04/17/2016 08:00 AM Senate FINANCE

HOUSE BILL NO. 314                                                                                                            
                                                                                                                                
     "An  Act  relating  to  the  Alaska  regional  economic                                                                    
     assistance program;  extending the termination  date of                                                                    
     the  Alaska regional  economic assistance  program; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
10:13:44 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon noted that the  public hearing for HB 314                                                                    
was closed on April 13, 2016.                                                                                                   
                                                                                                                                
Vice-Chair  Micciche  MOVED   to  ADOPT  proposed  committee                                                                    
substitute for HB 314(FIN),  Work Draft 29-LS1381\G (Shutts,                                                                    
4/16/16).                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
ERIN SHINE, STAFF, SENATOR ANNA  MACKINNON, pointed out that                                                                    
the only  change between  the previous  version "I"  and the                                                                    
committee substitute  (CS) was  on page 4,  line 10.  The CS                                                                    
had a  sunset date of  2021, where the previous  version had                                                                    
removed the sunset date altogether.                                                                                             
                                                                                                                                
Co-Chair  MacKinnon explained  that the  change had  been at                                                                    
her request. She  mentioned an audit of  the Alaska Regional                                                                    
Economic  Assistance  (ARDOR)  program that  she  had  found                                                                    
troubling, and noted that the  sponsor had worked diligently                                                                    
with  the  program to  ensure  it  was operating  well.  She                                                                    
wanted to  include an element oversight  before removing the                                                                    
sunset date.                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
10:15:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SHELLEY  HUGHES,  SPONSOR, stated  that  her                                                                    
original  bill had  contained a  five-year  sunset that  had                                                                    
been removed during the committee process.                                                                                      
                                                                                                                                
Representative  Hughes gave  a  high-level  overview of  the                                                                    
bill. She articulated that due  state fiscal constraints, it                                                                    
was no longer possible to  provide the same level of funding                                                                    
to  ARDOR. She  noted that  there were  10 ARDORs  (regional                                                                    
development  programs) who  had each  received approximately                                                                    
$70,000  per  year.  She  noted that  89  percent  of  ARDOR                                                                    
funding the  previous year  had not  come from  state funds.                                                                    
She stated  that the  bill would  provide a  designation and                                                                    
would ensure that the ARDORs  could continue their important                                                                    
work at no cost to the  state. She specified that the ARDORs                                                                    
would  continue  to do  some  basic  reporting, which  would                                                                    
provide   the    state   with   statistics    and   increase                                                                    
understanding  of economic  development  in  the state.  She                                                                    
mentioned a project in Bethel  that was building trusses for                                                                    
cold  climate housing,  a manufacturing  focus in  Southwest                                                                    
Alaska, and increased focus on start-ups.                                                                                       
                                                                                                                                
10:18:16 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:19:33 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Micciche  discussed FN  1 (CED), from  DCCED (OMB                                                                    
component 2743).  He stated that  it was essentially  a zero                                                                    
fiscal note, but for the governor's request of $774,000.                                                                        
                                                                                                                                
Co-Chair MacKinnon  understood that even though  the numbers                                                                    
were listed as the governor's  request, the House and Senate                                                                    
had both zeroed out the appropriation.                                                                                          
                                                                                                                                
Senator  Olson   asked  what  the  governor's   request  was                                                                    
intended for.                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  stated that  the governor's  request was                                                                    
to  help support  the program,  and had  been denied  by the                                                                    
legislature.                                                                                                                    
                                                                                                                                
Representative Hughes  understood that the  column "Included                                                                    
in Governor's  FY2017 Request"  was there  for informational                                                                    
purposes. She qualified that the  department had worked with                                                                    
the sponsor and agreed to zero it out.                                                                                          
                                                                                                                                
Vice-Chair Micciche MOVED  to report SCS HB  314(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
SCS  HB 314(FIN)  was  REPORTED out  of  committee with  "no                                                                    
recommendation"  and with  one  previously published  fiscal                                                                    
impact note: FN 1(CED).                                                                                                         
                                                                                                                                
10:21:31 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:26:20 AM                                                                                                                   
RECONVENED