Legislature(2019 - 2020)Anch LIO Lg Conf Rm
07/09/2020 11:00 AM House LABOR & COMMERCE
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| Ak Cares Grant Program | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
Anchorage, Alaska
July 9, 2020
11:03 a.m.
MEMBERS PRESENT
Representative Ivy Spohnholz, Chair
Representative Louise Stutes (via teleconference)
Representative Andi Story (via teleconference)
Representative Mel Gillis (via teleconference)
Representative Sara Rasmussen (via teleconference)
MEMBERS ABSENT
Representative Zack Fields
Representative Sara Hannan
OTHER LEGISLATORS PRESENT
Representative Bart Lebon (via teleconference)
Representative Dan Ortiz (via teleconference)
Representative Colleen Sullivan-Leonard (via teleconference)
Representative Chris Tuck (via teleconference)
Representative Geran Tarr (via teleconference)
COMMITTEE CALENDAR
AK CARES GRANT PROGRAM
HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SARAH LEONARD, President & CEO
Alaska Travel Industry Association
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
MALENA HAUSINGER, Owner
Alaska Fur Gallery
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
ALYSSA MCDONALD, Vice President
Mac Enterprises
Dutch Harbor, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
NATHAN VALLIER
Alaska & Yukon Tours
Juneau, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
JOHN MCCLEARY, Executive Director
Greater Anchorage Inc
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
SARAH ALEXANDER
Al's Alaskan Inn
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
TODD KINGERY, Owner/Guide
Fishbone Charters
Talkeetna, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
PAUL THOMAS, Owner
Alaska Cache Liquor
Juneau, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
PETER PANARESE
Friends of Eagle River Nature Center
Eagle River, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
KATHLEEN ADAMS
Marine View B&B
Sand Point, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
JULIE ESTEY
Greater Wasilla Chamber of Commerce
Palmer, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
SARAH OATES, President & CEO
Alaska Cabaret, Hotel, and Retailers Association
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
SANDY JAMIESON
Ester, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
STEPHANIE NOWERS
Matsu Borough Assembly
Palmer, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
LEE ELLIS, President
Brewers Guild of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
STEPHANIE BERGLUND, CEO
Thread
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
BRUCE BUSTAMANTE, President & CEO
Anchorage Chamber of Commerce
Anchorage, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
KRISTIN CARPENTER
Prince William Sound Economic Development District
Cordova, Alaska
POSITION STATEMENT: Testified on the AK CARES grant program.
REPRESENTATIVE COLLEEN SULLIVAN-LEONARD
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided comments pertaining to the AK
CARES grant program.
REPRESENTATIVE CHRIS TUCK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided comments pertaining to the AK
CARES grant program.
REPRESENTATIVE BART LEBON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided comments pertaining to the AK
CARES grant program.
REPRESENTATIVE DAN ORTIZ
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Asked questions pertaining to the AK CARES
grant program.
ACTION NARRATIVE
11:03:06 AM
CHAIR IVY SPOHNHOLZ called the House Labor and Commerce Standing
Committee meeting to order at 11:03 a.m. Representatives
Rasmussen (via teleconference), Story (via teleconference),
Stutes (via teleconference), and Spohnholz were present at the
call to order. Representative Gillis (via teleconference)
arrived as the meeting was in progress.
^AK CARES Grant Program
AK CARES Grant Program
11:05:36 AM
CHAIR SPOHNHOLZ announced that the only order of business would
be public testimony on the AK CARES grant program, which
provides economic relief to small Alaskan businesses and
nonprofits impacted by COVID-19.
CHAIR SPOHNHOLZ explained that people have expressed concerns
about the limitations of the AK CARES grant program. Per
Department of Commerce, Community & Economic Development
(DCCED), she reported that as of [July 7, 2020], the program
received 2,136 applications, of which 223 have been approved.
The 2,136 submitted applications would total $93,961,960, which
is approximately one-third of available funds. She noted that
the program's original intent was to award $150 million to
Alaskans within the first month. She continued to report that
the 223 approved applications total $8,888,349, which is 8.6
percent of requested funds and 2.7 percent of available funds.
She stated that Credit Union 1 has onboarded additional staff to
help process AK CARES applications and has amended internal
procedures. Additionally, Credit Union 1 created a series of
instructional videos and DCCED updated its list of frequently
asked questions (FAQs) to assist applicants. She emphasized
that despite these efforts, there appears to be fundamental
problems with the program's structure. She said changes need to
be made to keep small businesses alive. She remarked that last
week, the committee heard testimony pertaining to expanding the
program's eligibility criteria to include commercial fisherman,
501(c)6 nonprofit organizations, and businesses that received
any amount of PPP/EIDL funding. Additionally, testifiers
advocated for granting Alaska Industrial Development and Export
Authority (AIDEA) and DCCED the authority to make minor changes
and adjustments to the program. Today's hearing, she said, is
designed to help the legislature understand existing barriers to
accessing the funds and to identify additional solutions.
11:09:06 AM
REPRESENTATIVE STORY expressed her support for making secondary
income source businesses eligible for the AK CARES grant program
as well.
11:10:24 AM
CHAIR SPOHNHOLZ opened public testimony.
11:10:31 AM
SARAH LEONARD, President & CEO, Alaska Travel Industry
Association (ATIA), expressed support for lifting restrictions
on AIDEA, DCCED, and Credit Union 1 to allow more AK CARES
funding to be distributed to businesses. She reported that a
survey on Alaska tourism businesses conducted by ATIA in May
2020, indicated that a majority had lost over half of their
bookings and revenue. Additionally, these businesses had to lay
off at least half of their staff. Meanwhile, she said, tourism
businesses and organizations - many being 501(c)6 nonprofit
organizations - looked to the federal CARES Act for relief. The
ATIA survey found that over 60 percent of tourism businesses
received PPP funding, while 50 percent received funds from the
EIDL. Furthermore, one-third of responding businesses indicated
that their doors would close after six months without additional
support. She said although the PPP and EIDL were a lifeline of
support in the beginning, many businesses and organizations are
currently depending on the AK CARES grant program to survive the
year. She opined that the goal should be to provide as much
support as possible to as many businesses and organizations that
are struggling to stay afloat. She offered her belief that
Alaska's tourism industry could put people back to work, later
adding that the tourism industry is adapting to provide safe
experiences in Alaska. She said Alaska's tourism industry can
help the economy recover with continued support.
11:14:48 AM
MALENA HAUSINGER, Owner, Alaska Fur Gallery, noted that the
Alaska Fur Gallery is an 85-year-old tourism-driven business
that has been serving Alaskans for 36 years. She stated that
this year, the business will lose 90 percent of its revenue
without tourists visiting Alaska. She said she received EIDL
funding, which makes her business ineligible for the AK CARES
grant program. She opined that all pandemic relief offered by a
government, state, or company should be available to all
applicants without discrimination. She offered her belief that
the Alaska Fur Gallery is being discriminated against because it
qualified for alternative funding. She expressed support for
making businesses that received PPP/EIDL funding eligible for
the AK CARES grant program.
11:17:33 AM
ALYSSA MCDONALD, Vice President, Mac Enterprises, expressed
concern about the future of Mac Enterprises as it is a seasonal
business. She stated that the impact of COVID-19 has resulted
in the loss of the charter season. She noted that she applied
for and received $137,000 in PPP funding, which has allowed her
to keep 10 employees working through the third quarter. She
said currently, there is a cash flow problem for businesses in
the tourism industry. She expressed support for making
businesses that received any amount of PPP/EIDL funding eligible
for the AK CARES grant program.
11:23:26 AM
NATHAN VALLIER, Alaska & Yukon Tours, explained that the loss of
business from COVID-19 compelled Alaska & Yukon Tours to
transition from a corporate travel agency to a retail agency.
He thought that the AK CARES grant program would cover the
restart expenses; however, his business did not qualify. He
opined that there are two existing issues with Credit Union 1:
the 25 percent maximum disbursement and the paper check mandate.
He stated that both mandates have a negative impact on Alaska &
Yukon Tours. He explained that mailing paper checks could add
4-10 business days to the delivery date in Alaska.
Additionally, depositing them could be a challenge, as many
mobile deposits have a monthly limit or place holds on deposited
checks. He recommended allowing the AK CARES grants to be
electronically transferred. He indicated that he planned to use
his expense reimbursement on forward marketing and anecdotally
reported that Southeast Alaska businesses in the tourism
industry are being hit harder than other areas in the state,
such as Homer. He offered his belief that the Alaska & Yukon
Tours' restart will help communicate that "Alaska is open,"
later adding that the AK CARES grant program would help
businesses relay that same message.
11:28:40 AM
CHAIR SPOHNHOLZ sought further clarification on Credit Union 1's
25 percent cap on disbursements.
MR. VALLIER stated that there is a limit on the amount of money
that Credit Union 1 can disburse directly to recipients. He
offered his understanding that only 25 percent of each grant can
be sent directly to the grantee, while 75 percent must be
directly allocated to utility payments, payroll services, and so
forth.
11:29:59 AM
JOHN MCCLEARY, Executive Director, Greater Anchorage Inc, noted
that Greater Anchorage Inc is a year-round organization that's
dependent on the success of the annual Fur Rendezvous Winter
Festival (Fur Rondy). He explained that sponsorship and event
revenue constitute over 50 percent of festival income, later
adding that COVID-19 has created uncertainty in both areas. He
said that as a 501(c)4 organization, the only available lifeline
was an EIDL grant totaling $8,000. Consequently, his
organization was excluded from the AK CARES grant program. He
expressed support for making 501(c)4 and 501(c)5 organizations
eligible. He noted that 501(c)4 organizations help connect the
community to available programs and volunteer opportunities;
furthermore, festivals and fairs have an economic impact on
localities. He added that his organization helps businesses
promote their community during winter, the time of most need.
He urged the legislature to expand the AK CARES grant program's
eligibility criteria to include businesses that received an
increased amount of PPP/EIDL funding and 501(c)4 organizations.
11:34:18 AM
SARAH ALEXANDER, Al's Alaskan Inn, explained that despite
receiving and subsequently returning a $6,000 EIDL grant, which
was noted on her AK CARES application with a copy of the check,
she was denied from the program. She pointed out that the Small
Business Administration (SBA) never disclosed that an EIDL grant
could impact future funding. She opined that the state should
put itself in the position of culpability for damages incurred
to small businesses that were denied additional federal pandemic
relief funding. She stated that her business is in dire need of
$100,000 to catch up expenses due to the COVID-19 pandemic. She
further noted that on June 17, 2020, the House Finance Committee
confirmed that an applicant could qualify for the AK CARES grant
if the applicant had paid back his or her EIDL loan. She said
the state-mandated closure of her business has severely impacted
Al's Alaskan Inn to the point of possible future closure after
being open for 59 years as a family business. She urged the
legislature to help keep all locally owned small businesses
funded and operational.
11:37:23 AM
TODD KINGERY, Owner/Guide, Fishbone Charters, noted that he
received an EIDL grant for $2,800 before the AK CARES grant
program became available; nonetheless, he applied for AK CARES
funding on June 1, 2020. He said he returned the EIDL grant but
has not received a response from the AK CARES program. He
expressed frustration with the AK CARES program, as he has not
received any funds and is currently paying business fees out of
pocket. He urged the committee to establish an oversight
committee for Credit Union 1 to ensure that applications get
processed expeditiously.
CHAIR SPOHNHOLZ noted that the committee plans to address DCCED
and Credit Union 1 in a hearing on the AK CARES grant program on
Tuesday [July 14, 2020]. She said it's unacceptable that only
10 percent of submitted applications have been processed at this
time.
11:43:16 AM
PAUL THOMAS, Owner, Alaska Cache Liquor, expressed support for
making 501(c)6 nonprofit organizations and businesses that
received any amount of PPP/EIDL funding eligible for the AK
CARES grant program. He said as a member of the hospitality
industry in Southeast Alaska, losses grow continually larger by
the day. He added that even if his business had been awarded
PPP/EIDL funding, applying for the AK CARES grant program would
be necessary. Additionally, he advocated for 501(c)6
organizations because they have been excluded from almost all
pandemic relief programs thus far. He urged the committee to
expand the AK CARES grant program's eligibility criteria to
provide more businesses with relief funding.
11:46:02 AM
PETER PANARESE, Friends of Eagle River Nature Center, requested
support for a funding request submitted by Friends of Eagle
River Nature Center for "round two of the municipality's CARES
Act emergency public works." He explained that the Friends of
Eagle River Nature Center is 501(c)3 nonprofit organization that
manages the Eagle River Nature Center and the surrounding area.
He noted that funding would be invested in public facilities on
public lands where proposed projects would have lasting benefits
and supply work to those in the construction industry. He added
that the Nature Center is in urgent need of a new roof.
CHAIR SPOHNHOLZ questioned whether Mr. Panarese's testimony
pertains to the AK CARES grant program.
MR. PANARESE answered yes. He stated that Nature Center's back
deck and salmon viewing deck are also in need of repair. He
said the organization's total funding request is $200,000.
11:49:43 AM
KATHLEEN ADAMS, Marine View B&B, expressed support for making
fishermen and businesses that did not make a profit in 2019
eligible for the AK CARES grant program. She stated that the
2020 quarantine mandates cost her business over $2,600, adding
that she is currently working at the Marine View B&B without
compensation to help the owner. She said many fishermen and
small businesses that didn't make a profit in 2019 are
experiencing out-of-pocket business expenses directly related to
COVID-19; furthermore, federal and state pandemic relief money
continue to be exclusively distributed to businesses that
experienced profit in 2019. She indicated that the AK CARES
program is the last hope for her business. She also pointed out
that filling out the application forms required outside
assistance.
11:52:25 AM
JULIE ESTEY, Greater Wasilla Chamber of Commerce, said
disbursing the AK CARES funding to businesses would help keep
people employed, households intact, and have a ripple effect
throughout communities. She stated that Wasilla has already
lost businesses and many more are supported by smaller loans
that are quickly running out. She added that many Wasilla
businesses did not qualify or receive PPP/EIDL funding, and
others only received a small amount, which is now gone.
Furthermore, receiving PPP/EIDL funding makes businesses
ineligible for further funding from the AK CARES grant program.
She expressed support for making 501(c)6 nonprofit organizations
and businesses that received over $5,000 or any amount of
PPP/EIDL funding eligible. She explained that the Greater
Wasilla Chamber of Commerce is one of the main sources of
information and connection for the business community in Wasilla
and currently, is unable to run typical summer fundraisers or
receive dues from business members that are unable to pay. She
said the loss in revenue is impacting the chamber's ability to
serve its members. She said businesses need help, especially in
the tourism sector, and the AK CARES grant program should be
simple, fast, and efficient. She expressed support for any
measure that would get funding to Wasilla expeditiously.
11:57:38 AM
REPRESENTATIVE STORY questioned whether business owners that
operate a part-time business, which supplements their retirement
income or operates as a secondary income source business, have
voiced opinion on the AK CARES grant program.
MS. ESTEY said the Greater Wasilla Chamber of Commerce has been
connecting small businesses with all available options in the
community.
MS. LEONARD in response to Representative Story, offered her
understanding that small business owners that are part-time,
self-employed, or semi-retired have communicated that each
program has its own challenges and restrictions that make it
difficult for business owners who don't have the capacity to
fill out complex loan applications or don't understand how
guidelines and restrictions interact. She opined that making
the funds more accessible and available would be helpful for
businesses that are in critical need.
12:00:43 PM
SARAH OATES, President & CEO, Alaska Cabaret, Hotel, Restaurant
and Retailers Association (Alaska CHARR), explained that small
businesses that received nominal federal funding are currently
ineligible for the AK CARES grant program. She reported that at
least 20 percent of on-premises drinking/dining establishments
are expected to permanently close over the next year. She
expressed support for providing DCCED the authority to make
modifications to the program's eligibility criteria that would
help small businesses and possibly prevent permanent closures.
She added that quick processing of applications and distribution
of funds is crucial for the many establishments in Alaska that
are barely hanging on. She expressed further support for making
501(c)6 nonprofit organizations eligible for AK CARES funding.
She said nonprofits under the 501(c)6 classification are trade
associations, like Alaska CHARR, ATIA, and chambers of commerce.
She explained that many of these organizations provide education
and training that is essential to the industries they represent;
furthermore, they have provided crucial resources, information,
and advocacy, often free of charge, to member organizations and
industries throughout this crisis in an attempt to help recover
Alaska's economy. Meanwhile, she said, 501(c)6 organizations
have not qualified for any forgivable financial relief. She
noted that the majority of Alaska CHARR's annual revenue comes
from the industry that, arguably, has been most financially
impacted by COVID-19. She indicated that with the unknown
future of Alaska tourism and hospitality, Alaska CHARR is facing
challenging decisions about cutting programs and resources that
the industry depends on to succeed. She stated that if 501(c)6
nonprofit organizations became eligible for the AK CARES grant
program they could potentially obtain funding that could aid in
the recovery of Alaska's industries and economy. Additionally,
she urged the legislature to help state and local health
departments obtain dedicated funding for contact tracing.
12:05:17 PM
SANDY JAMIESON stated that with the help of his bookkeeper and
accountant, he promptly filed for the AK CARES grant program.
He expressed frustration with the application process. He
recommended tasking a local Alaska bank with the job of
processing AK CARES applications.
12:07:55 PM
STEPHANIE NOWERS, Matsu Borough Assembly, she informed the
committee that the Matsu Borough Assembly convened a taskforce,
surveyed businesses, and is considering starting a small
business and nonprofit relief program offering grants of up to
$10,000 for those affected by the pandemic. She added that the
assembly's grant program would not exclude recipients of
[federal] CARES Act funding; however, priority would be given to
businesses that received minimal to no funds. She reported that
the assembly conducted a survey of Matsu businesses in May 2020,
which indicated that half of responding businesses saw their
revenues decrease by 50 percent. She stated that businesses
that have suffered significant losses of over $200,000 are
"falling through the cracks" due to their exclusion from the AK
CARES grant program. She added that the Matsu Borough Assembly
does not have the amount of funding to help those businesses in
a significant way while simultaneously helping small businesses
that are hurting. She urged the legislature to make businesses
that have received any amount of PPP/EIDL funding eligible for
the AK CARES grant program.
12:13:39 PM
LEE ELLIS, President, Brewers Guild of Alaska, advocated for
making different classifications of nonprofits and businesses
that received any amount of EIDL funding eligible for the AK
CARES grant program. Additionally, he emphasized the importance
of contact tracing for small businesses to remain open.
12:16:25 PM
STEPHANIE BERGLUND, CEO, Thread, informed the committee that
Thread is a 30-year-old nonprofit working to improve access to
affordable, quality childcare and early childhood education in
Alaska. She stated that licensed childcare is essential
infrastructure and vital to the state's economic recovery. She
added that working families cannot return to the workforce
without it. She said licensed childcare requires support from
AK CARES to avoid closures and retain business. She explained
that prior to COVID-19, many childcare businesses operated on
thin margins, adding that the pandemic has pushed these
businesses to the brink of permanent closure. She approximated
that childcare in Alaska requires $10 million per month to stay
solvent. On behalf of children, families and employers who rely
on stable childcare, she urged swift action to "free up" AK
CARES funds and requested maximum flexibility to combine and
leverage relief funding. She further reported that for every
teacher that returns to childcare, an average of eight parents
and families can return to work. She offered her belief that
investments in childcare would produce high returns for
generating economic recovery in Alaskan communities.
12:19:21 PM
BRUCE BUSTAMANTE, President & CEO, Anchorage Chamber of
Commerce, expressed support for granting DCCED more flexibility
to administer the AK CARES grant program. He stated that
regarding the distribution of funds, time is of the essence. He
addressed the high level of uncertainty that currently exists
for businesses and urged the committee to distribute relief
funds into the economy expeditiously. He also expressed support
for making 501(c)6 nonprofit organizations eligible for the AK
CARES grant program. Furthermore, he reported that 15 percent
of businesses in Alaska have doubts that they can remain open.
12:23:52 PM
KRISTIN CARPENTER, Prince William Sound Economic Development
District, expressed support for allowing commercial fishermen to
use a CFEC permit in lieu of an Alaska business license to apply
for the AK CARES grant program. Additionally, she expressed
support for making 501(c)6 nonprofit organizations and
businesses that received any amount of PPP/EIDL funding or
municipal relief eligible for the program. She also recommended
giving DCCED the authority to make minor changes and adjustments
to the AK CARES grant program.
12:26:22 PM
REPRESENTATIVE STUTES reiterated the importance of the AK CARES
grant program and emphasized the importance of making
appropriate changes to facilitate the distribution of funds.
She said it's critical to the health of Alaska and its citizens.
12:27:05 PM
REPRESENTATIVE STORY underscored the importance of supporting
seasonal and part-time businesses to help keep them going until
next year.
12:27:59 PM
REPRESENTATIVE COLLEEN SULLIVAN-LEONARD, Alaska State
Legislature, thanked Chair Spohnholz for reaching out to the
Matsu and including voices from the community in today's
hearing. Referencing testimony from the Matsu Borough and
chamber of commerce, she opined that it's important to hear that
there is some money bring disbursed from local governments to
local businesses. Nonetheless, she said the system is not
working well for small businesses. She expressed her hope that
discussions about making PPP/EIDL recipients eligible for the AK
CARES grant program could continue.
12:29:15 PM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, said
today's testimony highlighted significant problems with the AK
CARES grant program and indicated that there is a flaw in the
process. He opined that the RPL process was not the correct
process to distribute AK CARES funds. He said the RPL process
may have to be used to correct the program, which could compound
the problem. He stated that the legislature should be setting
up appropriation programs, especially when money is coming from
the federal government.
12:30:30 PM
REPRESENTATIVE BART LEBON, Alaska State Legislature, expressed
concern that grant checks are being distributed by mail rather
than electronically transferred. He suggested hearing from
Credit Union 1 regarding this issue.
12:31:39 PM
REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, sought
clarification on the eligibility of PPP/EIDL recipients for the
AK CARES grant program.
CHAIR SPOHNHOLZ explained that technically, people who received
$5,000 or less in PPP/EIDL funds are eligible; however, 90
percent of applications have not been processed because of the
current backlog, which is why many eligible applicants have not
received any funds.
REPRESENTATIVE ORTIZ asked how many applications have been
processed so far.
CHAIR SPOHNHOLZ said to date, 10 percent of applications have
been approved totaling $94 million, which is approximately one-
third of total available funds.
REPRESENTATIVE ORTIZ questioned whether other institutions are
going to help process AK CARES funding.
CHAIR SPOHNHOLZ said currently, Credit Union 1 is the only
organization that is administering AK CARES funding. She noted
that next Tuesday, the committee will be hearing from DCCED and
AIDEA about their efforts to bring on other contractors.
REPRESENTATIVE ORTIZ echoed the comments made by Representative
Stutes. He said it's incumbent that the legislature acts
expeditiously to help distribute AK CARES funds into Alaskan
communities.
12:35:16 PM
CHAIR SPOHNHOLZ pointed out that even without expanding the
eligibility criteria, AK CARES applications are not being
processed in a timely manner. She noted that DCCED had planned
on distributing $150 million in the first month; however, so
far, only $9 million has been approved. She said it will take
another 9 months for all applications to be processed at this
rate, which is not acceptable as this is an urgent situation.
She further highlighted the need for additional contact tracing
to ensure that small businesses can stay open. She emphasized
the importance of masks, as well as tracking and managing COVID-
19 as aggressively as possible.
12:37:20 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
12:37 p.m.
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