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 FINANCE COMMITTEE                                                                                      
                       March 15, 2008                                                                                           
                         10:05 a.m.                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 10:05:26 AM.                                                                                                      
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Darwin  Peterson, Staff,  Senator  Bert  Stedman; Dana  Owen,                                                                   
Staff,  Senator  Johnny  Ellis;  Paula  Scavera,  Legislative                                                                   
Liaison, Department  of Labor and Workforce  Development; Pat                                                                   
Davidson,  Legislative Auditor,  Legislative Audit  Division,                                                                   
Legislative  Affairs Agency;  Tom  Obermeyer, Staff,  Senator                                                                   
Bettye   Davis;   Senator   Bettye   Davis,   Pat   Davidson,                                                                   
Legislative Auditor, Legislative  Audit Division, Legislative                                                                   
Affairs Agency;  Denise Daniello, Executive  Director, Alaska                                                                   
Commission  on   Aging;  Joanne  Gibbons,   Program  Manager,                                                                   
Department  of  Health  and Social  Services;  Jodi  Simpson,                                                                   
Staff, Senator  Charlie Huggins;  Sally Saddler,  Legislative                                                                   
Liaison, Commerce Community and Economic Development                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Michael  Hanzuk,   Development  Specialist,   Ardor  Program,                                                                   
Department of  Commerce, Community and Economic  Development;                                                                   
Mike Catsi, Southwest Alaska Municipal Conference                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
                                                                                                                                
SB 120    "An Act relating to  the calculation and payment of                                                                   
          unemployment compensation benefits; and providing                                                                     
          for an effective date."                                                                                               
                                                                                                                                
          CSSB 120 (FIN) was REPORTED out of Committee with                                                                     
          "no recommendation" and a new fiscal note from the                                                                    
          Department of Labor and Workforce Development.                                                                        
                                                                                                                                
SB 209    "An Act extending the termination date of the                                                                         
          Alaska  Commission on Aging;  and providing  for an                                                                   
          effective                                                                                                             
          date."                                                                                                                
                                                                                                                                
          SB  209 was REPORTED  out of  Committee with  a "do                                                                   
          pass"  recommendation and  a new  fiscal note  from                                                                   
          the Department of Health and Social Services.                                                                         
                                                                                                                                
                                                                                                                                
SB 243    "An Act relating to the duties and powers of the                                                                      
          Alaska  Commission on Aging  and the Department  of                                                                   
          Health and Social Services."                                                                                          
                                                                                                                                
          CSSB 243(HES) was REPORTED  out of Committee with a                                                                   
          "do pass"  recommendation and  fiscal note #1  & #2                                                                   
          from   Department   of  Commerce,   Community   and                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
SB 254    "An Act extending the termination date of the                                                                         
          Alaska  regional economic  assistance program;  and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                
          SB  254 was REPORTED  out of  Committee with  a "do                                                                   
          pass" recommendation  and fiscal note #1  & #2 from                                                                   
          Department  of  Commerce,  Community  and  Economic                                                                   
          Development.                                                                                                          
                                                                                                                                
10:05:36 AM                                                                                                                   
                                                                                                                                
SENATE BILL NO. 120                                                                                                           
                                                                                                                                
     "An Act relating to the calculation and payment of                                                                         
     unemployment compensation benefits; and providing for                                                                      
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT Work Draft for SB 120, 25-                                                                      
LSO622/N, Wayne, 3/14/08.                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
DARWIN PETERSON, STAFF, SENATOR STEDMAN, explained that                                                                         
there are three main changes:                                                                                                   
                                                                                                                                
    · Sec. 9, line 7, changed to 2 year phase in for the                                                                        
      decreased  contribution  rate  paid  by  the  employer.                                                                   
      Instead  of going  from  80% to  73% in  one year,  the                                                                   
      phase  in would be  76% beginning  January 1,  2009 and                                                                   
      73% beginning January 1, 2010.                                                                                            
                                                                                                                                
    · Page 6, line 13, Sec. 10 creates the two year phase                                                                       
      in  for the  increased contribution  rate  paid by  the                                                                   
      employee.    The rate  would  change to  24%  beginning                                                                   
      January 1, 2009 and 27 % beginning January 1, 2010.                                                                       
                                                                                                                                
    · Sec. 13, 14 and 15 have been deleted.  He explained                                                                       
      that section  13 was a conforming amendment  that is no                                                                   
      longer  needed   with  the  deletion  of   section  14.                                                                   
      Section  14 is  the automatic  annual recalculation  of                                                                   
      the benefit amount (escalator  clause).  Sec.  15   was                                                                   
      deleted  as  it  conflicted   with  federal  law.    He                                                                   
      referenced the  handout of federal tax code  Chapter 23                                                                   
      - Federal Unemployment Tax Act (On File).                                                                                 
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
There being  NO OBJECTION, CSSB120 (FIN)  25-LSO622/N, Wayne,                                                                   
3/14/08 was adopted.                                                                                                            
                                                                                                                                
10:10:03 AM                                                                                                                   
                                                                                                                                
DANA  OWEN,  STAFF, SENATOR  ELLIS,  presented  SB  120.   He                                                                   
informed  the  Committee  that  for the  last  11  years  the                                                                   
maximum weekly benefit amount  for unemployment insurance has                                                                   
remained at $248.  He explained  that the intent of SB 120 is                                                                   
to raise unemployment insurance to $370.                                                                                        
                                                                                                                                
Senator Olson  asked if the  Sponsor agreed with  the changes                                                                   
in the Committee Substitute.                                                                                                    
                                                                                                                                
Mr.  Owen  said the  Sponsor  is  fine  with the  change  and                                                                   
believes it is an improvement to the bill.                                                                                      
                                                                                                                                
Senator Olson asked  if those effected by the  changes in the                                                                   
CS have commented on the change.                                                                                                
                                                                                                                                
10:12:37 AM                                                                                                                   
                                                                                                                                
Mr. Owen acknowledged that the  escalator clause may not stay                                                                   
in the bill.   He explained that members of  both houses have                                                                   
discussed  the   automatic  adjustment  to   benefit  amounts                                                                   
(escalator  clause, Sec.  15).   There  are  many who  oppose                                                                   
these adjustments and Senator  Ellis had anticipated this and                                                                   
discussed  the issue  with  others, but  there  is no  public                                                                   
testimony on record regarding the changes.                                                                                      
                                                                                                                                
Senator Thomas said he is pleased  to see the increase in the                                                                   
amount.  He would  prefer to see the escalator  clause in the                                                                   
bill, but is not concerned with its removal.                                                                                    
                                                                                                                                
10:14:26 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  REPORT  CSSB  120(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair  Stedman OBJECTED  and asked  if the  Administration                                                                   
had an opinion on the bill.                                                                                                     
                                                                                                                                
10:15:24 AM                                                                                                                   
                                                                                                                                
PAULA SCAVERA,  LEGISLATIVE LIAISON, DEPARTMENT  OF LABOR AND                                                                   
WORKFORCE  DEVELOPMENT, said  there was  no comment  from the                                                                   
Department.                                                                                                                     
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
AT EASE:  10:16:20 AM                                                                                                         
                                                                                                                                
RESUME:   10:17:17 AM                                                                                                         
                                                                                                                                
SENATE BILL NO. 209                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Alaska                                                                       
     Commission on Aging; and providing for an effective                                                                        
     date."                                                                                                                     
                                                                                                                                
}Senator  Bettye Davis,  Sponsor,  explained that  SB 209  is                                                                   
simply an  extension of  the termination  date of the  Alaska                                                                   
Commission  on  Aging.    She   said  the  legislative  audit                                                                   
suggests the extension of the Commission.                                                                                       
                                                                                                                                
10:17:37 AM                                                                                                                   
                                                                                                                                
Senator  Dyson asked  what the  recommendation  of the  audit                                                                   
was.   Senator  Davis  said the  audit  recommended that  the                                                                   
Commission  be extended  by five years.   Additional  changes                                                                   
were  recommended and  are  addressed in  SB  243. The  audit                                                                   
recommended that  some duties of  the Commission be  given to                                                                   
the Department.                                                                                                                 
                                                                                                                                
Senator Dyson  asked if  there was any  analysis of  what the                                                                   
commission had  accomplished.  Senator Davis  said the Alaska                                                                   
State Plan,  Senior Services FY  08-FY 2011 report,  provides                                                                   
that information and is in the bill packet.                                                                                     
                                                                                                                                
Co-Chair  Stedman  asked if  the  eight-year  extension is  a                                                                   
standard extension  time.   Senator Davis  said that  was the                                                                   
recommended time for extending the Board.                                                                                       
                                                                                                                                
10:19:46 AM                                                                                                                   
                                                                                                                                
PAT   DAVIDSON,  LEGISLATIVE   AUDITOR,   LEGISLATIVE   AUDIT                                                                   
DIVISION, LEGISLATIVE  AFFAIRS AGENCY, summarized  the audit.                                                                   
She  said  that  the eight-year  extension  is  the  standard                                                                   
extension  for  commissions  that  are  currently  under  the                                                                   
sunset clause.  The division recommends  that the termination                                                                   
date  be extended.   "The  commission meets  all the  federal                                                                   
requirements to have an advisory  council consisting of older                                                                   
individuals  who are  eligible  to participate  in  federally                                                                   
funded programs  under the Older  Americans Act."   The audit                                                                   
recommended that  the administration of grants be  moved to a                                                                   
division within the Department  of Health and Social Services                                                                   
(DHSS) due to its  experience as a granting agency.   In 2003                                                                   
the  commission moved  from Department  of Administration  to                                                                   
DHSS.  Legislative audit suggested  the statute be changed to                                                                   
reflect the shift in function  and roles.  At the time of the                                                                   
move,  the focus  and intent  changed from  being a  granting                                                                   
agency to  limiting the focus  to advocacy, issues.  She said                                                                   
the  audit also  found  that  staff turnovers  and  vacancies                                                                   
hampered the  functions of  the commission.   She noted  that                                                                   
with  the  refocus   on  advocacy  the  commission   is  more                                                                   
effective.                                                                                                                      
                                                                                                                                
10:22:31 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman   addressed  the   fiscal  note   from  the                                                                   
Department  of   Health  and   Social  Services   for  $482.8                                                                   
thousand.                                                                                                                       
                                                                                                                                
Senator  Dyson  commented  on  the quote  from  the  analysis                                                                   
"helping  older  Alaskans lead  dignified,  independent,  and                                                                   
productive lives." He said the  wording provides no specifics                                                                   
and  no  tools  to  measure  effectiveness.     He  expressed                                                                   
concerned  about lack  of goals  and objectives  that can  be                                                                   
measured.                                                                                                                       
                                                                                                                                
Senator   Thomas  noted   that   the  older   population   is                                                                   
increasing, hence the need for greater funds.                                                                                   
                                                                                                                                
10:25:54 AM                                                                                                                   
                                                                                                                                
Senator  Olson  shared  Senator  Dyson's  view,  in  general,                                                                   
regarding the importance of quantifying  needs for funds.  He                                                                   
underlined  that  the aging  population  is  growing and  the                                                                   
importance of taking care of that  segment of the population.                                                                   
                                                                                                                                
Co-Chair  Hoffman MOVED  to REPORT  SB 209  out of  Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
SENATE BILL NO. 243                                                                                                           
                                                                                                                                
     "An Act relating to the duties  and powers of the Alaska                                                                   
     Commission  on Aging  and the Department  of Health  and                                                                   
     Social Services."                                                                                                          
                                                                                                                                
10:29:24 AM                                                                                                                   
                                                                                                                                
TOM OBERMEYER, STAFF, SENATOR DAVIS, read from the sponsor                                                                      
statement:                                                                                                                      
                                                                                                                                
     The  CS for  Senate Bill  243(HES),  25-LS1351\E, has  a                                                                   
     zero  fiscal note.  As required  by  a 2007  Legislative                                                                   
     Audit, this "clean-up" bill  brings into alignment grant                                                                   
     duties and  responsibilities that were  previously given                                                                   
     to the Department of Health  and Social Services (DHSS),                                                                   
     when  the Commission  on  Aging (ACoA)  and Division  of                                                                   
     Senior Services  became part  of DHSS. For  this reason,                                                                   
     statutory   changes  repeatedly   replace   "Commission"                                                                   
     (ACoA)  with "Department"  (DHSS) to properly  recognize                                                                   
     the  duties and  responsibilities  of  each. This  bill,                                                                   
     which  mirrors   CSHB  279(HES),  25-LS1106\E,   assigns                                                                   
     authority for  establishing state policy related  to the                                                                   
     Older Americans Act federal  programs and state programs                                                                   
     for  Older  Alaskans to  the  Department  of Health  and                                                                   
     Social Services.  DHSS is recognized as  the state "Unit                                                                   
     on Aging."                                                                                                                 
                                                                                                                                
     The  bill  also  transfers grant  authority  related  to                                                                   
     senior  service  grants,  adult  day  care,  and  family                                                                   
     respite care grants from  the Alaska Commission on Aging                                                                   
     to DHSS.  DHSS has  assigned these grant  administrative                                                                   
     duties  to   Senior  and  Disabilities  Services.     As                                                                   
     background   to  the  importance   of  the   duties  and                                                                   
     responsibilities  recognized  in this  bill, the  Alaska                                                                   
     Commission  on   Aging  is  responsible   for  planning,                                                                   
     advocacy, and community education  activities related to                                                                   
     the  health  and  welfare  of  older  Alaskans.  It  has                                                                   
     relationships   with  state  departments   and  agencies                                                                   
     across the  state, including the governor's  office, the                                                                   
     Alaska  Mental   Health  Trust  Authority,   the  Alaska                                                                   
     Housing  and Finance  Corporation, and  non-governmental                                                                   
     organizations.                                                                                                             
                                                                                                                                
     The  need for senior  programs and  services is  rapidly                                                                   
     increasing,  Per the State  plan for Senior  Services FY                                                                   
     2008-FY 2011, Alaska already  has the highest proportion                                                                   
     of  baby boomers  (32%) in  the nation,  and its  senior                                                                   
     population  is  growing  faster than  almost  any  other                                                                   
     state.  By 2030  seniors 60+  will comprise  17% of  the                                                                   
     Alaska  population, with  a  doubling of  the number  of                                                                   
     those 65+.                                                                                                                 
                                                                                                                                
10:32:33 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman asked if the  bill was created as a response                                                                   
to the  audit.  Mr.  Obermeyer confirmed  and added  that the                                                                   
language  in  the statute  did  not  reflect the  changes  in                                                                   
responsibilities when the transfer took place.                                                                                  
                                                                                                                                
Co-Chair  Stedman  asked  if   the  provision  complies  with                                                                   
federal  requirements   of  the  Older  Americans   Act.  Mr.                                                                   
Obermeyer informed  the Committee  that "Alaska's  state plan                                                                   
for  senior services"  was signed  by the  state and  federal                                                                   
Departments  of Health and  Social Services,  as well  as the                                                                   
Department of  Commerce, Community and Economic  Development.                                                                   
He noted  "the importance of  the federal government  signing                                                                   
off  on  the  plan  is that  a  significant  portion  of  the                                                                   
financial aspects  are paid for  by the federal  government."                                                                   
The  federal   government  reviews   every  plan   before  it                                                                   
authorizes the release of funds.                                                                                                
                                                                                                                                
10:35:42 AM                                                                                                                   
                                                                                                                                
Senator  Dyson questioned  the language  on page  6 line  10;                                                                   
"contract for necessary services".   He asked if the language                                                                   
is  for   the  commission  to   contract  services   for  the                                                                   
commission.                                                                                                                     
                                                                                                                                
Mr. Obermeyer deferred to Ms. Daniello.                                                                                         
                                                                                                                                
10:36:53 AM                                                                                                                   
                                                                                                                                
DENISE  DANIELLO, EXECUTIVE  DIRECTOR,  ALASKA COMMISSION  ON                                                                   
AGING, said  the language allows  the commission  to contract                                                                   
for services with  other entities.  She provided  an example:                                                                   
The commission contracted with  DHSS, the Mental Health Trust                                                                   
Authority and the  University of Alaska to produce  Report on                                                                 
Economic Wellbeing of Alaska Seniors.                                                                                         
                                                                                                                                
10:38:06 AM                                                                                                                   
                                                                                                                                
Senator Dyson commented that the  commission has no authority                                                                   
under the  provision to  contract for  services for  seniors.                                                                   
The services they  have authority to contract  are those that                                                                   
serve the mission  and execute the duties of  the commission.                                                                   
He would  have preferred  clarity in  the law outlining  that                                                                   
the commission  is to encourage independence,  not dependence                                                                   
on government.                                                                                                                  
                                                                                                                                
Ms.  Daniello  reported  that   currently  there  are  81,000                                                                   
seniors in Alaska that make significant  contributions to the                                                                   
state.   This  population  contributes significantly  to  the                                                                   
state  economically  through retirement  incomes  and  social                                                                   
security. She  added that  seniors also contribute  thousands                                                                   
of volunteer  hours  to organizations  throughout the  state.                                                                   
She underlined that the commission  is helping people to lead                                                                   
independent lives.   The commission was established  in 1982.                                                                   
The average age of a Pioneer home  resident was late 60s; now                                                                   
the average  age is  82.  This  illustrates that  seniors are                                                                   
entering nursing homes at a later  age, which saves the state                                                                   
money.                                                                                                                          
                                                                                                                                
10:41:40 AM                                                                                                                   
                                                                                                                                
JOANNE  GIBBONS, PROGRAM  MANAGER, DEPARTMENT  OF HEALTH  AND                                                                   
SOCIAL  SERVICES, testified  in  support of  the  bill.   She                                                                   
explained  that  the  current structure  is  a  collaborative                                                                   
effort  between  the department  and  the commission  and  is                                                                   
working very well.                                                                                                              
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  Report  CSSB  243(HES)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO  OBJECTION, CSSB 243(HES) was  REPORTED out of                                                                   
Committee with a "do pass" recommendation  and fiscal note #1                                                                   
&  #2 from  Department of  Commerce,  Community and  Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
10:43:27 AM                                                                                                                   
                                                                                                                                
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                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:58 AM                                                                                           

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