Legislature(2007 - 2008)SENATE FINANCE 532

03/15/2008 10:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 120 UNEMPLOYMENT COMPENSATION BENEFITS TELECONFERENCED
Moved CSSB 120(FIN) Out of Committee
+= SB 209 EXTEND ALASKA COMMISSION ON AGING TELECONFERENCED
Moved SB 209 Out of Committee
+= SB 243 COMMISSION ON AGING TELECONFERENCED
Moved CSSB 243(HES) Out of Committee
+= SB 254 AK REGIONAL ECONOMIC ASSISTANCE PROGRAM TELECONFERENCED
Moved SB 254 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 254                                                                                                           
               "An Act extending the termination date of the                                                                    
               Alaska regional economic assistance program;                                                                     
               and providing for an effective date."                                                                            
                                                                                                                                
JODI SIMPSON, STAFF, SENATOR HUGGINS, presented SB 254 and                                                                      
read from the sponsor statement:                                                                                                
      The Alaska Regional Economic Assistance Program was                                                                       
     created by the Legislature in 1988 to promote the                                                                          
     economic development of Alaska's urban and rural areas.                                                                    
     This program enables the creation of Alaska Regional                                                                       
     Development Organizations (ARDORs). Each ARDOR is                                                                          
     guided and directed by a board of directors composed of                                                                    
     the economic development interests in the region. To                                                                       
     carry out their mission, the State provides funding in                                                                     
     the form of grants for the ARDOR program. In turn, the                                                                     
     ARDORs use that money to leverage, on average, eight                                                                       
     times the State's investment in private, federal, and                                                                      
     other funds.  Currently, there are 11 ARDORs across the                                                                    
     state. These ARDORs:                                                                                                       
          • Enable local officials and businesses to pool                                                                       
          their limited resources and work together on                                                                          
          economic development;                                                                                                 
          • Develop partnerships among public, private and                                                                      
          other organizations; and                                                                                              
          • Provide technical assistance via direct links                                                                       
          with local citizens.                                                                                                  
                                                                                                                                
     SB 254 is a companion bill to House Bill 272, which is                                                                     
     sponsored by Representative Bill Stoltze.  The Alaska                                                                      
     Regional Economic Assistance Program and its ARDORs are                                                                    
     an important part of the economic development of their                                                                     
     regions. I ask your support in extending this program                                                                      
     to 2013.                                                                                                                   
                                                                                                                                
10:46:32 AM                                                                                                                   
                                                                                                                                
Senator  Dyson  noted  that  Ms.  Pat  Davidson,  Legislative                                                                   
Auditor  testified  that  the  standard  extension  is  eight                                                                   
years.  He questioned why the  provision extends to only five                                                                   
years.                                                                                                                          
                                                                                                                                
Ms.  Simpson explained  that  there  was some  discussion  on                                                                   
decreasing the  standard five year extension  to three years.                                                                   
The extension  remained at five  years and she  was uncertain                                                                   
if the eight year extension was considered.                                                                                     
                                                                                                                                
10:47:37 AM                                                                                                                   
                                                                                                                                
Senator  Huggins  explained  the   standard  of  eight  years                                                                   
relates  to  boards  and commissions  which  is  a  different                                                                   
category from programs.                                                                                                         
                                                                                                                                
Ms. Simpson said  there are two fiscal notes  from Department                                                                   
of Commerce, Community and Economic Development.                                                                                
                                                                                                                                
Senator  Huggins  noted there  is  a considerable  amount  of                                                                   
nongovernmental   funds  that   come  into   play  with   the                                                                   
organization.                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  asked  if  Legislative  Budget  and  Audit                                                                   
(LB&A) reviewed any of the activities of the AIEDEA.                                                                            
                                                                                                                                
Ms.  Simpson explained  that each  ARDOR  is responsible  for                                                                   
conducting  an  internal  audit.     She  said  Ms.  Davidson                                                                   
reported there has  not been a Legislative audit  in the last                                                                   
10 years.                                                                                                                       
                                                                                                                                
Co-Chair Stedman  asked Ms.  Simpson to  explain the  role of                                                                   
ARDORS as  collaborator with  other organizations  to improve                                                                   
economic conditions.                                                                                                            
                                                                                                                                
10:49:41 AM                                                                                                                   
                                                                                                                                
Ms. Simpson  deferred to  Michael Hanzuk  and Mike  Catsi who                                                                   
could   better   explain  their   relationship   with   other                                                                   
organizations.                                                                                                                  
                                                                                                                                
10:50:29 AM                                                                                                                   
                                                                                                                                
MICHAEL  HANZUK,   DEVELOPMENT  SPECIALIST,   ARDOR  PROGRAM,                                                                   
DEPARTMENT  OF COMMERCE, COMMUNITY  AND ECONOMIC  DEVELOPMENT                                                                   
(testified  via teleconference)  in  support of  SB 254.  Mr.                                                                   
Hanzuk  said there  has been  a great  deal of  collaboration                                                                   
within the  11 groups,  as well  as at  the local level  with                                                                   
economic  development  groups.  Each region  works  with  all                                                                   
entities to determine the regions goals and objectives.                                                                         
                                                                                                                                
10:52:56 AM                                                                                                                   
                                                                                                                                
MIKE CATSI, SOUTHWEST ALASKA MUNICIPAL  CONFERENCE (testified                                                                   
via  teleconference), in  support of  SB 254.   He  explained                                                                   
that   his  organization   works   with  a   wide  range   of                                                                   
organizations.  He said he was available for any questions.                                                                     
                                                                                                                                
Senator Thomas  commented that  ARDORS are good  coordinators                                                                   
for collaboration on economic development issues.                                                                               
                                                                                                                                
SALLY SADDLER,  LEGISLATIVE LIAISON,  COMMERCE COMMUNITY  AND                                                                   
ECONOMIC  DEVELOPMENT,  addressed   the  fiscal  note.    She                                                                   
explained  the  fiscal  note adds  $13.1  thousand  of  AIDEA                                                                   
receipts  to  be  transferred   to  the  Office  of  Economic                                                                   
Development  via   inter-agency  receipts  for   keeping  the                                                                   
position funded at 50 percent.                                                                                                  
                                                                                                                                
Senator  Olson  emphasized the  value  of  the work  done  by                                                                   
ARDORS in his district and voiced strong support of SB 254.                                                                     
                                                                                                                                
10:56:28 AM                                                                                                                   
                                                                                                                                
Senator  Huggins   emphasized  the  importance   of  economic                                                                   
development  across the  state  and the  significance of  the                                                                   
ARDORS role in assisting communities in that endeavor.                                                                          
                                                                                                                                
Senator  Huggins MOVED  to  Report out  of  Committee SB  254                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
                                                                                                                                
AT EASE:  10:57:38 AM                                                                                                         
                                                                                                                                
RECONVENE:10:58:18 AM                                                                                                         
                                                                                                                                

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