01/24/2008 11:00 AM House ECONOMIC DEV., TRADE, AND TOURISM

HB 272-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM                                                                                
                                                                                                                                
11:33:51 AM                                                                                                                   
                                                                                                                                
CHAIR NEUMAN announced that  the final order of business                                                                        
would  be 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, Alaska  State Legislature,                                                                        
introduced  HB 272  as  the sponsor.    He informed  the                                                                        
committee that the bill will  extend the sunset date for                                                                        
the Alaska  Regional Development  Organizations (ARDORs)                                                                        
until July 1, 2011.   Representative Stoltze stated that                                                                        
ARDORs are not  subject to audits and must  be judged on                                                                        
the evidence  of their  annual performance.   He  opined                                                                        
that  the ongoing  performance  of each  ARDOR has  been                                                                        
satisfactory.    He advised  the  committee  that it  is                                                                        
appropriate  to  have  a  sunset  [date]  and  that  his                                                                        
preference is  for an extension  of the sunset  for five                                                                        
years.                                                                                                                          
                                                                                                                                
11:34:52 AM                                                                                                                   
                                                                                                                                
CHAIR NEUMAN asked whether  Representative Stoltze would                                                                        
support an amendment  to extend the sunset  date to five                                                                        
years.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  STOLTZE  said  yes.    He  concluded  by                                                                        
saying that  there has been  a good presentation  on the                                                                        
ARDORs  program and  that he  hoped  the committee  will                                                                        
take  the  opportunity  to  change the  sunset  date  by                                                                        
amendment.                                                                                                                      
                                                                                                                                
11:37:52 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GATTO called  the committee's  attention                                                                        
to page  [7] item 3  of the supporting  document, Alaska                                                                        
Regional Development Organizations  FY 07 Annual report.                                                                        
He read:                                                                                                                        
                                                                                                                                
     When averaged the eleven ARDORs raised $6.23                                                                               
    for every $1 of state grant money.                                                                                          
                                                                                                                                
REPRESENTATIVE GATTO  pointed out that this  is a lesser                                                                        
return than stated by Mr. Catsi.                                                                                                
                                                                                                                                
11:38:41 AM                                                                                                                   
                                                                                                                                
MR.  CATSI  answered that  he  was  unsure of  the  year                                                                        
covered  in  the  report.    He  said  that,  since  the                                                                        
beginning  of  the  program, each  ARDOR  has  leveraged                                                                        
funds an average of from 3:1 to 8:1.                                                                                            
                                                                                                                                
11:39:09 AM                                                                                                                   
                                                                                                                                
CHAIR  NEUMAN   recalled  that  projects   in  different                                                                        
regions create different amounts of grant requests.                                                                             
                                                                                                                                
11:39:28 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  LYNN offered  a conceptual amendment  to                                                                        
HB 272  to extend the  termination date for  five years,                                                                        
from 2011 to 2013.                                                                                                              
                                                                                                                                
11:39:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GATTO objected  and  stated his  support                                                                        
for  sunsets.    He  expressed  his  concern  about  the                                                                        
state's  revenue forecast  in  three to  five years  and                                                                        
encouraged  the  committee  to  retain  the  three  year                                                                        
sunset.                                                                                                                         
                                                                                                                                
11:40:27 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE STOLTZE  reminded the committee  that the                                                                        
legislature  approves extensions  for other boards  with                                                                        
broader powers.   He  said that he  wants to  keep these                                                                        
community organizations  at work and the five  year date                                                                        
makes  sense.    He  noted  that  Alaska's  constitution                                                                        
requires  that   the  program   be  subject   to  annual                                                                        
appropriations regardless of the sunset date.                                                                                   
                                                                                                                                
CHAIR  NEUMAN  expressed his  belief  that  a five  year                                                                        
extension is crucial to a dependable business plan.                                                                             
                                                                                                                                
11:42:15 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   KELLER  opined   that  the  five   year                                                                        
extension will  allow for leveraging more  money because                                                                        
it  would  demonstrate  the confidence  level  that  the                                                                        
state has in the program.                                                                                                       
                                                                                                                                
11:42:27 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE DOOGAN  expressed his  understanding that                                                                        
the ARDORs program has been reauthorized six times.                                                                             
                                                                                                                                
11:42:59 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE STOLTZE  said that  he was unsure  of the                                                                        
exact date of  the last reauthorization.   He added that                                                                        
he does not remember ever  hearing a raging debate about                                                                        
this issue.                                                                                                                     
                                                                                                                                
11:43:16 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  DOOGAN  commented  that, if  the  ARDORs                                                                        
program  has been  routinely reauthorized  a half  dozen                                                                        
times,  he did  not  see a  problem  with extending  the                                                                        
sunset.                                                                                                                         
                                                                                                                                
11:43:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHANSEN  said   that  he  supports  the                                                                        
amendment.  He  reminded the committee that  the finance                                                                        
committee will review the appropriation each year.                                                                              
                                                                                                                                
11:43:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GATTO withdrew his objection.                                                                                    
                                                                                                                                
11:44:05 AM                                                                                                                   
                                                                                                                                
Hearing no further objection Amendment 1 passed.                                                                                
                                                                                                                                
11:44:28 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE LYNN moved to  report HB 272, as amended,                                                                        
out  of committee  with  individual recommendations  and                                                                        
the accompanying fiscal notes.                                                                                                  
                                                                                                                                
11:44:48 AM                                                                                                                   
                                                                                                                                
Hearing no  objections, CSHB  272(EDT) was  reported out                                                                        
of the House Special  Committee on Economic Development,                                                                        
International   Trade   and  Tourism   with   individual                                                                        
recommendations and the accompanying fiscal notes.