HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT January 24, l995 9:04 a.m. MEMBERS PRESENT Representative Jerry Sanders, Chairman Representative Vic Kohring Representative Norman Rokeberg Representative Pete Kelly MEMBERS ABSENT Representative Carl E. Moses, Vice Chairman Representative Eileen MacLean Representative Ed Willis COMMITTEE CALENDAR Organizational Meeting WITNESS REGISTER None ACTION NARRATIVE TAPE 95-1, SIDE A Number 000 CHAIRMAN JERRY SANDERS called the House Special Committee on Economic Development to order at 9:04 a.m. He asked the secretary to do a roll call. Representatives Sanders, Kohring, Rokeberg and Kelly were present. Representatives Moses, MacLean and Willis were absent. He noted that Representative Moses was out of town, and Representative Willis was at a State Affairs Committee meeting. CHAIRMAN SANDERS stated the meeting is strictly an organizational meeting. He introduced Isabelle White, Committee Secretary and Noel Lowe, Committee Aide. He gave a brief overview of the rules and scheduling of meetings. Chairman Sanders explained Representative Rokeberg had a meeting at 9:00 a.m and Representative Willis also had a meeting at 8:00 a.m. He said if a quorum is needed, the representatives can be present for the purpose of a quorum and leave. He noted if the committee loses a quorum, action will be suspended. CHAIRMAN SANDERS explained that all votes taken during a meeting will be by roll call. He said when bills are scheduled, the sponsor will testify first, then members of the Administration, then he will ask for public testimony. He said the committee will be addressing economic development issues such as marketing, capital, labor, management, energy, transportation and resources or raw materials. Chairman Sanders continued to discuss the resource issue as it relates to scenic beauty, the Alaskan mystic, water. CHAIRMAN SANDERS referred to agriculture and said it seems to have come and gone, but when it came, there was only about two-thirds the amount of people. He suggested the committee might look at the issue of agriculture and dairy production. CHAIRMAN SANDERS discussed herding and said there seems to be a market for reindeer meat. He said he believes there are problems with slaughtering and if there was a better way to do it, there may be more cattle or herding business. CHAIRMAN SANDERS added another resource is the global positioning; where we are in relation to the Pacific Rim, Europe. He referred to past discussions about a northern passage going to Sweden and Denmark, through Alaska. CHAIRMAN SANDERS considered the University of Alaska as another resource because it's there and it should be used more to bring money into the state; bringing people from out of state, people that enjoy winter weather and sports, while doing their studies. CHAIRMAN SANDERS asked for any discussion on ideas, goals and interests on economic development. Number 216 REPRESENTATIVE PETE KELLY asked what the problem is with slaughtering reindeer. Number 222 CHAIRMAN SANDERS responded that there aren't any slaughter houses. He explained that the reindeer are scattered and you can't drive them to the slaughter house. A slaughter house that can fold down and put into a plane and flown from village to village has been discussed. He pointed out that safety is also an issue. He explained that in order to open a business, you need capital. Number 243 REPRESENTATIVE NORMAN ROKEBERG asked if there will be people from the Administration to give an overview on economic development for the new representatives. Number 250 CHAIRMAN SANDERS replied, "yes." He asked that if there is anyone in particular or a list of people they would like to call in, to let him know. He stated he intends to have the Department of Commerce and Economic Development, Department of Natural Resources and the Department of Transportation come before the committee. REPRESENTATIVE ROKEBERG commented that economic development in this state historically has been split between the more traditional urban-oriented type and the rural areas with separate agency responsibilities. He stated the committee might want to look at the way it's currently organized. CHAIRMAN SANDERS noted that the Department of Community and Regional Affairs handles the rural areas and the Department of Commerce and Economic Development handles the urban areas. He stated there is a movement to split the Department of Commerce and Economic Development and put Economic Development into Community and Regional Affairs. Commerce would be Labor and Commerce. REPRESENTATIVE ROKEBERG stated the committee may have to look into this. CHAIRMAN SANDERS said it would be a good issue to bring up. Number 325 REPRESENTATIVE KELLY explained that he is the budget subcommittee chairman for Community and Regional Affairs and asked for any ideas Chairman Sanders may have that would be helpful to him. Number 336 REPRESENTATIVE VIC KOHRING commented on job creation, long range plans for the future, development wise. He also asked that Commissioner Hensley attend the economic development meetings periodically. He gave an overview of the Arctic Winter Games which will be held in two years. REPRESENTATIVE KELLY asked if special committee bills are assigned straight from the House floor or from other committees. CHAIRMAN SANDERS explained that they come straight from the House floor. He indicated that the committee may also introduce bills. REPRESENTATIVE KOHRING said his district has a tremendous amount of potential as far as developing natural resources. He also mentioned that there is a problem with spruce infestation. CHAIRMAN SANDERS stated this has been a problem for years, and he hopes there will be a resolution in two years. REPRESENTATIVE KELLY asked Representative Kohring for information about land sales in the Mat-Su Valley. REPRESENTATIVE KOHRING stated he will have his staff do research on this matter. ADJOURNMENT There being no further business to come before the committee, Chairman Sanders adjourned the meeting at 9:25 a.m.