HOUSE ECONOMIC TASK FORCE WORK SESSION ON REGULATION AND GOVERNMENT OPERATIONS November 6, 1993 9:00 a.m. REPRESENTATIVE AL VEZEY chaired the meeting and made introductory comments about the purpose of the task force and goals of this work session. He opened the session to public comment. CLIFF BURGLIN, Fairbanks, criticized the Department of Natural Resources' (DNR) land leasing policies. He said the state could bring in $100 million - $1 billion a year in lease payments. He recommended a greatly accelerated leasing program at $1 per acre, and said there would be a tremendous response to such a program. MR. BURGLIN said DNR does not work in the best interests of the state. Its employees come from the big oil companies and serve their interests. He cited the case of Stewart Petroleum as an example of hardships visited on smaller producers by the state bureaucracy. MR. BURGLIN recommended leasing lands on behalf of the University of Alaska and the Mental Health Lands Trust. He said that if such entities could offer such lands for lease before the big oil companies got them, it would greatly increase development and would provide cash for organizations that otherwise require general fund dollars. MR. BURGLIN said a more aggressive leasing program would assure that lands were open to companies wishing to explore. Now such lands are not available if a company wants to explore. JOE SCHOENER, North Pole, said jobs are created when government gets out of the way. He said we are now living in a torture chamber of regulations, and cited an Alaska Department of Fish & Game (ADF&G) regulation that makes it a crime with a stiff penalty to toss a carrot to a moose. He said the Department of Environmental Conservation (DEC) soon won't need any funding; they will be able to live off their fines and permit charges. DON CLOTHIER, Ketchikan, said Alaska lacks finance systems that are available to small business in other states. He mentioned the Washington Investors Network, which links interested investors with entrepreneurs who need investment capital. He said states can also authorize and control stock offerings up to $5 million. MR. CLOTHIER said the Small Business Administration business financing programs are not available in Alaska as widely as in other places. He also discussed a range of other economic development opportunities, including small business incubators, an Alaskan products store, the federal Resource Conservation and Development program, and the International Trade Opportunities program. He said we don't need to spend more on economic development, but we need to use what already exists. He said Alaska needs to provide support systems for new businesses. MR. CLOTHIER pointed out that Alaska manufactures very few products for the tourism industry. He suggested there is demand for certain kinds of products that can be manufactured in Alaska. The tourism industry is an ideal opportunity as a manufacturing outlet, because the tourist pays the cost of shipping the goods to the Lower 48. He said Alaskans need to think like merchandisers, because that will give us a road map for developing demand. REPRESENTATIVE VEZEY thanked the participants and reminded them of the task force's schedule for producing a final report to the legislature.