EXECUTIVE SUMMARY LEGISLATIVE ECONOMIC DEVELOPMENT TASK FORCE March 13, 1993 This executive summary contains recommendations to the Legislature on improving Alaska's business climate presented by the Alaskan business community to the Senate and House Economic Task Force during a public hearing held on March 13 and through written testimony. Ninety-four people testified during the hearing and many people submitted written testimony. Their names are listed in Appendix 1 of this document. This summary lists the specific recommendations made which relate directly to the Alaska State Legislature. A summary of the testimony of each speaker and copies of written testimony along with the tapes of the hearing are on file in the offices of the Economic Task Force chairs Senator Tim Kelly and Representative Eileen Panigeo MacLean. The summary is organized into the industry sectors which were published in the agenda of the public hearing. The Economic Task Force will identify priority issues for passage during this year of the legislative session and will continue with other issues during the interim. The Economic Task Force will hold additional hearings and continue to welcome written testimony to receive Alaskans' ideas on how to improve our economy. SMALL BUSINESS 1. Establish a small, focused task force to review areas where the private sector and the public sector are in competition. Privatize those services which can be done by small business. Examine competitive advantages of nonprofits acting in the private sector. 2. Establish a task force to conduct a complete review of existing regulations to eliminate redundancy and ineffective policy. 3. Encourage the Legislature to explore solutions to the high cost of health care insurance for employees in small businesses. 4. Support legislation to convert the Alaska Bidders Preference Program from a pre-bid to a bonus program to encourage the use of Alaska manufactured products and labor. 5. Pass HB 14 Business and Industrial Development Corporation (BIDCO) capitalization to encourage the availability of capital for small businesses. 6. Pass HB 147/SB 122 to allow employers to disclose more complete information regarding an employee's job performance without fear of liability. 7. Protect rural housing from overregulation and maintain flexibility in the rural housing guidelines in Alaska Housing Finance Corporation (AHFC) to take advantage of innovative technologies. 8. Support SB 112 to update uniform commercial codes to meet present business needs. 9. Pass SB 154/HB 220 to create an economic development matching grant program. 10. Continue support for programs such as the UA Small Business Development Center which helps small businesses with start-up, planning and growth. OIL AND GAS 1. Take steps to achieve sure and certain fees and tax stability. 2. Establish a standardized formula for computing taxation and royalty valuation. 3. Amend Title 38 to promote development through an orderly, aggressive and reliable leasing program. 4. Support exploration incentives through passage of HB 200 and SB 151. 5. Streamline permitting process and regulatory process. 6. Promote oil industry growth by exploring new and innovative approaches to oil and gas leasing and development. FISHERIES 1. Pass legislation to create a specialty marketing fund within the Alaska Seafood Marketing Institute (ASMI) based on 1% of the gross value stated on fish tickets. Change the composition of ASMI's board to include fishermen representatives. Give fisher representatives control over how funds are spent. 2. Pass legislation allowing the Division of Investments in the Department of Commerce and Economic Development to refinance existing vessel and permit loans to reflect lower interest rates currently available. 3. Maintain adequate funding in Fish and Game budget to provide for proper management of marine resources. 4. Implement a landing tax on seafood products processed at sea to equalize operating expenses for processors operating in Alaskan waters. 5. Pass legislation on air quality and other regulatory issues that does not unnecessarily burden the industry with paperwork and unreasonable regulations. 6. Send message to the federal government that there is opposition to the implementation of federal Individual Fishing Quota (IFQ) program. There is equally strong testimony supporting the IFQ plan and the decision-making process of the North Pacific Fisheries Management Council (NPFMC). 7. Pass HB 123/SB 132 making IFQ's eligible for loans under the state's Commercial Fishing Loan Fund. 8. Create an endowment of $50 million to generate funds for the development of new fisheries products and processes. After 10 years, return the endowment to the general fund. RURAL DEVELOPMENT 1. Support legislation to create an economic development grant program to fund rural/urban economic development projects providing short and long term jobs and local control without state ownership. 2. Pass SB 142/HB 198 to increase financial support to the ARDOR program. 3. Consolidate all state economic development programs within the Department of Commerce and Economic Development. 4. Maintain and expand the Small Business Development Center program to better serve rural Alaska. 5. Establish state small business loan program for rural business start ups and working capital. 6. Recapitalize and refine the Rural Development Investment Fund loan program for developed small businesses. 7. Create Rural Tourism Council to maximize tourism benefits and opportunities to Alaskan interests. 8. Increase financial support of regional rural tourism development efforts. 9. Revise Title 38 to streamline the regulatory process to develop state natural resources. 10. Encourage the provision of reliable, steady, affordable sources of power to rural Alaska. 11. Pass SB 124 restructuring Alaska Energy Authority. 12. Support legislation studying potential right-of-way from Fairbanks to Seward Peninsula. 13. Provide funds to maintain and improve highway and road system quality for tourism and resource development. 14. Support adequate funding for rural water and sewer systems. 15. Support legislation allowing natural game farming including moose and musk ox. 16. Reinstate state grazing ranges as "open" ranges. FOREST RESOURCES 1. Provide adequate funding to the Department of Natural Resources to meet its constitutional mandate (Title 8) for sustained yield and multiple use of natural resources. 2. Take legislative action to assure timber supply for the industry through a designated land base. 3. Modify Title 38 to streamline the timber disposal process on state land. 4. Retain two-year review process as a step toward implementation of a timber disposal sale decision. 5. Support management of state forests to increase forest health through action against the spruce bark beetle mortality, and through management to increase the carrying capacity of moose in hardwood areas. 6. Fund the Department of Natural Resources or the Department of Commerce and Economic Development to do adequate forest inventory to obtain growth and yield data for lands classed as "forest." 7. Support funding for the Alaska Regeneration Center to maintain Alaskan genetic diversity, conduct research, and supply seedlings to reestablish Alaskan forests after fires and insect infestation. 8. Restructure the cost analysis of timber sales to properly attribute line items for fire suppression, public access road maintenance, personal firewood considerations, wildlife habitat maintenance and improvement, reforestation, and litigation and delay. 9. Enact legislation to implement long-term forest management agreements as a principal vehicle for timber disposal on state land. 10. Design a mechanism to return current stumpage fees from large state timber sales into a special fund for small sales, rather than return fees directly into the General Fund. 11. Encourage small, value-added business in the wood products industry through a strong primary industry. MINERALS / COAL 1. Direct the regulatory agencies to design and implement air and water quality standards which are based on science and reasonable/logical risk assessment rather than emotion. 2. Evaluate and streamline provisions in Title 38 so that land planning statutes and regulations do not work against the responsible development of the state's mineral and coal resources. 3. Enact the Alaska Coal Policy to signal the industry and international markets of Alaska's intent to develop a competitive, world-class coal industry. 4. Amend the current Alaska Mental Health Land Trust Settlement Act through adoption of SB 67 to clear legal challenges and costly delays of Chapter 66. 5. Change the administrative mineral closure laws to accomplish their intended use. 6. Fund the Alaska Minerals Assessment Program. 7. Analyze and redesign the state's rental and royalty programs to retain active mineral and coal exploration on state lands. 8. Work with Alaska's Congressional Delegation in efforts to retain the Federal Mining Law of 1872 and support hard rock and placer mining on Alaska's federal land. 9. Fund Department of Law to assert RS 2477 rights-of-way and secure access for the development of areas currently off the Alaska road system. 10. Support a waiver of the Jones Act for Alaskan coal shipments to Hawaii and the west coast of the "Lower 48." 11. Continue to fund the Alaska Minerals Commission and take advantage of the research and recommendations made in their annual report to the Legislature. 12. Amend Alaska Civil Code Rule 82 to include language making it more costly for plaintiffs to bring weak claims which often delay, or up the cost, of economic development projects. TOURISM / TRANSPORTATION 1. Increase highway marketing funds for Division of Tourism to help promote Alaska to the "rubber tire" travelers. 2. Evaluate AVA and ATMC plans to increase highway traffic. 3. Enact SB 154/SB 220 establishing a mechanism to ensure capital for infrastructure development, particularly as it relates to transportation. 4. Develop and promote rural tourism. 5. Review existing statutes to ensure state regulations are not hampering the state's ability to attract private business. 6. Amend Title 38 to help facilitate private capital investment on infrastructure on state lands. 7. Pass SB 85/HB 115 extending the Alaska Tourism Marketing Council. 8. Work with the tourism industry to establish a long-term funding source for the industry. 9. Increase rest areas along the highway system. 10. Reduce state subsidies to parks, pass legislation to raise park fees. 11. Eliminate annual camping passes for nonresidents. 12. Provide additional tourism related signs on our roads and highway system. 13. Request the board composition of the Alaska Visitors Association (AVA) include a representative from the hunters' association. 14. Pass HJR 10/SJR 18 to establish a dedicated transportation fund. 15. Look at the options for using ISTEA funding for construction of pioneer access roads and for the Scenic Travel Enhancement program. SUMMARY OF COMMISSIONERS' RECOMMENDATIONS 1. Capitalize and leverage Alaska's resources in order to generate an income stream for the state. 2. Require managers of the state's major accounts to establish offices and jobs in Alaska as a condition of their contracts. 3. Return some of the revenue generated by resource development on state land into an account to encourage additional resource development. 4. The IFQ proposal has a split constituency, but there are major benefits in year-round supply of fish and solutions to safety and by-catch/waste issues. 5. Shellfish mariculture projects should be given access to the Agricultural Revolving Loan Fund. 6. Promotional efforts in tourism should focus on the maximum benefits to Alaskan businesses rather than just generating the greatest number of tourists. Advertising cannot be detrimental to other industries. 7. Incentives to value-added business should be analyzed in the context of tax and employment generators, rather than gifts to industry. 8. Native Only guiding of marine mammal hunts should be explored as a rural economic development project. 9. Governor's plan to restructure Alaska Energy Authority addresses major energy needs, especially faced by rural business. 10. Quality of life improvements in parts of Alaska can be justified if maintenance and operations skills are there to protect the state's investment. 11. The federal government must recognize that Alaska must be allowed to manage its resources in order to grow to full maturity. SMALL BUSINESS Jamie Parsons * Alaska State Chamber of Commerce Juneau . . . This one, singular, unprecedented initiative by the Legislature sent shockwaves through the private sector. You asked us to identify barriers hindering business, what needed to be done to correct the situation, and what the Legislature could do to spur economic development. Simply by this action, the Legislature was setting a different tone and a new message that, at last, this state was going to become pro-business with a business-friendly attitude. THANK YOU. 1. Establish a small, focused task force to review areas where the private businesses are in competition with the public sector. 2. Recommend a business task force to conduct a complete review of existing regulations to eliminate redundancy and ineffective policy. Take legislative action to streamline the regulatory/permitting process to establish a user-friendly environment for new business applicants. 3. Support Senate and House JR 11 which would place on the '94 ballot the opportunity for the Legislature to take action against state agencies which promulgate regulations which do not properly implement the tenor of the laws passed by the Legislature. 4. Support the passage of HB 147 and SB 122 to allow employers to disclose more complete information regarding an employee's job performance without fear of legal liability. 5. Encourage the Legislature to explore solutions to the high cost of health care insurance for employees in small businesses. 6. Suggests that this Task Force conduct a series of hearings across the state during the interim in order to gain a true insight into the challenges of small business operating ion the state. Senator Tim Kelly Chairman, Senate Economic Task Force Before Commissioner Fuhs begins his testimony, I would like to thank the Commissioner, Wendy Mulder, and Chris Gates for their assistance in putting this conference together. Thank you, Commissioner. Paul Fuhs, Commissioner Department of Commerce and Economic Development Urge the Task Force to support passage of HB 14 to capitalize the BIDCO's in order to assist small business in acquiring capital and in obtaining hands-on management assistance. This program would help keep IFQ's in the local communities, assist rural tourism projects, and other projects which have a difficult time obtaining traditional sources of capital. Peter Crandall Alaska Bankers Association Anchorage 1. Protect rural housing from overregulation. Look at any proposed regulations to determine if they are necessary. Maintain flexibility in rural housing program guidelines in AHFC. 2. Direct AHFC to consider new technology to solve rural water system problems and make provisions for site-specific options and ability to resale properties. 3. Urge support for SB 112 and SB 86 to update uniform commercial codes to meet present business needs. 4. Urge support for HB 180 which provides flexibility for rural housing inspections. 5. Urge SB 122 and HB 147 which allow employers to disclose more complete information regarding an employee's job performance without fear of legal liability. 6. Overall guidelines . . . reduce spending, balance budgets, stable tax base, and a level playing field for Alaskan businesses to build a strong economy. Carol Heyman * Anchorage Chamber of Commerce 1. Promote the "Buy Alaska" program in all sectors of Alaska business and government. 2. Continue support for programs such as the UA Small Business Development Center which helps small businesses with start-up, planning and growth. Don Kubley Sunbelt Water 1. Urge support for the funding of the Department of Natural Resources and the Division of Water as his company moves ahead to fill the demand for water in California, Nevada, and Mexico markets. Supports the use of water export fees and recognizes this new source of revenue for the state. 2. Urge the support for SB 154 to create an economic development matching grant program. George McCorkle * City of Kodiak Support for SB 154. Jim Stimple Nome Chamber of Commerce Urge support and encouragement for the rural mining interests. Regulations need to take into account that they can make an operation sub-economic. Dave Choquette Anchorage 1. Support legislation which will convert the Alaska Bidders Preference Program from a pre-bid to a bonus program to encourage the use of Alaska manufactured products and labor. 2. Support the procurement bill (HB 228) recently introduced by the House Economic Task Force. Rupe Andrews * Juneau Support "Elder Business" through encouraging the continued residence of senior citizens in Alaska. Paul Seaton * Homer Oppose the IFQ's. Urges the state to prevent the use of state funds and personnel to implement, administer, and enforce IFQ's. Hank Irelan * Nome 1.Initiate a capital grant program for small eco-outfitter type businesses in order to increase visitor staying time in local areas. 2. Assist nonprofits through a grant program to put on events which attract tourists over longer time periods, for example, the Iditarod. 3. Encourage remote-site education to make business training and licenses more available in order to keep money from leaving local areas with skilled, nonresident work force. Fred Brown Fairbanks Urge support for HB 14, the BIDCO legislation, to encourage the availability of capital for start-up businesses Russell Heath * Juneau 1. Subsidize innovation. Encourage the "noncore" economy which is generally more innovative than more established businesses. Utilize the Alaska Science and Technology Foundation process. 2. Have bureaucrats identify the problems and then remove them from the solution design process. Use design competitions to let the private sector and the public come up with a solution. Velma Ellyson * Non-Profit Business Homer Encourage support for capital matching grant programs for municipalities, nonprofit corporations and unincorporated communities. Lloyd Schade * Homer Reduce funding to Departments of Law, Environmental Conservation, and Fish and Game, Habitat Division. Get their attention. University of Alaska Small Business Development Center * 1. Review the recently completed recommendations of the Governor's Task Force on Regulatory Reform and implement those recommendations which help small business. 2. Consider legislation which would prohibit public agencies from competing with small business. 3. Consider incentive programs which encourage business expansion such as funds for employee training programs. 4. Continue funding business assistance programs which produce measurable results. 5. Continue funding for "buyer/seller match-up" services which electronically network buyers and sellers in Alaska. 6. Consider legislation to make state procurement requirements under $25,000 available on a centralized database accessible by modem for use by in-state businesses. Procurement Technical Assistance Center Department of Defense * Anchorage - Fairbanks - Juneau 1. The Legislature should consider the establishment of a bonding guarantee program for small business. 2. The state should provide special funding, tax incentives, favorable land/lease for manufacturing companies to relocate or establish operations in Alaska. 3. The state should continue government contracting assistance programs for small business. Jackie Stewart * The Great Alaska Catalogue Juneau 1. Establish a private/public commission to review and evaluate commercial enterprises and services operated by state government. 2. Privatize income-producing enterprises such as utilities and corrections. 3. Stop government contracts with nonprofits where the service could be provided by a for-profit business. 4. Stop direct government services which could be provided by private, for-profit businesses. Neil Flatau * AlasCan Fairbanks Examine existing regulations in housing (AHFC), sanitation technology, and municipalities to take advantage of innovative, low- cost systems which can solve problems and create demand for small business products which can be manufactured in Alaska. OIL AND GAS William Hopkins Executive Director Alaska Oil and Gas Association Anchorage 1. Adopt a consistent valuation mechanism to enable the taxpayer to predict, with certainty, what the cost of government regulation and taxation is going to be. 2. Reduce state spending to help bridge the fiscal gap. 3. Management of the 470 Emergency Spill Response Fund for the purposes it was intended. 4. Amend Title 38 to promote development through an orderly, aggressive and reliable leasing program. 5. Encourage early exploration and development of state lands. 6. Lobby for Alaska National Wildlife Refuge (ANWR) exploration. State investment may be required. 7. Streamline the permitting and regulatory process through total project permitting in a single agency with a certain time frame. Allow for permits to be extended with automatic renewals if performance criteria are met. 8. Promote oil industry growth through expansion of Alaska's existing incentive credit program and through extension of incentive credits for exploration activities on federal and private land in Alaska. 9. Accelerate the land acquisition process though a supplement to the traditional five year lease schedule. Carl Marrs Cook Inlet Region Inc. Anchorage 1. Stabilize the taxation and royalty valuation through a single mechanism to be used by both the Department of Natural Resources and Department of Revenue. 2. Provide exploration incentives through passage of HB 200 and SB 151 this legislative session. 3. Support extending exploration credits on all lands in Alaska. 4. Explore new and innovative approaches to oil and gas leasing and development through cross-assignment of interests between the state and Native landowners. 5. Enact legislation dealing with large block exploration. Governor Walter J. Hickel (impromptu remarks) Thank you for bringing this Economic Summit together. I think making it statewide has a lot of educational value. It's time that we, as a state, allow people a chance to have input on what economic development could be. There's more to government than spending money or trying to save money. We have to enhance revenue. We have to promote economic development and be advocates of production. That doesn't mean we can't be advocates and protectors of the environment. We know how to do this. Again, thank you for bringing this into the public process and getting all the ideas you can. When you think of jobs and how far we've come, you think of oil and gas. But, today when you think of the possibilities we have, don't forget value-added. This is really important in the fishing industry, in the timber industry, in all industries. It's so easy for a young country like Alaska to be exploited from the standpoint of just taking the raw materials out. And, so I think what we've done collectively, with your help, (the CDQs are an example) is what creates jobs and gives hope to the people out there. Keep in mind that somewhere down the road, or somewhere in another destination, they do the value-added work. With our abundant amount of cheap energy, value-added makes a lot of economic sense., When you're looking at these issues today, keep these things in mind. Again, I applaud your efforts and stand willing to assist you any way I can. Joe Sonneman Juneau 1. Deemphasis on the extraction and production of raw natural resources. 2. Increased emphasis on the production of finished goods. 3. Increase severance tax on the extractive natural resource industries. 4. Extend tax credits or exemption to value-added industries. FISHERIES Jerry McCune * President United Fishermen of Alaska Juneau 1. Pass legislation allowing the Department of Commerce and Economic Development, Division of Investments to refinance existing permit and vessel loans to reflect lower rates currently available. 2. Fund Department of Fish and Game programs to assure the maximum sustained yield of all fisheries. 3. Continue Americanization of fishery through assistance to small processors and cold storage companies. 4. Take steps to increase year-round domestic market sales and decrease dependence on foreign markets. Richard Lauber * Pacific Seafood Processors Assn. Juneau 1. Please do the industry no harm. 2. Direct Alaska's bureaucrats to administer the Clean Air Act and the Clean Water Act in a manner that is not unjustly harsh, arbitrary and unreasonable. 3. Do not allow overregulation, and its accompanying paperwork, to create a negative business climate challenged by unnecessary government intervention. Joe Bluhmam * Executive Director American Factory Trawler Assn. Seattle 1. Streamline the process required to enter the salmon and herring processing industry in state waters. 2. Modify state regulations designed for on-shore processors to meet the challenges of the modern or unique operational characteristics of on-shore processors. Chris Mitchell * Alaska Fisheries Development Foundation Anchorage Create a Commercial Fisheries Development Endowment of $50 million from the recent oil royalty settlements. The interest from this fund would be allocated by the Legislature each year to undertake comprehensive, sustained, collaborative, focused, vertically integrated, market directed, industry designed and managed fishery programs. Andy Golia Dillingham 1. Pass legislation assessing fishermen 1% gross value stated on fish tickets to fund marketing programs for salmon and herring, including bringing domestic U.S. buyers to Alaska (Bristol Bay), and encourage research into value-added products which can utilize salmon. 2. Establish a separate fund within ASMI to allow the local (Bristol Bay) fishermen to determine how the marketing dollars will be spent. Nancy Lande President SouthCentral Alaska Longline Enterprise Seward Strongly opposed to the IFQ proposal. Evaluate the impact to small businesses represented by the fishermen who will be out of the fishery. Mike O'Callaghan Anchorage 1. Pass legislation to require all boats to keep all catch and not dispose of "legal nontargeted species." Utilize part of the 15 million pounds of disposed fish to feed Alaskans. 2. Impose a 2% flat tax on the industry to benefit the owners of the "common property resource," i.e. the people of Alaska. Hank Irelan * Nome Supports the super exclusive fishing zone in Norton Sound. Harvey Samuelson Dillingham Make additional vocational and technical training available to Western Alaska. Wayne Carpenter, Executive Director Seward Chamber of Commerce Requests a stay of implementation on the IFQ plan. The IFQ plan will eliminate many small fishermen from the industry. Social and economic impact studies must be done. Gerry Murray Seldovia Opposes the implementation of the IFQ plan in the halibut and sablefish fishery. Please take action to make the Governor aware that there is opposition to the plan, as it must be stopped to retain flexibility in fishery management and to protect the small boat fishery which employs 10's of 1000's of Alaskans in coastal Alaska. Paul Seaton * Homer 1. Opposes IFQ's in the halibut and sablefish fisheries. 2. Requests that the state prevent the use of state funds or personnel to implement, administer and enforce this program. 3. Encourages the Legislature to investigate the constitutionality of this plan. Brent Johnson * Soldotna 1. Maintain funding levels for the Department of Fish and Game. 2. Continue funding for the Crooked Creek Hatchery until the Cook Inlet Aquaculture Association can afford to take it over. Linda Blake * Sitka 1. Opposes IFQ's. 2. Let the Secretary of Commerce know it is not uniformly supported and tell the fishermen what the results will be if the plan is implemented. John Sevier * Kodiak Supports the concept of a Commercial Fisheries Development Endowment. Charles McKee * Anchorage Fisheries enforcement personnel (Troopers) are underpaid. Jessie Nelson * Homer 1. Fully supports the IFQ plan. 2. Maintains that the IFQ's will bring sanity into the halibut derby. In addition, it will increase demand for Alaskan product as halibut will be available year-round, the fish will be better cared for, and the fishermen will be able to crew for a longer period of time for a number of skippers rather than do it all in two days. 3. Feels it is important to support the NPFMC, now that it has examined the plan and given approval. Kris Norosz * Petersburg Vessel Owners Association Supports the IFQ plan as a good management system which will benefit the resource, the State of Alaska, resident commercial fishers, and Alaska's coastal communities. Ron Philemonoff * TDX Corporation St. Paul 1. Supports the enactment of a package combining Governor Hickel's capital projects grant program (HB 124 and SB 88), with the concepts contained in the recent proposal to establish an economic development grant program (SB 154), which will aid rural Alaska's ability to achieve additional success. 2. Urges the Legislature to sufficiently fund the matching grant program to ensure meaningful level of support for needed projects. Drew Scalzi * Homer Supports the expansion of the state's fishery loan program to encompass IFQ's (HB 123). Frank Kelty and Mark Earnest * City of Unalaska Supports the creation of a shared landing fee for fish processed at sea and landed or transferred within state waters consistent with existing state raw fish tax programs. RURAL DEVELOPMENT Julie Kitka * Alaska Federation of Natives Anchorage 1. Make the economic development and diversification of rural Alaska a top priority of state government. 2. Empower a new or existing unit of state government to plan and implement rural economic development projects and support services. 3. Use community development model (village identifies its own economic barriers and options) for rural development projects. 4. For each village include public school career training and counseling to prepare Native children for post secondary education and for adult employment opportunities. 5. Create hands on technical assistance program for existing and potential rural entrepreneurs covering all aspects of business, using private sector expertise and funded public/private partnership. 6. Increase the Exploration Incentive Credit (EIC) covering certain exploration activities on private lands in HB 200/SB 151 to a 50% tax credit. 7. Increase efforts to explore alternative sources of energy for local/regional projects in rural Alaska. 8. Create Rural Tourism Council to maximize tourism benefits and opportunities to Alaskan interests. Carl Berger, Director * Co-Chair ARDOR Association Lower Kuskokwim Economic Development Council Bethel 1. Improve the abilities of Community Development Quota (CDQ) groups to implement on-shore development plans. 2. Establish and fund regionally based revolving loan funds administered by existing local organizations with support from local financial institutions. 3. Coordinate economic development with existing organizations; establishing new organizations causes confusion. 4. Establish state loans with low interest and adequate terms for small business, especially during the first two years of operation. 5. Allocate state funds regionally, based on need. ARDOR organizations should be used to identify, evaluate, and recommend viable projects. 6. Develop marketing materials on specific industries such as tourism and provide assistance in marketing techniques. 7. Promote cottage-type industries in rural Alaska. Marideth Sandler, Executive Director * Co-chair ARDOR Association Southwest Alaska Municipal Conference Anchorage 1. Consolidate all state economic development programs within the Department of Commerce and Economic Development. 2. Increase financial support to the ARDOR program by supporting HB 198/SB 142. 3. Support SB 154 which establishes the economic development fund for economic development projects. 4. Provide adequate funding for management and development of existing, developed resources such as commercial fisheries. 5. Support Small Business Development Center; one-on-one counseling works best. 6. Establish a state loan program to provide seed money and working capital for start-up rural value-added seafood and other small businesses. 7. Increase the capitalization of the Rural Development Investment Fund loan program for developed small businesses. 8. Increase financial support of regional rural tourism development efforts. 9. Simplify the Department of Environmental Conservation regulations covering small seafood processors and reduce the bonding requirements. 10. Revise Title 38 to streamline the regulatory process to develop state natural resources. 11. Encourage banks to support rural economic development by: changing credit card merchant policies to support catalog sales via modem; making financial services available in smaller hub communities; helping rural banking branches overcome perception that rural applicants for financing are high risk. 12. Improve coordination between state agencies and banks to utilize same loan application form if feasible. Bart Watson * Musk Ox Development Corporation Juneau 1. Establish state small business loan program. 2. Establish a health insurance pool for small businesses. 3. Correct competitive disadvantages of poor economics of scale for small businesses via legislation; for example: tort reform. 4. Require, instead of allow boroughs to exempt nonprofit organizations from real estate and other taxes. 5. Revise state agricultural policy to allow farming of northern species such as musk ox. Ben Barrera National Bank of Alaska 1. Support the Small Business Development Center Program; it is necessary in both rural and urban Alaska. 2. Support Alaska Regional Development Organizations Program. 3. Refine and refund RDIF loan fund. 4. Encourage Division of Tourism to work with rural Alaska on tourism benefits. Bill Noll, President Major International Anchorage For economic development to occur, a reliable, steady, affordable source of power must be available to Alaska. Bill Simmons Tok 1. Support HB 182 studying potential right of way from Fairbanks to Seward Peninsula but prefer highway over railroad as mode of transportation. 2. Tourism industry in region would benefit more from highway. Jim Stimpfle Nome 1. Favor railroad to Nome over road. 2. Rural development depends upon an energy and transportation corridor. 3. Affordable power to rural areas will bring economic development of Native village and regional corporations resources and still maintain subsistence life style. Kris Geldaker Southeast Stevedoring Ketchikan Support SB 154 to create economic development grant program to fund rural/urban economic development projects providing short and long-term jobs, and local control without state ownership. Don Clothier, Member Soil and Water Conservation Service Advisory Board Ketchikan 1. Support development of U.S. Soil Conservation Service's Resource Development and Conservation Districts (RC & D) network in Alaska. 2. Support the BIDCO Act as a worthy approach to assist business start-ups. Roger Lewis Juneau 1. A myriad of Alaska products have been functionally developed but are not yet commercial. 2. Commercial development of rural/Native products will create small manufacturing jobs in Alaska. 3. Establish a product development corporation in the Department of Community and Regional Affairs. Robert Logan UAF Economics Dept. Fairbanks 1. Property ownership in Alaska is "outlawed"; only 1.1% of the state land has been transferred to private ownership. 2. Economic development can't occur without private property ownership. Mark Mullens Anchorage 1. State should support natural game farming. 2. State should be a supporter of the entrepreneur, not a detractor. Bonnie Jenkins Tok Need funds to improve highway and road system quality for tourism and resource development. David Marshall Juneau 1. Unemployment rate in the rural Alaska villages is as high now as 1979 because government does not know how to create long term jobs and rural labor force has grown. 2. Need to evaluate which village job creating projects in the public and private sectors in villages have succeeded or failed and why; ask these questions of the Rural Economic Development Initiative Program. 3. Need to evaluate rural development planning programs: Alaska Regional Development Organizations (ARDOR) Program and the Alaska Rural Development Council. 4. There is too little funding remaining for rural recipients after high administration costs are removed for public sector rural development programs. Dale Judge Tok 1. State must adequately fund road maintenance for tourism. 2. State promotes tourism but once visitors arrive there are no places to dump garbage and no waysides 3. Better coordination between the Departments of Transportation and Public Facilities and Natural Resources is needed regarding roadside maintenance. Bob Keller Fairbanks 1. Lack of water and sewer is a problem for village tourism. 2. Need technical assistance, especially in marketing for rural economic development. Don Schindler The Arctic Development Council, Inc. Barrow 1. Promote legislation regarding the formation of SBIC's to make loans to start up and expanding small business. 2. Provide other capital for: rural start-ups, recapitalize the Rural Development Initiative Fund, technical assistance and business plan preparation, development of a regional tourism and art marketing council on the North Slope. 3. Explore the potential for tax incentives for businesses exploring and development of natural resources that employ residents of the North Slope Borough. Larry Merculieff, City Manager City of St. Paul Co-Chair, Safewater for All Alaskans Coalition 1. Inadequate facilities and program for rural water and sewer is the State's number one environmental health problem. 2. Support SB 154 since more public infrastructure is needed in rural Alaska to attract private capital for resource development. Roy Henry Nome 1. The state and federal governments must recognize the need for Alaska Natives to be given priority to harvest Alaska's traditionally hunted fish and game for subsistence as well as to use to inherent resources such as ivory, baleen, furs, and other animal parts to supplement their income. 2. Main barriers to trade: are cost of delivering goods to rural Alaska and that Native handicrafters may not be willing or able to deliver traders exactly what they want in quantity and quality. Neil Flatau AlasCan Fairbanks 1. Inadequate sanitation in rural Alaska is a major roadblock to rural development. 2. Must be willing to try unconventional but not experimental methods to overcome challenges in rural Alaska. Senator Frank Murkowski * (written testimony) Washington, D.C. Poverty, sub-standard living conditions, and inadequate water and sanitation facilities hinder rural economic growth. John Netzel Valdez 1. Allow 4th class cities of less than 25 people with limited powers. 2. Recognize a family as a business without the sole proprietorship/employee regulations. 3. Stop all incentives/credits for oil and gas and timber and use the revenue for other needed costs. Rose Fosdick Nome 1. The state should continue to issue reindeer herding permits to use state land on the Seward Peninsula. 2. Reinstate state grazing ranges as "open" ranges. 3. Continue to support the rural economy by providing funding to reindeer projects. FOREST RESOURCES Bob Loiselle * Alaska Forest Association Juneau 1. Allow state to manage land for timber. "Below cost" sales will not continue with current high market price. 2. Examine regulations of forest industry to see if they are necessary for proper forest management. Avoid those which do not achieve their intended protection of other resources and instead make Alaska forest products noncompetitive in the market. Jim Kohler * Southeast Conference Juneau 1. Encourage small value-added business by having a strong, primary processing base. 2. Take legislative actions to assure a wood supply for the industry through a designated land base. Mike Barton * U.S. Forest Service Juneau 1. Take actions to reduce transportation infrastructure costs. 2. Increase options for obtaining capital to fund timber harvest and reforestation operations. Bankers need indications of dependable timber supply when considering loan applications. 3. Supports HB 536, Business Development Corporations. 4. Explore a timber marketing cooperative similar to Alaska Seafood Marketing Institute (ASMI) and Alaska Tourism Marketing Council (ATMC). 5. Encourage a certified state timber grading service to make Alaskan wood products eligible to fulfill bid specifications. 6. Restructure Alaska building codes to define specifications in a way that leaves the option open to use Alaska wood products. 7. Examine feasibility of requiring use of Alaskan wood products in construction of state-funded projects. 8. Explore legal avenues to require in-state processing of wood exported from state lands. (Every seasonal logging job creates approximately three year-round processing jobs.) 9. Keep industry regulation to a minimum to protect the public interest and make permit acquisition timely. Ron Ricketts * Fairbanks Industrial Development Corp. 1. Streamline timber disposal process on state land. Repeal 1990 Title 38 timber sale amendments to require Best Interest Findings instead of two year scheduling of sales and detailed forest land use plans, similar to disposal of other resources. Cuts administrative costs and increases flexibility. Encourages long-term investment by private industry. 2. Pass legislation to implement long-term forest management agreements as a principal vehicle for timber disposal on state lands. Bruce Harding Wrangell Allocate funds for small timber sales or return current stumpage fees from large sales into a special account rather than the General Fund. James Morgan Seward 1. Encourage state to sell timber, especially beetle kill, rather than let it go to waste. 2. Develop a state reforestation plan. Al Schafer Seward Urge Legislature not to lock up viable timber stands and manage them wisely. Earl Stevens * Alaska Reforestation Council Anchorage Supports funding for Alaska Regeneration Center in order to maintain Alaska genetic diversity and reestablish Alaskan forests after fires and spruce bark beetle epidemics. John Raynor * Society of American Foresters Juneau Establish new state forests with long-term multiple use plans committed to sustained yield management. John Alden * Institute of Northern Forestry Fairbanks Support funding for Alaska Regeneration Center. Chip Thoma Juneau Examine the costs of timber sale subsidies. Prevent revision of Title 38. Marie Beaver Fairbanks 1. Follow existing two-year review of timber disposals instead of best interest finding (30 day) process. 2. Continue "innovative and arduous negotiations" as were used in the Forest Practices Review process. 3. Oppose FMAs. Louis Bencarbino Assemblyman Seward 1. Agrees that change is needed for Title 38. 2. Wants state to make timber available for harvest. 3. Timber is key to direct jobs and jobs for truckers, etc. Clarence Furbush * Palmer 1. Change regulations to use fire suppression funds to build pioneer roads. Fire improves some wildlife habitat. 2. Put more state land into private ownership. Edmond Packee * Fairbanks 1. If timber sale costs are part of the decision-making (public) process, the cost-benefit analysis should break out fire suppression, road maintenance for public access, personal firewood sales, wildlife considerations, reforestation, and costs of litigation and delay. 2. Provide adequate funding to the Department of Natural Resources to meet constitutional mandate of Title 8 for sustained yield and multiple use. (It has been cut to one-half the 1983 level.) 3. Support management of forests to increase forest health (address spruce beetle mortality across state) and to increase carrying capacity for moose populations in hardwood areas. 4. Fund the Department of Natural Resources to allow for biodiversity management with regard to genetic, species, landscape, and stand structure diversity. 5. Fund the Department of Natural Resources or the Department of Commerce and Economic Development to do adequate forest inventory and obtain growth and yield data for state land classified as "forest." 6. Support forest regeneration center to maintain Alaska genetic material, provide clonebanks of selected seed sources, etc. to provide Alaskan seedlings for reforestation. 7. Utilize unemployed citizens and correction inmates as labor source to carry out reforestation plans. 8. Send Department of Natural Resources employees to British Columbia and Yukon Territory to study silvacultural techniques which are successful in the sub-arctic. Raeann Edwards * Fairbanks Provide adequate funding for Regeneration Center as seedlings play a key role in research and "applied" tree improvement. MINERALS / COAL Steve Borrell, Executive Director * Alaska Miners Association Anchorage 1. The Legislature must take substantive actions to signal the U.S. and international mining industry that there is a positive business climate here to attract exploration and development investment. 2. Direct the regulatory agencies to design and implement water quality standards which are based on science and reasonable/logical risk assessment, rather than emotion. 3. Evaluate and streamline provisions in Title 38 so that land planning statutes and regulations do not work against the responsible development of the state's mineral resources. 4. Amend the current Alaska Mental Health Land Trust Settlement Act through adoption of SB 67 to clear legal challenges and costly delays of Chapter 66. 5. Change the state's administrative mineral closure laws to accomplish their intended use, and prevent abusive lock-up of large tracts of land from any possibility of mineral development. 6. Enact a reasonable air quality bill this session in order to maintain state control of the administration of air quality issues in the state. Monitor provisions to guarantee that federal standards are not exceeded. 7. Fund the Alaska Minerals Assessment Program (AMAP) to send an immediate message to the international minerals industry that Alaska is serious about encouraging the development of its mineral resources. 8. Analyze and redesign the annual claim rental fee program to retain active exploration on state lands. Do not trade short-term income for a depletion of exploration interest and manpower. 9. Design and implement a statutory provision to allow exploration expenditures to be deducted from state royalties. 10. Insure that a portion of the Department of Transportation and Public Facilities budget is invested in new road construction and road upgrades in rural and remote Alaska. 11. Work with Alaska's Congressional Delegation in efforts to retain the Federal Mining Law of 1872. The current bills in Congress would challenge, if not eliminate, hardrock and placer mining on Alaska's federal land. 12. Fund the Department of Law sufficiently to assert RS 2477 rights-of-way and establish future access to many areas of state land, native and private lands, and to isolated federal lands. Robert Stiles * Alaska Coal Association Anchorage 1. Enact an Alaska Coal Policy which expresses the state's will with regard to the growth and enhanced competitiveness of the Alaska coal industry. 2. Continue to move forward with consideration and enactment of amendments to the Chapter 66 resolution of the Mental Health Lands Trust issue. 3. Demonstrate by whatever means are available to the Legislature, support for obtaining a Jones Act waiver for Alaskan coal shipments to Hawaii and the west coast of the "Lower 48." 4. Give consideration to means and methods by which the Legislature can help protect Alaskan coal's current small market share. Caryl Boehnert * Alaskans for Juneau Juneau 1. Urges Alaska to become more self-protective regarding mine development. 2. Retain strong budgets in regulatory agencies. 3. Monitor mining companies. Del Ackels Fairbanks 1. Recommends that the Alaska Minerals Commission report be examined by the Legislature. 2. RS 2477 provisions are key to tourism, timber industry, and mineral development. Rudi Vetter Fairbanks 1. Supports the testimony of the Alaska Miners Association especially the comments about exploration expenditure. 2. Mineral royalties are counterproductive to state revenue as investment will diminish before the royalty income can come on-line. Jim Kohler, Executive Director Southeast Conference Juneau Recommends that the Department of Commerce and Economic Development or the Department of Natural Resources analyze the feasibility of a base metals refinery in Alaska. Rick Van Nieuwenhuyse * Placer Dome U.S. Inc. Anchorage 1. Legislature must take steps which indicate its pro-active role in the promotion of the mining industry throughout Alaska. This can include the support of industry conventions and advertising initiatives which communicate the attributes and incentives of developing mineral properties in Alaska. 2. Enact SB 67 as a workable solution to the Mental Health Trust Lands issue. 3. Support new industry-sponsored legislation before Congress which will resolve many of the controversial issues regarding the 1872 Mining Law, and allow mining companies operating on federal lands to stay in business and keep people employed. 4. Keep as much state land as possible open to mineral entry by endorsing a multiple use land policy and by limiting mineral closures. 5. Encourage exploration investment through incentives such as deducting expenditures from royalties or through "flow-through" financing incentives. 6. Support the Alaska Minerals Assessment Program funding in the FY 94 capital budget. 7. Streamline regulatory process and support the business climate needs of the mineral industry as a means to increase the state's potential for a tax base and provide private sector employment opportunities across the state. Roger Eichman, Acting President Juneau Mining District 1. Assurance of land status and access to mineral lands are both prerequisites for mineral development. 2. Take actions to resolve the Mental Health Lands issues. 3. Administrative mineral closures are very detrimental to the industry as it is counter to the multiple use provisions guiding state land use. Recently over 10,000 acres of land in the Juneau area were closed to mineral entry, the second closing order in the area in the last year. 4. State land law needs to change in order to give subsurface title to the land under the millsite, not title to the mineral itself, in order to encourage this major capital investment by the private sector. Senator Robin Taylor SB 67 is currently in the Senate Judiciary Committee. Work is going on with all parties in hopes of resolving the issue. Intent of the Senate majority to resolve the Mental Health issue this year. Dick Swainbank Fairbanks 1. Create a $50 million, interest-bearing account to fund a decade of geophysical and other state-of-the-art mapping to identify mineral deposits on state land. When the state land data base is complete, return the principal to the state. 2. Debate the "public interest" criterion of Article 8 Section 1 of the Constitution. Issue a Joint House-Senate Resolution which clearly states that "it is the policy of the State of Alaska to develop its natural resources." Jerry Harmon Echo Bay Alaska Juneau 1. Echo Bay is committed to the AJ Project and is ready to begin construction, provided we can avoid lawsuits and can have favorable support from the regulatory agencies. Over 500 direct, well-paying jobs waiting for Alaskans who are waiting for the opening of the mine. Senator Tim Kelly Senator Rick Halford, who appointed the Senate members of the Task Force, and Senator Suzanne Little both prescheduled constituent hearings back home and were unable to be here today. They indicated that they would be looking at the summary and supporting the efforts of the Task Force. Jim Richardson Wasilla 1. Bring about a balance between Environmental Protection Agency and the mining industry. 2. Tourism and mining industries need to come together and then both can benefit. Meredith Marshall Southeast Alaska Cab Co., Inc. Ketchikan Amend Alaska Civil Rule 82 to include language making it more costly for plaintiffs to bring weak claims which often delay or up the cost of economic development projects. Randy Smith Wasilla Make funds available to small miners through investment assistance so they, in turn, can put people to work. TOURISM Robert Jacobsen Alaska Visitors Association, Juneau 1. Initiate a multi-agency Denali Nation Park access plan. 2. Establish a dedicated transportation fund. 3. Increase Department of Transportation and Public Facilities (ISTEA) funding for the Scenic Travel Enhancement program. 4. Enact legislation allowing long-term state land leases for commercial tourism related development. 5. Consider "value-added" income when making decisions on the use of state-owned resources. 6. Increase user fees on state parks and provide a funding source for maintenance of existing state parks. 7. Standardize definitions, classifications, and sites for wildlife viewing through the Department of Fish and Game. 8. Work toward completion of the state and Native corporation land selections from the U.S. Bureau of Land Management. 9. Provide legislative support for a tourism element to be included regional plans such as the Turnagain Master plan. 10. Complete the purchase of private land inholdings in Kachemak Bay State Park. 11. Support extension of the Alaska Tourism Marketing Council through SB 85 and HB 115. Mark Hickey Hickey and Associates Juneau 1. Pass legislation establishing a dedicated transportation fund. 2. Enacted SB 154 this legislative session to establish a mechanism to ensure capital for infrastructure development. 3. Review the April 1991 Department of Transportation and Public Facilities "Sustaining Alaska's Ports and Harbors" and implement the proposed solutions. 4. Ensure meaningful strategic planning by state agencies with special emphasis on way to support Alaska's economic development needs. 5. Explore options for constructing "pioneer access" roads using federal ISTEA funding. 6. Work against potential actions by new federal administration to restrict further access across and into federal lands. 7. Increase local district tourism through the Scenic Highway Enhancement Program. 8. Continue to support expansion of all portions of the state's transportation system. Linda Anderson Alaska Campground Owners' Association Fairbanks 1. Increase highway marketing funds to the Division of Tourism - Continue Alaska's participation in the joint highway marketing organization between Yukon Territory, Alaska and British Columbia - Tourism North. - Increase production and distribution of "North to Alaska" - Re-establish the following elements of the "Tourism North Program" a. Conduct roadshow presentations at major RV destinations in the lower 48. b. Interface with major Automobile Association of America and Canadian Auto Association offices to educate and inform staff about highway travel to Alaska. c. Conduct training for Visitor Bureau staffs. 2. Reduce state park subsidies; pass legislation to raise park fees. 3. Enact legislation eliminating annual camping passes for nonresidents. 4. Eliminate overnight roadside camping. 5. Pass HB 26 and SB 157 relating to control of outdoor advertising. Dick Shultz Tok Evaluate plans by ATMC and AVA to increases levels of "rubber tire" traffic into the state. Paul Smith Tok Increase funding for Division of Tourism and Alaska Tourism Marketing Council for highway related promotion. Gary Kranenberg Tok 1. More emphasis needs to be placed on major attractions that are not located along the major corporation corridors. 2. Make loans available to small businesses who, due to size and location, may not otherwise be eligible. Bonnie Jenkins Tok 1. More funds need to be appropriated to highways that are heavily traveled in summer months by tourists. 2. More signage required on roads and highways. 3. Additional rest areas are required. 4. Increased money for highway promotion. Alan LeMasters Gakona 1. Reduce the Department of Environmental Conservation personnel and trim their budget. 2. Repeal Department of Environmental Conservation authority to develop a User Fee program. 3. Increase funding to promote "Alaska Adventure" tourism. 4. Increase production of Vacation Planner. 5. Support SB 106 - Interties. Terry Lathan Barrow Develop rural tourism through low interest loans and matching grant funds. Joe Klutsch Alaska Professional Hunters Association 1. Representation from Hunters Association on AVA board needed. 2. Problems for professional hunters with the destination Alaska study because they were not allowed to participate. Problems with primary tourism zones, most favored economic activity determinations, consumptive verses non consumptive tourism, eco-tourism, trend toward wildlife viewing. John Cooper Matsu 1. The Department of Natural Resources must be adequately funded to take care of the visitor properties that the state advertises to tourists. 2. Recognize communities that are assuming a responsible role in self support via local taxes. 3. Keep the concept of direct legislative grants alive and require full accountability. John Litton Sitka 1. Pass HB 115 and SB 85 Extending the ATMC. 2. Work with industry to establish long-term funding source for tourism industry. Russ Gresham Anchorage Requested support for capital projects at the Port of Anchorage. Phil Driver Anchorage Requested the AVA have a hunting guide as a member of the board. Don Dietz Anchorage 1. Analyze the Alaska Railroad to recommend near and long term solutions to the high costs of rail transportation. 2. Review state statute to ensure present state regulations and permitting can enjoy a more aggressive openness to private investors for marketing our natural resources. Jerry McCutcheon Anchorage Concerned about AJ mine and Red Dog mine. Alaska does not need jobs, it needs revenues. John George Alaska Outdoor Council Juneau Tourism marketing program is promoting Alaska as a theme park and Alaskans are employees. We need to use tourism money to promote Alaska as we see Alaska to deter people from seeing only a pristine place that should be "locked up". Andrew Romanoff Lost Coast Coalition, Juneau Urges consideration of Lost Coast Coalition plan proposal as a substitute for the Yatagua Area Plan currently under development by the Department of Natural Resources. Nancy Lethcoe Alaska Wilderness Recreation & Tourism Assoc Valdez 1. Require legislation that requires the Departments of Natural Resources, Environmental Conservation, and Fish and Game to address the economic impact of existing and potential regulations and decisions on all segments of the tourism industry and to take this information into consideration when making a decision. 2. Require that all new legislation look at the impacts to the tourism industry. 3. Support Alaska's Statewide Comprehensive Outdoor Recreation Plan 1992-1996 recommendation that "all state agencies should cooperatively develop a comprehensive commercial use permit policy." At the conclusion of the testimony, Co-Chairman Kelly recognized the three Commissioners who remained and offered them the opportunity to make a few comments. Glenn A. Olds, Commissioner, Department of Natural Resources I am terribly grateful for what I've heard today, and I want to thank members of the House and Senate and those who have spoken . . . I am impressed with four generalizations which I take as mandates to the Department of Natural Resources and . . . to the Legislature. 1. Clear recognition . . . that the capital of Alaska is not money, but is natural resources. We are the only state which has natural resource use mandated in our constitution. We will be judged by what we do about that mandate, not what we say. Many testifiers are troubled, as I am, that we have not put our money where our mandate is. We have successively reduced budgets that are concerned with the protection and value-added aspects of our natural resources while we have seen the escalation of the nonproductive features of our budget. 2. We recognize that the regulatory mandates which have been put in place by the Legislature have become increasingly oppressive, and they need revisiting and radical simplification. Our department is willing to work with the Legislature to revisit Title 38 and other regulatory requirements which have become very expensive to implement and very excessive in creating barriers which affect the development of our natural resources. 3. There is . . . recognition that we are talking, not about protecting our assets, but properly investing in them in terms of our fiduciary responsibility Recommendations: 1. We need to capitalize our resources and leverage them into an enormous income for the state. Example: British Petroleum's use of Alaska's oil to finance their exploration and development of the Russian Far East. 2. We ought to leverage the resources we have. Our $13 billion savings account has no requirement that those who manage that account have offices and jobs in Alaska. Leverage of capital, not the use of that capital . . . has not been done. 3. We were wise to save our resource-generated money, but we missed by not establishing a development fund to encourage more resource development. Paul Fuhs, Commissioner Department of Commerce and Economic Development 1. IFQ's: United Fishermen of Alaska is unable to take a position on this issue as there are as many for as there are against the IFQ proposal. It's stupid to catch all the fish on one day and then hold it in freezers. You can buy fresh fish year round, but it's from Canada, not Alaska. Fishing safety and by-catch and waste issues are important. 2. Shellfish mariculture is a huge opportunity. The Legislature should make shellfish mariculture available to use the Agricultural Revolving Loan Fund. 3. Division of Tourism needs to look not at how to get the maximum number of tourists in the state, but at how the tourism industry provides the maximum economic benefit to the people and businesses who live in Alaska. And we need to make sure the advertising for tourism doesn't damage the other industries in Alaska. 4. Value added . . . we should look at some incentives. It needs to be analyzed in terms future tax revenues and jobs, not just as a gift to industry. 5. Rural Development . . . we should look at Native only guiding for marine mammal hunting of walrus or polar bears which are not endangered species. 6. Energy Needs . . . the Governor's proposal for restructuring the Alaska Energy Authority is the only plan on the books which begins to address those energy needs. Thank you for holding this meeting. Representative MacLean Thanks to the Commissioner and the Department of Commerce and Economic Development, to Wendy Mulder, Chris Gates, and the rest of the staff for their help and support to the Task Force. John Sandor, Commissioner, Department of Environmental Conservation It's been very interesting to participate, listening to, this hearing. I liked the testimony from the gentleman in Homer . . . perhaps we're not as responsive to our constituents as they would like us to be. He said we ought to go into hiding . . . the only way we're going to achieve the quality of life we're all working toward is working together. Certainly the leadership of the House and Senate, and this Task Force, has set the stage for all of us to do that. My intent as the Commissioner of the Department of Environmental Conservation is to improve and protect the quality of life for all Alaskans. All Alaskans do not have the quality of life that they deserve, mostly in the rural parts of Alaska. We've spent money unwisely in the past. Money is not the answer. We cannot put hundreds of millions of dollars in the bush without the maintenance and operations capability to protect that investment. I think it will take two decades for the federal government to wake up to the fact that Alaska is not a colony and that it should be treated as a full partner, and it deserves to grow to maturity and manage its resources. We have tremendous opportunities and obligations with the Russian Far East, threatened by nuclear contamination. We need to build a partnership there as well . . . . The end of all of this is sustainable development, which literally means that we need to promote several economic development projects, projects which are environmentally sound. We have the ability to do that, if we work together on it. Alaska spends less than 1% of its General Fund budget on environmental protection, but that is a false statistic as that reflects only that money spent by the Department of Environmental Conservation. The Departments of Fish and Game and Natural Resources spend money there as well. This is part of the partnership objective . . . which includes the communities in the state, the people and the private sector. It has been a pleasure being here today and I look forward to the substantive work of this Task Force and pledge the resources of the Department of Environmental Conservation to achieve the objective that we are all working for. Representative Eileen MacLean We thank people for their testimony both in Juneau and at the teleconference sites. We plan to be very active throughout the session and throughout the interim. Public hearings will be held. This is just the initial start of the Task Force. The Department of Commerce and Economic Development will be working with us in the preparation of a report which will be made available around the state so we can continue to advance this dialogue. It is clear form today's testimony that there are a great many economic development issues that we need to consider. We look forward to a broad partnership effort that will lead to some meaningful improvements for Alaska's business. This will conclude this Economic Mini-Summit. ORAL AND WRITTEN TESTIMONY Del Ackels 1725 Roosevelt Fairbanks, AK 99709 John Alden Institute of Northern Forestry, UAF 1117 Galena St. Fairbanks, AK 99709 Linda Anderson Alaska Campground Owners 130 Seward Street, #503 Juneau, AK 99801 Rupe Andrews AARP Juneau, AK Ben Barrera Nat'l Bank of Alaska 1420 Gwenn Anchorage, AK Mike Barton U.S. Forest Service Juneau, AK 99801 Marie Beaver Forest Rn. Ak Environ. 218 Driveway Fairbanks, AK 99701 Louis Bencarbino Assemblyman P.O. Box 2064 Seward, AK Carl Berger Alaska Regional Development Organizations Anchorage, AK 99503 Linda Blake 1709 Halibut Pt. Rd. #33 Sitka, AK 99835 Joe Bluhmam, Executive Director American Factor Trawlers Association 4039 21st Ave., West, Suite 400 Seattle, WA 98119 Caryl Boehnert Alaskans for Juneau 3406 Glacier Hwy. Juneau, AK 99801 Steve Borell Alaska Miners Association 501 West Northern Lights, Suite 203 Anchorage, AK 99503 Fred Brown 675 7th Ave., Ste. K Fairbanks, AK Wayne Carpenter, Executive Director Seward Chamber of Commerce P.O. Box 749 Seward, AK 99664 Former Representative Dave Choquette Don Clothier Rural Development 131 Front St. Ketchikan, AK 99901 John Cooper P.O. Box 871840 Wasilla, AK 99687 Pete Crandall Alaska Bankers Association Anchorage, AK 99510 Don Dietz 2000 Anc Port Rd. Anchorage, AK 99501 Phil Driver Anchorage, AK Roger Eichman Juneau Mining District P.O. Box 20765 Juneau, AK 99802 Velma Ellyson Nonprofits AK 3935 Svedlund Street Homer, AK 99603 Joe Fields Kantishna Group P.O. Box 72419 Fairbanks, AK 99707 Paul Fuhs, Commissioner Department of Commerce and Economic Development Kris Geldaker General Manager Southeast Stevedoring P.O. Box 8080 Ketchikan, AK 99901 John George AK Outdoor Council 9515 Moraine Way Juneau, AK 99801 Andy Golia P.O. Box 663 Dillingham, AK 99576 Russ Gresham 1717 Tidewater Rd Anchorage, AK 99510 Bruce E. Harding P.O. Box 1062 Wrangell, AK 99929 Jerry Harmon Echo Bay Alaska 4322 Cone Place Juneau, AK 99801 Russell Heath AK Environmental Lobby 245 Marine Way Juneau, AK 99801 Carol Heyman, President Alaska State Chamber of Commerce 441 W. 5th Ave, Ste 300 Anchorage, AK 99501 Mark Hickey Hickey and Assoc. 9091 Sheiye Way Juneau, AK 99801 Bill Hopkins Alaska Oil and Gas Association 121 W. Fireweed Lane, Suite 207 Anchorage, AK 99503 Frank Irelan Nome, AK Bob Jacobsen President Wings of Alaska Bonnie Jenkins P.O. Box 149 Tok, AK 99780 Brent Johnson 34824 K-Beach Rd. Soldotna, AK 99669 Dale Judge P.O. Box 273 Glenallen, AK 99588 Julie Kitka, President Alaska Federation of Natives 1577 C Street, Suite 100 Anchorage, AK 99501 Joe Klutsch King Salmon, AK Jim Kohler Southeast Conference 124 W. 5th St. Juneau, AK 99801 Gary Kranenberg P.O. Box 508 Tok, AK 99780 Don Kubley Juneau, AK Nancy Lande P.O. Box 1952 Seward, AK 99664 Terry Lathan P.O. Box 189 Barrow, AK 99723 Rick Lauber Pacific Seafood Processors Association 321 Highland Drive Juneau, AK 99801 Alan LeMasters P.O. Box 222 Gakona, AK 99586 Nancy Lethcoe P.O. Box 1353 Valdez, AK 99686 Robert V. Lewis Product Development Investors 635 Main St. Juneau, AK 99801 John Litton P.O. Box 1001 Sitka, AK 99835 Robert Logan UAF, Head of Economics Dept. 7300 Chena Hot Springs Fairbanks, AK 99712 Carl Marrs Cook Inlet Regional Corporation Oil & Gas 2525 C St Anchorage, AK 99509 David Marshall Marshall Assoc. 1300 Mendenhall Peninsula Rd. Juneau, AK 99801 Meredith Marshall Southeast Alaska Cab Co., Inc. P.O. Box 7418 Ketchikan, AK 99901 George McCorcle Port Director City of Kodiak Jerry McCune, President United Fisherman of Alaska 211 4th Street, Suite 112 Juneau, AK 99801 Jerry McCutchen Anchorage, AK Charles McKee Banking 7800 Debarr Rd E #63 Anchorage, AK 99504 Chris Mitchell AK Fisheries Dev. Foundation 508 W. 2nd #212 Anchorage, AK 99501 James Morgan P.O. Box 2229 Seward, AK 99664 Mark Mullens Anchorage, AK Jere Murray P.O. Box 237 Seldovia, AK 99663 Bill Noll President, Major International Mike O'Callaghan 1540 Medfra Anchorage, AK 99501 Edmond Packee 1977 Melanie Lane Fairbanks, AK 99709 Jamie Parsons Alaska State Chamber of Commerce Juneau, AK 99801 John Raynor Society of American Foresters P.O. Box 210912 Auke Bay, AK 99821 Jim Richardson HC 31, Box 5126-F Wasilla, AK 99654 Ron Ricketts Fairbanks Industrial Development Corporation 515 7th Ave. Fairbanks, AK 99701 Andrew Romanoff 234 Gold Street Juneau, AK 99801 Harvey Samuelsen Fisheries P.O. Box 18 Dillingham, AK 99576 Marideth Sandler Alaska Regional Development Organizations Anchorage, AK 99503 Lloyd Schade 35250 Schade Drive Homer, AK 99603 Al Schafer P.O. Box 610 Seward, AK 99664 Dick Schultz Tok, AK Paul Seaton KNS Marine 58360 Bruce Drive Homer, AK 99603 John Sevier Board Member Fish Technology Center Kodiak, AK Bill Simmons P.O. Box 51 Tok, AK 99780 Paul Smith P.O. Box 559 Tok, AK 99780 Dr. Joe Sonneman 324 Willoughby Ave Juneau, AK 99801 Marideth South P.O. Box 110800 Juneau, AK 99811 Earl Stephens 6449 Village Parkway Anchorage, AK 99504 Stan Stephens P.O. Box 1297 Valdez, AK 99686 Bob Loiselle Alaska Forest Association 111 Stedman, Suite 200 Ketchikan, AK 99901 Robert Stiles Alaska Coal Association D&R Ventures Inc. 1227 West 9th Avenue, Suite 201 Anchorage, AK 99501 Jim Stimpfle, President Nome Chamber of Commerce P.O. Box 729 Nome, AK 99762 Dick Swainbank P.O. Box 81315 Fairbanks, AK 99708 Chip Thoma Juneau, AK 99801 Fred Triem P.O. Box 129 Petersburg, AK 99833 Rich Van Nieuwenhnyse 10980 Corrie Way Eagle River, AK 99577 Rudy Vetter P.O. Box 70342 Fairbanks, AK 99707 Bart Watson President Musk Ox Development Corp. Juneau, AK 99801 Mark Earnest City Manager City of Unalaska P.O. Box 89 Unalaska, AK 99685 Raeann Edwards Fairbanks, AK Frank Kelty, Mayor City of Unalaska P.O. Box 89 Unalaska, AK 99685 Jessie Nelson P.O. Box 130 Homer, AK 99603 Kris Norosz Petersburg Vessel Owners Assn. P.O. Box 232 Petersburg, AK 99833 Ron Philemonoff TDX Corp. St. Paul, AK Drue Scalzl 41685 Redoubt Cir. Homer, AK 99603 Randy Smith Rainbow Mining & Dev. Wasilla, AK