HOUSE SPECIAL ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE March 17, 1999 5:05 p.m. COMMITTEE CALENDAR * HOUSE JOINT RESOLUTION NO. 20 Urging the Congress to amend the Internal Revenue Code of 1986 to eliminate the marriage penalty by providing that income tax rate bracket amounts, and the amount of the standard deduction, for joint returns shall be twice the amounts applicable to unmarried individuals. - BILL HEARING CANCELED (* First public hearing) PFD INVESTMENT STRATEGIES AND OVERVIEW TAPE 99-3, SIDE(S) A & B CALL TO ORDER CHAIR GAIL PHILLIPS called the House Special Economic Development and Tourism Committee to order at 5:05 p.m. PRESENT Committee members present at the call to order were Representatives Cissna, Dyson, Halcro and Kerttula. Representatives Barnes and Rokeberg joined the meeting at 5:14 p.m. and 5:25 p.m., respectively. SUMMARY OF INFORMATION CHAIR PHILLIPS announced that HJR 20 would be heard at the next meeting. JAMIE KENWORTHY, Director, Alaska Science and Technology Foundation (ASTF), spoke to the committee about its long-term economic development strategy for Alaska, which is part of its mission. With the immediate dislocations caused by the decline of oil revenues, ASTF believes it is important to turn its attention to the longer term and more fundamental issues of the state's economic development. Mr. Kenworthy emphasized: diversification of the economy by replacing and expanding imports; key competitive issues in different sectors; industry structure changes; technology and global competition. He briefly discussed the challenges and assets in the areas of mining, forest products, seafood and technology. Mr. Kenworthy concluded with several key points: develop a broad economic base; private sector leads; need infrastructure to add value; grow own economy; reduce dependence on outside investment in long-term projects; expand local firms to increase business, resource and development capability. MARK HODGINS, Legislative Assistant to Senator Jerry Ward, Alaska State Legislature, presented the committee with a paper, which he authored, on encouraging the corporations in which the Alaska Permanent Fund Corporation (APFC) invests to come to Alaska. He believes that the APFC investments should be a strong motivator for this corporate sector to conduct business or outsource components of its business in Alaska. Mr. Hodgins would like to encourage Alaska's administration and legislators to facilitate contacts between Alaskan interests and those corporate entities that would be most likely to promote and/or develop Alaska business opportunities. JIM KELLY, Research and Liaison Officer, Alaska Permanent Fund Corporation, and GINNY FAYE, Legislative Liaison, Department of Commerce and Economic Development (DCED), discussed the present and future programs intended to attract partnerships with APFC corporate holdings. Additionally, they discussed the Memorandum of Understanding between the APFC and the DCED to share Alaska's promotional opportunities within the APFC real estate holdings. CHAIR PHILLIPS told the presenters that because of the limited time for this meeting, she would invite them back to a future meeting to elaborate on these topics further. She asked committee members to forward their areas of interest to the committee aide for future consideration. COMMITTEE ACTION The committee took no action. ADJOURNMENT There being no further business, the House Special Committee on Economic Development and Tourism was adjourned at 6:10 p.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape(s) and log notes may be obtained by contacting the House Records Office at 130 Seward Street, Suite 211, Juneau, Alaska 99801-1182, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature, in the Legislative Reference Library.