04/11/2013 01:30 PM Senate FINANCE

CS FOR HOUSE BILL NO. 71(FIN)                                                                                                 
                                                                                                                                
     "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."                                                                             
                                                                                                                                
3:45:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SHELLEY HUGHES,  explained HB  71. The  bill                                                                    
would extend the program for  an additional three years. She                                                                    
shared that there were 12  ardors in Alaska with the purpose                                                                    
of providing local  input and she stressed  that the program                                                                    
was  formed  25 years  earlier.  She  communicated that  the                                                                    
program  had  been  a  lifeline  for  some  of  the  state's                                                                    
villages.  She  discussed the  annual  cost  per ARDOR.  She                                                                    
noted  there  were   different  accomplishments  across  the                                                                    
state.  She stated  that  an audit  had  not been  conducted                                                                    
during  the program's  lifetime.  She pointed  to an  ARDORS                                                                    
Annual Report  (copy on file). She  explained that Anchorage                                                                    
had   worked  with   their  ARDOR   to  reach   out  on   an                                                                    
international  level. She  shared that  the Anchorage  ARDOR                                                                    
had  recently hosted  a supplier  conference related  to the                                                                    
Kodiak  based  aerospace  program.  She  stressed  that  the                                                                    
ARDORS   had  a   positive  impact   on  Alaska's   economic                                                                    
development.                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  wondered  if  the  public  testimony                                                                    
could be heard, before an amendment was addressed.                                                                              
                                                                                                                                
                                                                                                                                
JASON  HOKE, EXECUTIVE  DIRECTOR, COPPER  VALLEY DEVELOPMENT                                                                    
ASSOCIATION, GLENNALLEN  (via teleconference),  testified in                                                                    
support of  HB 71. He  stated that  he had developed  a food                                                                    
distribution  network  thanks  to   the  ARDOR  program.  He                                                                    
remarked that  he had  reached out  to an  ARDOR in  Nome to                                                                    
share some agriculture feasibility  issues. He remarked that                                                                    
the ARDORs had been instrumental in regional energy plans.                                                                      
                                                                                                                                
3:51:43 PM                                                                                                                    
                                                                                                                                
BARBARA  JOHNSON,  EXECUTIVE  DIRECTOR, NORTH  STAR  BOROUGH                                                                    
MAYOR'S  OFFICE, FAIRBANKS  (via  teleconference), spoke  in                                                                    
support of HB 71.                                                                                                               
                                                                                                                                
ANDY VARNER, EXECUTIVE  DIRECTOR, SOUTHWEST ALASKA MUNICIPAL                                                                    
CONFERENCE,  ANCHORAGE  (via teleconference),  testified  in                                                                    
support of HB 71.                                                                                                               
                                                                                                                                
MELODY  NIBECK, BRISTOL  BAY NATIVE  ASSOCIATION, DILLINGHAM                                                                    
(via teleconference), spoke in support of HB 71.                                                                                
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
4:00:09 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:00:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Olson  explained that there  was a CS to  extend the                                                                    
hair crab  and scallop  limited entry  program for  the next                                                                    
five years.                                                                                                                     
                                                                                                                                
Vice-Chair Fairclough  MOVED to  ADOPT the  Senate committee                                                                    
substitute  for  CS  HB   71(FIN),  Work  Draft  28-LS0288\P                                                                    
(Martin, 4/11/13).                                                                                                              
                                                                                                                                
Co-Chair Meyer OBJECTED for discussion.                                                                                         
                                                                                                                                
DAVID SCOTT, STAFF, SENATOR DONNY  OLSON, explained that the                                                                    
change  added the  extension of  the scallop  and hair  crab                                                                    
limited entry program for five years.                                                                                           
                                                                                                                                
Co-Chair Meyer felt like five years may be too long.                                                                            
                                                                                                                                
4:04:45 PM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough wondered if  five years was consistent                                                                    
with a  previous bill.  Senator Olson  shared that  the last                                                                    
extension was made five years prior.                                                                                            
                                                                                                                                
Co-Chair  Meyer  noted  that  the  sponsor  requested  three                                                                    
years,  because  there  was a  requested  audit.  Vice-Chair                                                                    
Fairclough  explained that  the programs  are two  different                                                                    
programs.  She  wondered if  there  was  a title  change  in                                                                    
order.                                                                                                                          
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.  There  being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
Representative Hughes  stated that she had  not reviewed the                                                                    
CS, and hoped  that she could have  discussions with Senator                                                                    
Olson.                                                                                                                          
                                                                                                                                
Vice-Chair  Fairclough wondered  if  a conceptual  amendment                                                                    
could be offered to insert a severability clause.                                                                               
                                                                                                                                
Mr.  Scott explained  that  Section 1  was  inserted at  the                                                                    
advice of Legislative Legal.                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  felt  that the  severability  clause                                                                    
could be used to separate the program. Mr. Scott agreed.                                                                        
                                                                                                                                
4:09:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:11:06 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
BEN   BROWN,   COMMISSIONER,  COMMERCIAL   FISHERIES   ENTRY                                                                    
COMMISSION, explained  that there  was not a  single subject                                                                    
problem  with the  legislation,  even  absent the  reporting                                                                    
requirement, based on the precedent  of five years prior. He                                                                    
felt that  the addition  of the reporting  requirement, made                                                                    
the two programs very similar.                                                                                                  
                                                                                                                                
Vice-Chair  Fairclough shared  that  there  were many  issue                                                                    
that  were  important  for Alaskans,  and  wondered  if  the                                                                    
language was similar to the  House version. Mr. Brown agreed                                                                    
to provide that information.                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough remarked  that the  House would  have                                                                    
conversations regarding this issue.                                                                                             
                                                                                                                                
Senator Olson thanked the sponsor for the legislation                                                                           
                                                                                                                                
MOVED  to REPORT  SCS CS  HB 71(FIN)  out of  committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
SCS CS HB  71(FIN) was REPORTED out of committee  with a "do                                                                    
pass"  recommendation and  with  two new  zero fiscal  notes                                                                    
from  Department   of  Fish  and  Game,   and  a  previously                                                                    
published fiscal impact note: FN2 (CED).