Legislature(2013 - 2014)BELTZ 105 (TSBldg)

04/04/2013 05:00 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
Board of Marine Pilots - Hans Antonsen
Board of Pharmacy - Taryl Giessel
AK Workers' Compensation Board - Ronald Nalikak
-- Public Testimony --
*+ SB 93 TECHNICAL/VOCATIONAL EDUCATION PROGRAM TELECONFERENCED
Moved SB 93 Out of Committee
-- Public Testimony --
+= SB 25 UNEMPLOYMENT; ELEC. FILING OF LABOR INFO TELECONFERENCED
Moved SB 25 Out of Committee
-- Public Testimony --
HB 71 AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
Heard & Held
-- Public Testimony --
*+ SB 58 CANCEL INS. ON CERTAIN ABANDONED PROPERTY TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ SB 61 COMMERCIAL FISHING & AGRICULTURE BANK TELECONFERENCED
<Bill Hearing Canceled>
Bills Previously Heard/Scheduled
+= SB 79 SPORT FISHING GUIDING SERVICES TELECONFERENCED
<Bill Hearing Canceled>
         HB  71-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM                                                                     
                                                                                                                                
5:56:58 PM                                                                                                                    
CHAIR  DUNLEAVY announced  the consideration  of HB  71. "An  Act                                                               
requiring  the Department  of Commerce,  Community, and  Economic                                                               
Development  to   file  an  annual  report   to  the  legislature                                                               
regarding  statewide and  regional economic  development projects                                                               
and   regional    development   organizations;    extending   the                                                               
termination  date  of  the Alaska  regional  economic  assistance                                                               
program; and providing for an effective date."                                                                                  
                                                                                                                                
5:57:32 PM                                                                                                                    
REPRESENTATIVE SHELLY  HUGHES, sponsor  of HB 71,  explained that                                                               
there are  12 Alaska  Regional Development  Organizations (ARDOR)                                                               
across the state.  The program will expire June 30,  2013, and HB
71 extends  the expiration date  to July  1, 2016. The  bill also                                                               
requires  the  Department  of Commerce,  Community  and  Economic                                                               
Development  (DCCED)   to  prepare   an  annual  report   to  the                                                               
legislature  as  a  means  of  improving  accountability  of  the                                                               
ARDORs. The report will include  information about how each ARDOR                                                               
is  using state  funds  to  improve the  economic  health of  the                                                               
particular  region, about  statewide  and  regional projects  and                                                               
activities  of  the  ARDORs,  and  individual  information  about                                                               
finances, work plans, strategies, and projects.                                                                                 
                                                                                                                                
She explained  that ARDORs serve  as the state's  contribution to                                                               
economic development in the urban  and rural areas throughout the                                                               
state. ARDORs  are based  on the premise  that the  best strategy                                                               
for regional economic development  is a locally driven initiative                                                               
using   local  leaders   who   know   the  regional   conditions,                                                               
challenges, and  opportunities. They are  best suited to  work in                                                               
partnerships with the  state and other entities.  She opined that                                                               
this  was an  effective  model where  local  businesses can  pool                                                               
resources across  multiple communities  to work on  the projects,                                                               
develop partnerships, and provide needed technical assistance.                                                                  
                                                                                                                                
5:59:38 PM                                                                                                                    
SENATOR  OLSON  asked how  these  organizations  are measured  to                                                               
ensure  that the  state's  money is  being  spent for  worthwhile                                                               
endeavors.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  HUGHES  explained   that  the  individual  ARDORS                                                               
provide reports to  DCCED and as they apply for  grants each year                                                               
they  are expected  to  provide certain  plans  and meet  certain                                                               
criteria. To alleviate concerns about  the success of the program                                                               
she requested an  audit through the Legislative  Budget and Audit                                                               
Committee. That  is one  reason that the  extension is  for three                                                               
years as opposed  to five years. The audit and  the new, required                                                               
reports  to the  legislature will  improve accountability  of the                                                               
individual  ARDORs.   She  acknowledged   that  some   could  use                                                               
improvement.                                                                                                                    
                                                                                                                                
SENATOR OLSON asked about the penalties for nonperformance.                                                                     
                                                                                                                                
REPRESENTATIVE  HUGHES  replied  the  ARDOR  could  be  denied  a                                                               
subsequent grant, but she was unaware of any other penalties.                                                                   
                                                                                                                                
SENATOR OLSON commended the sponsor for requesting the audit.                                                                   
                                                                                                                                
6:02:06 PM                                                                                                                    
LORENE  PALMER,  Director,   Division  of  Economic  Development,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED) introduced herself  and Nicole Grewe, the  manager of the                                                               
ARDOR   program.  She   stated  that   the  DCCED   supports  the                                                               
reauthorization of the ARDOR program  and believes that the model                                                               
using local  leaders continues to be  sound. However, refinements                                                               
are needed. She  said ARDORs are a vital extension  of DCCED, and                                                               
the  department relies  on them  to report  on the  strengths and                                                               
challenges  in their  region. That  information helps  DCCED form                                                               
programs,  initiatives, and  policies  to  assist the  individual                                                               
ARDORs. DCCED funnels  programs through the ARDORS  to help local                                                               
businesses with  technical assistance, marketing  assistance, and                                                               
loan  programs all  of which  help economic  development efforts.                                                               
She highlighted that DCCED has worked  hard to help each ARDOR to                                                               
be successful, but each performs  differently because each region                                                               
is vastly different. She reiterated support for the legislation.                                                                
                                                                                                                                
6:04:30 PM                                                                                                                    
MERRILL SANFORD,  Mayor, City and  Borough of Juneau  stated that                                                               
he was  a board member  of Southeast Conference (SEC),  the ARDOR                                                               
for all  of Southeast Alaska.  This ARDOR communicates  with more                                                               
than 30  communities from Yakutat  to Metlakatla and  receives up                                                               
to $65,000  per year for  the program.  This ARDOR has  been very                                                               
successful in  its efforts to  further economic  development over                                                               
the region.  One of  the larger projects  has been  the Ketchikan                                                               
dry dock, which  should bring needed jobs to  that community. SEC                                                               
has  also  worked to  bring  back  timber  industry jobs  and  to                                                               
develop  mariculture potential.  He  emphasized  that SEC  brings                                                               
large  and   small  communities  together  to   further  economic                                                               
development.                                                                                                                    
                                                                                                                                
CHAIR DUNLEAVY noted that public testimony was open.                                                                            
                                                                                                                                
6:08:08 PM                                                                                                                    
BRYANT  HAMMOND, Director,  Community  Planning and  Development,                                                               
Kawerak  Inc., said  he  was  speaking on  behalf  of the  Bering                                                               
Straits  Development Council  (BSDC),  the ARDOR  for the  Bering                                                               
Straits region. He explained that  BSDC serves 16 communities and                                                               
20   federally   recognized    tribes   and   provides   economic                                                               
development,  community planning,  and small  business assistance                                                               
to the region.                                                                                                                  
                                                                                                                                
He  described  the  specific duties  of  the  energy  development                                                               
specialist,  the  business  planning specialist,  the  e-commerce                                                               
technician, the  grant writing specialist,  and the  planning and                                                               
development specialist  for the  BSDC ARDOR.  He noted  that much                                                               
the ARDOR  funding goes toward  the latter position. Some  of the                                                               
local projects are Lemonade Day  Alaska, a strategic energy plan,                                                               
tax  assistance services  in each  community,  and a  sustainable                                                               
teen  center  in  Savoonga based  on  locally  generated  revenue                                                               
streams.  He concluded  that the  ARDOR program  is vital  in the                                                               
Bering Straits region.                                                                                                          
                                                                                                                                
6:11:51 PM                                                                                                                    
DENISE  BRAND, Grants  Writer-Coordinator,  Fairbanks North  Star                                                               
Borough, testified in  support of HB 71. She said  being an ARDOR                                                               
has been  very valuable for  the community. The  local commission                                                               
meets monthly  to address  critical economic  issues such  as the                                                               
cost of  energy, maintaining military  presence in  the Interior,                                                               
and  sustainable agriculture  projects.  Through  its ARDOR,  the                                                               
Fairbanks  North  Star  Borough  has  been  able  to  update  its                                                               
comprehensive economic development  strategy, initiate geothermal                                                               
exploration,  and  complete  the  biomass  cluster  project.  She                                                               
reiterated support for reauthorizing the ARDOR program.                                                                         
                                                                                                                                
6:13:25 PM                                                                                                                    
BILL  POPP, President  and  CEO,  Anchorage Economic  Development                                                               
Corporation (AEDC), testified  in support of HB 71.  He said that                                                               
the ARDOR program  is an important component of  the AEDC budget.                                                               
The funds  are used for  business retention and expansion  and to                                                               
attract  national  and   international  investment  opportunities                                                               
throughout Southcentral  and the  Interior. He said  this program                                                               
is   also  an   important  part   of  the   efforts  to   promote                                                               
entrepreneurship  within  the  community  of  Anchorage  and  the                                                               
Southcentral region.  An important  aspect of  the program  is to                                                               
provide  core  seed  funding  to the  ARDORS  serving  the  rural                                                               
regions. They can  use that to attract other  funding to leverage                                                               
the  difficult effort  of economic  and community  development in                                                               
many of  the communities that  they serve. He  reiterated support                                                               
for HB 71.                                                                                                                      
                                                                                                                                
6:15:28 PM                                                                                                                    
MARILYN   HEDDELL,  Director,   Prince  William   Sound  Economic                                                               
Development District,  voiced support  for the ARDOR  program. It                                                               
has  sponsored  many  projects in  the  region  including  harbor                                                               
improvements, a  new cold  storage plant  in Valdez,  new tsunami                                                               
sirens,  and educational  and  cultural  programs throughout  the                                                               
region.  These grant  funds are  crucial to  the way  of life  in                                                               
Prince William Sound.                                                                                                           
                                                                                                                                
6:16:32 PM                                                                                                                    
CHAIR DUNLEAVY closed public testimony.                                                                                         
                                                                                                                                
SENATOR MICCICHE disclosed  that he was a former  board member of                                                               
the  Kenai   Peninsula  Economic   Development  District   and  a                                                               
supporter of the ARDOR program.                                                                                                 
                                                                                                                                
CHAIR DUNLEAVY stated  he would hold HB 71 in  committee and take                                                               
action on it on Saturday, barring any problems.                                                                                 

Document Name Date/Time Subjects
SB93_Full_Text.pdf SL&C 4/4/2013 5:00:00 PM
SB 93
SB 93 - Sponsor Statement.docx SL&C 4/4/2013 5:00:00 PM
SB 93
SB 93 - Supporting Documents- Alaska Training Program Performance 2012.pdf SL&C 4/4/2013 5:00:00 PM
SB 93
3-28-13 More Appts to L&C #5.doc SL&C 4/4/2013 5:00:00 PM
Governor Appointments
HB71 ARDORs sponsor statement.pdf SL&C 4/4/2013 5:00:00 PM
HB 71
HB71 FIN_CS_Fiscal Note_DCCED DED 03 15 13.pdf SL&C 4/4/2013 5:00:00 PM
HB 71
HB71 supporting documents - ARDORS annual report.pdf SL&C 4/4/2013 5:00:00 PM
HB 71
HB71 Supporting documents - ARDORS program.pdf SL&C 4/4/2013 5:00:00 PM
HB 71
HB71_ARDOR audit request.pdf SL&C 4/4/2013 5:00:00 PM
HB 71
HB71_FIN_CS_Full Text.PDF SL&C 4/4/2013 5:00:00 PM
HB 71
SB93_Fiscal Note_DOLWD-CO-4-3-13.pdf SL&C 4/4/2013 5:00:00 PM
SB 93
SB93_Fiscal Note-UA-Sysbra-4-03-13.pdf SL&C 4/4/2013 5:00:00 PM
SB 93
SB93_Fiscal_Note_EED-TLS-4-2-13.pdf SL&C 4/4/2013 5:00:00 PM
SB 93
SB8_BPM_Presentation.PDF SL&C 4/4/2013 5:00:00 PM
SB 8
SB25_Support_Juneau Chamber.pdf SL&C 4/4/2013 5:00:00 PM
SB 25
SB25_Support_Letter_AKResturantBeverageAssc..pdf SL&C 4/4/2013 5:00:00 PM
SB 25