Legislature(1993 - 1994)
05/05/1993 01:00 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
MAY 5, 1993
1:00 P.M.
TAPE HFC 93 - 129, Side 1, #000 - end.
TAPE HFC 93 - 129, Side 2, #000 - end.
TAPE HFC 93 - 130, Side 1, #000 - end.
TAPE HFC 93 - 130, Side 2, #000 - #283.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:00 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Bruce Campbell, Commissioner, Department of Transportation
and Public Facilities; Annette Kreitzer, Aide, Senator Loren
Leman; Representative Tom Brice; Representative Jerry
Mackie; David Williams, Planner, Division of Medical
Assistance, Department of Health and Social Services; Mitch
Gravo, Northern Air Cargo, Anchorage, Alaska; Chris Gates,
Director, Division of Economic Development, Department of
Commerce and Economic Development; Senator George Jacko;
Paul Fuhs, Commissioner, Department of Commerce and Economic
Development.
SUMMARY INFORMATION
SB 91 An Act providing for coverage of midwife services
under Medicaid; reordering the priority of
optional services provided by the state under
Medicaid; and providing for an effective date.
CS SS SB 91 was reported out of Committee with a
"do pass" recommendation and with three fiscal
notes by the Department of Health and Social
Services dated 3/22/93.
SB 142 An Act relating to the Alaska regional economic
assistance program; and providing for an effective
date.
1
HCS CS SB 142 (FIN) was reported out of Committee
with "no recommendation" and with a fiscal note by
the Senate Finance Committee dated 4/08/93.
SB 154 An Act relating to the economic development grant
program; and providing for an effective date.
SB 154 was held in Committee for further
discussion.
SB 198 An Act exempting certain activities of the
Department of Transportation and Public Facilities
from the regulation provisions of the
Administrative Procedure Act and allowing other
procedures for those activities; and providing for
an effective date.
SB 198 was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Health and Social Services dated
4/18/93.
SENATE BILL 91
"An Act providing for coverage of midwife services
under Medicaid; reordering the priority of optional
services provided by the state under Medicaid; and
providing for an effective date."
ANNETTE KREITZER, AIDE, SENATOR LOREN LEMAN, commented the
legislation would add certified direct entry midwives to the
optional services covered by Medicaid. At least 42% of the
pregnant women in Alaska are eligible for Medicaid. The
bill allows those women to use midwifery services instead of
mandating that they use clinics or hospitals for birthing
services. In expanding the options for using midwifery
services for births, the State will stretch its Medicaid
dollars.
Representative Hanley questioned the savings expected to be
incurred. Representative Therriault acknowledged that the
shift in midwife care would be for women who otherwise would
go to the hospital which would create greater costs to the
State than those opting for home delivery.
DAVID WILLIAMS, PLANNER, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, commented that one
hundred twenty-five Medicaid eligible women would be giving
birth each year. Of the eligible women, sixty of those
would be shifted away from hospital physician costs
indicated by the fiscal note. He pointed out, the service
2
appeals to many women who reject the current system.
Representative Therriault asked if there were Medicaid
eligible women who do not use hospital services because they
do not want the physician care. Mr. Williams said there
are.
Mr. Williams added, women who choose the midwife service
will save costs because of the preventative and up-front
prenatal care the child receives. Representative Hanley
reiterated concerns with long term costs.
Representative Brown asked if midwife services were
considered to be optional or mandatory. Mr. Williams stated
that the intent language recommends that all services be
kept active with the funding available, although the service
is optional with the alternatives available.
Representative Parnell MOVED to report CS SS SB 91 (HES) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS SS SB 91 (HES) was reported out of Committee with a "do
pass" recommendation and with three fiscal notes by the
Department of Health and Social Services dated 3/22/93.
SENATE BILL 198
"An Act exempting certain activities of the Department
of Transportation and Public Facilities from the
regulation provisions of the Administrative Procedure
Act and allowing other procedures for those activities;
and providing for an effective date."
BRUCE CAMPBELL, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, stated based on the court decision in
the rural airport landing fee lawsuit, Anchorage and
Fairbanks (FIA) International Airports may be required to
establish all fees and fee changes through the regulatory
process defined in the Administrative Procedures Act.
AIA and FIA establish landing fees, terminal rent, and other
airline fees through uniform Airline Operating Agreement
formulas negotiated with the airlines serving the two
airports.
Representative Hoffman asked the changes intended for rural
airports. Commissioner Campbell stated that those proposed
regulations have been discussed in the Administrative
Procedures Act.
Representative Foster provided the Committee with a letter
3
from Northern Air Cargo, Inc. (NAC). [Attachment #3].
Commissioner Campbell replied he had responded to that
letter addressing the word changes. [Attachment #1 & #2].
He offered to provide a "Letter of Intent" addressing the
legislative enforcement.
Representative Grussendorf asked if the proposed legislation
was prepared because previous DOTPF Commissioner's did not
follow the Administrative Procedures Act and consequently
were sued. Commissioner Campbell replied the Attorney
General thought the legislation was necessary or the
possibility that the State would be subject to law suits
from any party who had established rates at the
international airports under previous regulations.
Representative Grussendorf pointed out that the
international airports would be exempt from the act.
Commissioner Campbell noted there would be no increased fees
resulting from the implementation of the legislation. He
added, the State was sued because it had not followed the
Administrative Procedures Act. Currently, no one is due
money from the international airport.
Co-Chair MacLean asked if adequate public hearings had been
scheduled for the bill. Commissioner Campbell replied there
would be a new newspaper add running for three weeks prior
to the public hearings. Representative MacLean asked if
fees would be established for the rural carriers.
Commissioner Campbell stated the legislation would only
affect the international airports in Anchorage and
Fairbanks. He added, the Department could establish fees
under A.P.A.
Representative Hoffman asked who was responsible for
establishing the fees. Commissioner Campbell replied, law
defines that fees be set by order of the Commissioner.
(Tape Change, HFC 93-129, Side 2).
MITCH GRAVO, NORTHERN AIR CARGO, INC., ANCHORAGE, ALASKA,
commented on a concern in the legislation regarding
litigation on the rural airports and the authority the
Commissioner is given. He feared that persons not subject
to litigation would have their rates and fees increased to
make up for the decrease resulting from the judgement.
Commissioner Campbell explained the money paid in judgments
to the carriers would be subject to a legislative
appropriation.
Representative Brown questioned the relationship between the
international and the rural airports finances. Commissioner
Campbell pointed out they are separate. The international
4
airports operate from a revolving fund, with the landing
fees and the charges to those airports pay for the
operation.
Representative Foster MOVED to report SB 198 out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 198 was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Transportation and Public Facilities dated
4/18/93.
SENATE BILL 142
"An Act relating to the Alaska regional economic
assistance program; and providing for an effective
date."
Representative Hanley provided the Committee with a
sectional analysis of SB 142. [Attachment #4]. He
suggested a "floating" match rate to be itemized within the
legislation.
CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, assured
Representative Hanley that there would be no string-free
grants in the legislation. Match amounts will be required.
Representative Hanley provided the Committee with Amendment
Gates noted DCED would be comfortable with the amendment.
Representative Martin noted his concern with the fiscal
impact of the bill. Mr. Gates stated a new fiscal note
could be established by the Committee. He added, the
Department would like to fully fund each of the fifteen
Regional Development Organizations (ARDOR's) at $100
thousand dollars although they are willing to negotiate.
Co-Chair MacLean asked the difference between SB 154 and SB
142. Mr. Gates replied that SB 154 is a capital grant bill
which allows the Legislature to establish certain money for
proper economic development grant projects which must meet
six criteria for job placement and economic activity. The
funding would be for one person per area and would not cover
any project development.
Mr. Gates commented on the two fiscal notes. The original
fiscal note requested by the Department was $750 thousand
5
dollars. The Senate Finance Committee reduced the note to
$250 thousand dollars. There is a requirement for cash
matches, although in-kind matches have been accepted. Mr.
Gates advised that there is Federal Economic Development
Administration money available to administrate the program.
Some ARDOR's not having a functioning board of director's in
the local region have been decertified.
Representative Brown asked if there have been any civil
lawsuits involving ARDOR's. Mr. Gates replied there has not
been any lawsuits against any board members to date.
Representative Brown noted her concern that the legislation
does have private goals and it also works hand-in-hand with
private industry. Mr. Gates reiterated, the fear of being
sued has motivated many ARDOR's to make careful decision.
Representative Hanley MOVED Amendment #1.
(Tape Change, HFC 93-130, Side 1).
Representative Brown MOVED a language change to Page 2, Line
15 and Line 20. She recommended deleting on Line 15, "for
the project" and on Line 19-20, deletion of the language "to
be used for the project". Mr. Gates noted the amendment was
acceptable. Representative Brown MOVED to amend Amendment
being NO OBJECTION to the amended Amendment #1, it was
adopted.
Representative Foster MOVED to report HCS CS SB 142 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal note. There being NO OBJECTION, it
was so ordered.
Representative Navarre MOVED to amend the fiscal note to
$500 thousand dollars.
SENATOR GEORGE JACKO commented that the $250 thousand dollar
fiscal note would be sufficient. Representative Navarre
WITHDREW THE MOTION. There being NO OBJECTION, it was so
ordered.
HCS CS SB 142 (FIN) was reported out of Committee with "no
recommendation" and with a fiscal note by the Senate Finance
Committee dated 4/08/93.
SENATE BILL 154
"An Act relating to the economic development grant
program; and providing for an effective date."
Mr. Gates stated that CSSB 154 establishes the Economic
6
Development Grant Program and places directly in statute
specific economic criteria that municipalities and Regional
Development Organizations (ARDOR's) must meet in order to be
eligible. The Office of Management and Budget will form an
evaluation committee with the Department of Commerce and
Economic Development (DCED) and the Department of Community
and Regional Affairs (DCRA) and other agencies to prioritize
the projects. The amended version of the bill replaces DCED
as the administering agency with the Department of
Administration (DOA).
The program creates an competitive approach in which
projects are prioritized. Discussion followed between
Representative Navarre and Mr. Gates regarding the grant
fund appropriation and the prioritized list. Representative
Navarre felt the proposed program was a duplication of other
legislation. Mr. Gates replied there are gaps in other
proposed project legislation. Co-Chair Larson agreed with
Representative Navarre. Mr. Gates stated the legislation is
not a matching grant, and there should be no match required.
Representative Brown did not understand the project
feasibility. She recommended adding a requirement to
indicate the economic feasibility of the legislation. The
criteria submitted would be used to rank rather than to
match. Mr. Gates disagreed with Representative Brown.
SENATOR GEORGE JACKO stated that an intent letter had been
exchanged between the House and Senate Finance Co-Chairs
indicating criteria used for the legislation. Mr. Gates
explained the fund at DCED is a matching grant fund for non-
profit organizations which requires a match. The proposed
legislation does not require a catch match. Economic
development projects can be funded without the requirement
for a match although one of the criteria is to determine how
much money is being brought in from other sources. The
primary difference between the two is the match requirement.
Representative Parnell asked if a match requirement was
imposed on the legislation, would the purpose be defeated.
Senator Jacko replied, the established criteria would
require that a match be provided by local participation in
the project. Co-Chair MacLean pointed out that within the
Senate capital budget, $15 million dollars worth of economic
matching grant monies are available. Mr. Gates added each
project on the list have match components.
Representative Brown suggested that taxes and other costs
imposed to the State should be indicated. She asked that
specified criteria be required. Representative Brown
7
recommended to continue funding economic development
projects already in place rather than beginning new
programs. Senator Jacko said his intention was to establish
a better system with the Administration's assistance.
Representative Brown asked why the Department of
Administration was chosen to be the lead agency for the
proposed legislation.
(Tape Change, HFC 93-130, Side 2).
Mr. Gates replied that DOA currently administer's all the
paper work and could insure a consistent process.
Representative Martin noted concern with the criteria used
to determine the projects and felt that the unemployment
status of an area should be emphasized. Mr. Gates replied
ranking the projects was not prioritized.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, stated there are "ready" grants and "small"
grants in economic development which are used for
feasibility studies. The proposed legislation is meant for
the large scale projects which are not indicated in the rest
of the budget.
Representative Brown asked how the projects differ from the
existing process complied in the Governor's capital budget
for statewide economic development projects. Commissioner
Fuhs stated the difference is that SB 154 establishes six
criteria which are to be used by the Legislature to evaluate
the projects.
CS SB 154 (L&C)(efd fld) was HELD in Committee for further
consideration.
ADJOURNMENT
The meeting adjourned at 3:10 P.M.
HOUSE FINANCE COMMITTEE
MAY 5, 1993
1:00 P.M.
TAPE HFC 93 - 129, Side 1, #000 - end.
TAPE HFC 93 - 129, Side 2, #000 - end.
TAPE HFC 93 - 130, Side 1, #000 - end.
TAPE HFC 93 - 130, Side 2, #000 - #283.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
8
Committee to order at 1:00 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Bruce Campbell, Commissioner, Department of Transportation
and Public Facilities; Annette Kreitzer, Aide, Senator Loren
Leman; Representative Tom Brice; Representative Jerry
Mackie; David Williams, Planner, Division of Medical
Assistance, Department of Health and Social Services; Mitch
Gravo, Northern Air Cargo, Anchorage, Alaska; Chris Gates,
Director, Division of Economic Development, Department of
Commerce and Economic Development; Senator George Jacko;
Paul Fuhs, Commissioner, Department of Commerce and Economic
Development.
SUMMARY INFORMATION
SB 91 An Act providing for coverage of midwife services
under Medicaid; reordering the priority of
optional services provided by the state under
Medicaid; and providing for an effective date.
CS SS SB 91 was reported out of Committee with a
"do pass" recommendation and with three fiscal
notes by the Department of Health and Social
Services dated 3/22/93.
SB 142 An Act relating to the Alaska regional economic
assistance program; and providing for an effective
date.
HCS CS SB 142 (FIN) was reported out of Committee
with "no recommendation" and with a fiscal note by
the Senate Finance Committee dated 4/08/93.
SB 154 An Act relating to the economic development grant
program; and providing for an effective date.
SB 154 was held in Committee for further
discussion.
SB 198 An Act exempting certain activities of the
Department of Transportation and Public Facilities
9
from the regulation provisions of the
Administrative Procedure Act and allowing other
procedures for those activities; and providing for
an effective date.
SB 198 was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Health and Social Services dated
4/18/93.
SENATE BILL 91
"An Act providing for coverage of midwife services
under Medicaid; reordering the priority of optional
services provided by the state under Medicaid; and
providing for an effective date."
ANNETTE KREITZER, AIDE, SENATOR LOREN LEMAN, commented the
legislation would add certified direct entry midwives to the
optional services covered by Medicaid. At least 42% of the
pregnant women in Alaska are eligible for Medicaid. The
bill allows those women to use midwifery services instead of
mandating that they use clinics or hospitals for birthing
services. In expanding the options for using midwifery
services for births, the State will stretch its Medicaid
dollars.
Representative Hanley questioned the savings expected to be
incurred. Representative Therriault acknowledged that the
shift in midwife care would be for women who otherwise would
go to the hospital which would create greater costs to the
State than those opting for home delivery.
DAVID WILLIAMS, PLANNER, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, commented that one
hundred twenty-five Medicaid eligible women would be giving
birth each year. Of the eligible women, sixty of those
would be shifted away from hospital physician costs
indicated by the fiscal note. He pointed out, the service
appeals to many women who reject the current system.
Representative Therriault asked if there were Medicaid
eligible women who do not use hospital services because they
do not want the physician care. Mr. Williams said there
are.
Mr. Williams added, women who choose the midwife service
will save costs because of the preventative and up-front
prenatal care the child receives. Representative Hanley
reiterated concerns with long term costs.
Representative Brown asked if midwife services were
considered to be optional or mandatory. Mr. Williams stated
10
that the intent language recommends that all services be
kept active with the funding available, although the service
is optional with the alternatives available.
Representative Parnell MOVED to report CS SS SB 91 (HES) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS SS SB 91 (HES) was reported out of Committee with a "do
pass" recommendation and with three fiscal notes by the
Department of Health and Social Services dated 3/22/93.
SENATE BILL 198
"An Act exempting certain activities of the Department
of Transportation and Public Facilities from the
regulation provisions of the Administrative Procedure
Act and allowing other procedures for those activities;
and providing for an effective date."
BRUCE CAMPBELL, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, stated based on the court decision in
the rural airport landing fee lawsuit, Anchorage and
Fairbanks (FIA) International Airports may be required to
establish all fees and fee changes through the regulatory
process defined in the Administrative Procedures Act.
AIA and FIA establish landing fees, terminal rent, and other
airline fees through uniform Airline Operating Agreement
formulas negotiated with the airlines serving the two
airports.
Representative Hoffman asked the changes intended for rural
airports. Commissioner Campbell stated that those proposed
regulations have been discussed in the Administrative
Procedures Act.
Representative Foster provided the Committee with a letter
from Northern Air Cargo, Inc. (NAC). [Attachment #3].
Commissioner Campbell replied he had responded to that
letter addressing the word changes. [Attachment #1 & #2].
He offered to provide a "Letter of Intent" addressing the
legislative enforcement.
Representative Grussendorf asked if the proposed legislation
was prepared because previous DOTPF Commissioner's did not
follow the Administrative Procedures Act and consequently
were sued. Commissioner Campbell replied the Attorney
General thought the legislation was necessary or the
possibility that the State would be subject to law suits
from any party who had established rates at the
11
international airports under previous regulations.
Representative Grussendorf pointed out that the
international airports would be exempt from the act.
Commissioner Campbell noted there would be no increased fees
resulting from the implementation of the legislation. He
added, the State was sued because it had not followed the
Administrative Procedures Act. Currently, no one is due
money from the international airport.
Co-Chair MacLean asked if adequate public hearings had been
scheduled for the bill. Commissioner Campbell replied there
would be a new newspaper add running for three weeks prior
to the public hearings. Representative MacLean asked if
fees would be established for the rural carriers.
Commissioner Campbell stated the legislation would only
affect the international airports in Anchorage and
Fairbanks. He added, the Department could establish fees
under A.P.A.
Representative Hoffman asked who was responsible for
establishing the fees. Commissioner Campbell replied, law
defines that fees be set by order of the Commissioner.
(Tape Change, HFC 93-129, Side 2).
MITCH GRAVO, NORTHERN AIR CARGO, INC., ANCHORAGE, ALASKA,
commented on a concern in the legislation regarding
litigation on the rural airports and the authority the
Commissioner is given. He feared that persons not subject
to litigation would have their rates and fees increased to
make up for the decrease resulting from the judgement.
Commissioner Campbell explained the money paid in judgments
to the carriers would be subject to a legislative
appropriation.
Representative Brown questioned the relationship between the
international and the rural airports finances. Commissioner
Campbell pointed out they are separate. The international
airports operate from a revolving fund, with the landing
fees and the charges to those airports pay for the
operation.
Representative Foster MOVED to report SB 198 out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 198 was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Transportation and Public Facilities dated
4/18/93.
12
SENATE BILL 142
"An Act relating to the Alaska regional economic
assistance program; and providing for an effective
date."
Representative Hanley provided the Committee with a
sectional analysis of SB 142. [Attachment #4]. He
suggested a "floating" match rate to be itemized within the
legislation.
CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, assured
Representative Hanley that there would be no string-free
grants in the legislation. Match amounts will be required.
Representative Hanley provided the Committee with Amendment
Gates noted DCED would be comfortable with the amendment.
Representative Martin noted his concern with the fiscal
impact of the bill. Mr. Gates stated a new fiscal note
could be established by the Committee. He added, the
Department would like to fully fund each of the fifteen
Regional Development Organizations (ARDOR's) at $100
thousand dollars although they are willing to negotiate.
Co-Chair MacLean asked the difference between SB 154 and SB
142. Mr. Gates replied that SB 154 is a capital grant bill
which allows the Legislature to establish certain money for
proper economic development grant projects which must meet
six criteria for job placement and economic activity. The
funding would be for one person per area and would not cover
any project development.
Mr. Gates commented on the two fiscal notes. The original
fiscal note requested by the Department was $750 thousand
dollars. The Senate Finance Committee reduced the note to
$250 thousand dollars. There is a requirement for cash
matches, although in-kind matches have been accepted. Mr.
Gates advised that there is Federal Economic Development
Administration money available to administrate the program.
Some ARDOR's not having a functioning board of director's in
the local region have been decertified.
Representative Brown asked if there have been any civil
lawsuits involving ARDOR's. Mr. Gates replied there has not
been any lawsuits against any board members to date.
Representative Brown noted her concern that the legislation
does have private goals and it also works hand-in-hand with
13
private industry. Mr. Gates reiterated, the fear of being
sued has motivated many ARDOR's to make careful decision.
Representative Hanley MOVED Amendment #1.
(Tape Change, HFC 93-130, Side 1).
Representative Brown MOVED a language change to Page 2, Line
15 and Line 20. She recommended deleting on Line 15, "for
the project" and on Line 19-20, deletion of the language "to
be used for the project". Mr. Gates noted the amendment was
acceptable. Representative Brown MOVED to amend Amendment
being NO OBJECTION to the amended Amendment #1, it was
adopted.
Representative Foster MOVED to report HCS CS SB 142 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal note. There being NO OBJECTION, it
was so ordered.
Representative Navarre MOVED to amend the fiscal note to
$500 thousand dollars.
SENATOR GEORGE JACKO commented that the $250 thousand dollar
fiscal note would be sufficient. Representative Navarre
WITHDREW THE MOTION. There being NO OBJECTION, it was so
ordered.
HCS CS SB 142 (FIN) was reported out of Committee with "no
recommendation" and with a fiscal note by the Senate Finance
Committee dated 4/08/93.
SENATE BILL 154
"An Act relating to the economic development grant
program; and providing for an effective date."
Mr. Gates stated that CSSB 154 establishes the Economic
Development Grant Program and places directly in statute
specific economic criteria that municipalities and Regional
Development Organizations (ARDOR's) must meet in order to be
eligible. The Office of Management and Budget will form an
evaluation committee with the Department of Commerce and
Economic Development (DCED) and the Department of Community
and Regional Affairs (DCRA) and other agencies to prioritize
the projects. The amended version of the bill replaces DCED
as the administering agency with the Department of
Administration (DOA).
The program creates an competitive approach in which
projects are prioritized. Discussion followed between
14
Representative Navarre and Mr. Gates regarding the grant
fund appropriation and the prioritized list. Representative
Navarre felt the proposed program was a duplication of other
legislation. Mr. Gates replied there are gaps in other
proposed project legislation. Co-Chair Larson agreed with
Representative Navarre. Mr. Gates stated the legislation is
not a matching grant, and there should be no match required.
Representative Brown did not understand the project
feasibility. She recommended adding a requirement to
indicate the economic feasibility of the legislation. The
criteria submitted would be used to rank rather than to
match. Mr. Gates disagreed with Representative Brown.
SENATOR GEORGE JACKO stated that an intent letter had been
exchanged between the House and Senate Finance Co-Chairs
indicating criteria used for the legislation. Mr. Gates
explained the fund at DCED is a matching grant fund for non-
profit organizations which requires a match. The proposed
legislation does not require a catch match. Economic
development projects can be funded without the requirement
for a match although one of the criteria is to determine how
much money is being brought in from other sources. The
primary difference between the two is the match requirement.
Representative Parnell asked if a match requirement was
imposed on the legislation, would the purpose be defeated.
Senator Jacko replied, the established criteria would
require that a match be provided by local participation in
the project. Co-Chair MacLean pointed out that within the
Senate capital budget, $15 million dollars worth of economic
matching grant monies are available. Mr. Gates added each
project on the list have match components.
Representative Brown suggested that taxes and other costs
imposed to the State should be indicated. She asked that
specified criteria be required. Representative Brown
recommended to continue funding economic development
projects already in place rather than beginning new
programs. Senator Jacko said his intention was to establish
a better system with the Administration's assistance.
Representative Brown asked why the Department of
Administration was chosen to be the lead agency for the
proposed legislation.
(Tape Change, HFC 93-130, Side 2).
Mr. Gates replied that DOA currently administer's all the
paper work and could insure a consistent process.
15
Representative Martin noted concern with the criteria used
to determine the projects and felt that the unemployment
status of an area should be emphasized. Mr. Gates replied
ranking the projects was not prioritized.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, stated there are "ready" grants and "small"
grants in economic development which are used for
feasibility studies. The proposed legislation is meant for
the large scale projects which are not indicated in the rest
of the budget.
Representative Brown asked how the projects differ from the
existing process complied in the Governor's capital budget
for statewide economic development projects. Commissioner
Fuhs stated the difference is that SB 154 establishes six
criteria which are to be used by the Legislature to evaluate
the projects.
CS SB 154 (L&C)(efd fld) was HELD in Committee for further
consideration.
ADJOURNMENT
The meeting adjourned at 3:10 P.M.
16
| Document Name | Date/Time | Subjects |
|---|