Legislature(2009 - 2010)BARNES 124

04/05/2010 01:00 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 416 PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS TELECONFERENCED
Moved Out of Committee
+ HCR 21 ECONOMIC DEVELOPMENT PLANNING COMMISSION TELECONFERENCED
Heard & Held
+ HB 389 COMMERCIAL FISHING LOAN ACT TELECONFERENCED
Heard & Held
+ SB 269 ECON. STIMULUS BONDS: REALLOCATION/WAIVER TELECONFERENCED
Moved Out of Committee
+ SB 272 RENTAL CAR CHARGES TELECONFERENCED
Moved Out of Committee
        HCR 21-ECONOMIC DEVELOPMENT PLANNING COMMISSION                                                                     
                                                                                                                                
1:35:00 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE CONCURRENT RESOLUTION NO. 21,  Creating and relating to the                                                               
Economic Development Planning Commission.   [Before the Committee                                                               
was the CSHCR 21(EDT).]                                                                                                         
                                                                                                                                
1:35:31 PM                                                                                                                    
                                                                                                                                
ROB  EARL,   Staff,  Representative  Bob  Herron,   Alaska  State                                                               
Legislature, introduced  himself.   He explained that  the bill's                                                               
prime  sponsors   are  Representative   Herron  and   Munoz,  but                                                               
commented that  Representative Austerman's  office has  also been                                                               
instrumental in bringing this issue forward.                                                                                    
                                                                                                                                
1:36:00 PM                                                                                                                    
                                                                                                                                
MR. EARL referred to his PowerPoint.   The bill would create a 10                                                               
member  Economic Development  Planning Commission  (EDPC) in  the                                                               
legislative branch [slide 2].  The  EDPC would act as a bridge to                                                               
synthesize ideas  and make policy  recommendations and  any draft                                                               
legislation necessary for the legislature  to consider.  The EDPC                                                               
would report to  the Legislative Budget and  Audit Committee, the                                                               
Governor,  and Legislative  Council.   The bill  would sunset  on                                                               
June 30, 2012.                                                                                                                  
                                                                                                                                
1:36:49 PM                                                                                                                    
                                                                                                                                
ERIN  HARRINGTON, Staff,  Representative  Alan Austerman,  Alaska                                                               
State Legislature,  reiterated that the  purpose of HCR 21  is to                                                               
integrate  the  legislature into  some  of  the ongoing  economic                                                               
development  planning processes.   She  referred to  a report  by                                                               
Alaska Forward, which was sent to legislators.                                                                                  
                                                                                                                                
MS. HARRINGTON  explained that  this effort has  been led  by the                                                               
Alaska  Partnership   for  Economic  Development,  which   is  an                                                               
umbrella   organization   representing    the   Alaska   Regional                                                               
Development   Organizations    (ARDORs)   [slide   3].       Many                                                               
organizations have  been involved  in the process,  including the                                                               
Alaska  State Chamber  of Commerce.   Alaska  Forward received  a                                                               
$500,000  grant  from  the  Denali Commission  for  its  Phase  I                                                               
effort.  Alaska  Forward is currently working on  funding for its                                                               
Phase  II   tasks,  which  will  likely   result  in  substantive                                                               
recommendations in  the spring.   Another ongoing process  is the                                                               
Governor's  Legacy  initiative,  which   was  established  by  an                                                               
administrative  order  from  the   Palin  Administration.    This                                                               
project is  "morphing" under the  current governor to  align with                                                               
the Alaska Forward  efforts as well as working in  a "work group"                                                               
effort that has resulted in significant work products.                                                                          
                                                                                                                                
MS.  HARRINGTON related  that numerous  entities are  involved in                                                               
effort  directed at  long-term,  strategic  planning included  in                                                               
"Alaska's Economic  Development 'System'" [slide 4].   This slide                                                               
identified  some  of  the  different  organizations  involved  in                                                               
economic  development efforts  at the  state, regional,  borough,                                                               
and   municipal  levels.     Not   all  organizations   have  the                                                               
opportunity to work with the legislature, she stated                                                                            
                                                                                                                                
1:39:01 PM                                                                                                                    
                                                                                                                                
MS.  HARRINGTON asked  the  question,  "Is there  a  need for  an                                                               
Economic  Development  Planning  Commission?  [slide  5]."    The                                                               
ongoing  economic  development  efforts represent  a  significant                                                               
investment of effort  and financial resources by  Alaskans.  This                                                               
commission gives  the legislature  the opportunity to  be engaged                                                               
throughout  the  process,  which ensures  legislative  action  is                                                               
informed by private  sector participation.  The  EDPC responds to                                                               
identified   shortcomings   in  previous   economic   development                                                               
efforts.   In reviewing and  researching economic  development in                                                               
Alaska, it was  found that in some cases  when legislature action                                                               
was  needed,  the  legislature  had not  had  an  opportunity  to                                                               
proactively participate in some of the processes.                                                                               
                                                                                                                                
1:40:57 PM                                                                                                                    
                                                                                                                                
MS. HARRINGTON  listed the kinds of  opportunities the commission                                                               
may identify  such as:  financial tools  that need  to be  set in                                                               
place  by   statutory  action;  targeting   industry  "clusters";                                                               
preparing the  legislature in advance  of the session  to address                                                               
the  needs of  economic development  organizations; restructuring                                                               
of departments that relate to economic development [slide 6].                                                                   
                                                                                                                                
1:41:25 PM                                                                                                                    
                                                                                                                                
MR.  EARL  presented slide  7,  which  displayed the  appointment                                                               
authority for the  membership of the commission.   He pointed out                                                               
that eight  legislators would appoint  six public  members, which                                                               
he   hoped   would   lead  to   a   diversity   of   geographical                                                               
representation,  experience, and  industry  representation.   The                                                               
commissioners  of  the  Department   of  Commerce,  Community,  &                                                               
Economic  Development  (DCCED)  and  the Department  of  Labor  &                                                               
Workforce  Development (DLWD)  are  appointed automatically,  and                                                               
are ex officio, non-voting members.                                                                                             
                                                                                                                                
1:41:56 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked whether the  House Labor and Commerce Committee                                                               
chair has appointment authority.                                                                                                
                                                                                                                                
MR. EARL answered no.                                                                                                           
                                                                                                                                
1:42:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON asked  which appointment would represent                                                               
Interior Alaska.                                                                                                                
                                                                                                                                
MS. HARRINGTON  responded that the  EDPC does not  currently have                                                               
geographic definitions for the appointments.   She explained that                                                               
with the Finance Co-Chairs of  both bodies, the Senate President,                                                               
the  House Speaker,  and the  House and  Senate Minority  Leaders                                                               
making appointments;  the hope  is to achieve  diversity.   As it                                                               
currently stands, there  is not any geographic  definition of the                                                               
membership.                                                                                                                     
                                                                                                                                
1:42:48 PM                                                                                                                    
                                                                                                                                
MR.  EARL continued.    He discussed  a timeline  for  HCR 21  as                                                               
follows: March,  2010, Alaska Forward  Phase I Report;  April 30,                                                               
2010,  or  when  members  are appointed,  whichever  is  earlier,                                                               
commission  begins  work;  January 30,  2011,  first  legislative                                                               
report  deadline;  2011  (tentative),  Alaska  Forward  Phase  II                                                               
report;  December  15, 2011,  second  report  deadline; June  30,                                                               
2012, sunset [slide 8].                                                                                                         
                                                                                                                                
1:43:48 PM                                                                                                                    
                                                                                                                                
MR. EARL observed there is  a consensus in the business community                                                               
that  there  is   a  "lack  of  cohesive   thinking  on  economic                                                               
development  in  Alaska"  [slide   9].    The  Alaska  Industrial                                                               
Development  &  Export  Authority (AIDEA)'s  Strategic  Plan  was                                                               
released  this spring,  the Alaska  Forward's  Phase I  Executive                                                               
Summary, and the  Alaska State Chamber of  Commerce 2010 Position                                                               
Paper all mention the lack of statewide planning.                                                                               
                                                                                                                                
1:44:25 PM                                                                                                                    
                                                                                                                                
MR. EARL reviewed the documents  provided in the committee packet                                                               
[slide  10].   He  referred  to  a Legislative  Research  Report:                                                               
Alaska  Economic  Development Organizations  that  Representative                                                               
Herron's office  recently ordered.   Additionally, Representative                                                               
Austerman has  developed a website  with an  Economic Development                                                               
Library that he characterized as worthwhile.                                                                                    
                                                                                                                                
1:44:54 PM                                                                                                                    
                                                                                                                                
MR.  EARL discussed  a breakdown  of the  fiscal note:   $130,000                                                               
total;  $108,000  for  commission   staff;  $11,000  for  travel;                                                               
$11,000 for  per diem [slide  11].   The fiscal note  was written                                                               
under the following assumptions:   three meetings require travel;                                                               
one Anchorage  meeting and two  Fairbanks meetings; per  diem for                                                               
two days  per travel meeting; three  Anchorage-based members, one                                                               
Fairbanks-based member.                                                                                                         
                                                                                                                                
1:45:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  asked  for the  bill's  purpose.   She                                                               
related her understanding that Alaska  already has ARDORs working                                                               
together on economic development.                                                                                               
                                                                                                                                
1:45:47 PM                                                                                                                    
                                                                                                                                
MS.  HARRINGTON responded  that this  organization does  not have                                                               
any membership from  the ARDORs.  This  proposed commission would                                                               
be comprised of  legislators and private sector  membership.  The                                                               
goal  of  the   proposed  commission  will  be   to  develop  the                                                               
legislative actions that result  from recommendations of a number                                                               
of  processes.   This would  allow the  legislature to  engage in                                                               
these processes  proactively and make recommendations  that could                                                               
be  implemented   through  the  legislative   process,  including                                                               
department  restructuring   if  that   would  be  deemed   to  be                                                               
appropriate.                                                                                                                    
                                                                                                                                
1:46:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T.  WILSON asked who  in the administration  is in                                                               
charge of economic development.                                                                                                 
                                                                                                                                
MS. HARRINGTON answered the Department  of Commerce, Community, &                                                               
Economic Development (DCCED) works  on economic development.  She                                                               
provided some  background information.   Representative Austerman                                                               
chairs  the DCCED  Finance Subcommittee.   During  the course  of                                                               
reviewing  the department  through  his  subcommittee's work,  it                                                               
came  to  his  attention  that inadequate  resources  were  being                                                               
applied to economic  development, with only about  a dozen people                                                               
dedicated to economic development.   During the interim he worked                                                               
with  the Department  of  Labor &  Workforce  Development CRA  to                                                               
increase that  effort.  Thus,  the EDPC is one  recommendation to                                                               
proactively assist with economic development in the state.                                                                      
                                                                                                                                
1:47:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  agreed 100  percent with  knowledge of                                                               
economic development in the state.   She related her concern with                                                               
the political aspect.  She  shared an additional concern that the                                                               
ARDORs,  such as  the one  in Fairbanks,  are not  being utilized                                                               
instead of looking for other recommendations.                                                                                   
                                                                                                                                
1:48:42 PM                                                                                                                    
                                                                                                                                
MS. HARRINGTON explained that the  12 ARDORs in the state receive                                                               
less  than  $60,000 annually  from  the  state.   Ones  that  are                                                               
located in  larger communities  have been able  to draw  on other                                                               
resources, she  stated.   However, a number  of them  only employ                                                               
part-time  staff to  cover significant  geographical areas.   She                                                               
explained that the  ARDORS work with different  resources and are                                                               
not equipped to  draft legislation to implement the  ideas.  This                                                               
commission would be  able to draw on the  legislator resources to                                                               
work  to  implement the  recommendations  made  by the  volunteer                                                               
organization.                                                                                                                   
                                                                                                                                
1:50:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN offered that  all legislative members support                                                               
economic  development.   He thought  it seems  like just  another                                                               
organization.  He  said he can already speak to  anyone who wants                                                               
to   work  on   economic  development   issues  and   many  group                                                               
representatives currently  approach him  with ideas.   He related                                                               
that the  legislature already  has a  House Special  Committee on                                                               
Economic Development,  Trade, and Tourism.   He asked if  this is                                                               
actually  the  EDT  committee's   role  and  wondered  about  the                                                               
necessity  of  a  commission  sharing  the  same  goal  as  other                                                               
committees.                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN asked whether it  is necessary to enhance the                                                               
stage for economic development.   He related that the fiscal note                                                               
is $130,000 for two years, which  is a lot of money for something                                                               
that is already being done.                                                                                                     
                                                                                                                                
REPRESENTATIVE HOLMES agreed.   She offered that  this bill would                                                               
create a  group, with one  staff, comprised of unpaid  people and                                                               
the  volunteers  that  would  meet  three  times  a  year.    The                                                               
volunteers  would  have  outside  jobs.    She  stated  that  she                                                               
appreciates the idea of legislature's  involvement and thinks the                                                               
concept  is great.    However,  she is  worried  this bill  would                                                               
create one  more group  that would  "talk a  little bit"  but she                                                               
offered  that  she was  not  convinced  the commission's  efforts                                                               
would result in a product.                                                                                                      
                                                                                                                                
1:53:53 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON related  that he  did not  intend to  move the  bill                                                               
today.                                                                                                                          
                                                                                                                                
1:54:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES  made  a  motion  to  adopt  Amendment  1,                                                               
labeled 26-LS1446\P.1, Cook, 3/30/10, which read, as follows:                                                                   
                                                                                                                                
     Page 2, line 30, following "designee":                                                                                     
          Insert ";                                                                                                             
               (11)      the   president   of   the   Alaska                                                                    
    Partnership   for   Economic    Development,   or   the                                                                     
     president's designee"                                                                                                      
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
1:54:29 PM                                                                                                                    
                                                                                                                                
MR.  EARL  offered  his  belief  that  president  of  the  Alaska                                                               
Partnership  for Economic  Development would  serve the  proposed                                                               
commission well.                                                                                                                
                                                                                                                                
REPRESENTATIVE T. WILSON asked for  clarification that this is to                                                               
add another person instead of  the Commissioner of the Department                                                               
of Labor & Workforce Development.                                                                                               
                                                                                                                                
MR.  EARL  answered  this  would be  another  person  that  would                                                               
automatically be added to serve on the proposed commission.                                                                     
                                                                                                                                
REPRESENTATIVE HOLMES  assumed the goal was  to further integrate                                                               
ongoing efforts.                                                                                                                
                                                                                                                                
MR. EARL  agreed.  He  stated that this addition  would integrate                                                               
the  work   performed  by  Alaska   Forward  with   the  proposed                                                               
commission.                                                                                                                     
                                                                                                                                
1:55:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  asked whether  the Alaska  Partnership                                                               
for Economic Development is a public or private group.                                                                          
                                                                                                                                
MS. HARRINGTON answered that the  Alaska Partnership for Economic                                                               
Development is  the umbrella organization  formed by ARDORs.   Up                                                               
until the  formation of this group,  the ARDORs did not  have any                                                               
opportunity to  meet and discuss  work.  This bill  would provide                                                               
that ability.   The Alaska  Partnership for  Economic Development                                                               
funds the Alaska Forward project.                                                                                               
                                                                                                                                
CHAIR OLSON removed his objection.                                                                                              
                                                                                                                                
There being no further objection, Amendment 1 was adopted                                                                       
                                                                                                                                
1:56:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES  made  a  motion  to  adopt  Amendment  2,                                                               
labeled 26-LS1446\P.2, Cook, 3/30/10, which read as follows:                                                                    
                                                                                                                                
     Page 3, line 16:                                                                                                           
          Delete "and to the legislative budget and audit                                                                       
     committee"                                                                                                                 
          Insert ", the Legislative Budget and Audit                                                                            
     Committee, the House Labor and Commerce Committee, and                                                                     
     the Senate Labor and Commerce Committee"                                                                                   
                                                                                                                                
CHAIR OLSON objected.                                                                                                           
                                                                                                                                
MR. EARL  related this  was suggested  by a  member in  the other                                                               
body.  The suggestion was  that the proposed commission report to                                                               
both  of the  Labor and  Commerce Committees  in addition  to the                                                               
Legislative Budget and Audit Committee.                                                                                         
                                                                                                                                
There being no objection, Amendment 2 was adopted.                                                                              
                                                                                                                                
[HCR 21 was held over.]                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
HB416 Supporting Documents-Letter Foreaker Group.pdf HL&C 4/5/2010 1:00:00 PM
HB 416
HB416 Fiscal Note-UA-Sysbra-03-26-10.pdf HL&C 4/5/2010 1:00:00 PM
HB 416
CSHCR21(EDT) Changes from version E.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Draft Amendment P.1 (APED).PDF HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Fiscal Note-LEG-COU-3-29-10.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) ver P.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Draft Amendment P.2 (Report to L&C Committees).PDF HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Legacy outline.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Letters of Support.PDF HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Alaska Forward Project Executive Summary.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Other State Incentives.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 Briefing Paper Economic Development in State Government.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 Economic Development Commission Powerpoint.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
Apr 5 Packet Info.pdf HL&C 4/5/2010 1:00:00 PM
CSHB389(FSH) Fiscal Note.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
CSHB389(FSH) Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
CSHB389(FSH) ver C.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 Changes between ver C and ver S.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 Commercial Fishing Loan Fund Home Page.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 DCCED Statistics for Loan Servicing.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 December 2009 Loan Stats.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 Memo on HB389 to HFSH.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
CSSB269(FIN) ver E.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
HB338-SB269 Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
HB338-SB269 Section Analysis.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
SB269 Fiscal Note-2-1-021010-REV-Y.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
SB269 Fiscal Note-1-2-021010-CED-N.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
HB338-SB269 Supporting Documents Letter-AML 3-3-10.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
SB272 ver A.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Fiscal Note-1-1-022410-LAW-N.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Supporting Documents - Vehicle Licensing Fee Per State.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Supporting Documents - BUSINESSADVISORY re VLF's 083006.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
HB416 Fiscal Note-LAW-CIV-04-02-10.pdf HL&C 4/5/2010 1:00:00 PM
HB 416