FEBRUARY 2013 BUSINESS toBUSINESS Message from the President & CEO: Opportunities, Priorities and Posititons

By Rachael Petro mix. Business can’t do it alone. They need the freedom and pre- Like many who call themselves dictability of public policies that Alaskans, I wasn’t born here. But allow them to do what they do best once here, I stayed. Friends and fam- — create wealth. Wealth that allows ily from the Lower 48 never tire of families to earn a living, wealth that asking why. For me, the answer lies enables Alaskans to take care of their in opportunity, community and envi- neighbors, and wealth that allows us ronment. I’m happy to be an Alaskan, to properly care for our incredibly even if my 16 years here only grants beautiful environment. me “cheechako” status. Membership in the Alaska Chamber I’m hopeful that my two “born- affords Alaska businesses the opportu- here” children prove it. As I see the nity to work together to make Alaska a smiles on my four-year-old’s face, better place to do business. Last fall, and soak up the innocence of my our members adopted dozens of posi- four-month-old’s cooing giggles, I tions that allow the organization to ad- wonder — am I doing all I can to en- vocate for a better policy environment sure they are afforded the blessings for business in Alaska. Topping the of opportunities I have had? priority list for the third year in a row Good job opportunities, healthy at the state level is reforming oil tax communities and environments don’t policies to increase production — and just happen. it’s no exaggeration that we’re all hop- Businesses, and the people behind ing the third time is the charm! them, which make up the Alaska State Members also elevated access to

PHOTO/Fr a n k Fl a v i n Chamber of Commerce and local cham- See President, Page 2 Rachael Petro presents 2013 Legislative Priorities to the attendees. bers around the state are crucial in this Message from the chair: A new mood in Juneau

By Renee Schofield Our Alaska Roundtable Lun- cheon (co-sponsored by the There’s a new mood on the Juneau Chamber) allowed us hill today! to hear from new legislators; I’ve just returned from Ju- where they came from, why they neau where I attended the ran for office and what they Alaska Chamber Legislative hope to achieve in the next (now Fly-In of 2013. If you missed less than) 90 days. I am encour- this Fly-In, you missed one of aged by the enthusiasm and the the largest, if not THE largest, professionalism displayed by of all fly-ins to Juneau. those in attendance. I hope that The Voice of Alaska Business enthusiasm continues when we was clearly heard as get into the guts of over 70 participants oil and gas tax struc- visited with legisla- tures! (Insert tors regarding the Speaking of oil top three positions and gas … It is the and myriad policy top priority of the positions of the Alaska Chamber. Chamber. There’s a The title of our po- refreshing air about sition is “Reform the building that Oil Tax Policy to gives one a sense of Encourage New Oil hope and encourage- Production.” As ment. An attitude Schofield communities around PHOTO/Fr a n k Fl a v i n of rolling up our the state grapple Fly-In Attendees discuss strategy in the State Capitol. sleeves and get to work. That with funding from state and might be due to many new leg- federal sources, it is impera- islators, new offices, new staff tive that we take note that 90 have the opportunity to help The Governor has put forth and play as adults in their home or it might be that constituents percent of our state budget our local communities under- four key principles that we be- state. None of this is possible and associations, along with the comes from oil revenues. stand how oil revenue directly lieve are solid. Number one: without a good piece of legisla- chamber, have sent a message While most of you reading relates to their daily lives. And Be fair to Alaskans. Number tion for oil tax reform. that we’d like to see great things this know these numbers and we must start doing it now, be- two: Encourage new produc- With a rested group of leg- happen this session. Whatever know them well, I think it is fore it is too late. Soon Alaska tion. Number three: Simple. islators, I hope the discussion it is, it feels great! important that we speak with will fall behind California in Number four: Durability. can yield something that we Our visits were well received others in our circles of influ- oil production. BEHIND! The Those things all matter to a can agree on to keep our econ- by most legislators and their ence about their effect on dai- time is now for discussion and small company like mine in omy solid and future building. willingness to listen and provide ly life in Alaska. Does the kin- improvement in the way we Southeast Alaska. I need our I look forward to the next sev- their insight is greatly appreci- dergarten teacher understand conduct oil business in Alas- state to have the ability to at- eral weeks and the opportuni- ated. For those that took the op- the impact to her classroom? ka. From new exploration to tract new businesses and fam- ty to voice my opinion during portunity, thank you. It matters Does the elderly man taking legacy fields, we have to at- ilies to our state. I need my public testimony. I hope you a great deal that you spent time the Alaska Marine Highway to tract and retain those produc- community to have access to will too. Keep an eye out for with some of your constituents, visit his grandchildren under- ers. We must balance the tax funds for schools, roads and the Alaska Chamber Capitol as well as other Alaska business stand the effect on that transit structure to entice production, the ferry system. Notes E-News for committee owners who are part of Alaska’s system? Maybe not. but also provide future income I want my grandchildren to schedules and your chance to economic engine. As business owners, we for our great state. have the ability to live, work let your voice be heard. 1 Page 2 • February 2013 • Business to Business – Alaska State Chamber of Commerce Alaska Chamber meets with 58 of 60 legislators; makes the business community’s priorities known

PHOTO/Fr a n k Fl a v i n PHOTO/Fr a n k Fl a v i n Alaska Chamber Fly-In attendees pause for a group picture before a reception with the Governor Former Representatives Mike Doogan and Ralph Samuels, and Pat Carter speak to Alaska Chamber and First Lady Parnell. members.

Alaska Chamber members spent Gaining Access to Resources. tive impact on businesses large and October 4th at the Egan Center in Jan. 23-24 in the Capitol City During the brief visit, Alaska small across the state. Anchorage, Alaska. The purpose of speaking to legislators about is- Chamber members had the opportu- Alaska Chamber Board Member, the policy forum is to establish leg- sues important to the business nity to meet with 58 legislators. Cory Baggen of Sitka said, “this islative priorities of the organiza- community. The attendees met with “Whether or not we saw eye-to- event was very productive for me, the tion for the upcoming year based on legislators to present the 2013 po- eye, it was great to discuss the con- business community and the legisla- proposals submitted by the general sitions the membership deemed to cerns of the business community tors with whom we met. I look forward membership of the Alaska Chamber. be the most important and high- with those that have chosen to serve to the Fly-In next year and am sure In addition to delivering their lighted by 3 priorities; Reform Oil the citizens of Alaska,” says Alaska that as we move forward the business legislative priorities, the attendees Tax Policy to Encourage New Oil Chamber Chair Renee Schofield. community will develop a positive also heard presentations from for- Production, Reduce the High Cost She went on to point out that many and productive relationship with our mer Alaska Representatives Mike of Energy and Increase Respon- legislators recognize the importance legislators and their staff.” Doogan and Ralph Samuels as well sible Natural Resource Develop- of expanded economic opportunities The 2013 Legislative Priorities as Department of Commerce, Com- ment by Improving the Efficien- in the state and that federal and reg- and Positions were chosen at the an- munity and Economic Development cies of the Permitting Process and ulatory pressures are having a nega- nual Legislative Policy Forum held Commissioner Susan Bell. State Priorities 1. Reform Oil Tax 3. Increase Responsible Policy to Encourage Natural Resource De- New Oil Production velopment by Improv- The Alaska Chamber ing the Efficiencies of encourages the Alaska the Permitting Process State Legislature to adopt and Gaining Access to policies during the 2013 Resources legislative session that ap- ply to current producers The Alaska Chamber and new explorers which supports a significant in- encourages new oil produc- crease in responsible natu- tion in the state. ral resource development and encourages the Alaska 2. Reduce the Cost of State Legislature and ad- Energy ministration to uphold The Alaska Chamber Alaska’s strong regulatory supports initiatives that and permitting laws and lower the cost of energy policies that will facilitate and ensures adequate and additional exploration, site reliable deliverability in development, employment, Alaska including continued infrastructure, research,

support for advancing state and natural resource pro- PHOTO/Fr a n k Fl a v i n renewable energy goals. duction in Alaska. Alaska Chamber members meet with Rep. Pruitt to discuss 2013 policy positions and priorities.

President Continued from Page 1

resources and efficient permitting to in Alaska, but increasing Alaska ener- Typically, being “number one” is a Chamber begins to tackle this impor- priority status. Without continued and gy supplies will certainly assist in sta- good thing, but not when it comes to tant issue. increased access to Alaska’s rich re- bilizing and possibly in low- having the highest workers’ Some paint the desire for Alaska’s sources and a predictable and an effi- ering overall energy costs. compensation rates in the economic future, and supportive poli- cient regulatory process to guide envi- The Alaska Chamber’s three country. cies, as corporate greed. I disagree. I ronmentally sound development a fair 2013 legislative priorities Take a close look a the want to peer into my daughters’ eyes tax regime isn’t even an issue. work collectively to stimu- information in this news- and know that I’m doing all I can to en- In most jurisdictions labor costs are late the economy, create letter about the workers’ sure they’ll have opportunities to live, often cited as the largest cost of doing jobs, and address Alaska’s compensation situation in work and play in Alaska. business, but in many areas of Alas- energy issues. Alaska and what other states There is nothing more important than ka the high cost of energy gives labor While these priorities are have recently done to reduce building the framework upon which fu- costs a literal “run for its money” as essential to Alaska’s eco- rates. Are workers’ compen- ture generations can build successful the highest cost. For this reason, re- nomic future, and must be sation rates impeding the businesses. Such success allows fami- ducing the high cost of energy was also addressed, there are dozens Petro growth of your business? Do lies to earn a living, which in turn en- 2 prioritized a policy objective. of other policies that affect you have ideas for solutions ables us to take care of our neighbors, Economies of scale will always be a Alaska’s business climate. Workers’ that could lead to reduced rates? If so, and allows us to properly care of our challenge for controlling energy costs compensation cost is a great example. we want to hear from you as the Alaska awesome Alaska environment. February 2013 • Business to Business – Alaska State Chamber of Commerce • Page 3 Pacific Northwest Tour Flashback Alaska + Business (in the Pacific Northwest) = Economy Chamber Outreach Trip – May 2-5, 2011 By Cory Baggen of Alaska Chamber member Frank bus, out of the bus, counting noses Alaska State Chamber of Flavin of Flavin Photography. and making sure we were all there. Commerce Board Member, Events The day was rounded out by a The first stop was a tour of Versa- Committee Chairman dinner roundtable event at An- Cold cold storage followed by a visit & Renee Schofield thony’s Homeport Olympia. What to North West Company (the parent Alaska State Chamber of fun we had there! The dinner was company to familiar stores like AC Commerce Board Member, Board sponsored by Holland America Value Centers). Development Chairman and Carlile Transportation Sys- The next stop was the William tems. Guests at the event included Factory Small Business Incuba- What has about 60 legs and Washington State Rep. Jeff Morris, tor for lunch and a briefing on the arms and scrambles around Seattle Ms. Pam Folsom and Kris Johnson, Military Surface Deployment and & Tacoma faster than Alaska Air- Vice President of AWB. Distribution Command (SDDC). Af- lines? If you guessed a contingent Egils Milbergs, the Director of ter lunch, the group moved on to the of folks representing the Alaska the Washington Economic Devel- TOTE facility for an informative tour State Chamber of Commerce (Alas- opment Commission spoke during of their port facility. The day in Ta- ka Chamber), then you are RIGHT! the event about the challenges we coma wrapped up with an interesting The Alaska Chamber’s Pacific all face, whether in Washington or and informative tour of the Museum PHOTO/Fr a n k Fl a v i n Northwest outreach trip took place Alaska, and how they can be miti- of Glass, sponsored by the Port of Ta- Alaska Chamber Members enjoying a Mariner’s game. the first week of May 2011. gated with innovation based on our coma. Then back on the shuttles we On May 3, Alaska Chamber respective and shared resources. went for a quick jump to Seattle. battered cod, which uses beer from around together. The shuttle time, members traveled to Washing- It was a fun time with old friends, Of course, being the fun loving Alaska Chamber member Alaska correction ample shuttle time, gave ton State to represent Alaska and and those just recently met, while group we are, our first stop in Seat- Brewing Company. This is the first us a chance to get to know each other the chamber in a three day sym- working to advance the goals of tle was SafeCo Field for a Mariners time Trident has co-branded a prod- better. It allowed us the opportunity posium. Participants of the event Alaska and Washington. game. Although the Mariners lost to uct with another company. Alaska to develop business relationships met with Washington state legisla- The second day of the symposium the Texas Rangers the event was a fish and Alaska beer — does it get and more importantly develop bonds tors, leaders from the Association started off at the Murano Hotel in Ta- blast. And enjoying the game from better? Two great companies with that transcend business and help to of Washington Business, groups coma with a breakfast hosted by the the SafeCo box, sponsored byLiberty amazing Alaska based products. create a stronger, more cohesive and representing the Tacoma-Pierce Tacoma Chamber of Commerce Alas- Mutual, helped to soften the blow. It After lunch, the symposium effective organization. County Chamber of Commerce and ka Committee. And wouldn’t you know was a perfect way to end the day! continued with a tour of the Port of None of this could have hap- the Seattle Chamber of Commerce. it; the program began with a proclama- The Seattle Chamber Alaska Com- Seattle, including the new cruise pened without the dedication of Members also had the opportunity tion from the City of Tacoma naming mittee kicked off our Thursday morn- ship facility. Following the day of the Alaska Chamber Events Com- to visit several member business May 4, 2011, “Alaska Appreciation ing with a breakfast meeting. Once meetings and tours, several mem- mittee and staff and, of course, the locations during the symposium. Day.” This was followed by presenta- again, Alaska Chamber speakers took bers of the delegation attended a graciousness of the folks of Seattle Throughout the event leaders tions from Alaska Chamber members the podium and shared some of the transportation reception hosted by and Tacoma Chambers. from Washington and Alaska dis- about the Alaska economy and its most economic challenges Alaska faces and Foster, Pepper, PLLC at their offic- Was this worth being away from the cussed how both states can work important business sectors. offered ideas on how Seattle and Wash- es overlooking the Port of Seattle. office? It was! It was worth every min- together to enhance their respective Alaska Department of Commerce, ington can work together to promote During the tours guests and ute away and every penny spent to par- economies. The symposium began Community and Economic Develop- the business interests throughout the hosts were able to share ideas and ticipate! Don’t miss the 2013 Alaska with a meeting with leaders from the ment Deputy Commissioner Curtis Pacific Northwest. Our second quar- provide insight on challenges we Chamber outreach trip, April 30 – May Association of Washington Business Thayer gave an overview of Alaska’s ter board meeting followed breakfast share as a region. Washington folks 2. Sign up early, shuttle seats are lim- (AWB), Washington’s state chamber economic outlook followed by Alas- in the Seattle Chamber of Commerce got to hear from us that we value ited and will sell out quickly. of commerce, at their headquarters ka Chambers members who gave an offices. This is one time you definitely our relationship with them and in Olympia. We learned how AWB overview of Alaska economic sectors wanted to be attending in person rather visa versa. Washington businesses Sold yet? Join us! operates and received many valu- including oil and gas, transportation than calling in. are important to the movement of 2013 PACIFIC able ideas. One thing of note is AWB and seafood, Alaska native corpora- Immediately following the meeting goods and services and people to NORTHWEST TRIP Competitiveness books, which pro- tions, mining and tourism it was off to the shuttles again. If by now and from Alaska and Alaskans re- Date: April 30 – May 2, 2013 vides key indicators of the Washing- The Alaska State Chamber was you haven’t realized how action packed spect the relationship and push for Location: NW Washington ton business climate, an idea Alaska well represented by the speakers, these three days were, keep reading continued growth and development Sign-up online at should consider emulating. each giving their perspective on and you will understand. of that relationship. AlaskaChamber.com Following the meeting with the why Alaska and Tacoma are im- Trident Seafoods representatives The Pacific Northwest Sympo- For more information AWB, the group went to the Wash- portant to each other. took participants on a tour of their sium fostered future growth between contact Ryan Makinster at ington State Capitol for a tour cour- After breakfast we hit the road facility, including their cold storage, regions. It was also a great opportu- 907.278.2727 or rmakinster@ tesy of Kip Knudson. The Washing- again for an exciting day of tours and manufacturing plant and test kitchen. nity to brainstorm with other Alaska alaskachamber.com ton State Capitol tour was complete meetings with member businesses in While listening to the presentation of Chamber members as we traveled with a visit to the Senate floor and a Tacoma. And boy did Alaska Cham- company history, lunch and was pro- photo op on the front stairs, courtesy ber staff keep us hopping! In the vided by Trident. The fish was beer Save The Date! NOW WORKING IN THE FOLLOWING LOCATIONS: Plan To Attend! SEaTTLE aLaSkaN arCTiC kuWaiT NiCaragua EL SEguNdo BoSToN MoBiLE FErNdaLE SEaL BEaCh BELLiNghaM BuSaN MckENziE rivEr PorT aNgELES SaN NiCoLaS iSLaNd dakar LoS aNgELES SiNgaPorE WhiTTiEr aNChoragE PorTLaNd Pacific Northwest Symposium duTCh harBor iraq oLyMPia SEWard NigEria houSToN ENSENada grayS harBor TaMPiCo aNaCorTES Representatives from the Alaska Chamber travel to the Pacific LoNg BEaCh BrEMErToN SaCraMENTo NEah Bay Northwest to strengthen relationships with organizations, individu- vaNCouvEr, B.C. uLSaN als and businesses that are closely linked to Alaska through our aSToria TaCoMa shared economies and trade. LoNgviEW WakE iSLaNd Seattle & Tacoma, Washington vaLdEz LEWiSToN April 30-May 2, 2013 PuErTo PEÑaSCo aNgoLa raiNiEr SaN CLEMENTE iSLaNd SaN diEgo kaLaMa BENiCia CooS Bay ShaNghai hoNoLuLu FrEEPorT Outreach Trip SaN FraNCiSCo vaNCouvEr, Wa BuENoS airES SakhaLiN iSLaNd oakLaNd riChMoNd MarTiNEz ST. JohN MiSSiSSiPPi aFriCa adak Seward, Alaska hoMEr SToCkToN PorT CLarENCE PorT huENEME NarragaNSETT Bay July 9-10, 2013

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AK State Chamber of Commerce Quarterly / Business to Business Quarterly Newsletter

“NOW WORKING...”

3 col. x 5”Ad

2/17/13 Issue Page 4 • February 2013 • Business to Business – Alaska State Chamber of Commerce Join the discussion concerning Alaska Workers’ Compensation costs

By Fred Brown associated with medical treatment for injured workers. ber 2012 meeting, the Board heard testimony that as medi- “We are number One!” Moreover, Alaska’s workers’ compensation medical costs cal costs continue to rise, cost shifting against providers of Fans yell this chant for a championship team. It is also far exceed the average costs compared to our neighboring injured worker coverage is becoming more frequent. the claim we want to make on behalf of Alaska’s business states. For example, according to a 2011 Milliman report Those Board members present unanimously endorsed a climate. Unfortunately, this is the infamous title we can cor- prepared for the Alaska Health Care Commission, Alaska’s resolution asking the legislature to give the Board authority rectly assign to Alaska’s workers’ compensation premium workers’ compensation physician reimbursement rate is a to control medical fees through the regulatory process. Spe- rates, as compared to the rest of the United States. whopping 190 percent of the regional average. cifically, the resolution states, “The Alaska Workers’ Com- Gov. Sean Parnell acknowledged this unenviable position Currently, the only existing substantive measure to control pensation Board fully supports repealing and readopting sec- when he met with participants of the Alaska State Chamber’s Alaska’s rising workers’ compensation medical costs is the “usual, tion 23.30.097(a) of the Alaska Workers’ Compensation Act legislative fly-in Jan. 23-24. customary and reasonable” (UCR) standard established under AS to provide that all fees and charges for medical treatment be “We need to address the problem of high workers’ com- 23.30.097(a) of the Alaska Workers’ Compensation Act. subject to regulation by the Board.” pensation costs, as soon as we deal with the oil tax issue,” the Susan Bell, Commissioner of the Department of Commerce, It remains to be seen whether consensus can be reach as to governor said. “Meanwhile, I hope Alaska Chamber mem- Community and Economic Development, told Alaska State how to deal with Alaska’s rising workers’ compensation medical bers will start the discussion.” Chamber Legislative fly-in participants that she and Labor and costs, and the nature of any associated legislation that may be Members of the Alaska State Chamber’s Legislative Affairs Workforce Development Commissioner Dianne Blumer are introduced. It is undisputed, however, that changes in the cur- subcommittee on workers’ compensation have been meeting working to identify other strategies to lower Alaska’s workers’ rent system must be made and Alaska’s number-one ranking be since the summer 2012 with representatives of insurers, em- compensation premium rates. For example, Commissioner Bell addressed in order for Alaska to be able to compete with other ployers, organized labor and the Alaska Department of Labor said the administration is reviewing recommendations contained states in attracting business to the state. and Workforce Development, in an effort to reach consensus as in a 2009 report prepared by the Alaska Workers’ Compensa- Join the discussion. to how to address Alaska’s high premium rates. All participants tion Medical Services Review Committee (MSRC). For more information, Chamber members may obtain copies agree that the primary driver of Alaska’s workers’ compensation The MSRC’s recommendations included switching from a of the documents described in this article through the Alaska premium rate increases is rising medical costs. UCR-based fee schedule to a “resource based relative value State Chamber office, or from members of the Chamber’s Legis- A generation ago, a majority of Alaska’s workers’ compen- scale” (RBRVS) fee schedule for physicians, implementing lative Affairs subcommittee on workers’ compensation. sation costs were related to payments of indemnity benefits to separate conversion factors for medical practice areas, and Fred Brown is Executive Director of Health Care Cost Management injured workers. Today, however, Alaska’s premium rates have implementing medical treatment guidelines. Corporation of Alaska and a member of the Alaska State Chamber’s been overwhelmed by medical costs. According to the Alaska Additionally, members of the Alaska Workers’ Compen- Legislative Affairs subcommittee on workers’ compensation. Fred Division of Workers’ Compensation 2011 annual report, 62 per- sation Board are attempting to address the impact that rising is an attorney and former Workers’ Compensation Hearing Officer cent of Alaska’s workers’ compensation benefits provided are medical costs are imposing on the system. During its Decem- and can be reached at [email protected]. Alaska State Chamber of Commerce Board of Directors

Renee Schofield, Chair Chris Gerondale Andrew Teuber Cheryle James TSS, Inc Construction Machinery Industrial, LLC Kodiak Area Native Association Cooper Landing Chamber of Commerce District A Appointed At Large Local Chamber Member Cory Baggen, Vice Chair Dave MacDowell Ann Ringstad Jennifer Gibbins Samson Tug & Barge BP Exploration (Alaska) University of Alaska Fairbanks Cordova Chamber of Commerce At Large Appointed At Large Local Chamber Member Allen Hippler, Secretary/Treasurer Dee Dee Kay Gregory J Galik Eileen Herman Faulkner Walsh Constructors CIRI Alaska Tourism, Inc. Alaska Brands Group LLC Delta Chamber of Commerce District S Appointed At Large Local Chamber Member Brad Osborne, Chair Elect James Johnsen Kim Reitmeier Russell Dick NANA Development Corp., Inc. Alaska Communications ANCSA Regional Association Sealaska Corporation District T Appointed At Large District C Caroline Higgins, Past Chair Jason Brune Marilyn Romano Jeff Cook Totem Ocean Trailer Express, Inc. Anglo American US LLC Alaska Airlines Flint Hills Resources Appointed Appointed At Large District D Darren Franz Jeff Lentfer Gerad Godfrey Jack B Wilbur Jr. Wells Fargo Bank Alaska Midas Alaska Afognak Native Corporation Design Alaska Appointed Appointed At Large District E Bill Bishop Joe Hegna Portia C Babcock Margaret Russell Alaska Communications URS Corporation ConocoPhillips Alaska, Inc. Seekins Ford Lincoln Appointed Appointed At Large District F Bill Brackin Ralph Samuels Ina L Mueller Hal Ingalls ExxonMobil Holland America Big Lake Chamber of Commerce Denali Drilling, Inc. Appointed Appointed Local Chamber Member District G Casey Sullivan Scott Hawkins Rebecca Hamon Larry J Cooper Pioneer Natural Resources Alaska, Inc. Advanced Supply Chain Integrators Bristol Bay Borough Chamber of Commerce Cooper & Associates, LLC Appointed Appointed Local Chamber Member District I Catherine Claxton James W Mendenhall Michael Melielo Annette Sheppard Northrim Bank James W. Mendenhall, P.E. Chugiak-Eagle River Chamber of Commerce Carlile Transportation Systems 4 Appointed At Large Local Chamber Member District J Business to Business is a quarterly publication publication of the Alaska State Chamber of Commerce. Visit us on the Web at www.alaskachamber.com. February 2013 • Business to Business – Alaska State Chamber of Commerce • Page 5

What can Alaska learn from Montana on workers’ comp costs?

By Gary Strannigan Democratic Gov. Brian Sch- Assistant Vice President, Liberty weitzer assembled a package of Mutual Group reforms that the National Coun- cil of Compensation Insurers Okay, so it’s not really the estimated would reduce work- kind of thing we should raise a ers’ compensation premiums 20 huzzah for. Alaska is, once again, to 44 percent. No. 1. Only in this case, it’s a bad And it has worked. Liberty thing. If we were talking about a Northwest was planning to re- golf tournament, Alaska would quest a 12 percent average pre- receive the “flying divot award” mium increase in July 2011 due for worst score. to adverse cost trends. Instead, as The industry bible for com- a direct consequence of HB 334, parative workers’ compensa- LNW submitted a 20 percent re- tion data is the biennial Oregon duction. Now, with the release of Study. The 2010 edition listed the 2012 edition of the Oregon Montana as the most expensive Study, Montana has fallen from state in the nation for workers’ its perch at No. 1, all the way compensation insurance. How- down to No. 8. You guessed it: ever, in 2011, after a few years Alaska is now ensconced as the invested in arriving at an agree- No. 1 most costly workers’ com- able compromise, the Montana pensation state in the country. legislature enacted HB 334. In Two questions come to mind: a bipartisan effort, the GOP ma- jority legislature working with See Workers, Page 6 Alaska State Chamber of Commerce Board of Directors

Cheryle James Matt Gill Karen Hess Phil Woare Cooper Landing Chamber of Commerce Tesoro Alaska Company Chilkat River Adventures, Inc. Seattle Metropolitan Chamber of Commerce Local Chamber Member District K Local Chamber Member Local Chamber Member Jennifer Gibbins Wendy Lindskoog Kelly Shattuck Ian McGaughey Cordova Chamber of Commerce Alaska Railroad Corporation Shattuck & Grummett Seldovia Chamber of Commerce Local Chamber Member District L Juneau Chamber Local Chamber Member Eileen Herman Michelle Egan Robert T Peterkin Deborah Altermatt Delta Chamber of Commerce Alyeska Pipeline Service Company Kenai Chamber of Commerce & Visitor Center Seward Chamber of Commerce Local Chamber Member District M Local Chamber Member Local Chamber Member Russell Dick Evy Gebhardt Doug Ward Ptarmica McConnell Sealaska Corporation Morris Alaska Media Alaska Ship & Drydock, Inc. Shee Atika, Incorporated District C District N Ketchikan Chamber Sitka Chamber Jeff Cook Nance Larsen Greg Deal Ryan Kapp Flint Hills Resources Pebble Limited Partnership Kodiak Chamber of Commerce Greater Soldotna Chamber of Commerce District D District O Local Chamber Member Local Chamber Member Jack B Wilbur Jr. Mary Ann Pease Richard Beneville Karen Matthias Design Alaska MAP Consulting Nome Chamber of Commerce Matthias Consulting District E District P Local Chamber Member Tacoma Chamber of Commerce Margaret Russell Lisa Parker Robert Schreckhise Geri Denkewalter Seekins Ford Lincoln Parker Horn Company North Pole Community Chamber of Commerce Talkeetna Chamber of Commerce District F District Q Local Chamber Member Local Chamber Member Hal Ingalls LaTanya Lee Renata Benett John Rusysniak Denali Drilling, Inc. Girdwood Chamber of Commerce Totem Ocean Trailer Express, Inc. Tok Chamber of Commerce District G Local Chamber Member Outside Chamber Local Chamber Member Larry J Cooper Terri Froese Stu Graham Paula Nance Cooper & Associates, LLC Greater Fairbanks Chamber of Commerce The Alaska Club Greater Wasilla Chamber of Commerce District I Local Chamber Member Palmer Chamber of Commerce Local Chamber Member Annette Sheppard Kelly Bender Janice Bush J.R. Wilcox Carlile Transportation Systems Greater Whittier Chamber of Commerce Prince of Wales Chamber of Commerce Anchorage Chamber of Commerce District J Local Chamber Member Local Chamber Member 5 Business to Business is a quarterly publication publication of the Alaska State Chamber of Commerce. Visit us on the Web at www.alaskachamber.com. Page 6 • February 2013 • Business to Business – Alaska State Chamber of Commerce Support the military… Support the economy By Andy Rogers for Alaskans, and Alaska’s busi- Deputy Director, Alaska Chamber nesses, to express support for our service personnel. The KC-135 Saturday, Jan. 5, at 10:45 a.m. mission was part of an attempt to Alaska Standard Time, I sat in educate Alaska’s employers and to a jump seat beside Chief Master grow these connections. Sergeant Kirk Brinegar, listening Myself, Cochrane and several to Elmendorf’s air traffic control other civic leaders were onboard by chatter on my headset. In the cock- invitation from the 477th Fighter pit ahead of me sat Honorary Com- Group. Be it Fort Wainwright in mander and BP Vice President of Fairbanks, Coast Guard Base Ko- External Affairs Phil Cochrane. diak, or JBER in Anchorage, Alaska Our pilots, Lieutenant Colonel is an appealing assignment for ser- Tom Haley and Lieutenant Casey vice personnel. They want to be in McCormack, called our attention Alaska. They want to work here, to to an F-22 Raptor thundering down raise their families here. They want the runway. The Raptor roared past to enjoy all the aspects that make this us and then we taxied forward, state such fantastic place to live. turned and lifted off into Alaska’s For the reservist, a critical part overcast, winter skies. of Alaskan-life is a good, private- We were onboard an Air National sector job. These are talented Guard, KC-135 Stratotanker out of professionals with a commitment Oklahoma and Demon was the name to serving their communities and of our mission. The KC-135 can their country. Often times, it can carry over 80,000 pounds of fuel and be a challenge for them to connect our job was to refuel the F-22 Rap- with employers who understand tors of Alaska’s own 477th Fighter why they aren’t available to pull Group. The 477th is Alaska’s only extra shifts on weekends. To con- Reserve unit and Air Force Reserve nect with employers who recognize command’s first F-22 unit. We would why they save and scrape together spend the next several hours drilling every vacation day for missions and holes in the sky and refueling Rap- training in service to our country. tors at 28,000 feet. Lying in the belly Alaska Chamber members have of the KC-135, I watched fighter jets identified support of our military as take on fuel just 12 feet away. something that is important to the Let me tell you… the operation, economic health of the state. Are you personnel and equipment were interested in doing your part to start simply impressive. growing that base of support? Con- The military presence in Alaska sider educating yourself on the skills, has enormous economic impact on needs and availability of our Guard our communities and infrastructure in- and Reserve Service members. vestment. For years, Alaska Chamber You can start by contacting James members have adopted a position to Hastings, the ‘job guy’ at Employer Sup- PHOTO/Ai r m a n Fi r s t Cl a s s Jo n a th a n St e ff e n seek community and legislative sup- port of the Guard and Reserve (ESGR). A KC-135 Stratotanker from the Alaska Air National port for Alaska’s military operations. Contact him at james@alaskashealing- Guard 168th Air Refueling Wing refuels a F22 from the However, it’s often difficult hearts.com or (907) 232-1527. 90th Fighter Squadron Elmendorf Air Force Base Alaska.

Workers Continued from Page 5

why is this important? And what did Mon- in 2012; with average costs per worker at pensation system that functions best for priority. Their governors and legislators then tana do to reduce their comp premiums? about half that of Alaska. employers and injured workers with the embraced the reforms. We can do it here, but First, make no mistake; this Second, the new Montana most effective care and most meaningful it is up to the Alaska business community to is a competitiveness issue for law shortens the period in return-to-work outcomes utilizes a com- emphasize the importance of the issue. Alaska. While the Alaska legis- which workers can receive bination of evidence-based treatment Reducing workers’ compensation lature has wrestled with the oil medical benefits and allows guidelines, return-to-work guidelines, costs for Alaska employers is a top com- tax question, Alaska has been employers to specify which direction of care, fee guidelines based on petitiveness issue. Montana and Texas overtaken by North Dakota and doctors they can see and how federal benchmarks, and an effective and have demonstrated that meaningful re- Texas as the top oil producing well those doctors are com- streamlined dispute resolution mecha- forms can be achieved. states. According to the 2012 pensated. If an employee is nism. While the details of any such plan Upon conclusion of the oil tax debates Oregon Study, North Dakota injured on a break while away can make or break the system, these are this legislative session, Gov. Parnell is the least expensive workers from the workplace, the em- the broad brushstrokes that we must start should waste no time and begin assem- comp state in the country with ployer is no longer likely to with in order to improve the state’s bro- bling a series of workers’ compensation average premiums merely 1/3 be on the hook for lost wages ken workers’ compensation system. reform recommendations for consideration Strannigan that of Alaska’s. Texas, hav- and medical expenses. In both Texas and Montana, reform of and enactment by the 2014 legislature. ing also enacted comp reforms, Based on what we learned their broken workers’ compensation systems Or perhaps Alaska will repeat as number has fallen on the Oregon Study list from from both the Texas and Montana re- was achieved because the business commu- one. Alaskan employers and workers alike No. 12 in 2010 all the way down to No. 38 forms we know this: a workers’ com- nity united behind this singular legislative should join me in hoping not. Alaska State Chamber of Commerce Staff Visit us on Headquarters: President/CEO...... Rachael Petro 471 W 36th Ave, Suite 201 ...... [email protected] Anchorage, AK 99503 P. 907.278.2722 Deputy Director...... Andy Rogers F. 907.278.6643 the Web at ...... [email protected] Juneau Office: Communications and 9301 Glacier Hwy, Suite 110 Events Director...... Ryan Makinster Juneau, AK 99801 www.alaska ...... [email protected] Membership Email: [email protected] Representative...... Al Cramer www.alaskachamber.com 6 ...... [email protected] chamber.com Business to Business is a quarterly publication publication of the Alaska State Chamber of Commerce. February 2013 • Business to Business – Alaska State Chamber of Commerce • Page 7 Welcome New Members

Kahtnuht’ana Dena’ina peo- ple have inhabited the Kenai Black Gold Oilfield Services Peninsula since time immemo- 615 Bidwill Ave. rial. Today, Kenaitze Indian 811 ALASKA DIGLINE INC. Suite 103 Tribe is federally recognized 11901 Business Blvd. Fairbanks, AK 99701 Denali Alaskan under the Indian Reorgani- Suite 101 (907) 374-9300 Federal Credit Union zation Act as a sovereign in- Eagle River, AK 99577 http://www.blackgold 440 E. 36th Avenue FSBO System LLC dependent nation. Many of (907) 279-1122 lodging.com Anchorage, AK 99503 280 W 34th Ave the Tribe’s more than 1,400 http://www.akonecall.com (907) 257-7213 Anchorage, AK 99503 members still live on the Ke- Black Gold Oilfield Services http://denalfcu.com (907) 561-3726 nai Peninsula and in Anchor- 811 Alaska Digline is Alaska’s supplies turn-key temporary work- age, while others live through- “Call Before You Dig” Center for force housing, specializing in re- Denali Alaskan has been a part- FSBO System is all the out Alaska and as far away as excavation safety. Whether you mote areas and extreme weather ner in developing Alaskans’ finan- help you need to sell your New York, Florida, Texas and are a do-it-yourselfer planning a conditions. cial success since 1948. The Cred- home and save the commis- California. During its annual weekend project or a professional Services offered include: Camp it Union offers a complete suite sion. ™ In Anchorage since meetings, the Tribe elects excavator contracted for projects leasing, Construction, Catering, of services, including traditional 1995, we’ve recently created the members of its Executive big or small, one phone call to Housekeeping, Maintenance, and banking services such as loans, a web-based tutorial and oth- Council to serve staggered 811 will get the 811 Member un- Security. savings and checking, as well as er materials for use by any- two-year terms and govern the derground utility lines marked for home loans, investment services one in North America, and Tribe in accordance with the free. Marked utility lines show CBS Southeast/ and personal & commercial insur- this winter we’re expanding Tribe’s Constitution, By-Laws, you the approximate location of KDMD Alaska ance. Denali Alaskan’s 18 branch- with a new office in Denver. Ordinances and Resolutions. underground lines so you know 1310 E. 66th Avenue es are located in Anchorage, Eagle The Council appoints a Chief where not to dig. This helps pre- Anchorage, AK 99518 River, Fairbanks, Juneau, Kenai Kenaitze Indian Tribe Tribal Judge who oversees vent injury, service disruptions, (907) 562-5363 and Wasilla. We also serve mem- PO Box 988 the Tribal Court and upholds costly fines and repairs. It’s free. http://www.kdmd.tv/ bers across the state and around Kenai, AK 99611 Tribal law. The Council also It’s easy. It’s for your safety. Call home.htm the world via personal computer (907) 335-7200 811 before you dig. banking and mobile banking. http://kenaitze.org See New Members, Page 8

Alaska Interstate Construction PO Box 233769 Anchorage, AK 99523 (907) 562-2792 http://www.aicllc.com

From innovative concepts to construction projects, our record of excellence spans over two decades and includes many never-been- done-before techniques.

We apply our knowledge and in- novative concepts to develop your projects and add value to your busi- ness. Our company has a reputation for taking an impossible idea and making it an accomplished fact.

We provide engineering support, pre-project planning and practical, cost effective construction solutions. By working closely with our clients we can, and do, reduce development costs significantly.

Alaska Sealife Center PO Box 1329 Seward, AK 99664 (907) 224-6300 http://www.alaskasealife.org

The Alaska SeaLife Center is the only facility in Alaska that combines a public aquarium with marine research and education, and wildlife rescue and rehabilita- tion. The Center lies at “Mile 0” of the scenic Seward Highway on the shores of Resurrection Bay. Visitors have close encounters with puffins, octopus, sea lions and other marine life while learn- ing about the work our researchers are conduction in the field and in our laboratories. The staff and vol- unteers at the Alaska SeaLife Cen- ter work towards the common goal of connecting people to Alaskan ocean ecosystems.

Arni Thomson 720 M Street #101 Anchorage, AK 99501 7 (907) 929-0388 Page 8 • February 2013 • Business to Business – Alaska State Chamber of Commerce

New Members Continued from Page 7

appoints an Executive Direc- Anchorage, AK 99501 We’re dedicated to just one Ucore Rare Metals Inc. is tor, who implements estab- (907) 276-1818 thing: moving freight to Alaska a development-phase mining lished Council policies and http://rowandecorators.com for our customers — and doing company focused on estab- procedures and is responsible it better than anyone else in the lishing rare metal resources for the day-to-day operations Rowan Pacific Rim Decora- industry. with near term production that enhance and support the tors are the premier source for Alaska is oceans away from potential. With multiple proj- continued growth and success all of your trade show or spe- ordinary transportation chal- ects across North America, of the Tribe. cial event decoration needs. We lenges. Mountain ranges, high Ucore’s primary focus is the have a wide assortment of inven- seas and sheer distance com- 100% owned Bokan – Dot- Kiska Metals DBA tory and equipment; allowing us Shoreside Petroleum bine to make getting freight to son Ridge REE property in Geoinformatics Alaska to service a variety of functions. 6401 Lake Otis Parkway the Last Frontier a complicated Alaska. The Bokan – Dotson Exploration Inc. We are confident sure that you Anchorage, AK 99507 matter. Unless of course, you Ridge REE project is locat- 29945 Aspen Lane will find our friendly and reli- (907) 561-3511 ship with Span Alaska. ed 60 km southwest of Ket- Sterling, AK 99673 able services to be top notch http://shoresidepetroleum.com Our people know Alaska. chikan, Alaska and 140 km (907) 260-3083 and we look forward to being We’ve focused exclusively on the northwest of Prince Rupert, http://kiskametals.com there for your next event. Have Shoreside Petroleum is an Alaska freight market for nearly British Columbia and has di- a look below to learn a little Alaskan owned Fuel and Lubri- three decades now and we know rect ocean access to the west- Kiska Metals Corporation more about us. We own our fleet cants Distributor committed to it better than anyone else in the ern seaboard and the Pacific (TSX.V: KSK) is a well diver- of trucks and warehouse to bet- supplying its diverse customer industry. We’ve developed effec- Rim, a significant advantage sified, exploration company ter serve you. Rowan has its own base with a full array of pe- tive systems. We’ve cultivated in developing near term pro- with renowned technical exper- 18,000 square foot warehouse. troleum products and services key relationships. And we always duction facilities and limit- tise and a sizeable exploration supported by the very best in serve our customers with inno- ing the capital costs associ- portfolio in the USA, Australia, Salmon Berry Tours customer service. vative solutions and a steadfast ated with mine construction. and Canada. Kiska Metals has 515 W 4th Avenue Shoreside Petroleum is head- commitment to their needs. a 100% ownership in the Whis- Anchorage, AK 99501 quartered in Anchorage and has USTravel tler property, located 150 kilo- (907) 278-3572 locations in Cordova, Seward, The Bear and Raven 999 E. Tudor Road, Ste. 200 meters Northwest of Anchorage, http://www.salmon Wasilla, and Whittier. The com- Adventure Theatre Anchorage, AK 99503 Alaska. berrytours.com pany markets fuels, lubricants, 315 E Street (907) 561-2434 industrial cleaners & supplies, Anchorage, AK 99501 http://www.ustravel.us Milner, Howard, & Palmer, Salmon Berry Tours offers tanks & containers, equipment, (907) 277-4545 CPAs, (PC) many exciting ways to experi- antifreeze, fuel additives, and spill http://bearsquare.net USTravel, headquartered 426 Main Street ence America’s Last Frontier response materials. It also owns the in Anchorage has been a Ketchikan, AK 99901 throughout the entire year. Our Essential 1 retail gasoline brand leading travel management (907) 225-1040 team of professional tour guides and operates seven service stations company for many years. http://mhp-cpas.com and our tour packages strive to and commercial cardlocks in all In addition to its corporate provide you with a truly genuine the market areas it serves. travel locations through- CPA firm located in Ketchikan, and memorable Alaska experi- out Alaska and the Pacific Alaska. Founded by Walter W. ence. Whether you’re a local Span Alaska Northwest, we also have Shuham, CPA in 1953. or from a far off land, Salmon Transportation, Inc Ucore Rare Metals Inc. several subsidiary compa- Berry Tours can show you both 2040 E. 79th Ave 2502-699 Cardero Street nies which offer specialized Rowan Pacific Rim the usual and the unusual sights Anchorage, AK 99507 Vancouver, BC V6G3H7 travel services in meetings, Decorators, Inc. that make our home state a one- (907) 349-3606 (604) 219-7579 groups, adventure and vaca- 655 E. Ship Creek Avenue of-a-kind adventure. http://www.spanalaska.com http://ucore.com tion travel. Celebrate Alaska’s future leaders today by attending the 2013

luncheon April 5, 2013 Hotel Captain Cook Doors open 11:30 • Program from 12:00-1:00 Tickets $50.00 To purchase tickets please contact Paola Korlaske at 907-275-2109 or [email protected] For sponsorship opportunities please contact: Tom Wardhaugh at 907-275-2114 or 8 [email protected]