Legislature(2019 - 2020)BARNES 124
03/15/2019 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s):|| Commissioner, 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 | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 15, 2019
3:20 p.m.
MEMBERS PRESENT
Representative Gabrielle LeDoux, Co-Chair
Representative Adam Wool, Co-Chair
Representative Sara Hannan
Representative Louise Stutes
MEMBERS ABSENT
Representative Zack Fields
Representative Josh Revak
Representative Dave Talerico
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Commissioner, Department of Commerce, Community & Economic
Development
Julie Anderson - Anchorage
- CONFIRMATION(S) ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JULIE ANDERSON, Commissioner-Designee
Department of Commerce, Community, and Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during her
confirmation hearing.
FRED PARADY, Legislative Liaison
Department of Commerce, Community, and Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the confirmation
hearing for Julie Anderson.
SARA CHAMBERS, Division Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, & Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the confirmation
hearing of Julie Anderson.
VIKKI JO KENNEDY
Kodiak, Alaska
POSITION STATEMENT: Offered comments on the confirmation of
Julie Anderson.
ACTION NARRATIVE
3:20:14 PM
CO-CHAIR GABRIELLE LEDOUX called the House Labor and Commerce
Standing Committee meeting to order at 3:20 p.m.
Representatives Stutes, Hannan, Wool, and LeDoux were present at
the call to order.
^CONFIRMATION HEARING(S):
^Commissioner, Department of Commerce, Community, and Economic
Development
CONFIRMATION HEARING(S):
Commissioner Department of Commerce, Community, and Economic
Development,
3:20:46 PM
CO-CHAIR LEDOUX announced that the only order of business would
be a confirmation hearing for Julie Anderson, the governor's
appointment to commissioner of the Department of Commerce,
Community, and Economic Development (DCCED).
3:21:43 PM
JULIE ANDERSON, Commissioner-Designee, Department of Commerce,
Community, and Economic Development (DCCED), read from the
following prepared statement [original punctuation provided]:
Good morning! Madame Chairman and members of the
Committee, my name is Julie Anderson, Commissioner-
Designee for the Department of Commerce, Community and
Economic Development.
I want to thank the Committee for your time in
visiting with me individually and for this hearing
today. I also want to express my appreciation to
Governor Dunleavy for his confidence in choosing me
for this position.
Since we have met individually and spent time with
together, I will abbreviate my personal history and
put just a few details on the record:
? I am of Athabaskan descent on my father's side and
my mother's grandparents moved to in Eagle in 1898,
where she resides today.
I grew up all over the Interior, worked pipeline
construction out of high school, later went to college
? Beyond my life experiences, my education includes a
bachelor's in business from UAF and a master's from
the Thunderbird School of Global Management. I also
obtained Certification as an Economic Development
Professional.
? As to my career, in the mid-90's I worked to
implement the Community Development Quota (CDQ)
Program. I also worked for Alyeska Pipeline Service
Company managing a team of employees and contractors
to successfully deliver contractor management, HSE and
supply chain functions, facilities, aviation and
crisis management operations. Following my time there,
I worked for AEA on the Susitna-Watana hydro project.
Having worked both in DCRA and AEA, and worked with a
variety of economic development efforts, I have a good
working knowledge of the department, its divisions and
programs, with much more to learn.
I care deeply about the future of the state and look
forward to working with administration to create
economic opportunity for future generations. The
Governor has assembled an outstanding, diverse
cabinet, and I am honored to be a part of it.
Which brings me to my vision for our Department. To
create economic opportunity requires bringing fresh
ideas and new perspectives to both our role in
economic development and in administering the statutes
that the Legislature has given us to implement.
One of our top goals is to encourage new investment in
the state and grow our economy by repealing
unnecessary regulatory burdens, by not increasing
taxes, and by creating stability. We intend to
strengthen key industries while supporting the free
enterprise system, building a diverse economy through
business assistance, financing, promotion, and public
policy. At DCCED, we are working aggressively to break
out of government silos and make sure our employees
and divisions are pulling together for Alaskans.
We are looking at opportunities to modernize, use
existing data and work smarter. An example is an
effort underway to link the new Community Database
Online (CDO) in the Division of Community and Regional
Affairs with a whole host of other data on business
licensing, land ownership, resources and economic
development, to help provide region specific
information for those looking to invest in Alaska.
There is a presentation on the CDO in House Community
and Regional Affairs scheduled for Tuesday, March 26th
at 8:00 AM
We are also intensely focused on jobs and capital it
takes investment to generate jobs, and jobs are what
generate healthy people and healthy communities. We
are taking a deep look at what helps or hinders
investment that creates jobs, across everything we do.
We need to focus on Alaska's competitive advantages,
reduce barriers, and let industry know that Alaska is
open for business.
We've already met with dozens of local venture capital
experts, business owners and industry leaders to
explore ways in which the department can help foster
Alaska's growth. We are listening to suggestions and
seeking their valuable ideas to implement as quickly
as possible.
Additionally, our Department is committed to doing a
better job administering the statutes that the
Legislature has given us to implement, we've reviewed
thousands of pages of statutes and regulations with an
eye to reducing burdens on citizens and businesses
We realize that a healthy regulatory environment is
necessary for a strong economy. Regulation that is
reasonable, balanced and efficient is my solution. We
must strike the proper balance between economic
development and public safety and protection. We are
actively reviewing professional licensing requirements
and the best way to fulfill our duty to protect
Alaskans while trying to lighten requirements that are
barriers to growth.
We continue to work to find this kind of balance
across our programs and are critically looking at
licensing to see if any of them have outlived their
usefulness, and for ways to modernize, digitize and
streamline to make licensing easier to do here than
anywhere else.
We are at a point where it is imperative that we focus
on our core services at the same time we grow the
economy. I am excited to have the opportunity to help
improve how the government encourages business
development and delivers high quality services more
efficiently to Alaska's citizens and businesses.
As I said in my opening, my background includes
fifteen years with Alyeska Pipeline, running my own
business, time working on the Susitna-Watana Hydro
Project, and working to get the CDQ program in place
for communities in Western Alaska. I know what
Alaskans can do when they put their mind to it.
Let me close with this: we all share those visuals
the world's fascination with Alaska, our wild and
scenic brand, our unparalleled beauty, our extensive
coastline, our vast stores of natural resources, our
fish, our native cultures and corporations, and our
center in trans-pacific trade. Our airport is the
fourth busiest cargo hub in the world, our place as
America's entry in the arctic, our robust public and
private corporations, and our millions of acres of
land.
Visualize all that, and then our people, and ask
yourself what is holding us back. It is truly our
ability to visualize and build a better future, for
ourselves, our kids, and our grandkids. I believe
Alaskan are up to the challenge!
I am looking forward to helping in this effort to
provide efficient services to the residents and
businesses in the state and doing what we can to
improve our economy for future generations.
Thank you for your time today.
3:28:07 PM
CO-CHAIR WOOL thanked Commissioner Anderson for calling in and
asked if professions, in general, were over-licensed and if the
licensing trend had gone too far.
COMMISSIONER ANDERSON agreed, and explained that DCCED was
looking into improving licensing requirements and figuring out
ways to streamline different boards and commissions, adding that
the department was also developing a comprehensive professional
licensing reform bill that would streamline the process and make
it easier to get licenses, as well as looking at professions
that might not require licenses.
CO-CHAIR WOOL addressed the governor's statements on eliminating
both the Marijuana Control Board (MCB), Alcohol and Marijuana
Control Office, DCCED, and the Alcohol Beverage Control Board
(ABC Board), Alcohol and Marijuana Control Office, DCCED. He
asked if Commissioner Anderson was in support of this idea.
COMMISSIONER ANDERSON offered her belief that the intent was to
merge those boards into the Division of Corporations, Business
and Professional Licensing (the division), and have them operate
like other boards within the state. She noted that the boards
would still have participation while being administered more
efficiently through the division as opposed to a standalone
board.
CO-CHAIR WOOL surmised that the MCB and ABC Board would not be
eliminated, but their oversight would be like other boards under
the division.
COMMISSIONER ANDERSON affirmed that.
3:30:34 PM
CO-CHAIR LEDOUX asked which boards were currently within the
division.
COMMISSIONER ANDERSON shared that there are 21 different boards,
including the Board of Pharmacy, the Board of Nursing, the Big
Game Commercial Services Board, and others. She noted that the
list was quite diverse.
CO-CHAIR LEDOUX sought clarification as to how boards are
organized within DCCED.
COMMISSIONER ANDERSON offered her understanding that the MCB and
ABC Board were the only two boards within her department that
were outside the division.
3:31:51 PM
CO-CHAIR WOOL, in response to Commissioner Anderson, clarified
that both the MCB and ABC Board were within DCCED; however, they
have their own director and limited oversight from the
department.
CO-CHAIR LEDOUX asked if the MCB and ABC Board are the only
boards that have their own executive director.
COMMISSIONER ANDERSON reiterated that the MCB and ABC Board were
the only two boards within DCCED but outside the Division of
Corporations, Business and Professional Licensing.
3:32:50 PM
REPRESENTATIVE STUTES asked if DCCED were to absorb the MCB and
ABC Board, would the department assume enforcement of the
businesses as well.
COMMISSIONER ANDERSON acknowledged that if the MCB and ABC Board
were merged into the division they would be managed like the
other boards. She added that there would be an executive
assistant there to work with them, as well as support staff
which included enforcement officers.
3:33:50 PM
REPRESENTATIVE HANNAN inquired as to the "investigatory and, I
guess, judiciary-in-nature differences" between the alcohol and
marijuana boards and, for example, the Board of Pharmacy, where
"one looks exclusively at just the professional standards of
licensure and the other has a broader investigatory and
potentially judiciary penalty authority versus 'I just have the
authority to sanction.'" She asked if this was true.
COMMISSIONER ANDERSON deferred to Fred Parady.
3:35:24 PM
FRED PARADY, Legislative Liaison, Department of Commerce,
Community, and Economic Development (DCCED), explained that Sara
Chambers was the "subject matter expert" and would be calling in
momentarily to answer Representative Hannan's question.
3:35:56 PM
The committee took an at-ease from 3:36 p.m. to 3:38 p.m.
3:38:35 PM
CO-CHAIR LEDOUX asked if Representative Hannan would restate her
question.
REPRESENTATIVE HANNAN inquired as to the difference between how
the MCB or ABC Board functioned compared to the 21 other boards.
SARA CHAMBERS, Division Director, Division of Corporations,
Business and Professional Licensing, Department of Commerce,
Community & Economic Development (DCCED), offered her
understanding that if any of the boards were dissolved the
licensing functions would fall exclusively under DCCED, giving
the commissioner the ability to control the regulations "as
authorized under statute." She added that the commissioner
would essentially have the same level of governance that the
boards currently have. She concluded by pointing out that 22 of
the licensing programs that don't have boards function in that
way.
3:40:38 PM
MR. PARADY stated that the question was not whether the alcohol
and marijuana boards should be dissolved, it was how best to fit
them within the department's mission and whether they should be
moved into the Division of Corporations, Business and
Professional Licensing where there are 43 programs and 21
boards, with 6 of them having an executive director in their own
right. He noted that if they were merged into the division, the
regulatory function of the boards would be retained and there
would be more "direct accountability of them and for them."
3:42:00 PM
REPRESENTATIVE HANNAN asked Ms. Chambers to describe the 6
boards [with executive directors] that currently exist within
the division and how they function differently than the MCB.
MS. CHAMBERS explained that, currently, the 6 boards within the
division that have an executive administrator function the same
way as the remainder of the boards, but with additional
administrative assistance in order to function at a higher
policy level. She noted that the executive administrators have
no additional authority among the 6 boards, which is different
than the MCB because their executive director, who is also a
division director, Erika McConnell, has greater authority.
3:44:09 PM
REPRESENTATIVE STUTES questioned whether Erika McConnell would
be merged along with the MCB and ABC Board if the division were
to absorb them, or if her position would no longer be needed.
MS. CHAMBERS stated that the intent was to keep her position,
adding that she would report to the department's commissioner
instead of the two different boards.
REPRESENTATIVE STUTES inquired as to the benefit of merging the
ABC Board and MCB into the division.
MS. CHAMBERS opined that it would align the administration of
the MCB and ABC Board with the other boards within the division.
She added that it would also give them more insight into any
regulation changes they make. Currently, the division is
courtesy copied on any proposed changes, she said, but "it
doesn't come through the department." She pointed out that it
would also allow more consistent management and give the
department more control.
3:45:40 PM
MR. PARADY pointed out that the ideas being considered were part
of an ongoing discussion that would come before the legislature
in due time.
CO-CHAIR LEDOUX questioned the advantages of merging the
executive director into the department. She asked why fix
something that wasn't broken.
MR. PARADY explained that the marijuana initiative [Alaska
Marijuana Legalization, Ballot Measure 2 (2014)] added a second
board, the MCB, to the ABC Board. This made the director of the
ABC Board accountable for two boards instead of just one, which
has "become complicated in some ways." He added that he was
unsure what the solution was.
CO-CHAIR LEDOUX asked if adding the MCB to the ABC Board was a
decision made by the legislature. She wondered if it would make
sense to create an entirely new board for the MCB and let both
boards continue to function the same way they do now, instead of
merging them into the division.
MR. PARADY stated that it would be up to the legislature to make
that policy call.
3:48:18 PM
REPRESENTATIVE STUTES failed to see uniformity among boards as a
good reason to merge all of them together. She explained that
the ABC Board, for example, was more specified and had its own
section of statute. She added that, unless they were
downsizing, merging seemed like a moot point.
MR. PARADY countered that, from the department's perspective,
there are great similarities across the boards because each one
has sections of statute that apply to them. He further noted
that "as we look at any range of issues - board training, board
travel, board support - we have a home for that. So, it's
possible there are efficiencies."
3:49:54 PM
COMMISSIONER ANDERSON, in response to Representative Stutes,
remarked that the intent was not to merge them, but separately
include them within the division.
3:50:23 PM
CO-CHAIR WOOL applauded Commissioner Anderson's sentiments
regarding her intent to streamline processes and make it easier
to do business and less bureaucratic. He expressed hope that
her efforts would be successful while still being able to
"maintain law and order."
3:51:08 PM
REPRESENTATIVE HANNAN addressed agriculture in Alaska, pointing
out that it primarily consists of small businesses. She
expressed concern that the current structure of regulatory
oversight did not support business growth, particularly with the
Department of Environmental Conservation (DEC) regulating dairy
inspections and the Department of Natural Resources (DNR)
providing phytosanitary inspections for flowers and potato
seeds. She inquired as to how Commissioner Anderson's vision of
streamlining business development could help revive agriculture
in the state and generate more than a modicum of potential
growth for that sector of the economy.
COMMISSIONER ANDERSON acknowledged that she had given "quite a
bit" of thought to that and received a fair amount of input from
legislators and businesses. Her goal, she said, was to
"understand what the current state is, see where the barriers
are expanding our current agricultural efforts, and then where
are there new opportunities to bring in new industries - new
agricultural industries into the state." Alaska's "rich land"
also provided opportunity to use new technology to improve the
state's [crop] yield. Commissioner Anderson concluded by saying
that she would be working across departments with DEC and DNR to
help facilitate the industry.
CO-CHAIR LEDOUX opened public testimony.
3:54:03 PM
VIKKI JO KENNEDY, in reference to Commissioner Anderson's
resume, asked for clarification as to which Alyeska she worked
for. She stated that she was leery of economic development,
adding that there were "enough boards in this house to build a
lodge." She opined that "we need to get rid of some boards"
rather than creating more.
CO-CHAIR LEDOUX, in response to Ms. Kennedy, clarified that the
Alyeska referenced in Commissioner Anderson's resume is Alyeska
Pipeline Service Company.
CO-CHAIR LEDOUX closed public testimony.
3:56:36 PM
CO-CHAIR WOOL made a motion to advance the confirmation of Julie
Anderson, commissioner-designee to the Department of Commerce,
Community & Economic Development, to the joint session for
consideration. He reminded members that signing the reports
regarding appointments in no way reflects individual members'
approval or disapproval of the appointees, and that the
nominations are merely forwarded to the full legislature for
confirmation or rejection.
Co-CHAIR LEDOUX announced that Commissioner Anderson's name
would be forwarded to the joint session.
3:57:38 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
[3:57] p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Julie Anderson Resume.pdf |
HL&C 3/15/2019 3:15:00 PM |