02/04/2008 01:30 PM House FINANCE

HOUSE BILL NO. 272                                                                                                            
                                                                                                                                
     An Act extending the termination date of the Alaska                                                                        
     regional economic assistance program; and providing for                                                                    
     an effective date.                                                                                                         
                                                                                                                                
REPRESENTATIVE BILL  STOLTZE, SPONSOR, testified  that HB 272                                                                   
provided   for  a   re-extension  of   the  Alaska   Regional                                                                   
Development  Organizations  (ARDOR)   statute.    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.   The  program enables  the                                                                   
creation of the  ARDOR's.  Each ARDOR is guided  and directed                                                                   
by a Board of Directors composed  of the economic development                                                                   
interests in  their region.   To carry  out the mission,  the                                                                   
State  provides  funding  in  the  form  of  grants  for  the                                                                   
program.   In turn, the ARDOR's  use that money  to leverage,                                                                   
on average,  eight times the  State's investment  in private,                                                                   
federal and other funds.                                                                                                        
                                                                                                                                
Currently, there are eleven ARDOR's across the State that:                                                                      
                                                                                                                                
   ·    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.                                                                                                         
                                                                                                                                
Vice-Chair Stoltze stated that  the programs are an important                                                                   
part  of  the  economic  development  in each  region.    The                                                                   
program  is  funded  primarily  through  the  use  of  Alaska                                                                   
Industrial   Development   and   Export   Authority   (AIDEA)                                                                   
receipts.    He  said that  the  extension  request  was  not                                                                   
controversial and urged support for the legislation.                                                                            
                                                                                                                                
2:25:48 PM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN,  ALASKA MUNICIPAL  LEAGUE  (AML),  JUNEAU,                                                                   
spoke in  full support for  HB 272.   She explained  that AML                                                                   
works closely  with the ARDOR's.   AML addresses  legislative                                                                   
issues, not  those of economic  development.  However,  it is                                                                   
hoped  that the  issues that  AML does  address, can  provide                                                                   
communities the  tools from which  to upgrade  their economic                                                                   
development needs.  She reiterated support for the bill.                                                                        
                                                                                                                                
Ms. Wasserman  changed her hats,  pointing out that  as Chair                                                                   
of  the Denali  Commission  Economic Development  group,  she                                                                   
works  with the  ARDOR's  and noted  that  all projects  look                                                                   
better to the State if they are done on a regional bases.                                                                       
                                                                                                                                
2:28:02 PM                                                                                                                    
                                                                                                                                
JOHN  PARKER,   (TESTIFIED  VIA  TELECONFERENCE),   EXECUTIVE                                                                   
DIRECTOR,  KENAI  PENINSULA BOROUGH  &  ECONOMIC  DEVELOPMENT                                                                   
DISTRICT, offered to answer questions of the Committee.                                                                         
                                                                                                                                
2:28:33 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
2:28:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if State  grants had been  included for                                                                   
the program.   Vice-Chair  Stoltze said  they had,  recalling                                                                   
individual ARDOR projects.                                                                                                      
                                                                                                                                
Co-Chair  Meyer asked  if there  had  been any  collaboration                                                                   
between  Alaska Travel  Industry Association  (ATIA) and  the                                                                   
ARDOR program.  Vice-Chair Stoltze  discussed that many ARDOR                                                                   
members,  also  work in  the  tourism  industry.   ATIA  does                                                                   
"cross  pollinate"   in  small  communities,   which  usually                                                                   
includes the local chamber of commerce's.                                                                                       
                                                                                                                                
2:32:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer asked  if the bill was intended to  be held in                                                                   
Committee for  an amendment.   Vice-Chair Stoltze  replied it                                                                   
would be  fine to hold the  bill, because it  was anticipated                                                                   
that an amendment would be forthcoming.                                                                                         
                                                                                                                                
2:32:57 PM                                                                                                                    
                                                                                                                                
HB 334 was HELD in Committee for further consideration.