HOUSE LABOR AND COMMERCE STANDING COMMITTEE January 28, 1993 3:00 p.m. MEMBERS PRESENT Rep. Bill Hudson, Chairman Rep. Bill Williams Rep. Brian Porter Rep. Eldon Mulder Rep. Joe Sitton Rep. Jerry Mackie MEMBERS ABSENT Rep. Joe Green COMMITTEE CALENDAR Overview of the Department of Commerce and Economic Development WITNESS REGISTER PAUL FUHS, Commissioner Department of Commerce and Economic Development P.O. Box 110800 Juneau, Alaska 99811-0800 465-2500 Position Statement: Presented an overview KIM ELTON, Director Alaska Seafood Marketing Institute 1111 W. 8th St., Suite 100 Juneau, Alaska 99801-1895 465-5560 Position Statement: Presented an overview CHRIS GATES, Director Division of Economic Development Department of Commerce and Economic Development P.O. Box 110804 Juneau, Alaska 99811-0804 465-2017 Position Statement: Presented an overview CARL LUCK, Director Division of Occupational Licensing Department of Commerce and Economic Development P.O. Box 110806 Juneau, Alaska 99811-0806 465-2534 Position Statement: Presented an overview WILLIS KIRKPATRICK, Director Division of Banking, Securities and Corporations Department of Commerce and Economic Development P.O. Box 110808 Juneau, Alaska 99811-0808 465-2521 Position Statement: Presented an overview DAVID WALSH, Director Division of Insurance Department of Commerce and Economic Development P.O. Box 110805 Juneau, Alaska 99811-0805 465-2515 Position Statement: Presented an overview MARTIN RICHARD, Director Division of Investments Department of Commerce and Economic Development P.O. Box 34159 Juneau, Alaska 99803-4159 790-2693 Position Statement: Presented an overview CON MURRAY, Director Division of Tourism Department of Commerce and Economic Development P.O. Box 110801 Juneau, Alaska 99811-0801 465-2012 Position Statement: Presented an overview MARY PIGNALBERI Division of Tourism, Film Library Department of Commerce and Economic Development 3601 C St., Suite 700 Anchorage, Alaska 99503-5935 563-2167 Position Statement: Answered questions ACTION NARRATIVE TAPE 93-6, SIDE A Number 000 CHAIRMAN HUDSON called the House Labor and Commerce committee to order at 3:06 p.m. on January 28, 1993. Members present were Reps. Hudson, Williams, Porter, Mulder, and Sitton. CHAIRMAN HUDSON introduced COMMISSIONER DESIGNEE PAUL FUHS from the DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT and invited him to start the overview. COMMISSIONER FUHS stated that in light of the decline of oil revenue it was imperative that the Department of Commerce focus on how to make money and not how to spend it. COMMISSIONER FUHS referred to a pie chart the Department produced which illustrated the sources of money to fund the Department. He noted that the Department's share of the general fund amounts to 3/4 of 1 percent of the total budget. COMMISSIONER FUHS showed a video produced by the Department. He explained that the video was used at trade shows to market Alaska. Number 191 KIM ELTON, DIRECTOR, ALASKA SEAFOOD MARKETING INSTITUTE, presented a short overview of his office. Mr. Elton included a breakdown of funding. He also noted that some of the handout material that the committee received covered in some detail his agency. Number 265 REP. HUDSON inquired about the quality program. Rep. Hudson also asked for a short synopsis of what the focus or goal of the agency was and what benefit it was to the people of the state. Number 270 MR. ELTON responded that the agency does have a voluntary quality control program. Mr. Elton stated that his agency's goal is to market Alaska's fish to both foreign and domestic markets. Number 330 CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT, told the committee that the focus of the Division was to assist new and old small businesses to survive and prosper and to work on specific resource areas. Number 375 (Rep. Menard joined the committee.) Number 407 CARL LUCK, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING, stated that the Division's mission was to protect the health and safety of Alaskans by insuring that practitioners have at least the minimum level of competency necessary to deliver a quality service. The Division does this through a central licensing concept. Mr. Luck further stated that the Division was comprised of the following sections: Occupational Licensing; Business Licensing; and the Gaming Commission. Number 453 REP. HUDSON asked Mr. Luck to provide the committee with details on the concept of centralizing licensing functions and send it over in a report. Number 487 WILLIS KIRKPATRICK, DIRECTOR OF DIVISION OF CORPORATIONS, BANKING AND SECURITIES, told the committee that anybody wanting to do business in Alaska usually starts with his Division. The agency is made up of the following sections: 1) the securities section is a regulatory agency which primarily fights white collar crime; 2) the banking section registers all banks, savings and loan institutions, credit unions and trust companies; and 3) the corporations section is usually the first stop for anyone wanting to do business in Alaska as a corporation. Number 525 DAVE WALSH, DIRECTOR, DIVISION OF INSURANCE, said the mission of the Division is to protect and serve Alaska by developing, interpreting, and enforcing the insurance statutes and regulations; by protecting Alaska insurance consumers; by enhancing the insurance business environment; and by providing information and resources to the public for knowledgeable management of their insurance affairs. MR. WALSH provided the committee with the Division's 1992 strategic plan. TAPE 93-6, SIDE B Number 605 CHAIRMAN HUDSON said that he was extremely interested in containing costs in the insurance industry and would like further information on the subject. Number 676 MARTIN RICHARDS, DIRECTOR, DIVISION OF INVESTMENTS, explained that this division was the loan administration group. The Division currently has three active lending programs: 1) commercial fishing revolving loan fund; 2) loans on limited entry permits, vessels and gear; and 3) fisheries enhancement revolving loan program. MR. RICHARDS stated that the Division has nine inactive loan programs and services loans for five other state agencies. Number 715 CHAIRMAN HUDSON inquired if there was any information regarding outstanding loans. COMMISSIONER FUHS stated that the efficiency review committee compiled that information and he would see that the committee received the information. Number 720 CON MURRAY, DIRECTOR, DIVISION OF TOURISM, stated the Division's mission was to cooperate with public and private organizations to promote tourism and to coordinate with public and private agencies to develop and promote in-state attractions consistent with community values. Mr. Murray further described the Division's role as to attract and assist prospective investors in Alaska tourism. MR. MURRAY said the Division had one other very important function that was not covered in statute, which was to administer a very aggressive and innovative film program. MR. MURRAY also assisted the Alaska Tourism Marketing Council in their statutorily mandated duties. He said the Alaska Tourism Marketing Council duties are to work with the private sector in developing and carrying out a cooperative advertizing program aimed at generating tourism in the domestic market. MR. MURRAY described the locations of the Division's overseas offices and outlined his plans to ask for funding in next year's budget for an office in the United Kingdom. CHAIRMAN HUDSON expressed concern that the Division does not use its resources to promote the marine highway system. Chairman Hudson asked that the Division look closely at this issue and get back to the committee. Number 860 MARY PIGNALBERI, DIVISION OF TOURISM, FILM LIBRARY, outlined the upcoming film projects to be produced in Alaska including: 1) Warner Brothers in conjunction with Steven Seigal is looking at doing a feature film here; 2) Castlerock, with Rob Reiner directing, will be doing a small portion of another feature; 3) a co-production between France and England will be coming up to scout for locations for a feature film by Esther Sharpiro entertainment; 4) Christopher Lambert will be scouting for locations for a big project he will direct and star in; and 5) Mark Russell will do a comedy special from Alaska this summer. COMMISSIONER FUHS noted that in the committee's packet there was a six page document that would serve as a report card on the Department. Number 940 REP. MENARD inquired if the contributions from the private sector had been kept up-to-date. MR. MURRAY responded that the contributions were up-to-date. CHAIRMAN HUDSON commented that it was his hope to make government more of an asset than a liability. CHAIRMAN HUDSON adjourned the meeting at 4:16 p.m.