HB 71-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM  9:02:06 AM 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." He noted that this was the second hearing. [CSHB 71(FIN) was before the committee.] 9:02:45 AM REPRESENTATIVE SHELLY HUGHES, sponsor of HB 71, noted that she presented the bill yesterday and asked if the committee wanted her to review what she stated previously. SENATOR STEDMAN suggested the sponsor provide a description of the bill for the listening public. REPRESENTATIVE HUGHES explained that the Alaska Regional Economic Assistance (ARDOR) program expires June 30, 2013 and the bill extends it to July 1, 2016. The bill also adds a new feature that requires the Department of Commerce, Community and Economic Development (DCCED) to submit an annual report to the legislature. The purpose of the report is to improve the accountability of the 12 ARDOR organizations, and ensure that state funds are properly used. DCCED will report on both statewide and regional projects as well as the financial information and strategies of the individual ARDORs. She explained that the ARDORs were developed on the premise that local initiatives with local leadership are best to understand regional conditions, challenges and opportunities of the region. SENATOR STEDMAN asked for a discussion of the political boundary between ARDORS, which are substantially funded by the state, and political advocacy on statewide issues. REPRESENTATIVE HUGHES explained that each ARDOR has a nonpartisan board and community leaders are represented. She wasn't aware of any problem associated with the structure. SENATOR STEDMAN asked her to follow up on the separation, because one ARDOR is interested in addressing political matters on a statewide level. He said he wasn't comfortable with a subsidiary of a state agency being a political advocate. He added that he would also have a discussion with the finance chair. REPRESENTATIVE HUGHES said that in addition to the added accountability reporting, Legislative Budget and Audit (LB&A) was authorized to conduct the first ever audit of the ARDOR program. The agency would look at that sort of thing. She agreed that public funds should not be used for political advocacy. 9:08:25 AM CHAIR DUNLEAVY closed public testimony. SENATOR MICCICHE said he had extensive experience with the ARDOR program and he supported the concept. CHAIR DUNLEAVY solicited a motion. 9:09:20 AM SENATOR MICCICHE moved to report CSHB 71, 28-LS0288\C, from committee with individual recommendations and attached fiscal note(s). CHAIR DUNLEAVY announced that without objection, CSHB 71(L&C) moved from the Senate Labor and Commerce Standing Committee.