Legislature(2009 - 2010)
04/11/2009 09:17 AM House L&C
| Audio | Topic |
|---|---|
| Start | |
| SB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 11, 2009
9:17 a.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Mark Neuman, Vice Chair
Representative Mike Chenault
Representative John Coghill
Representative Robert L. "Bob" Buch
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Bob Lynn
COMMITTEE CALENDAR
SENATE BILL NO. 125
"An Act changing the name of the Alaska Aerospace Development
Corporation to Alaska Aerospace Corporation."
- MOVED SB 125 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 125
SHORT TITLE: AK AEROSPACE CORPORATION
SPONSOR(s): SENATOR(s) PASKVAN
02/27/09 (S) READ THE FIRST TIME - REFERRALS
02/27/09 (S) L&C
03/12/09 (S) L&C AT 1:30 PM BELTZ 211
03/12/09 (S) Moved SB 125 Out of Committee
03/12/09 (S) MINUTE(L&C)
03/13/09 (S) L&C RPT 5DP
03/13/09 (S) DP: PASKVAN, MEYER, THOMAS, DAVIS,
BUNDE
03/13/09 (S) FIN REFERRAL ADDED AFTER L&C
03/23/09 (S) FIN RPT 4DP 1NR
03/23/09 (S) DP: STEDMAN, HUGGINS, THOMAS, ELLIS
03/23/09 (S) NR: OLSON
03/23/09 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/23/09 (S) Moved SB 125 Out of Committee
03/23/09 (S) MINUTE(FIN)
03/27/09 (S) TRANSMITTED TO (H)
03/27/09 (S) VERSION: SB 125
03/30/09 (H) READ THE FIRST TIME - REFERRALS
03/30/09 (H) L&C, FIN
04/10/09 (H) L&C AT 3:15 PM BARNES 124
04/10/09 (H) Scheduled But Not Heard
04/11/09 (H) L&C AT 9:00 AM BARNES 124
WITNESS REGISTER
SENATOR JOE PASKVAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 125 as the prime sponsor of
the bill.
DALE NASH, Chief Executive Officer
Alaska Aerospace Development Corporation (AADC)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of SB 125.
ACTION NARRATIVE
9:17:39 AM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 9:17 a.m. Representatives Buch,
Holmes, Neuman, and Olson were present at the call to order.
Representatives Chenault and Coghill arrived as the meeting was
in progress.
SB 125-AK AEROSPACE CORPORATION
9:17:52 AM
CHAIR OLSON announced that the only order of business would be
SENATE BILL NO. 125, "An Act changing the name of the Alaska
Aerospace Development Corporation to Alaska Aerospace
Corporation."
SENATOR JOE PASKVAN, Alaska State Legislature, stated that the
Alaska Aerospace Development Corporation (AADC) was established
by the Alaska Legislature in 1991. The AADC was charged with
stimulating a high technology aerospace industry in the state.
The AADC in partial fulfillment of its charter built and
operates a Kodiak Launch Facility, the nation's first full
service commercial spaceport that is not co-located on a federal
reservation. This bill simply seeks to change the name of the
Alaska Aerospace Development Corporation to the Alaska Aerospace
Corporation. He explained that the word "development" in the
corporation's title gives the perception that the organization
is a nonprofit administrative body that simply encourages
aerospace development in Alaska, rather than an organization
that owns and operates space launch facilities that are fully
developed and capable of launching rockets.
SENATOR PASKVAN stated that according to Dale Nash, the Chief
Executive Officer of the AADC, the difference is significant.
This name change will assist the corporation in securing launch
and other aerospace related contracts that generate significant
economic benefits to Alaska by providing long-term, high-paying,
stable jobs by providing local economy diversity, and by
creating short-term benefits from projects and construction
activities.
SENATOR PASKVAN related that the AADC maintains and operates the
Kodiak Launch Facility which is designed to augment the nation's
ability to place satellites into orbit and support missile
defense testing, which has an impact in Interior Alaska and Fort
Greely through employment in the region.
9:20:16 AM
SENATOR PASKVAN indicated that the AADC contributed about $28.7
million to the state according to the independent firm, Northern
Economics, Inc. During fiscal year 2008, the AADC spent about
$17.8 million in Kodiak supporting about 100 local vendors and
generating about 155 jobs. Those jobs paid about $7.7 million
in wages and salaries on Kodiak Island and nearly 1,000 people
visited Kodiak to participate in activities at the launch
facility. He opined that the visits generated $365,000 for
hotels, restaurants, and retail services on the island.
SENATOR PASKVAN pointed out that the AADC was involved in a
project to increase cellular phone access on Kodiak Island. He
highlighted that the activities helped generate funding for road
improvements. He related that the Kodiak Launch Facility was
responsible for 11 percent of the total earnings in the Kodiak
Island Borough. Additionally, the AADC employed 20 staff in
Anchorage and paid wages, salaries, and fees to its Anchorage
employees totaling $1.7 million. He opined that the AADC
contributed $7.1 million to the Anchorage economy.
SENATOR PASKVAN emphasized that the launch site in Kodiak is
operational, functioning, and self supporting, such that no
Alaska General Fund appropriations are needed for operations and
maintenance of the site. He referred to the fiscal note for
$4,500 is for supplies such as letterhead, business cards, and
website design, but will be paid for from federal receipts and
not from GF dollars.
SENATOR PASKVAN related that the corporation's title needs to
reflect these facts and this name change will help the
organization meet its 21st century goals. The new title, Alaska
Aerospace Corporation, is unambiguous about their capabilities
and will improve their ability to offer launch services to the
national and international aerospace market. He urged support
of this legislation.
9:22:19 AM
REPRESENTATIVE NEUMAN inquired as to how having the name change
would assist the corporation in securing launches.
SENATOR PASKVAN answered that the confusion arises with the name
"development" since people assume that the organization is a
nonprofit development only organization. He explained that by
removing the name "development" will indicates that the
"corporation" is independently capable and are fully engaged in
the process.
REPRESENTATIVE NEUMAN inquired as to how this request for a name
change arose and if the AADC approached the industry.
9:24:05 AM
DALE NASH, Chief Executive Officer, Alaska Aerospace Development
Corporation (AADC) explained that the issue has been discussed
for years with the AADC board. He related he is very familiar
with the space shuttle programs in Florida, Virginia and New
Mexico and questions that have arisen with the function and
scope of the AADC. He stressed that the AADC repeatedly is
asked questions about its status, that organizations assume the
AADC is a nonprofit organization. Thus, the organizations
question the level of state funding for each launch. He
remarked that he could provide countless e-mails from space
advocacy groups with similar misconceptions about the AADC. He
opined the AADC is very different from other states that fund
facilities. He related most states do not have a corporation
that will provide funding for launches.
MR. NASH explained that the AADC can handle almost every aspect
of a launch from logistics, operations, which include such
functions as "stack the hardware, process the satellites, and
process the rocket motors." He related the AADC has the range
safety system to track and ensure rockets fly 1700 miles down
range. He highlighted that the AADC coordinates launches with
the Federal Aviation Administration, the U.S. Coast Guard and
other government agencies that need notification of any
launches. Additionally, he pointed out that the AADC
experiences problems with defense contract audit agencies.
Thus, the AADC must continually assert its status as a for
profit agency, not a nonprofit development agency. Instead, he
must assert that the AADC is an aerospace company. He
highlighted that the name change will assist the AADC during
many aspects of its work, including contract negotiations,
discussions, and introductions. This bill will clarify that the
AADC is not a nonprofit organization, he stated.
9:26:59 AM
REPRESENTATIVE CHENAULT related that he could understand the
quandary that the organization has had. He asked whether the
senator who represents the region in which the Kodiak Launch
Facility is located supports the name change.
SENATOR PASKVAN related that the senator who represents Kodiak
Island is thrilled to have the name of the corporation changed
and has asked him to carry the bill.
9:27:54 AM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on SB 125.
9:28:37 AM
REPRESENTATIVE NEUMAN moved to report SB 125 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, SB 125 was reported from the
House Labor and Commerce Standing Committee.
9:28:50 AM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
9:28 a.m.
| Document Name | Date/Time | Subjects |
|---|