Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/04/2013 05:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| SB93 | |
| SB25 | |
| HB71 | |
| SB58 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 93 | TELECONFERENCED | |
| += | SB 25 | TELECONFERENCED | |
| HB 71 | |||
| *+ | SB 58 | TELECONFERENCED | |
| *+ | SB 61 | TELECONFERENCED | |
| += | SB 79 | TELECONFERENCED | |
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.