Legislature(1993 - 1994)

05/05/1993 01:00 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  SB 142    An Act  relating to  the Alaska regional  economic                 
            assistance program; and providing for an effective                 
            date.                                                              
                                                                               
                                1                                              
                                                                               
                                                                               
            HCS CS SB 142 (FIN)  was reported out of Committee                 
            with "no recommendation" and with a fiscal note by                 
            the Senate Finance Committee dated 4/08/93.                        
  SENATE BILL 142                                                              
                                                                               
       "An  Act  relating  to  the  Alaska  regional  economic                 
       assistance  program;  and  providing for  an  effective                 
       date."                                                                  
                                                                               
  Representative   Hanley  provided   the  Committee   with  a                 
  sectional  analysis  of  SB  142.    [Attachment  #4].    He                 
  suggested a  "floating" match rate to be itemized within the                 
  legislation.                                                                 
                                                                               
  CHRIS  GATES, DIRECTOR,  DIVISION  OF ECONOMIC  DEVELOPMENT,                 
  DEPARTMENT  OF COMMERCE  AND  ECONOMIC DEVELOPMENT,  assured                 
  Representative  Hanley  that there  would be  no string-free                 
  grants in the legislation.   Match amounts will be required.                 
                                                                               
                                                                               
  Representative Hanley provided the Committee with  Amendment                 
  Gates noted DCED would be comfortable with the amendment.                    
                                                                               
  Representative  Martin  noted  his concern  with  the fiscal                 
  impact of  the bill.   Mr.  Gates stated a  new fiscal  note                 
  could  be  established by  the  Committee.   He  added,  the                 
  Department would  like  to fully  fund each  of the  fifteen                 
  Regional   Development   Organizations  (ARDOR's)   at  $100                 
  thousand dollars although they are willing to negotiate.                     
                                                                               
  Co-Chair MacLean asked the difference between  SB 154 and SB
  142.  Mr.  Gates replied that SB 154 is a capital grant bill                 
  which allows the Legislature to  establish certain money for                 
  proper economic  development grant projects  which must meet                 
  six criteria for  job placement and economic  activity.  The                 
  funding would be for one person per area and would not cover                 
  any project development.                                                     
                                                                               
  Mr. Gates commented on  the two fiscal notes.   The original                 
  fiscal note requested  by the  Department was $750  thousand                 
                                                                               
                                5                                              
                                                                               
                                                                               
  dollars.   The Senate Finance  Committee reduced the note to                 
  $250  thousand dollars.   There  is a  requirement for  cash                 
  matches, although in-kind  matches have been accepted.   Mr.                 
  Gates  advised that  there  is Federal  Economic Development                 
  Administration money available to administrate the  program.                 
  Some ARDOR's not having a functioning board of director's in                 
  the local region have been decertified.                                      
                                                                               
  Representative  Brown  asked if  there  have been  any civil                 
  lawsuits involving ARDOR's.  Mr. Gates replied there has not                 
  been  any  lawsuits  against  any  board  members  to  date.                 
  Representative Brown noted her  concern that the legislation                 
  does have private goals and it also works hand-in-hand  with                 
  private industry.  Mr.  Gates reiterated, the fear of  being                 
  sued has motivated many ARDOR's to make careful decision.                    
                                                                               
  Representative Hanley MOVED Amendment #1.                                    
                                                                               
  (Tape Change, HFC 93-130, Side 1).                                           
                                                                               
  Representative Brown MOVED a language change to Page 2, Line                 
  15 and Line  20.  She recommended deleting on  Line 15, "for                 
  the project" and on Line 19-20, deletion of the language "to                 
  be used for the project".  Mr. Gates noted the amendment was                 
  acceptable.   Representative Brown MOVED  to amend Amendment                 
  being NO  OBJECTION  to the  amended  Amendment #1,  it  was                 
  adopted.                                                                     
                                                                               
  Representative  Foster MOVED to  report HCS CS  SB 142 (FIN)                 
  out of  Committee with  individual recommendations  and with                 
  the accompanying  fiscal note.  There being NO OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  Representative Navarre  MOVED to  amend the  fiscal note  to                 
  $500 thousand dollars.                                                       
                                                                               
  SENATOR GEORGE JACKO commented that the $250 thousand dollar                 
  fiscal  note would  be  sufficient.   Representative Navarre                 
  WITHDREW THE MOTION.   There being  NO OBJECTION, it was  so                 
  ordered.                                                                     
                                                                               
  HCS CS SB 142 (FIN) was  reported out of Committee with  "no                 
  recommendation" and with a fiscal note by the Senate Finance                 
  Committee dated 4/08/93.                                                     

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