Legislature(2021 - 2022)BELTZ 105 (TSBldg)
05/10/2021 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB192 | |
| SB137 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 192 | TELECONFERENCED | |
| *+ | SB 137 | TELECONFERENCED | |
| + | HB 126 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 192-AK REG ECON ASSIST. PROGRAM; EXTEND
1:30:55 PM
CHAIR COSTELLO announced the consideration of HOUSE BILL NO. 192
"An Act extending the termination date of the Alaska regional
economic assistance program; and providing for an effective
date."
1:32:06 PM
RIVER RAMUGLIA, Staff, Representative Jonathan Kreiss-Tomkins,
Alaska State Legislature, Juneau, Alaska, introduced HB 192 on
behalf of the sponsor. He read the sponsor statement into the
record.
HB 192 reauthorizes the Alaska Regional Economic
Assistance program for an additional 10 years, until
July 2031. This program is comprised of nine Alaska
Regional Development Organizations (ARDORs), crucial
entities that work across urban and rural regions in
Alaska to prepare and implement regional development
strategies and promote economic development.
The ARDOR program was established in 1988 under AS
44.33.895 to encourage the formation of regional
development organizations in locations across the
state. This bill ensures that the ARDORs can continue
their valuable work. Through the designation provided
under this law, ARDORs receive [U.S. Economic
Development Administration] (EDA) funds to advance
their priorities.
The ARDORs were successfully reauthorized in 2016 by
HB 314, opening up the ARDORs to an influx of federal
support. Although the 29 legislature declined to fund
the ARDORs, this legislature's HB 69 has appropriated
$20 million to be distributed to the ARDORs for the
purposes of tourism promotion. This will undoubtable
revitalize Alaska's economy and bring in much-needed
revenue. The passage of this bill is a necessary step
that will ensure that these funds can be distributed.
Five years ago when HB 314 successfully reauthorized
the ARDOR program, until the current and rapidly
approaching sunset date of July 1, 2021 numerous
officials, communities, and tribal organizations
across Alaska testified to the importance of the
ARDORs.
MR. RAMUGLIA introduced the regional executive directors who
would explain the ARDORs in more detail.
1:32:33 PM
SENATOR STEVENS joined the meeting.
CHAIR COSTELLO asked if he was prepared to present a sectional
analysis.
1:34:40 PM
MR. RAMUGLIA presented the sectional analysis for HB 192.
Section 1 changes the sunset date from July 1, 2021 to
July 1 2031.
Section 2 is a retroactivity clause. If the Act takes
effect after July 1, 2021, it is retroactive to July
1, 2021.
Section 3 provides that this Act takes effect
immediately under AS 01.10.070(c).
CHAIR COSTELLO asked if there was a reason for the 10-year
extension.
MR. RAMUGLIA deferred the question to the experts on ARDORS.
CHAIR COSTELLO turned to invited testimony.
1:36:28 PM
SHIRLEY MARQUARDT, Executive Director, Southwest Alaska
Municipal Conference (SWAMC), Anchorage, Alaska, stated that her
comments on HB 192 would focus on the merits of a 10-year
reauthorization of the ARDOR program and possible legislation to
reshape the ARDOR program. She noted that this was discussed in
the House CRA Committee last week. She reminded the committee
that each ARDOR is uniquely different based on geography,
population, and primary economic drivers. In Southeast for
example, the out-of-state visitor industry and seasonal
commercial fisheries are economic drivers. In the Kenai
Peninsula, both out-of-state and in-state visitors, commercial
and sport fishers and hunters are economic drivers. In the
region she represents the primary economic driver is seasonal
and year-round fisheries.
She said each region creates its own comprehensive economic
development strategy (CEDS) by engaging directly with community
leaders, businesses, industries, tribes, and the public. These
plans provide long-term goals and strategies that can be used as
a roadmap for municipalities, tribal organizations,
entrepreneurs, and investors to follow as they look toward
future growth. These plans are a federal requirement to be
eligible to apply for EDA program planning funds. She said SWAMC
and some other ARDORs use these funds to keep the doors open.
MS. MARQUARDT related that the CEDS are updated annually to
reflect economic data, job training, workforce development
opportunities, and other relevant changes in the region. This
drives the annual work plan that the ARDOR's board of directors
reviews and approves for staff action. At the end of four years
the CEDS must be rewritten using the relevant data, community
engagement, and economic history for that period.
MS. MARQUARDT said it is critical for the ARDORs to plan ahead
and a 10-year reauthorization provides more stability for the
regions to pursue long-term programs and projects. Some projects
are very long term and others are simply beyond the ARDOR's
ability to make happen but they try to pave the way. She said it
is disconcerting for ARDORs to prepare a four-year plan to EDA
to receive funding to support three years of planning operations
and not know if they will be required to comply with additional
state rules to measure success or if the state will still
recognize ARDORs.
She advised that SWAMC and some of the other ARDORs receive
funding through membership dues, conference registrations,
sponsors, and the $75,000 EDA planning partnership grant. They
must follow their regional CEDS document and comply with all
their funders' program requirements including biannual financial
reporting, progress reports, and the annual CEDS update. In
addition, the ARDORs file comprehensive annual reports with
DCCED, which is available to the public, and they post their
CEDS documents on their websites. She said that if the
legislature wishes to reshape the success measures and design of
ARDORs, it should be with the understanding that ARDORS already
must meet their funders' requirements for measuring success. She
requested that the ARDORs be included in the discussion.
1:41:11 PM
SENATOR STEVENS asked if she was prepared to funnel additional
federal funds through SWAMC, should they become available.
MS. MARQUARDT answered yes, just as they did for the Alaska
CARES funding that DCCED passed through SWAMC. She added that
SWAMC would take time to ensure the program was relevant for the
region, the right stakeholders were involve, and that there were
tangible measures of success for the use of the funds.
SENATOR STEVENS expressed appreciation for the work she did with
the CARES funding.
1:42:20 PM
ROBERT VENABLES, Executive Director, Southeast Conference,
Juneau, Alaska, said Southeast Conference has been advocating
for strong economies, healthy communities, and a quality
environment in Southeast Alaska since 1958. They became an ARDOR
in 1989 and no group is more passionate about economic
development in the region. He described ARDORs as a strategic
interface for regional entities to collaborate on long-range
economic development strategies and regional development goals.
He directed attention to the economic development information in
the packets.
He advised that the ARDORs are ready to assist the legislature
and governor on the effective delivery of arriving funds to
needy businesses and communities. He said it is important to
understand that ARDORs also set the climate for business
investment in the region that often extends 20-30 years into the
future. Having legislative support as expressed through HB 192
is key to setting the climate for business investments
throughout the state, he said.
MR. VENABLES reminded the committee that a 10-year extension was
discussed during the last reauthorization, but the state
declined to support ARDORs that year so the legislature
authorized a five-year extension to make sure the ARDOR program
remained viable. He pointed to the annual report as evidence
that the ARDORs are strong and very committed to economic
development in the state. He said the ARDORs are very
appreciative that this administration is so highly engaged with
the ARDOR program. He referenced comments made in the other body
about out of date ARDOR statutes and assured the committee that
conversations between the ARDORs and DCCED had begun.
Recommendations for improvements will be brought to the
legislature's attention next session, he said.
MR. VENABLES concluded that that the ARDOR program is working
well and he looks forward to the passage of HB 192.
CHAIR COSTELLO said she appreciates that each ARDOR is region-
specific to address the diverse needs across the state. Local
involvement is critical because one size does not fit all.
1:46:23 PM
TIM DILLON, Executive Director, Kenai Peninsula Economic
Development District (KPEDD), Kenai, Alaska, stated that KPEDD
is a non-government resource for the benefit of the residents of
the Kenai Peninsula. It has partnerships with federal and
borough organizations, tribes, chambers of commerce, cities,
unincorporated areas and local businesses. He mentioned the
efficiency of ARDORs and cited the 2021 example of KPEDD
leveraging a $100,000 contract with the borough for $1.2 million
in contracts. He agreed with previous testimony that each ARDOR
is unique in order to serve their residents more effectively. He
explained that instead of members, KPEDD has a 30-acre facility
that is incubating nine businesses. KPEDD also has a loan
program, houses the DOTPF Construction Academy, and assists
other regions that do not have an ARDOR. Last year KPEDD
assisted Kodiak and the Denali Borough to create economic
organizations and most recently they have been assisting the
governor's office develop an organization in the Valley. He
highlighted that the kpedd.org website is known throughout the
borough as having the most up-to-date data. The school district
and hospital use it exclusively for recruitment. He identified
kenaipeninsulaworkforce.org as the latest resource KPEDD has
developed. The goal is to have properly trained residents in
line whenever a job opens on the peninsula.
MR. DILLON reported that KPEDD helped peninsula businesses
receive $49.6 million in Alaska CARES funds. They also worked
with incorporated communities and the borough to create
municipal relief programs to benefit local businesses. He noted
that Forbes Magazine recently commented on the work being done
on the Kenai Peninsula. He concluded his comments with a
description of KPEDD's current financial resiliency plan to
develop appropriate training that reflects the lessons learned
the last several years from the earthquake, fires, fishing
disasters, and COVID-19. He said he did not believe there is a
more effective group of organizations than the ARDORs to assist
with economic development. He urged the committee to support HB
192 and continued community assistance.
1:49:56 PM
SENATOR STEVENS asked what projects KPEDD was involved in that
used Alaska CARES funds.
MR. DILLON said a primary effort was to make sure that people
knew how to apply for the funds. The ARDORs also worked with the
governor's office to ensure the application requirements were
relevant to Alaskan entities. For example, commercial fishermen
usually do not have a business license, which made them
ineligible for the funding. This was resolved near the end of
August but there were myriad things the ARDORs worked on with
DCCED and the Alaska Industrial Development and Export Authority
(AIDEA) to facilitate the application process for businesses and
communities to get the money they needed. He cited examples.
SENATOR STEVENS said thanks and well done.
CHAIR COSTELLO expressed appreciation for his commitment to help
businesses apply for the loans. She said it shows the important
tie between the ARDORs and the communities and businesses.
CHAIR COSTELLO listed the individuals available to answer
questions.
1:53:54 PM
SENATOR GRAY-JACKSON said she knows that the Anchorage Economic
Development Corporation (AEDC) receives a local grant from the
Municipality of Anchorage each year and she wonders if any of
the other ARDORs receive local grants.
MR. DILLON advised that KPEDD has a $100,000 contract in grant
form with the Kenai Peninsula Borough. Specific deliverables
attached to the contract include a quarterly report, talking to
the assembly every other month to give an update on activities,
and he will defend the plans for the contract for next year on
May 17.
SENATOR GRAY-JACKSON commented that it sounds similar to the
Municipality of Anchorage and AEDC.
CHAIR COSTELLO asked Mr. Venables to respond to Senator Gray-
Jackson's question about grants.
1:56:09 PM
MR. VENABLES explained that Southeast Conference is a membership
organization with both municipalities and private sector
businesses that contribute annually and engage in setting the
scope of work and the economic development strategies.
1:56:55 PM
SENATOR MICCICHE joined the committee.
SENATOR STEVENS asked to hear from Ms. Marquardt about SWAMC's
funding source and community involvement.
MS. MARQUARDT stated that SWAMC is a membership organization
with both municipalities and private sector businesses. About
half of their operating expenses come from membership fees,
sponsorships and registrations for the annual conference. The
$75,000 EDA grant pays for the balance of the operating
expenses. SWAMC does not receive any grants from local entities.
CHAIR COSTELLO advised that the meeting on Wednesday would be
devoted to ARDOR presentations.
1:58:37 PM
CHAIR COSTELLO opened public testimony on HB 192.
1:58:51 PM
BRITANY SMART, Special Assistant to the Mayor; Staff, Fairbanks
North Star Borough Economic Development Commission, Fairbanks,
Alaska, testified in support of HB 192. She advised that the
commission is the ARDOR for Interior Alaska and they partner
with a number of economic development organizations. Responding
to the question about local grants, she advised that the borough
has economic development powers and her presentation on
Wednesday will include the amounts raised from property tax
assessments. She noted that the commission also provides grants
to other economic development organizations in the borough. She
asked the committee to support HB 192 to extend the ARDOR
designation.
2:00:05 PM
KRISTINE CARPENTER, Executive Director, Prince William Sound
Economic Development District (PWSEDD), Cordova, Alaska,
testified in support of HB 192. She echoed the comments of the
previous speakers and said she would give examples of what
PWSEDD is doing in the region. She reported that for the Alaska
CARES funds, PWSEDD contracted with the Cordova Chamber of
Commerce, the Valdez Economic Development Department, and the
Greater Whittier Chamber of Commerce to help local business
apply for the funds. Collectively it amounted to $16 million in
CARES funds for the region, which was a huge help in keeping
households, businesses, and families afloat.
PWSEDD also works to bring partners together on projects that
are too large for one entity to do alone. For example, PWSEDD is
working with the City of Cordova and the Prince William Sound
Marketing Association on the feasibility of a multipurpose food
processing facility with a shared kitchen. The model is the
Valdez Fisheries Development Association fishery business
incubator. In addition, PWSEDD is working on regional solutions
for ferry service and is coordinating a process among
stakeholders in the Sound for the outdoor recreation plan. She
agreed with previous testimony that ARDORs are the data keepers
for the region. Responding to Senator Gray-Jackson's question,
she said PWSEDD does not receive a grant from municipalities,
but they raise the required match for the EDA grant through
membership fees and various other sources. She requested the
committee's support for HB 192.
2:03:53 PM
CHAIR COSTELLO closed public testimony on HB 192. Finding no
questions for the sponsor, she solicited a motion.
2:04:02 PM
SENATOR REVAK moved to report HB 192, work order 32-LS0859\A,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO found no objection and HB 192 was reported from
the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 137 Sponsor Statement 5.10.21.pdf |
SL&C 5/10/2021 1:30:00 PM |
SB 137 |
| SB 137 Fiscal Note 2360.pdf |
SL&C 5/10/2021 1:30:00 PM |
SB 137 |
| SB 137 Supporting Document - DCCED Board of Midwives Sunset Review.pdf |
SL&C 5/10/2021 1:30:00 PM |
SB 137 |
| SB 137 Supporting Document - Midwifery in AK.pdf |
SL&C 5/10/2021 1:30:00 PM |
SB 137 |