Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/07/2016 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB193 | |
| HB268 | |
| HB305 | |
| SB118 | |
| HB314 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| += | HB 268 | TELECONFERENCED | |
| + | HB 305 | TELECONFERENCED | |
| += | SB 118 | TELECONFERENCED | |
| + | HB 314 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 314-AK REG ECON ASSIST. PROGRAM; EXTEND
2:57:46 PM
CHAIR COSTELLO announced the consideration of HB 314. She noted
that this is the first hearing on the bill.
2:58:21 PM
REPRESENTATIVE SHELLEY HUGHES, Alaska State Legislature, sponsor
of HB 314, explained that the legislation extends the
authorization of the Alaska Regional Development Organizations
(ARDOR) program for five years to FY2021. There is zero funding
for the program this year. The bill leaves the reporting
requirements in place, subject to state funding. She noted that
89 percent of ARDOR funding last year was not state funding.
She reported on the Copper Valley Development Association
accomplishment of assisting seven business startups. She shared
that the Southeast Alaska Municipal Conference (SWAMC) has an
exciting focus of manufacturing trusses for cold weather
housing. Anchorage Economic Development's focus on their airport
has been successful. In the Kenai area the focus has been on
business retention and incubation.
She concluded that the reauthorization of the ARDOR program
allows them to retain their designation to carry out their
activities.
3:02:01 PM
SENATOR STEVENS offered his understanding that without the bill
ARDORs cannot apply for funding.
REPRESENTATIVE HUGHES replied they could apply for certain
funds, but it might be a problem for federal funding and foreign
funding.
SENATOR MEYER asked if there was no more state match for funding
for ARDORs.
REPRESENTATIVE HUGHES said that is correct. It is her
understanding that they could leverage other dollars, but not
state matching dollars.
BRITTENY CIONI-HAYWORD, Director, Division of Economic
Development, Department of Commerce, Community and Economic
Development (DCCED), said she is eager for HB 314 to move
forward. She explained that DCCED often works on statewide
initiatives within the ARDOR program, such as by providing
education, grants, and foreign work opportunities.
3:04:40 PM
CHAIR COSTELLO opened public testimony.
3:04:51 PM
ROBERT VENABLES, Energy and Transportation Coordinator,
Southeast Conference, said the state's ARDOR program has
demonstrated its value over the past 28 years. This program
facilitates the public and private investment that will
stimulate the economy and create jobs. It is a powerful
mechanism to move economic development forward. Southeast
Conference will miss the state money but will move forward and
look for other sources of revenue. The October EDA report shows
that the investment of about $70,000 a year for each ARDOR has
collectively been leveraged to over $100 million in construction
projects and $286 million in private investment.
3:06:26 PM
CHAIR COSTELLO asked if the lack of reporting requirements will
yield a loss in identity for ARDORs.
MR. VENABLES said there is a high level of transparency when
reporting to conference members that will allow questions to be
answered.
SENATOR MEYER asked what the source of funds will be.
MR. VENABLES listed the U.S. Department of Energy specifically
and added that they are looking toward the private sector.
SENATOR MEYER observed that there are other opportunities, such
as crowd funding, and it looks like the program will thrive.
MR. VENABLES said they will survive, but it will be more
difficult to thrive.
3:09:31 PM
SENATOR STEVENS asked Ms. Hayward if she'll still be aware of
ARDOR accomplishments.
MS. HAYWARD said she believes the division will be able to track
what the different ARDORs are doing. They will maintain the
working relationship until the appropriations begin again. There
will still be need for a minimal vetting process.
SENATOR STEVENS agreed there should still be basic reporting of
ARDORs.
MS. HAYWARD said the division would figure out how to provide a
report without burdening state staff.
SENATOR STEVENS suggested asking for the reports that are given
to the various boards.
MS. HAYWARD said the division could find resources to produce
some sort of report.
3:13:33 PM
CHAIR COSTELLO suggested working together to communicate what
the ARDORs are doing without being onerous on the ARDORs.
SENATOR MEYER asked if there would be a state bank for marijuana
businesses.
MS. HAYWARD said she didn't have that knowledge.
3:15:42 PM
DOUG GRIFFIN, Southwest Alaska Municipal Conference (SWAMC),
testified in support of HB 314. He related that SWAMC has been
in existence since 1988 and includes about 25 percent of the
tribes in Alaska in the region. Fishing is the newest endeavor
and they hope to focus initially on seafood processing. They
have the potential to access $2.5 million over five years.
3:19:37 PM
CHAIR COSTELLO closed public testimony and held HB 314 in
committee.