Legislature(1993 - 1994)
05/05/1993 01:00 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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. 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.
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