05/07/1997 05:16 PM Senate FIN

                                                                               
       CS FOR SENATE BILL NO. 159(L&C)                                         
                                                                               
       "An  Act   relating  to  the  new   business  incentive                 
  program."                                                                    
                                                                               
  Greg Wolfe,  Vice President, Anchorage  Economic Development                 
  Corporation testified via teleconference from Anchorage.  He                 
  explained  the  bill presently  before  the committee.   The                 
  expansion  and  diversification  would   provide  year-round                 
  employment.  It was designed to help Alaskans compete in the                 
                                                                               
                                                                               
  market.     Senator  Pearce asked  the  packet from  AEDC be                 
  passed out.                                                                  
                                                                               
  Senator Adams commented on the  business incentive grant for                 
  five  years.   He  wanted to  know  who was  responsible for                 
  repayment of monies  if business  ceases before five  years.                 
  Mr. Wolfe responded saying  that the loan or grant  would be                 
  decided  by  AIDEA   and  they  would  be   responsible  for                 
  collection  otherwise.    Senator Adams also  noted that the                 
  bill did not note a minimum  or maximum amount on the  loan.                 
  Mr. Wolfe reviewed briefly the standards for eligibility and                 
  noted the limits were stated in the bill.  When the  bill is                 
  completely put together  the limits  will be clearly  known.                 
  Co-chair Sharp said  there was no supporting  statement from                 
  AIDEA as to whether they agreed with this bill or not.   Mr.                 
  Wolfe said that AIDEA was aware and supported the bill.                      
                                                                               
  Steve  Lauper,   Esq.,  counsel  for   AIDEA  testified  via                 
  teleconference from Anchorage.   He said there had been some                 
  concerns with the  operation but that it  had been corrected                 
  in the new CS which they supported.                                          
                                                                               
  Senator Parnell referred to  page two of the AEDC  statement                 
  and commented on the feasibility study.  Senator Adams asked                 
  whether  fifty  percent  of  the   business  cost  could  be                 
  recovered or  not.  Mr.  Lauper assured that  everything was                 
  done with reimbursement in  mind.  He said  this bill was  a                 
  vehicle  in  which  to  attract  established  businesses  to                 
  Alaska.   Senator  Pearce  asked if  it  would also  attract                 
  business to state property.  Mr. Wolfe said not necessarily.                 
  They  would try to look  at all conditions.   The bill would                 
  help tilt in favour of Alaska.                                               
                                                                               
  Mitch Gravo, lobbyist,  was invited  to join the  committee.                 
  He  referred  to a  letter  from  the Anchorage  mayor.   In                 
  response to  Senator Parnell's  question, Mr. Wolfe  further                 
  noted the letter from the Anchorage mayor.  He said it was a                 
  matter  of  logistics and  operations.   Criteria  was being                 
  established.                                                                 
                                                                               
  Noting the absence  of Co-chair  Sharp, Co-chair Pearce  set                 
  aside SB 159.  She then called SB 154.