04/28/1998 09:15 AM Senate FIN

                                                                               
 HOUSE BILL NO. 370                                                            
                                                                               
"An Act making an appropriation for relief of the 1997                         
fishery disaster in Bristol Bay and on the Kuskokwim                           
River; and providing for an effective date."                                   
                                                                               
Senator Pearce MOVED SCS CSHB 370(FIN) version "Q".  Senator                   
Adams OBJECTED for discussion purposes.  He felt it should                     
be explained how the funding mechanism would work, including                   
Federal funds and matching State general funds and how the                     
actual monies would get out to the fishermen and local                         
individuals.                                                                   
                                                                               
Co-chair Sharp asked that Lamar Cotton, Deputy Commissioner,                   
Department of Community and Regional Affairs work closely                      
with the committee to insure correct structuring language in                   
the CS so they would be able to capture maximum Federal                        
dollars and to apply those dollars in areas most beneficial.                   
                                                                               
Representative Ivan Ivan was invited to join the committee.                    
He briefly said this bill was introduced as a result of the                    
disaster that occurred.  He said the bottom line of his                        
intent was to get maximum Federal funds to the disaster                        
areas and affected individuals.  He said that Mr. Cotton                       
could comment to concerns that had been brought up.                            
                                                                               
LAMAR COTTON, Deputy Commissioner, Department of Community                     
and Regional Affairs was invited to join the committee.  He                    
said the key distinction, as noted by Representative Ivan,                     
was that there was no general fund in the bill.  He said                       
this was to have been used as a match to trigger a release                     
of Federal funds.  He said following discussions with Co-                      
chair Sharp and his staff, a way had been found to achieve                     
the goal of releasing the Federal funds.  The method was                       
described in section three (1) and (2) of the bill.  He                        
briefly explained that the funding source would be from                        
community or agency matching funds, goods and services that                    
were compliant with the requirements of the Magnussen and                      
Stevens Act.  That meant, for example, the community grants                    
program would have to come up with some non-Federal funds,                     
which could also include capital matching grant funds.  It                     
could also come from revenue sharing.  The actual trick                        
would be to work closely with the Federal Department of                        
Commerce to insure the expenditures did comply with their                      
grant program.                                                                 
                                                                               
Senator Phillips asked how many communities were affected.                     
Mr. Cotton said there were fifty-two communities total.                        
Senator Phillips further asked what were the mechanics for                     
the local communities to participate?  Mr. Cotton said a                       
good example would be for a community to take a portion or                     
all of this year's or next year's capital matching program                     
and apply it for matching funds.  They could also use                          
revenue sharing or municipal assistance.  Further, another                     
State grant or raw fish tax could be used.                                     
                                                                               
Representative Ivan said this plan was put together                            
enlisting the help of everyone.  He also said there were                       
approximately fifty-two communities participating.  In                         
response to a question from Senator Phillips he said he did                    
have commitments from all the communities.  He felt the                        
relief set out in the bill would work.                                         
                                                                               
Senator Torgerson asked about agency matching funds and was                    
the department anticipating changing any of their programs                     
to supplement funds for this relief?  Mr. Cotton said the                      
department was not.  Senator Torgerson asked if in acquiring                   
Federal funds this was an  "all or none" deal as far as the                    
Federal funding was concerned?   Mr. Cotton said he did not                    
know exactly.  They were still in negotiation processes but                    
the Federal government had been fairly reasonable                              
considering the possible different mechanical changes.                         
Senator Torgerson commended the efforts of Representative                      
Ivan and Mr. Cotton in putting the bill together.                              
                                                                               
Co-chair Sharp said a lot of shopping had been done with the                   
departments and Mr. Cotton was the only one who had put in                     
so much effort.  He noted the main concern was to capture                      
maximum Federal funds and put it out immediately to the                        
affected areas.                                                                
                                                                               
Senator Phillips asked if there was a deadline for community                   
contributions?  Mr. Cotton said there had not been one set                     
because the desire to get the project underway will compel                     
many to move quickly.                                                          
                                                                               
JIM SANDERS, Supervisor, Southcentral Regional Office,                         
Division of Municipal and Regional Assistance, Department of                   
Community and Regional Affairs said he was available via                       
teleconference to assist Mr. Cotton in answering any of the                    
committee's questions.                                                         
                                                                               
Senator Torgerson noted that the CS had not been adopted and                   
therefore, notwithstanding the departure of Senator Adams,                     
WITHOUT OBJECTION the new CS was ADOPTED as a working                          
document before the committee.                                                 
                                                                               
Senator Torgerson MOVED SCS CSHB 370(FIN) and WITHOUT                          
OBJECTION it was REPORTED OUT with individual                                  
recommendations and no accompanying fiscal notes.                              
                                                                               
There followed a brief at ease at approximately 9:45 a.m.                      
                                                                               
Co-chair Sharp called SB 350.