HOUSE SPECIAL COMMITTEE ON INTERNATIONAL TRADE & TOURISM March 18, 1993 5:00 p.m. MEMBERS PRESENT Representative Jeannette James, Chair Representative Joe Green Representative Curt Menard Representative Jim Nordlund Representative Jerry Sanders Representative Cynthia Toohey MEMBERS ABSENT Representative Terry Martin OTHER MEMBERS PRESENT Representative Kay Brown COMMITTEE CALENDAR HJR 20: Urging modification of the North American Free Trade Agreement. CSHJR 20 (ITT) MOVED OUT OF COMMITTEE WITH A DO PASS RECOMMENDATION "Making the Case" presentation by Department of Commerce and Economic Development Discussion of priorities WITNESS REGISTER Representative Kay Brown Capitol, Room 517 Juneau, Ak 99801 (907) 465-3784 POSITION STATEMENT: Prime Sponsor of HJR 20 Diane Mayer, Division of Economic Development Department of Commerce and Economic Development State Office Building Juneau, AK 99801 (907) 465-2500 POSITION STATEMENT: Provided information about the Division PREVIOUS ACTION BILL: HJR 20 SHORT TITLE: AMEND N. AMERICAN FREE TRADE AGREEMENT BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) BROWN TITLE: Urging modification of the North American Free Trade Agreement. JRN-DATE JRN-PG ACTION 01/29/93 176 (H) READ THE FIRST TIME/REFERRAL(S) 01/29/93 176 (H) INTERNATIONAL TRADE & TOURISM, RESOURCES 02/18/93 (H) ITT AT 05:00 PM CAPITOL 102 02/18/93 (H) MINUTE(ITT) 02/18/93 (H) MINUTE(TRA) 03/04/93 (H) ITT AT 05:00 PM CAPITOL 102 03/04/93 (H) MINUTE(ITT) TAPE 93-5, SIDE A Number 000 REPRESENTATIVE JEANNETTE JAMES, CHAIR, called the meeting of the House Special Committee on International Trade and Tourism to order on March 18, 1993, at 5:12 p.m. HJR 20: AMEND N. AMERICAN FREE TRADE AGREEMENT Number 016 REPRESENTATIVE KAY BROWN, PRIME SPONSOR of HJR 20, spoke in favor of the resolution relating to the North American Trade Agreement, "expressing to Congress and the President our concern that states' rights be protected as the federal government works on negotiating an acceptable agreement with our partners in Canada and Mexico. And while there are many areas of controversy about the agreement, this resolution seeks to address the impact on states, on maintaining the state's authority to act in areas that are not specifically preempted by the federal government and, thereby, maintaining a long tradition that we had in the United States of giving states the flexibility to legislate unless the Congress specifically takes action in an area, and preserving our opportunities to adopt laws that might give preferential treatment for economic development projects or employment opportunities or other things that are geared to affect the people in our state, which could be adversely affected or preempted by this new international trade agreement." Number 056 REPRESENTATIVE CYNTHIA TOOHEY asked if the committee was working from the work draft. REPRESENTATIVE BROWN replied in the affirmative. CHAIR JAMES commented that the "Be it resolved" was a good statement and could relate to any other trade agreement the federal government might be putting together. Number 106 REPRESENTATIVE TOOHEY remarked that HJR 20 should be shown to the Washington delegation and their support solicited. REPRESENTATIVE BROWN said she would do that, but was anxious to move HJR 20 out of the committee. CHAIR JAMES commented that she would like to include HJR 20 in the Economic Development Task Force's list of priorities and she was not willing to do that until it was moved out of the committee. Number 127 REPRESENTATIVE JOE GREEN asked where CSHJR 20 (ITT) differed from HJR 20, which had been discussed by the committee previously. REPRESENTATIVE BROWN replied that CSHJR 20 (ITT) was more explicit and expansive without changing the concept of standing up for states' rights. REPRESENTATIVE GREEN agreed this concept was "right on." Number 178 REPRESENTATIVE TOOHEY said she really respects Senator Stevens' knowledge and would not want to pass HJR 20 without his having seen it. REPRESENTATIVE BROWN requested the committee pass HJR 20 with her promise that she would send it to Senator Stevens immediately,and incorporate his input later. She would also send it to Senator Murkowski and Representative Young. Number 203 CHAIR JAMES noted the arrival of Representative Menard and Representative Nordlund. REPRESENTATIVE BROWN reviewed the previous discussion for the newcomers. Number 252 REPRESENTATIVE CURT MENARD noted this is a sensitive issue and said he thought it was a good resolution. REPRESENTATIVE TOOHEY MOVED to ADOPT CSHJR 20 (ITT). THE MOTION PASSED. REPRESENTATIVE GREEN MOVED to ADOPT the committee substitution dated February 18, 1993, with the modification that it include a letter of intent for the sponsor to request input from the federal delegation. The MOTION PASSED. Number 300 DIANE MAYER, ACTING RESOURCE DEVELOPMENT, DIVISION OF ECONOMIC DEVELOPMENT, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, made a pretention about the "Making the Case" program. She mentioned that last session the Division was given $250,000 to develop the project. She stated the Division acted as a liaison with government, updated old information, and developed the new image of Alaska's location with their campaign "Alaska - positioned for the 21st Century," attempting to blend the image of Alaska's pristine wilderness with its business potential. A series of slip sheets was developed to insert in the three-fold cover, which could be mixed and matched and were easy to update, dealing with such subjects as mineral development, fisheries, forestry, international trade, and tourism. Number 645 REPRESENTATIVE GREEN asked how long the Division had been in operation. MS. MAYER answered "One and one half years." TAPE 93-5, SIDE B Number 000 CHAIR JAMES asked how the brochures' effectiveness was measured. MS. MAYER responded that contact sheets were used. CHAIR JAMES asked if foreign offices used those brochures. MS. MAYER said they did. CHAIR JAMES asked if other inserts were planned dealing with agriculture, aerospace, and tourism, to market Alaska as a whole. MS. MAYER replied in the affirmative. Number 160 REPRESENTATIVE MENARD asked about the cost to print the brochure. MS. MAYER replied, "$1.50 for the cover and $1.00 each for the inserts." REPRESENTATIVE MENARD asked where the material was printed. MS. MAYER said the inserts were printed in Alaska, the covers in Denver. REPRESENTATIVE TOOHEY expressed concern that tourism marketing not be lumped with other advertising because it is so specific. CHAIR JAMES said any advertising for Alaska needed to give the entire picture, tourism as well as business, to promote cooperative development of the state and entice people to visit Alaska, in addition to encouraging them to start new businesses including tourism-related businesses. Number 280 CHAIR JAMES called the committee's attention to the priority and goal list compiled at the last meeting. REPRESENTATIVE MENARD objected to the item referring to "real people doing real jobs". REPRESENTATIVE JIM NORDLUND objected to the committee's submitting a resolution regarding the Mental Health Lands issue. CHAIR JAMES mentioned her idea for a settlement of the issue. A general discussion of the Mental Health Lands issue followed. Number 440 REPRESENTATIVE GREEN returned to the subject of tourism promotion, suggesting that people should know there are areas of Alaska that are not just pristine wilderness and are open for development. Number 485 ADJOURNMENT The meeting was adjourned at 6:30.