Legislature(1995 - 1996)
02/08/1995 03:05 PM House L&C
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* first hearing in first committee of referral
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HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 8, 1995
3:05 p.m.
MEMBERS PRESENT
Representative Norman Rokeberg, Vice Chairman
Representative Jerry Sanders
Representative Beverly Masek
Representative Gene Kubina
MEMBERS ABSENT
Representative Pete Kott, Chairman
Representative Brian Porter
Representative Kim Elton
COMMITTEE CALENDAR
Overview: Department of Commerce Commissioner-Designate Willie
Hensley
WITNESS REGISTER
WILLIAM L. HENSLEY, Commissioner-Designate
Department of Commerce
and Economic Development
Post Office Box 110800
Juneau, AK 99811-0800
Telephone: (907) 465-2500
POSITION STATEMENT: Overview of Department
ACTION NARRATIVE
TAPE 95-5, SIDE A
Number 000
The House Labor and Commerce Committee was called to order by Vice
Chairman Norman Rokeberg at 3:05 p.m. Members present at the call
to order were Representatives Rokeberg, Sanders, Masek, and Elton.
Members absent were Representatives Kott, Porter and Kubina.
VICE CHAIRMAN NORMAN ROKEBERG stated there was a quorum present.
Number 023
COMMISSIONER-DESIGNATE WILLIE HENSLEY, started his overview of the
department by introducing his staff. Mr. Hensley explained how the
Department of Commerce and Economic Development (DCED) represented
a marriage between the state's business, regulatory, and economic
development promotional efforts. He noted that his goal was to
promote a healthy and active expanding business community. He
explained that the regulatory programs are managed so as to protect
the Alaskan consumers, while minimizing government imposed barriers
to business activity. The economic development programs offer
advocacy and financing, services designed to strengthen and
diversify our economic base, increase employment opportunities, and
stimulate private enterprise. Commissioner Hensley then went on to
explain the different divisions within the department with regards
to it's budget. He explained that the department's budget was very
neutral in the sense that this year the department generated $73
million for the general fund and spent only $40.5 million. He
stated that almost all of the regulatory agencies were self
supporting and several produce significant unrestricted revenues
for the general fund. Commissioner Hensley voiced his concern
regarding the importance of extending the Alaska Public Utilities
Commission (APUC), which is in its wind-down year. The regulatory
cost charge which covered 100 percent of the APUC cost was
repealed, effective at the end of December, 1994. Commissioner
Hensley stated that the department strongly supports HB 99 ("An Act
extending the Alaska Public Utilities Commission; and relating to
regulatory cost charges.") Commissioner Hensley then reported that
there were three occupational licensing boards that were in their
wind down years: The Big Game Commercial Services; The Nursing
Home Administrators; and, the Marine Pilots. He explained that if
these boards are not extended, a person would no longer be required
to be licensed to be occupied in these professions. In addition
there are seven boards up for extension: The Medical Board: The
Marital & Family Therapy Board: Real Estate Appraisers Board:
Psychologist and Psychological Associate Examiners Board; Board of
Nursing; and, Clinical Social Workers Board. He commented that no
legislation has been submitted to extend the boards, but that the
legislative auditor has recommend that they all be extended or they
will go into their wind-down year.
Commissioner Hensley talked about how investments in Alaska must
compete with projects around the globe. He explained that other
countries are desperate for investment capital and Alaska has to be
competitive. He outlined a four year program aimed at dealing with
decision makers in major industries such as: Oil and gas; mining;
fishing; and tourism. Commissioner Hensley stated that if there
were problems in these industries that the state was there to help,
and that they also wanted to know the latest conditions in the
industries. He stated the best way to do that was with
face-to-face discussions. He stated that they welcome industry,
but they want them to understand that they would not destroy what
tourists have come to see. He expressed that there should be a
mutual effort between the major land owners, the state, the federal
and Native land owners in promoting Alaska. This plan will also
help Alaskan enterprises sell Alaskan products, services, and our
Arctic know-how around the world. He described the Russian
American Enterprise Fund which is designed to assist emerging
enterprises in Russia and the Far East, to ensure that democracy
works. Many Alaskan firms are presently selling products and
services in that part of the world, he stated. He talked of
opening the Arctic National Wildlife Refuge (ANWR), for
environmentally responsible development. He spoke of the renewal
of the Magnussen Act, to continue Alaskan involvement in our
fisheries. He also spoke about promoting rural development through
continuation of the Community Development Quotas Program.
Number 260
VICE CHAIRMAN ROKEBERG noted, for the record, that Representative
Brian Porter arrived at 3:06 p.m. and Representative Gene Kubina
arrived at 3:20 p.m.
Number 279
REPRESENTATIVE BRIAN PORTER commented on the Administration's
support of tourism during the campaign and asked Commissioner
Hensley what specific plans they had.
COMMISSIONER HENSLEY stated that Tourism was the key area for
growth in Alaska, and commented on the budget cutbacks in
marketing, especially with regard to television advertising.
Number 323
REPRESENTATIVE JERRY SANDERS asked Commissioner Hensley if tourism
would be able to tax itself and pay for its own promotion.
COMMISSIONER HENSLEY said this would be complex because different
communities have different mechanisms for raising revenue from
tourists, but it was his hope that they could have a partnership
arrangement with the industry and hopefully there could be ways to
raise revenue.
REPRESENTATIVE BEVERLY MASEK noted that during the campaign the
Governor committed himself and his Administration to helping the
small business owners. She asked how the Commissioner saw himself
carrying out that mandate in tourism.
Number 360
COMMISSIONER HENSLEY replied that a lot of small communities and
enterprises aren't aware of what's available through the different
divisions, and that part of his intent would be to work more
closely with small enterprises. He also talked of working with
larger operators and that perhaps they could help steer tourists
into communities that may not have had tourist attractions before.
Number 390
REPRESENTATIVE MASEK clarified that the Commissioner had mentioned
working with small businesses at a statewide level. In Fairbanks,
Mat-Su, and the Kenai Peninsula, many businesses popping up are
small restaurants and bed and breakfasts. She asked how he
expected to work with them statewide.
Number 408
COMMISSIONER HENSLEY stated that they worked closely with the
various economic planning groups throughout the state, the
convention and visitors bureaus, and the Alaska Visitors
Association. He stated that they would work more closely with
individual enterprises, cities, and boroughs in different parts of
the state.
Number 414
REPRESENTATIVE KIM ELTON asked the Commissioner if he foresaw a
change in what DCED was doing with rural economic development and
what Community and Regional Affairs was doing.
Number 419
COMMISSIONER HENSLEY stated that he would like to work
cooperatively so that communities would have a focal point for
their inquiries about economic development and which agencies would
be able to help them. He feels there are ways to work together
without going into structural changes.
Number 445
REPRESENTATIVE ELTON asked if we really needed an oversight
function for marine pilots. Also, he asked what the Division of
Tourism's response would be to an initiative that set up a special
marketing program for sport fishing.
Number 456
COMMISSIONER HENSLEY stated that there's significant state interest
in insuring that lives and property are protected. At the same
time, as far as commerce is concerned, whatever system we have in
the marine pilots area, must be able to accommodate future growth.
If we have the opportunity to ship our oil to the Orient, the gas
pipeline gets built, or an iron ore plant is opened on the Kenai
Peninsula, the marine pilot system needs to be able to grow.
Number 482
VICE CHAIRMAN ROKEBERG inquired regarding the status on the sunset
bill for marine pilots, as well as some of the other boards and
commissions.
COMMISSIONER HENSLEY stated that there wasn't any bill yet, but
said that his deputy Jeff Bush would be available to work on that.
He stated that on the question of sport fishing, he wasn't that
familiar with the issue, but they would discuss it internally.
Number 501
REPRESENTATIVE GENE KUBINA commented that he was very much in favor
of the gas pipeline, and he encouraged the Commissioner to make
sure the people in his department were very knowledgeable about the
project. He suggested that the Commissioner get with Yukon Pacific
for their side of it. He stated we should be able to bring people
in the oil industry and Yukon Pacific together, and that this would
help prevent having to do a lot of other things for many years.
Number 525
COMMISSIONER HENSLEY stated that he has had several discussions on
the repeal of the export ban. He mentioned that ARCO had been
nervous about the price that they would pay for their crude at
their refineries on the West Coast. As far as gas is concerned,
the Commissioner said that Mr. Condray, from Exxon, considers the
gas they own as their major asset in North America. There are
people looking at how to design a gas pipeline, such as the route
along the pipeline. They are also looking at a western route.
They're looking at the market and where the capital would come
from. Commissioner Hensley also spoke of the difference between
oil and gas, and about the difference in laws to deal with the
large investment over the long term.
Number 575
VICE CHAIRMAN ROKEBERG stated that he was pleased with the
Governor's appointment of Commissioner Hensley.
Number 588
COMMISSION HENSLEY spoke of the Department of Labor's report of
75,000 nonresident jobs in the state, and that we need to encourage
businesses on Alaskan hire.
VICE CHAIRMAN ROKEBERG commented that this morning the exact same
opinions were expressed in House floor session.
Number 614
REPRESENTATIVE BEVERLY MASEK asked what was going to be needed to
see more results for the dollars spent on tourism statewide.
COMMISSIONER HENSLEY stated that at this point they were assessing
that. He talked of taking a closer look at the Division of
Tourism, and of working closely with the private sector, but that
he didn't have a concrete direction he wanted to express at this
time.
REPRESENTATIVE MASEK commented that when he found his direction,
the committee would be glad to hear his comments. Representative
Masek asked if the department would be open to new ideas, concepts
and strategies in tourism.
NUMBER 800
COMMISSIONER HENSLEY stated that they would be open to any input.
TAPE 95-5, SIDE B
Number 000
COMMISSIONER HENSLEY stated that he felt a lot of what was missing
in these areas was the human element. He talked of the history of
the Prince William Sound area, that it was like a war zone with the
Upik and the Tlingits moving up and the Athabascans moving down,
followed by the arrival of the Russians. He felt that this type of
history wasn't being effectively portrayed for the visitors. He
stated that this type of history should be presented in the
different regions to our visitors.
REPRESENTATIVE MASEK asked Commissioner Hensley what his first
priority would be in the department.
COMMISSIONER HENSLEY stated that his first priority would be to get
everyone that he needs on board. The other priority would be to
respond to the Governor's goal of coming up with a marketing effort
that would cover a wide range of things, including working with the
smaller communities and businesses.
Number 040
REPRESENTATIVE BRIAN PORTER brought up an International Trade and
Tourism meeting of February 7, 1995, that discussed the problem of
limited access to public land.
Number 065
COMMISSIONER HENSLEY stated that he was co-chairing a conference of
government land owners to discuss how they could work
cooperatively, not only to attract tourists, but how best to
accommodate them.
VICE-CHAIRMAN ROKEBERG mentioned the American-Russian Enterprise
Fund, and asked if there was anything the legislature could do to
expand that area through additional funding.
COMMISSIONER HENSLEY stated that Congress had been receptive
to this fund. This fund, he stated, was modeled after the Polish
Fund when they went Democratic and changed their economy. It
operates like an investment bank, in that it provides net capital.
It can also buy equity in a venture and provide small loans.
VICE-CHAIRMAN ROKEBERG stated that he had heard some rumors about
requests for supplemental appropriations for the tourism
advertising program.
Number 150
COMMISSIONER HENSLEY stated that he had also heard that, but didn't
know for sure whether there had been an actual request put
together. He felt it was imminent.
ADJOURNMENT
Number 182
VICE-CHAIRMAN ROKEBERG adjourned the House Labor and Commerce
Committee meeting at 4:00 p.m.
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