Legislature(1993 - 1994)

03/25/1993 01:00 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                         March 25, 1993                                        
                            1:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chairman                                  
  Representative Con Bunde                                                     
  Representative John Davies                                                   
  Representative Cynthia Toohey                                                
  Representative Ed Willis                                                     
  Representative Bill Williams                                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Carl Moses                                                    
  Representative Richard Foster                                                
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HB 93:   "An Act relating to village public safety officers                 
            program."                                                          
                                                                               
            PASSED FROM COMMITTEE WITH A DO PASS                               
            RECOMMENDATION                                                     
                                                                               
  *SSHB 34: "An Act relating to a registration tax and a                       
            certificate of title for a snow vehicle; relating                  
            to municipal taxation of a snow vehicle; and                       
            providing for an effective date."                                  
                                                                               
            NOT HEARD                                                          
                                                                               
  *HB 70:   "An Act relating to state impact aid for                           
            municipalities; and providing for an effective                     
            date."                                                             
                                                                               
            NOT HEARD                                                          
                                                                               
  *HB 71:   "An Act relating to the involuntary dissolution of                 
            Native corporations; and providing for an                          
            effective date."                                                   
                                                                               
            PASSED FROM COMMITTEE WITH A DO PASS                               
            RECOMMENDATION                                                     
                                                                               
  *HB 173:  "An Act exempting certain charitable gaming                        
            activity from municipal sales and use taxes."                      
                                                                               
            NOT HEARD                                                          
                                                                               
  *HB 198:  "An Act relating to the Alaska regional economic                   
            assistance program; and providing for an effective                 
            date."                                                             
                                                                               
            PASSED FROM COMMITTEE WITH A DO PASS                               
            RECOMMENDATION                                                     
                                                                               
  *HB 211:  "An Act relating to the municipal tax exemption                    
            for inventories intended for export."                              
                                                                               
            NOT HEARD                                                          
                                                                               
  *HB 220:  "An Act relating to the economic development grant                 
            program; and providing for an effective                            
            date."                                                             
                                                                               
            PASSED FROM COMMITTEE WITH A DO PASS                               
            RECOMMENDATION                                                     
                                                                               
  *HB 221:  "An Act relating to workers' compensation for                      
            volunteer ambulance attendants, police officers,                   
            and fire fighters; and providing for an effective                  
            date."                                                             
                                                                               
            NOT HEARD                                                          
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Representative Carl Moses                                                    
  Capitol Building, Room 204                                                   
  Juneau, AK  99801-1182                                                       
  Phone: 465-4451                                                              
  POSITION STATEMENT: Prime sponsor of HB 220                                  
                                                                               
  Representative Richard Foster                                                
  State Capitol                                                                
  Court Building, Room 611                                                     
  Juneau, AK  99801-1182                                                       
  Phone: 465-3789                                                              
  POSITION STATEMENT: Prime Sponsor of HB 71, 93 and 198                       
                                                                               
  Larry LaBolle, Legislative Aide                                              
    to Representative Richard Foster                                           
  State Capitol                                                                
  Court Building, Room 611                                                     
  Juneau, AK  99801-1182                                                       
  Phone: 465-3789                                                              
  POSITION STATEMENT: Explained aspects of HB 71; gave                         
                      overview of HB 198                                       
                                                                               
  Bill Miller, President                                                       
  Dot Lake Village Council                                                     
  P.O. Box 2262                                                                
  Dot Lake, AK  99737                                                          
  Phone: 883-4227                                                              
  POSITION STATEMENT: Supported HB 93                                          
                                                                               
  Charles Miller                                                               
  Dot Lake Village Council                                                     
  P.O. Box 2251                                                                
  Dot Lake, AK  99737                                                          
  Phone: 883-5181                                                              
  POSITION STATEMENT: Supported HB 93                                          
                                                                               
  George Cole, VPSO Manager                                                    
  Central Council                                                              
  320 W. Willoughby #300                                                       
  Juneau, AK  99801                                                            
  Phone: 586-1432                                                              
  POSITION STATEMENT: Supported HB 93                                          
                                                                               
  Thomas Sterns, Captain                                                       
  Alaska State Troopers                                                        
  Department of Public Safety                                                  
  5700 E. Tudor Road                                                           
  Anchorage, AK  99516                                                         
  Phone: 269-5530                                                              
  POSITION STATEMENT: Supported HB 93                                          
                                                                               
  Charles Grediagin                                                            
  Bristol Bay Native Association                                               
  P.O. Box 565                                                                 
  Dillingham, AK  99506                                                        
  Phone: 842-5257                                                              
  POSITION STATEMENT: Supported HB 93                                          
                                                                               
  Kent Swisher, Executive Director                                             
  Alaska Municipal League                                                      
  217 Second Street, Suite 200                                                 
  Juneau, AK  99801                                                            
  Phone: 586-1325                                                              
  POSITION STATEMENT: Supported HB 93                                          
                                                                               
  Carl Berger, Director                                                        
  Lower Kuskokwim Economic Development Council                                 
  Bethel, AK                                                                   
  Phone: 899-4313                                                              
  POSITION STATEMENT: Supported HB 198                                         
                                                                               
  Donna Tollman, Executive Director                                            
  Copper River Economic Development Council                                    
  P.O. Box 9                                                                   
  Glennallen, AK  995588                                                       
  Phone: 822-5001                                                              
  POSITION STATEMENT: Supported HB 198                                         
                                                                               
  Christopher Gates, Director                                                  
  Division of Economic Development                                             
  Department of Commerce and Economic Development                              
  P.O. Box 110804                                                              
  Juneau, AK  99811-0804                                                       
  Phone: 465-2017                                                              
  POSITION STATEMENT: Supported HB 198                                         
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 93                                                                 
  SHORT TITLE:  VILLAGE PUBLIC SAFETY OFFICERS PROGRAM                         
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) FOSTER,Menard,Nicholia                       
  TITLE: "An Act relating to the village public safety                         
  officers program."                                                           
  JRN-DATE     JRN-PG               ACTION                                     
  01/27/93       164    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/27/93       164    (H)   CRA, JUDICIARY, FINANCE                          
  01/29/93       184    (H)   COSPONSOR(S): MENARD                             
  02/19/93       396    (H)   COSPONSOR(S): NICHOLIA                           
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 34                                                                 
  SHORT TITLE:  SNOWMOBILE REGISTRATION TAX                                    
  BILL VERSION: SSHB 34                                                        
  SPONSOR(S):   REPRESENTATIVE(S) MENARD BY REQUEST                            
  TITLE: "An Act relating to a registration tax and a                          
  certificate of title for a snow vehicle; relating to                         
  municipal taxation of a snow vehicle; and providing for an                   
  effective date."                                                             
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        33    (H)   PREFILE RELEASED                                 
  01/11/93        33    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        33    (H)   CRA, STATE AFFAIRS, FINANCE                      
  02/22/93       410    (H)   SPONSOR SUBSTITUTE INTRODUCED-                   
                              NEW TITLE                                        
  02/22/93       410    (H)   CRA, STATE AFFAIRS, FINANCE                      
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 70                                                                 
  SHORT TITLE:  STATE IMPACT AID FOR MUNICIPALITIES                            
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) MACLEAN                                      
  TITLE: "An Act relating to state impact aid for                              
  municipalities; and providing for an effective date."                        
  JRN-DATE     JRN-PG               ACTION                                     
  01/18/93       101    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/18/93       101    (H)   CRA, JUDICIARY, FINANCE                          
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 71                                                                 
  SHORT TITLE:  DISSOLUTION OF NATIVE CORPORATIONS                             
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) FOSTER                                       
  TITLE: "An Act relating to the involuntary dissolution of                    
  Native corporations; and providing for an effective date."                   
  JRN-DATE     JRN-PG               ACTION                                     
  01/18/93       101    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/18/93       101    (H)   CRA, JUDICIARY                                   
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 173                                                                
  SHORT TITLE:  MUNI FEES & TAXATION OF CHARITABLE GAMES                       
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) LARSON                                       
  TITLE: "An Act exempting certain charitable gaming activity                  
  from municipal sales and use taxes."                                         
  JRN-DATE     JRN-PG               ACTION                                     
  02/24/93       433    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/24/93       433    (H)   CRA, JUDICIARY, FINANCE                          
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 198                                                                
  SHORT TITLE:  REGIONAL ECONOMIC ASSISTANCE GRANTS                            
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) FOSTER                                       
  TITLE: "An Act relating to the Alaska regional economic                      
  assistance program; and providing for an effective date."                    
  JRN-DATE     JRN-PG               ACTION                                     
  03/05/93       548    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/05/93       549    (H)   CRA, FINANCE                                     
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 211                                                                
  SHORT TITLE:  MUNICIPAL INVENTORY TAX EXEMPTION:EXPORTS                      
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) TOOHEY,Brown                                 
  TITLE: "An Act relating to the municipal tax exemption for                   
  inventories intended for export."                                            
  JRN-DATE     JRN-PG               ACTION                                     
  03/10/93       590    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/10/93       590    (H)   CRA, JUDICIARY                                   
  03/12/93       629    (H)   COSPONSOR(S): BROWN                              
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 220                                                                
  SHORT TITLE:  ECONOMIC DEVELOPMENT GRANT FUND                                
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) MOSES                                        
  TITLE: "An Act relating to the economic development grant                    
  program; and providing for an effective date."                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/12/93       619    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/12/93       619    (H)   CRA, LABOR & COMMERCE, FINANCE                   
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 221                                                                
  SHORT TITLE:  WORKERS COMP:VOLUNTEER FIRE FIGHTERS, ETC                      
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) HUDSON,Grussendorf                           
  TITLE: "An Act relating to workers' compensation for                         
  volunteer ambulance attendants, police officers, and fire                    
  fighters; and providing for an effective date."                              
  JRN-DATE     JRN-PG               ACTION                                     
  03/12/93       619    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/12/93       619    (H)   CRA, LABOR & COMMERCE, FINANCE                   
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-18, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN HARLEY OLBERG called the meeting to order at 1:00                   
  p.m.  He noted Representatives Bunde, Williams and Willis                    
  were present.                                                                
                                                                               
                                                                               
  HB 220:  ECONOMIC DEVELOPMENT GRANT FUND                                     
                                                                               
  Number 027                                                                   
                                                                               
  REPRESENTATIVE CARL MOSES, PRIME SPONSOR OF HB 220,                          
  testified by reading his sponsor statement into the record                   
  verbatim and introduced the CS.  (Copies of this sponsor                     
  statement and the committee substitute may be found in the                   
  House Community and Regional Affairs Committee Room, Capitol                 
  Room 110, and after the adjournment of the second session of                 
  the 18th Alaska State Legislature, in the Legislative                        
  Reference Library.)                                                          
                                                                               
  Representative Cynthia Toohey and Vice-Chairman Jerry                        
  Sanders joined the committee at 1:03 p.m.                                    
                                                                               
  Number 080                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE MOVED to ADOPT CSHB 220.  There                     
  were no objections, and the MOTION CARRIED.                                  
                                                                               
  REPRESENTATIVE BUNDE asked if CSHB 220 would generate more                   
  money than it costs.                                                         
                                                                               
  REPRESENTATIVE MOSES said there is a new zero fiscal note                    
  which the committee did not have yet.                                        
                                                                               
  Number 126                                                                   
                                                                               
  REPRESENTATIVE BUNDE MOVED that CSHB 220 be moved out of                     
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
                                                                               
  HB 71:  DISSOLUTION OF NATIVE CORPORATIONS                                   
                                                                               
  Number 150                                                                   
                                                                               
  REPRESENTATIVE RICHARD FOSTER, PRIME SPONSOR OF HB 71,                       
  testified by reading his sponsor statement into the record.                  
  (A copy of the sponsor statement may be found in the House                   
  Community and Regional Affairs Committee Room, Capitol Room                  
  110, and after the adjournment of the second session of the                  
  18th Alaska State Legislature, in the Legislative Reference                  
  Library.)  He added, "This allows them to reincorporate and                  
  be able to officially do business according to state law...                  
  This is a paperwork thing, just to clean up and help some of                 
  those Native corporations."                                                  
                                                                               
  Representative John Davies joined the committee at 1:10 p.m.                 
                                                                               
  CHAIRMAN OLBERG pointed out the equivalent of HB 71 died in                  
  Senate Rules last year.                                                      
                                                                               
  Number 190                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY asked, "Why do you need this?"                 
                                                                               
  REPRESENTATIVE FOSTER said, "There are some villages that                    
  aren't able to apply for state assistance or grants or                       
  anything.  Some villages don't have a village council or a                   
  city council.  They don't have any official governing body                   
  within that village and so the IRA or the Native corporation                 
  has taken over their governing functions and the state won't                 
  give them a grant or any help or revenue sharing or anything                 
  unless they have somebody to officially hand it over to and                  
  some of the villages, they're totally disorganized."                         
                                                                               
  Number 200                                                                   
                                                                               
  REPRESENTATIVE TOOHEY gave an example of her forming a                       
  corporation and failing to file a biennial report.  She                      
  asked, "What is the reason that they can't do it, why do we                  
  have to have a bill?"                                                        
                                                                               
  Number 214                                                                   
                                                                               
  LARRY LABOLLE, STAFF TO REPRESENTATIVE FOSTER, testified to                  
  explain, "This is tied in with the ANCSA (Alaska Native                      
  Claims Settlement Act) incorporations that were made at the                  
  time of the Native Lands Claims.  They need to go back and                   
  refer to that federal title that they were incorporated                      
  under.  That's why they have the need to reinstate the                       
  existing corporation...  This bill (HB 71) provides a one                    
  year window for that reinstatement of that ANCSA                             
  incorporation."                                                              
                                                                               
  REPRESENTATIVE TOOHEY asked, "They can't do it without it?"                  
                                                                               
  MR. LABOLLE said, "They can establish another corporation,                   
  but it still doesn't fall under that ANCSA incorporation."                   
                                                                               
  Number 227                                                                   
                                                                               
  REPRESENTATIVE BILL WILLIAMS clarified, "Basically, what                     
  happened earlier is that a lot of these                                      
  corporations...didn't understand what the corporation was...                 
  That happened in our village.  We didn't send in the                         
  necessary money...we caught up with it (but) some villages                   
  are not as sophisticated as people in the urban areas."                      
                                                                               
  VICE CHAIRMAN JERRY SANDERS asked, "Is this about villages                   
  or regional corporations?"                                                   
                                                                               
  REPRESENTATIVE WILLIAMS indicated both.                                      
                                                                               
  VICE-CHAIRMAN SANDERS said, "It seems like a regional                        
  corporation should have a little more responsibility about                   
  something this important.  If it has to do with villages,                    
  you got me."                                                                 
                                                                               
  CHAIRMAN OLBERG said, "It specifically has to do with                        
  villages."                                                                   
                                                                               
  Number 252                                                                   
                                                                               
  REPRESENTATIVE BUNDE confirmed, "This is a one year window                   
  and then it would sunset..."                                                 
                                                                               
  REPRESENTATIVE FOSTER said, "I'm just trying to help the                     
  Native community."                                                           
                                                                               
  CHAIRMAN OLBERG clarified, "It appears to open a one year                    
  window as of the effective date for these people to get back                 
  on board and get their paperwork up to snuff.  It's a                        
  housekeeping measure on behalf of village corporations..."                   
                                                                               
  Number 269                                                                   
                                                                               
  REPRESENTATIVE BUNDE MOVED that HB 71 be passed out of                       
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  HB 93:  VILLAGE PUBLIC SAFETY OFFICERS PROGRAM                               
                                                                               
  Number 273                                                                   
                                                                               
  REPRESENTATIVE FOSTER, PRIME SPONSOR OF HB 93, testified on                  
  the CS draft included in the committee members packets.  (A                  
  copy of the committee substitute may be found in the House                   
  Community and Regional Affairs Committee Room, Capitol Room                  
  110, and after the adjournment of the second session of the                  
  18th Alaska State Legislature, in the Legislative Reference                  
  Library.)  He described CSHB 93 by summarizing his sponsor                   
  statement.  (A copy of the sponsor statement may be found in                 
  the House Community and Regional Affairs Committee Room,                     
  Capitol Room 110, and after the adjournment of the second                    
  session of the 18th Alaska State Legislature, in the                         
  Legislative Reference Library.)                                              
                                                                               
  Number 297                                                                   
                                                                               
  BILL MILLER, PRESIDENT, DOT LAKE VILLAGE COUNCIL, testified                  
  via teleconference from Tok saying, "It's a very good bill                   
  (HB 93), but also I feel that it doesn't go quite far                        
  enough.  There could possibly be a requirement in there that                 
  positions be developed for a community desiring to have a                    
  position of VPSO (Village Public Safety Officer) that meets                  
  minimum standards or minimum requirements similar to the                     
  following: One would be a population of at least 25 year                     
  round residents with a population density of at least five                   
  persons per square miles.  This would allow for the                          
  possibility of having the VPSO in these communities, but not                 
  just having them for any little place, four or five people                   
  that want one."                                                              
                                                                               
  MR. B. MILLER continued, "Second, for the communities and                    
  villages that are not road connected to any Alaska State                     
  Trooper office or if road connected, would have a trooper                    
  response time of two hours in non-emergency conditions or a                  
  half hour under emergency conditions.  Also I'd like to                      
  question and ask if there would be a possibility of having a                 
  bill of some type...that could be introduced to allow for a                  
  village tribal course.  That could recognize and handle                      
  minor infractions with the VPSO and through their own court                  
  system...this would alleviate a lot of the pressure on the                   
  courts in our areas also."                                                   
                                                                               
  Number 332                                                                   
                                                                               
  CHARLES MILLER, DOT LAKE VILLAGE COUNCIL, testified via                      
  teleconference from Tok saying, "I'm also in full support of                 
  this bill (HB 93).  One thing I'd like to say is I'd like to                 
  see more VPSO positions in the villages, especially since                    
  there's been such a cutback in trooper funding."  He gave an                 
  example where a trooper was called at 8:00 a.m. to a village                 
  disturbance but did not respond until 2:00 p.m. that                         
  afternoon.                                                                   
                                                                               
  Number 349                                                                   
                                                                               
  REPRESENTATIVE BUNDE informed Mr. Miller that he is                          
  currently sponsoring a bill, HB 18, "that would allow places                 
  like Dot Lake to contract for the troopers for additional                    
  service, if they would like to have additional services."                    
                                                                               
  MR. C. MILLER asked where the funding would come from.                       
                                                                               
  REPRESENTATIVE BUNDE said, "You have to assess yourself and                  
  form a limited service district and the local population                     
  that wants additional service would have to come up with                     
  funding."                                                                    
                                                                               
  MR. C. MILLER said, "Unincorporated communities can't assess                 
  taxes."                                                                      
                                                                               
  REPRESENTATIVE BUNDE said, "You may not be able to                           
  qualify..."                                                                  
                                                                               
  Number 373                                                                   
                                                                               
  GEORGE COLE, VPSO MANAGER, CENTRAL COUNCIL, testified via                    
  teleconference from Sitka in support of HB 93.  "It does                     
  legitimize the program.  It changes it from a budgetary line                 
  item in the Department of Public Safety into a real program.                 
  I think this will go a long way towards eliminating                          
  questions about under what authority do we even have a VPSO                  
  program...  It provides a mechanism for a yearly legislative                 
  review...  This bill would provide for the establishment of                  
  regulations to manage the program and thus it would provide                  
  a forum for changing those regulations that would be                         
  initiated by many of the communities involved in overseeing                  
  the program."                                                                
                                                                               
  Number 406                                                                   
                                                                               
  THOMAS STERNS, CAPTAIN, ALASKA STATE TROOPERS, DEPARTMENT OF                 
  PUBLIC SAFETY, testified from Anchorage via teleconference                   
  in support of HB 93.  He said, "I am the manager of the VPSO                 
  program, I've been asked by the Commissioner's Office to                     
  speak to the committee in regards to HB 93.  ...I think this                 
  is a very good step forward for the program and the state."                  
                                                                               
  REPRESENTATIVE ED WILLIS asked how the troopers recruit and                  
  train.                                                                       
                                                                               
  CAPT. STERNS said, "Recruitment is conducted by the non-                     
  profit regional corporations...  As far as training, once a                  
  VPSO has been selected by the non-profits, a six-week                        
  academy in Sitka is conducted..."                                            
                                                                               
  CHARLES GREDIAGIN, BRISTOL BAY NATIVE ASSOCIATION, testified                 
  via teleconference from Dillingham and read aloud a                          
  resolution prepared by the VPSO program managers supporting                  
  HB 93 and SB 15.  (A copy of the resolution may be found in                  
  the House Community and Regional Affairs Committee Room,                     
  Capitol Room 110, and after the adjournment of the second                    
  session of the 18th Alaska State Legislature, in the                         
  Legislative Reference Library.)                                              
                                                                               
  Number 494                                                                   
                                                                               
  KENT SWISHER, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL LEAGUE,                   
  testified briefly in support of HB 93.                                       
                                                                               
  VICE-CHAIRMAN SANDERS asked if putting HB 93 in statute                      
  increases the liability of the state.                                        
                                                                               
  CHAIRMAN OLBERG said, "They are already state employees, as                  
  I understand it.  This legitimizes them within the                           
  Department of Public Safety..."                                              
                                                                               
  MR. LABOLLE said, "I doubt that there's any more increased                   
  liability, because I think the liability already exists."                    
                                                                               
  REPRESENTATIVE JOHN DAVIES said, "Having the present                         
  circumstances is one more liability than if you pass this                    
  legislation."                                                                
                                                                               
  Number 528                                                                   
                                                                               
  REPRESENTATIVE BUNDE said, "I assume we have a zero fiscal                   
  note and that this simply puts into statute the grants that                  
  are provided (already)."                                                     
                                                                               
  MR. LABOLLE confirmed, "This does just formalize the grants                  
  that are already in existence to the regional corporations                   
  which administer the program."                                               
                                                                               
  REPRESENTATIVES DAVIES AND TOOHEY MOVED to ADOPT CSHB 93.                    
  There were no objections, and the MOTION CARRIED.                            
                                                                               
  REPRESENTATIVE BUNDE MOVED to PASS CSHB 93 (CRA) out of                      
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  HB 198: REGIONAL ECONOMIC ASSISTANCE GRANTS                                  
                                                                               
  Number 549                                                                   
                                                                               
  MR. LABOLLE testified on behalf of the sponsor,                              
  Representative Foster, and read the sponsor statement into                   
  the record.  (A copy of the sponsor statement may be found                   
  in the House Community and Regional Affairs Committee Room,                  
  Capitol Room 110, and after the adjournment of the second                    
  session of the 18th Alaska State Legislature, in the                         
  Legislative Reference Library.)  He added, "This legislation                 
  (HB 198) in essence, would do two things:  It would allow                    
  the Department of Commerce and Economic Development to                       
  develop guidelines that would change the match from a one to                 
  one, to what they feel is more appropriate for some of the                   
  rural ARDOR (Alaska Regional Development Organization)                       
  groups.  The second portion of this would allow the fund to                  
  make grants of up to $100,000 instead of the $50,000 that                    
  currently is stipulated in statute."                                         
                                                                               
  Number 573                                                                   
                                                                               
  CARL BERGER, DIRECTOR, LOWER KUSKOKWIM ECONOMIC DEVELOPMENT                  
  COUNCIL, BETHEL, testified via teleconference from Kotlik in                 
  support of HB 198.  He said, "At the present time we are                     
  receiving a $47,400 grant from the state...matched dollar                    
  for dollar.  It's difficult for us smaller programs, such as                 
  mine, to provide the necessary match in order to draw those                  
  funds.  This is the money that the state provides us to                      
  essentially operate on.  We have a one person staff which is                 
  me, and it allows a little bit of travel for me to get                       
  around the region to work with the communities that are in                   
  my district."                                                                
                                                                               
  Number 623                                                                   
                                                                               
  DONNA TOLLMAN, EXECUTIVE DIRECTOR, COPPER VALLEY ECONOMIC                    
  DEVELOPMENT COUNCIL, GLENNALLEN, testified in favor of HB
  198 saying, "Right now we are working with 38 different                      
  people with business plans to locate for them various types                  
  of loan programs and funding in order for them to start                      
  small businesses which create, ultimately, jobs in these                     
  rural areas...  What happens is that we spend a great deal                   
  of our time trying to keep our doors open to be able to                      
  provide these services.  We have no corporate sponsors here.                 
  It's very difficult for us to raise our matching funds."                     
                                                                               
  Number 652                                                                   
                                                                               
  REPRESENTATIVE BUNDE asked, "I'm wondering what the                          
  administrative overhead (is), how much money these actual                    
  grants get to the small businesses and what's the average                    
  longevity of these enterprises?"                                             
                                                                               
  CHRISTOPHER GATES, DIRECTOR, DIVISION OF ECONOMIC                            
  DEVELOPMENT, DEPARTMENT OF COMMERCE, testified providing                     
  information on HB 198.  "In terms of playing offense,                        
  actually creating jobs and activity so that the kids don't                   
  have to move out of the villages to find good jobs, we                       
  aren't doing that as well as we could.  I was the President                  
  of the Kenai Peninsula Borough ARDOR for a number of years                   
  and I can tell you that the effort and energy spent just                     
  finding match monies to survive leaves very little actual                    
  time and energy to do any good...a little bit of their time                  
  left over to actually hustle jobs and make deals work."                      
                                                                               
  REPRESENTATIVE BUNDE rephrased his question about                            
  administrative overhead.                                                     
                                                                               
  TAPE 93-18, SIDE B                                                           
  Number 000                                                                   
                                                                               
  MR. GATES gave a description of the tasks of the ARDOR Board                 
  of Directors and added, "We paid our own travel.  There's no                 
  per diem.  These are volunteer Boards of Directors."  He                     
  then gave examples of ARDOR successful businesses.                           
                                                                               
  Number 039                                                                   
                                                                               
  MS. TOLLMAN gave a description of the economic development                   
  of a theatrical production developed in her area.                            
                                                                               
  MR. GATES summarized, "The bill in front of you (HB 198)                     
  simply establishes an absolute small foundation of $50,000                   
  where at least they could keep the lights on and the doors                   
  open for one person.  We set up the increase of another                      
  $50,000 which might be available to these ARDORS depending                   
  upon grants and matching monies that they then receive.  We                  
  could have $100,000 into these ARDORS to provide just one                    
  contact for economic development...in those local areas."                    
                                                                               
  Number 087                                                                   
                                                                               
  REPRESENTATIVE DAVIES MOVED to PASS HB 198 out of committee                  
  with individual recommendations.  There were no objections,                  
  and the MOTION CARRIED.                                                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 1:44 p.m.                           

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