ALASKA STATE LEGISLATURE  HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE AND  TOURISM  March 26, 2013 11:40 a.m. MEMBERS PRESENT Representative Shelley Hughes, Chair Representative Lynn Gattis Representative Bob Herron Representative Pete Higgins Representative Craig Johnson Representative Lance Pruitt Representative Harriet Drummond MEMBERS ABSENT  Representative Kurt Olson Representative Geran Tarr COMMITTEE CALENDAR  HOUSE CONCURRENT RESOLUTION NO. 6 Recognizing the Alaska Center for Unmanned Aircraft Systems Integration at the University of Alaska Fairbanks as a national leader in unmanned aircraft research and development; and relating to a Task Force on Unmanned Aircraft Systems. - MOVED CSHCR 6(EDT) OUT OF COMMITTEE HOUSE JOINT RESOLUTION NO. 12 Encouraging the manufacture of firearms and firearms accessories in the state. - MOVED CSHJR 12(EDT) OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION  BILL: HCR 6 SHORT TITLE: EST. LEG. TASK FORCE ON UNMANNED AIRCRAFT SPONSOR(s): REPRESENTATIVE(s) HUGHES 03/15/13 (H) READ THE FIRST TIME - REFERRALS 03/15/13 (H) EDT 03/26/13 (H) EDT AT 11:15 AM BARNES 124 BILL: HJR 12 SHORT TITLE: SUPPORT IN-STATE FIREARMS MANUFACTURING SPONSOR(s): REPRESENTATIVE(s) CHENAULT 03/14/13 (H) READ THE FIRST TIME - REFERRALS 03/14/13 (H) EDT 03/26/13 (H) EDT AT 11:15 AM BARNES 124 WITNESS REGISTER GINGER BLAISDELL, Staff Representative Shelley Hughes Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced the proposed committee substitute (CS) to HCR 6, on behalf of Representative Hughes, sponsor. STEVE COLLIGAN, President E-Terra, LLC Anchorage, Alaska POSITION STATEMENT: Testified in support of HCR 6. LISA HERBERT, Executive Director Greater Fairbanks Chamber of Commerce (GFCC) Fairbanks, Alaska POSITION STATEMENT: Testified in support of HCR 6. STUART THOMPSON Wasilla, Alaska POSITION STATEMENT: Testified in opposition to HCR 6. LUKE HOPKINS, Mayor Fairbanks North Star Borough Fairbanks, Alaska POSITION STATEMENT: Testified in support of HCR 6. MICHAEL CERNE, Executive Director Alaska Seafood Marketing Institute (ASMI) Juneau, Alaska POSITION STATEMENT: Introduced himself. REPRESENTATIVE MIKE CHENAULT Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Speaking as the sponsor, introduced HJR 12. TOM WRIGHT, Staff Representative Mike Chenault Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered a question during the hearing of HJR 12. ACTION NARRATIVE 11:40:56 AM CHAIR SHELLEY HUGHES called the House Special Committee on Economic Development, Trade and Tourism meeting to order at 11:40 a.m. Representatives Herron, Johnson, Pruitt, Drummond, Gattis, and Hughes were present at the call to order. Representative Higgins arrived as the meeting was in progress. HCR 6-EST. LEG. TASK FORCE ON UNMANNED AIRCRAFT  11:41:14 AM CHAIR HUGHES announced that the first order of business would be HOUSE CONCURRENT RESOLUTION NO. 6, Recognizing the Alaska Center for Unmanned Aircraft Systems Integration at the University of Alaska Fairbanks as a national leader in unmanned aircraft research and development; and relating to a Task Force on Unmanned Aircraft Systems. 11:41:37 AM REPRESENTATIVE HERRON moved to adopt the proposed committee substitute (CS) for HCR 6, [Version 28-LS0655\N], Gardner, 3/23/13, as the working document. There being no objection, Version N was before the committee. 11:42:10 AM GINGER BLAISDELL, Staff, Representative Shelley Hughes, speaking on behalf of Representative Hughes, sponsor of HCR 6, informed the committee of the changes reflected in Version N. Version N correctly identifies the Alaska Center for Unmanned Aircraft Systems Integration by its original title, the Unmanned Aircraft Systems Program. Also, to facilitate the review of rules and guidelines for the use of unmanned aircraft, the resolution establishes a task force consisting of about 15 members from the aeronautics industry and commissioners or their designees from agencies that use unmanned aircraft. The proposed task force would present a preliminary report in January 2014, and a final report of recommendation in January 2015. 11:43:51 AM CHAIR HUGHES opened public testimony. 11:44:06 AM STEVE COLLIGAN, President, E-Terra, LLC, said he is a graduate of the University of Alaska Fairbanks (UAF), owns a professional technology firm, and has been involved with model airplanes since his youth in Fairbanks. The Academy of Model Aeronautics (AMA) is a self-regulating and self-insured organization that has been following legislation related to unmanned aircraft for many years. Mr. Colligan said the passage of HCR 6 is the responsible way to examine rulemaking by the Federal Aviation Administration (FAA) and other agencies, and to finalize legislation that can support this activity. He opined model aviation is no different than the commercial use of unmanned aircraft except for the element of compensation. Both UAF and Mr. Colligan - as a private individual and business owner - buy products that are integrated into unmanned aircraft systems. The National Aeronautics and Space Administration (NASA) and AMA have educational programs to involve youth in aviation technology and technology development. He pointed out that similar discussion about regulating model airplanes began in 1910. Mr. Colligan asked the committee to support the legislation as a responsible way to promote rules and testing, and to examine related FAA publications. 11:48:00 AM LISA HERBERT, Executive Director, Greater Fairbanks Chamber of Commerce (GFCC), informed the committee GFCC represents over 700 businesses and organizations throughout the Interior, and its primary purpose is business advocacy. In addition, GFCC's ongoing priority is to increase the military presence in Alaska; in fact, it believes Alaska's immense land mass and airspace present opportunities for flight testing and training unmatched by any other state. She said GFCC supports all aspects of HCR 6. 11:49:56 AM STUART THOMPSON stated he is a private Alaskan citizen and voter. Mr. Thompson said the resolution needs work before passage and that the resolution is a propaganda resolution similar to that which justified the war in Iraq. Mr. Thompson expressed his support of establishing a task force to recommend state and federal regulation of unmanned aircraft systems; however, the task force must balance special interests with public representation by the appointment of public members with constitutionally-driven interests. He suggested that the membership of the current task force is not fully competent to advise on citizen privacy. Mr. Thompson said the following section of the resolution is false and read: WHEREAS unmanned aircraft systems may present a substantial risk to privacy, but neither the Federal Aviation Administration nor any other state or federal agency currently has specific statutory authority to regulate privacy matters relating to unmanned aircraft systems; MR. THOMPSON stated that constitutions are supreme statutory authority, and the U. S. Constitution and the Alaska State Constitution already regulate the use of unmanned aircraft in conducting population surveillance. He opined that privacy is also a protected right by the Third Amendment to the U.S. Constitution. He urged for HCR 6 to be returned to its sponsors for correction. 11:53:42 AM LUKE HOPKINS, Mayor, Fairbanks North Star Borough, informed the committee the Fairbanks North Star Borough (FNSB) is a signing partner with UAF on the application to FAA to be one of the six unmanned aircraft systems program sites, and is undertaking efforts on its own behalf to continue post-selection on the applicants' team. Also, FNSB is in full support of the expansion of the Joint Pacific Range Complex (JPARC) to include unmanned aerial vehicles. As president of the Alaska Conference of Mayors, he urged for the addition of a local elected representative to the membership of the task force. 11:55:33 AM CHAIR HUGHES, after ascertaining that no one else wished to testify, closed public testimony. She referred to previously- expressed concerns regarding privacy and said the committee's intention is to uphold the Constitution. Furthermore, privacy concerns are of the upmost importance, as is good policy at the state level. REPRESENTATIVE GATTIS expressed her support of HCR 6 because unmanned aircraft, remote control airplanes, and general aviation will have an opportunity to work out details. REPRESENTATIVE DRUMMOND appreciated the previous testimony that linked this new technology to school districts and programs promoting science, technology, engineering, and math. REPRESENTATIVE HIGGINS called attention to the fact that travel and per diem expenses would be paid for members of the task force. He asked whether the committee will look at expenses after the task force is established. 12:00:04 PM CHAIR HUGHES said the resolution is not referred to the House Finance Committee at this point. REPRESENTATIVE HIGGINS surmised this issue must be addressed eventually. CHAIR HUGHES indicated not at this time. REPRESENTATIVE PRUITT clarified that the task force is created in the legislature and will become part of the legislative budget. In further response to Representative Higgins, he said the resolution will create the task force and the costs associated "are totally separate from just creating this task force." 12:01:50 PM REPRESENTATIVE HERRON moved to report the proposed CS for HCR 6, Version 28-LS0655\N, Gardner, 3/23/13, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHCR 6(EDT) was reported from the House Special Committee on Economic Development, Trade and Tourism. 12:02:39 PM MICHAEL CERNE, Executive Director, Alaska Seafood Marketing Institute (ASMI), introduced himself as the new executive director and reported on ASMI's successful participation at the International Boston Seafood Show in Boston, Massachusetts. HJR 12-SUPPORT IN-STATE FIREARMS MANUFACTURING  12:05:23 PM CHAIR HUGHES announced that the final order of business would be HOUSE JOINT RESOLUTION NO. 12, Encouraging the manufacture of firearms and firearms accessories in the state. 12:05:31 PM REPRESENTATIVE MIKE CHENAULT, Alaska State Legislature, informed the committee HJR 12 encourages and invites gun and gun accessory manufacturers to bring their business to Alaska. In recent months some states have considered enacting legislation restricting or prohibiting the possession or manufacture of certain firearms or accessories. It is important for the administration and the legislature to indicate that Alaska is ideal for their business because of its excellent constitutional and statutory provisions for firearm use, possession, and manufacturing. House Joint Resolution 12 also directs that many firearm manufacturers are to be provided a copy of the resolution. Representative Chenault concluded that businesses are leaving Colorado and Alaska would be a great place for them to relocate. 12:07:20 PM REPRESENTATIVE JOHNSON suggested adding Magpul and the National Assembly of Sportsmen's Caucuses to the list of firearm manufacturers that will receive a copy of the resolution. REPRESENTATIVE CHENAULT welcomed additions to the list. He confirmed that Magpul is relocating from Colorado. 12:08:29 PM REPRESENTATIVE JOHNSON moved Conceptual Amendment 1 to add Magpul and the National Assembly of Sportsmen's Caucuses to the above mentioned list. CHAIR HUGHES objected for the purpose of discussion. REPRESENTATIVE PRUITT asked whether an organization with a national database, such as the National Rifle Association (NRA), should be added to the list. 12:09:14 PM TOM WRIGHT, Staff, Representative Mike Chenault, Alaska State Legislature, answered that the list in the resolution is extensive and includes all of the major manufacturers and accessory manufacturers. The list was provided by the National Shooting Sports Foundation and HJR 12 will be posted on its web site. 12:09:53 PM CHAIR HUGHES removed her objection. There being no further objection, Conceptual Amendment 1 was adopted. 12:10:12 PM REPRESENTATIVE JOHNSON moved to report HJR 12, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHJR 12(EDT) was reported out of the House Special Committee on Economic Development, Trade and Tourism. CHAIR HUGHES ascertained that no members of the public wished to testify on HJR 12. 12:10:59 PM ADJOURNMENT  There being no further business before the committee, the House Special Committee on Economic Development, Trade and Tourism meeting was adjourned at 12:10 p.m.