Legislature(1993 - 1994)

01/28/1993 03:00 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                        January 28, 1993                                       
                            3:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Bill Hudson, Chairman                                                   
  Rep. Bill Williams                                                           
  Rep. Brian Porter                                                            
  Rep. Eldon Mulder                                                            
  Rep. Joe Sitton                                                              
  Rep. Jerry Mackie                                                            
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Rep. Joe Green                                                               
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Overview of the Department of Commerce and Economic                          
  Development                                                                  
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  PAUL FUHS, Commissioner                                                      
  Department of Commerce and Economic Development                              
  P.O. Box 110800                                                              
  Juneau, Alaska  99811-0800                                                   
  465-2500                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  KIM ELTON, Director                                                          
  Alaska Seafood Marketing Institute                                           
  1111 W. 8th St., Suite 100                                                   
  Juneau, Alaska  99801-1895                                                   
  465-5560                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  CHRIS GATES, Director                                                        
  Division of Economic Development                                             
  Department of Commerce and Economic Development                              
  P.O. Box 110804                                                              
  Juneau, Alaska  99811-0804                                                   
  465-2017                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  CARL LUCK, Director                                                          
  Division of Occupational Licensing                                           
  Department of Commerce and Economic Development                              
  P.O. Box 110806                                                              
  Juneau, Alaska  99811-0806                                                   
  465-2534                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  WILLIS KIRKPATRICK, Director                                                 
  Division of Banking, Securities and Corporations                             
  Department of Commerce and Economic Development                              
  P.O. Box 110808                                                              
  Juneau, Alaska  99811-0808                                                   
  465-2521                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  DAVID WALSH, Director                                                        
  Division of Insurance                                                        
  Department of Commerce and Economic Development                              
  P.O. Box 110805                                                              
  Juneau, Alaska 99811-0805                                                    
  465-2515                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  MARTIN RICHARD, Director                                                     
  Division of Investments                                                      
  Department of Commerce and Economic Development                              
  P.O. Box 34159                                                               
  Juneau, Alaska  99803-4159                                                   
  790-2693                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  CON MURRAY, Director                                                         
  Division of Tourism                                                          
  Department of Commerce and Economic Development                              
  P.O. Box 110801                                                              
  Juneau, Alaska  99811-0801                                                   
  465-2012                                                                     
  Position Statement:  Presented an overview                                   
                                                                               
  MARY PIGNALBERI                                                              
  Division of Tourism, Film Library                                            
  Department of Commerce and Economic Development                              
  3601 C St., Suite 700                                                        
  Anchorage, Alaska  99503-5935                                                
  563-2167                                                                     
  Position Statement:  Answered questions                                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-6, SIDE A                                                            
  Number 000                                                                   
                                                                               
  CHAIRMAN HUDSON called the House Labor and Commerce                          
  committee to order at 3:06 p.m. on January 28, 1993.                         
  Members present were Reps. Hudson, Williams, Porter, Mulder,                 
  and Sitton.                                                                  
                                                                               
  CHAIRMAN HUDSON introduced COMMISSIONER DESIGNEE PAUL FUHS                   
  from the DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT and                 
  invited him to start the overview.                                           
                                                                               
  COMMISSIONER FUHS stated that in light of the decline of oil                 
  revenue it was imperative that the Department of Commerce                    
  focus on how to make money and not how to spend it.                          
                                                                               
  COMMISSIONER FUHS referred to a pie chart the Department                     
  produced which illustrated the sources of money to fund the                  
  Department.  He noted that the Department's share of the                     
  general fund amounts to 3/4 of 1 percent of the total                        
  budget.                                                                      
                                                                               
  COMMISSIONER FUHS showed a video produced by the Department.                 
  He explained that the video was used at trade shows to                       
  market Alaska.                                                               
                                                                               
  Number 191                                                                   
                                                                               
  KIM ELTON, DIRECTOR, ALASKA SEAFOOD MARKETING INSTITUTE,                     
  presented a short overview of his office.  Mr. Elton                         
  included a breakdown of funding.  He also noted that some of                 
  the handout material that the committee received covered in                  
  some detail his agency.                                                      
                                                                               
  Number 265                                                                   
                                                                               
  REP. HUDSON inquired about the quality program.  Rep. Hudson                 
  also asked for a short synopsis of what the focus or goal of                 
  the agency was and what benefit it was to the people of the                  
  state.                                                                       
                                                                               
  Number 270                                                                   
                                                                               
  MR. ELTON responded that the agency does have a voluntary                    
  quality control program.  Mr. Elton stated that his agency's                 
  goal is to market Alaska's fish to both foreign and domestic                 
  markets.                                                                     
                                                                               
  Number 330                                                                   
                                                                               
  CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,                     
  told the committee that the focus of the Division was to                     
  assist new and old small businesses to survive and prosper                   
  and to work on specific resource areas.                                      
                                                                               
  Number 375                                                                   
                                                                               
  (Rep. Menard joined the  committee.)                                         
                                                                               
  Number 407                                                                   
                                                                               
  CARL LUCK, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,                     
  stated that the Division's mission was to protect the health                 
  and safety of Alaskans by insuring that practitioners have                   
  at least the minimum level of competency necessary to                        
  deliver a quality service.  The Division does this through a                 
  central licensing concept.  Mr. Luck further stated that the                 
  Division was comprised of the following sections:                            
  Occupational Licensing; Business Licensing; and the Gaming                   
  Commission.                                                                  
                                                                               
  Number 453                                                                   
                                                                               
  REP. HUDSON asked Mr. Luck to provide the committee with                     
  details on the concept of centralizing licensing functions                   
  and send it over in a report.                                                
                                                                               
  Number 487                                                                   
                                                                               
  WILLIS KIRKPATRICK, DIRECTOR OF DIVISION OF CORPORATIONS,                    
  BANKING AND SECURITIES, told the committee that anybody                      
  wanting to do business in Alaska usually starts with his                     
  Division.  The agency is made up of the following sections:                  
                                                                               
     1) the securities section is a regulatory agency which                    
  primarily fights white collar crime;                                         
                                                                               
     2) the banking section registers all banks, savings and                   
  loan institutions, credit unions and trust companies; and                    
                                                                               
     3) the corporations section is usually the first stop for                 
  anyone wanting to do business in Alaska as a corporation.                    
                                                                               
  Number 525                                                                   
                                                                               
  DAVE WALSH, DIRECTOR, DIVISION OF INSURANCE, said the                        
  mission of the Division is to protect and serve Alaska by                    
  developing, interpreting, and enforcing the insurance                        
  statutes and regulations; by protecting Alaska insurance                     
  consumers; by enhancing the insurance business environment;                  
  and by providing information and resources to the public for                 
  knowledgeable management of their insurance affairs.                         
                                                                               
  MR. WALSH provided the committee with the Division's 1992                    
  strategic plan.                                                              
                                                                               
  TAPE 93-6, SIDE B                                                            
  Number 605                                                                   
                                                                               
  CHAIRMAN HUDSON said that he was extremely interested in                     
  containing costs in the insurance industry and would like                    
  further information on the subject.                                          
                                                                               
  Number 676                                                                   
                                                                               
  MARTIN RICHARDS, DIRECTOR, DIVISION OF INVESTMENTS,                          
  explained that this division was the loan administration                     
  group.  The Division currently has three active lending                      
  programs:                                                                    
                                                                               
     1) commercial fishing revolving loan fund;                                
                                                                               
     2) loans on limited entry permits, vessels and gear; and                  
                                                                               
     3) fisheries enhancement revolving loan program.                          
                                                                               
  MR. RICHARDS stated that the Division has nine inactive loan                 
  programs and services loans for five other state agencies.                   
                                                                               
  Number 715                                                                   
                                                                               
  CHAIRMAN HUDSON inquired if there was any information                        
  regarding outstanding loans.                                                 
                                                                               
  COMMISSIONER FUHS stated that the efficiency review                          
  committee compiled that information and he would see that                    
  the committee received the information.                                      
                                                                               
  Number 720                                                                   
                                                                               
  CON MURRAY, DIRECTOR, DIVISION OF TOURISM, stated the                        
  Division's mission was to cooperate with public and private                  
  organizations to promote tourism and to coordinate with                      
  public and private agencies to develop and promote in-state                  
  attractions consistent with community values.  Mr. Murray                    
  further described the Division's role as to attract and                      
  assist prospective investors in Alaska tourism.                              
                                                                               
  MR. MURRAY said the Division had one other very important                    
  function that was not covered in statute, which was to                       
  administer a very aggressive and innovative film program.                    
                                                                               
  MR. MURRAY also assisted the Alaska Tourism Marketing                        
  Council in their statutorily mandated duties.  He said the                   
  Alaska Tourism Marketing Council duties are to work with the                 
  private sector in developing and carrying out a cooperative                  
  advertizing program aimed at generating tourism in the                       
  domestic market.                                                             
                                                                               
  MR. MURRAY described the locations of the Division's                         
  overseas offices and outlined his plans to ask for funding                   
  in next year's budget for an office in the United Kingdom.                   
                                                                               
  CHAIRMAN HUDSON expressed concern that the Division does not                 
  use its resources to promote the marine highway system.                      
  Chairman Hudson asked that the Division look closely at this                 
  issue and get back to the committee.                                         
                                                                               
  Number 860                                                                   
                                                                               
  MARY PIGNALBERI, DIVISION OF TOURISM, FILM LIBRARY, outlined                 
  the upcoming film projects to be produced in Alaska                          
  including:                                                                   
                                                                               
     1) Warner Brothers in conjunction with Steven Seigal is                   
  looking at doing a feature film here;                                        
                                                                               
     2) Castlerock, with Rob Reiner directing, will be doing a                 
  small portion of another feature;                                            
                                                                               
     3) a co-production between France and England will be                     
  coming up to scout for locations for a feature film by                       
  Esther Sharpiro entertainment;                                               
                                                                               
     4) Christopher Lambert will be scouting for locations for                 
  a big project he will direct and star in; and                                
                                                                               
     5) Mark Russell will do a comedy special from Alaska this                 
  summer.                                                                      
                                                                               
  COMMISSIONER FUHS noted that in the committee's packet there                 
  was a six page document that would serve as a report card on                 
  the Department.                                                              
                                                                               
  Number 940                                                                   
                                                                               
  REP. MENARD inquired if the contributions from the private                   
  sector had been kept up-to-date.                                             
                                                                               
  MR. MURRAY responded that the contributions were up-to-date.                 
                                                                               
  CHAIRMAN HUDSON commented that it was his hope to make                       
  government more of an asset than a liability.                                
                                                                               
  CHAIRMAN HUDSON adjourned the meeting at 4:16 p.m.                           
                                                                               
                                                                               

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