
· Eradication of Invasive Tunicates in Whiting
Harbor; $500.0 GF
Representative Doogan asked for more information concerning
the Commercial Fisheries Entry Commission's (CFEC)
contribution to the capital budget.
Commissioner Campbell said that the projects were
identified on the slide.
Co-Chair Stoltze questioned how the department was
collaborating with other departments on the issue of
invasive species.
3:09:19 PM
Commissioner Campbell answered that the department
coordinated closely with DNR. She explained that DF&G
focused on invasive species in the marine environment,
while DNR focused mainly on invasive plants.
3:10:15 PM
AT EASE
3:18:30 PM
RECONVENED
^BUDGET OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT
3:19:18 PM
SUSAN BELL, COMMISSIONER, DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT, introduced her support staff and
directed attention to her presentation (copy on file). She
highlighted Slide 2, which detailed the corporate and core
agencies of the department and noted the department's
mission: Promote a healthy economy, strong communities, and
protect consumers in Alaska.
Commissioner Bell said that the distinction was made
between corporate and core agencies because of the
involvement of Alaska's citizens in boards and commissions
and in recognition of the fact that 50 percent of the
budget request was for corporate support.
Commissioner Bell spoke to the departments' priority
programs listed on Slides 4 and 5:
Priority Programs
Economic Growth
· Division of Economic Development, AIDEA and ASMI
· Net increase of $15 million
· Tourism marketing, AIDEA development projects
Sustainable Energy
· Alaska Energy Authority
· Net increase of $4 millon
· Power Cost Equalization, Renewable Energy Fund
grant management, Susitna-Watana Hydroelectric
Project positions, emergency generators
Strong Communities
· Community and Regional Affairs, Serve Alaska
· $18.3 million decrease
· Decrement for one-time community revenue sharing
Consumer Protection
· Banking and Securities; Insurance; Corporations,
Business, and Professional Licensing; Regulatory
Commission of Alaska
· Net increase $1.5 million
· Emerging utility and pipeline issues, CBPL
indirect costs and professional board travel
3:24:14 PM
Commissioner Bell touched on the overall challenges faced
by the department:
· High cost of energy impacts communities and
economic development efforts
· Gaps in critical infrastructure such as roads,
ports, communications, and processing facilities
· Higher cost of goods and services in rural areas
· Federal regulatory permitting delays and denials
· Uncertainty hampering private investment and
federal funding for rural programs
· Limited awareness in national and international
markets about Alaska products and services
· State and regional economic activities are spread
across many entities (DCCED, AIDEA, International
Trade, Natural Resources, Education, and Regional
Economic Associations)
· Historical practices and unaddressed audit issues
related to professional and business licensing
· Upward pressure on the utility rate base and
increase in complex filings with critical
deadlines
· Growth of new financial programs that increase
fraud and misinformation for consumers
· Recruitment and retention of specialized staff
3:24:35 PM
Commissioner Bell described accomplishments in economic
growth:
Division of Economic Development
· 313 loans totalling $30 million
· $4.8 million Salmon Enhancement Tax to
aquaculture
· AVSP VI: visitor volume, spending, profiles,
marketing data
· Marketing: tourism, minerals, film
· Development of underutilized seafood
species/aquatic plants
· Forest product opportunities, supply needs,
barriers
· Pre-qualified 33 productions, 17 productions
completed, referrals
· Awarded $330,000 STEP grant, increase small
business skills to export to China
3:28:21 PM
Commissioner Bell continued to Slide 8 of the presentation:
Economic Development Programs (cont)
Alaska Industrial Development and Export Authority
· Increased asset value to over $1 billion
· FY11 37 loan participations, $105 million
· 4 Recovery Zone Facility bonds, $27 million
· Ketchikan shipyard, Skagway ore terminal
expansions
· Cook Inlet jack-up rig
· Providence Hospital conduit revenue bond
3:30:50 PM
Commissioner Bell spoke to Slide 9:
Economic Development Programs (cont)
Alaska Seafood Marketing Institute
· Continued retail, foodservice, university,
culinary school programs
· Traditional media exposure through national and
international publicity in newspapers, magazines,
radio, TV, and internet
· Expanding market reach through fish taco contest,
mobile apps, social media
· Market analysis and education supporting recent
industry announcement to shift to sustainability
certification by United Nation's Food and
Agriculture Organization
· Expanded collaboration with tourism marketing,
new opportunities featuring Alaska Grown, Alaska
Railroad, other agencies
3:32:38 PM
Commissioner Bell continued to Slide 10:
Sustainable Energy
Alaska Energy Authority
· Preliminary Application Document filed with FERC
for the Susitna-Watana Hydroelectric Project
· $176.6 million in grants for 207 renewable energy
projects
· Disbursed $31.8 million in PCE payments
· 3 bulk fuel upgrades (71 of 107 completed to
date)
· 4 rural power system upgrades (51 of 110
completed to date)
· Issued 52 bulk fuel revolving loans
· Trained 47 rural residents
· Launched Alaska Commercial Energy Audit Program
3:34:20 PM
Commissioner Bell highlighted Slide 11:
Strong Communities
Community and Regional Affairs
· RUBA assisted 208 communities, 82 communities met
sustainability indicators (5 more than prior
year), trained 147 utility managers
· $1.4 billion distributed through 1,800
state/federal grants
· $29 million distributed: PILT, NFR, fisheries
business tax, fisheries landing tax
· $80 million Community Revenue Sharing
· $1.5 million to 1,200 SE fishermen
· Finalized ANCSA re-conveyance for Minto,
completed 14 land transactions in 8 communities,
completed Ninilchik survey and title conveyance
· 15 Bulk Fuel Bridge Loans (6 less than prior
year)
3:36:49 PM
Commissioner Bell continued:
Strong Communities
Community and Regional Affairs (cont)
· 801 fuel watch calls to community 341 entities
· Finalized digital orthophoto maps in 19
communities
· Emergency response, National Flood Insurance
Program support
· Launched new E-grant program, community database,
lien watch
· State assessor, Local Boundary Commission support
Serve Alaska
· 286,195 hours of volunteer service, over $6
million value
· Meeting critical needs in education, health and
environment
3:38:52 PM
Commissioner Bell continued to Slide 13:
Consumer Protection
Banking and Securities
· 58 exams of depository institutions
· 4,700 mutual fund and investment trust filings
· 1,289 broker-dealers registered/renewed
· 329 security filings/notice filings
· Finalized multi-state security settlements, $1.6
million in fines and millions refunded to
Alaskans
· New licensing programs: mortgage lenders and
money services
· Updated ANCSA proxy regulations, expedited
complaint process
3:39:43 PM
Commissioner Bell continued to discuss consumer protection:
Corporations, Business and Professional Licensing
· Management restructure, comprehensive review of
financial foundation, procedural upgrades, board
engagement
· Issued 119,256 commercial and professional
licenses
· 1,155 complaints, resulting in 330 new cases
· Increased online renewals
· Big Game Commercial Services board investigation
· Corrective actions to historical practices
3:41:21 PM
Commissioner Bell continued:
Insurance
· More than 39,000 licenses issued
· Opened 77 criminal investigations, closed 56
· Registered 21 purchasing groups, admitted 20 new
companies, 8 surplus lines insurers, 2 risk
retention groups
· Investigated 294 consumer complaints, closed 259
complaints, consumers received $356,000
Regulatory Commission of Alaska
· Approved the first certificate of public
convenience and necessity for Cook Inlet natural
gas storage
· Decided over 20 rate proceedings and 475 tariff
proceedings
· Concurrent TAPS rate revision hearings with FERC
· Provided assurance that $197 million electrical
plant investment could be recovered in future
rates
3:44:51 PM
Commissioner Bell stated that the consumer protection
element was an important indicator for departmental problem
solving. She noted the four program areas on the Slide 16
pie chart, which detailed the percentage of the budget
dedicated to each: Consumer Protection, 17 percent;
Economic Growth, 31 percent; Strong Communities, 21
percent; Sustainable Energy, 31 percent.
3:46:13 PM
Representative Doogan probed what the state could expect to
receive for the $4 million increase for tourism marketing.
Commissioner Bell replied that it was important to
recognize that there were big drops in the industry in 2009
and 2010. She said the recovery took a combination of
increasing the state's visibility through marketing,
reducing taxation levels on the industry and reaching out
to the industry. She said that an increase of over 50
thousand visitors was anticipated in the 2012 season, with
another 40 thousand in 2013. She stressed that the state
was still on the path to recovery in terms of total
visitation. She added that the seafood and tourism
marketing programs stood out nationwide in terms of putting
Alaska on the map.
3:48:52 PM
Representative Doogan requested concrete information about
what the state could expect for the $4 million. He noted
that the Alaska Seafood Marketing Institute needed an extra
$500,000 in "unrealizable federal receipts." He asked if
that was the same as back filling.
Commissioner Bell explained that the department had been
monitoring the Market Access Program (MAP). She said that
it had been flagged in an attempt to remember the balance
between industry taxation and the state's contribution.
3:50:20 PM
Co-Chair Stoltze pointed out that the tourism industry was
second largest employer in the state.
Vice-chair Fairclough voiced support for state's energy
policy in trying to reach 50 percent sustainable, renewable
energy. She pointed out that the state had invested $176.6
million in grants to 207 renewable energy projects. She
said that she had made a request to the Alaska Energy
Authority (AEA) to discuss wind power in order to determine
if the presented projects were delivering the energy
promised. She shared that the production was not meeting
the investment. She expressed concern that maintenance on
wind turbines was heavier than what had been proposed. She
queried the return of energy versus the amount that the
state had invested in the projects.
Commissioner Bell commented that the AEA estimated that by
2013, 10 million gallons of diesel would be saved annually.
She said that the department had requested additional
resident cost saving information from AEA. She added that
the electrical generation from renewable resources was
anticipated to be at 23 percent by 2025, and not the
previously estimation of 50 percent.
3:53:55 PM
Vice-chair Fairclough stated that she was specifically
seeking the components of the renewable and sustainable
energy streams. She noted that the state had improved air-
quality by reducing diesel consumption, but wanted to know
specifically which projects were "winning."
3:55:51 PM
Representative Edgmon thought that HB 152 had created a
bunch of tiny incremental projects throughout the state
that would make renewable energy more successful.
Co-Chair Thomas interjected that several projects had been
built throughout the state that had significantly improved
community's dependence on diesel.
Representative Gara asked what coordination was being done
to ensure over the long-term that localities had trained
people within the communities for maintenance. He wondered
why the department's general fund budget had increased by
20 percent.
3:57:52 PM
Commissioner Bell answered that the tourism increment was a
significant component; it had been in the capital budget in
FY2012, and the $16 million was now in the operating
budget.
Representative Gara understood that the $16 million moved
from the capital to the operating budget. He mentioned the
50/50 match between the state and the industry for tourism
marketing. He asked where the $4 million dollar increase
put the state in terms of the 50/50 match. Additionally,
wondered if the state had been active in advertising its
ski resorts on a national level.
Commissioner Bell explained that the industry generated
approximately $2.7 million in toward the 50/50 match. She
said that the department's public relations program had
highlighted the winter skiing in the state.
4:00:28 PM
Co-Chair Thomas recognized the forthcoming fiscal notes for
the committee substitute for HB 282.
4:01:12 PM
Co-Chair Thomas noted that oil was declining and the
budgets were gaining which would put the state in a deficit
within the next two years. He urged the department's to
refrain from over spending.
ADJOURNMENT
4:01:59 PM
The meeting was adjourned at 4:02 PM.