HOUSE BILL NO. 40 "An Act combining parts of the Department of Commerce and Economic Development and parts of the Department of Community and Regional Affairs by transferring some of their duties to a new Department of Commerce and Rural Development; transferring some of the duties of the Department of Commerce and Economic Development and the Department of Community and Regional Affairs to other existing agencies; eliminating the Department of Commerce and Economic Development and the Department of Community and Regional Affairs; relating to the Department of Commerce and Rural Development and the commissioner of commerce and rural development; adjusting the membership of certain multi- member bodies to reflect the transfer of duties among departments and the elimination of departments; creating the office of international trade and relating to its duties; and providing for an effective date." MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, updated Committee members regarding changes to the work draft committee substitute. He noted that an updated copy of the changes made would be forth coming. Mr. Tibbles addressed the concerns of Legal Services, which would be included in the work draft. * Placement of the Office for International Trade. The bill arrived with that office being seated in the Governor's Office. Through discussion, it was determined that the bulk of that work was performed in the Department of Community and Regional Affairs. consequently, it will be placed in the new department. * Vocational Rehabilitation. This Division has been moved into the new department, and will be situated in the new work force development. * ChildCare Licensing. This component was moved from Department of Health and Social Services to the new Department of Education and Child Development. * Deletion of Section #35 This section mandated divisions within Department of Commerce and Economic Development, division directors to provide maximum flexibility. Co-Chair Therriault commented that change would allow more flexibility within the division structure for the department. * Community Grants. Mr. Tibbles advised that the municipal matching grants had been moved out of Title 37 and into the new department. * Adult Basic Education. Mr. Tibbles noted that the new committee substitute moved the component to the new work force development component. It was accepted that vocational technical would work more closely with high school. * Pass Work Services & I. Mr. Tibbles commented that included in the new work draft, these items were left in the Department of Health and Social Services because of their tie to the Alaska Temporary Assistance Program (ATAP). (Tape Change HFC 99 - 102, Side 2). * Licenses. Co-Chair Therriault addressed the regulation section. The Legislature granted the authority to start developing the regulation package before the new statute went into effect. The intent here was to give the Department the authority to develop the statutes and guarantee that it would go into effect the same time that the statute does. Mr. Tibbles advised that three items had not made it into the work draft. 1. The placement and number of board members on the Human Resource Development Council. Currently, they are on a five-year plan. The intent is to transition after the work is completed. Co-Chair Therriault commented that he would like to see the number of members reduced, however, understood that they are in the process of finishing up a five-year plan. 2. Mr. Tibbles added that he was working with Legislative Legal on language which would address any missed provisions or references for the impact of bills on federal funds. 3. Mr. Tibbles continued, Power Cost Equalization (PCE) and Alaska Industrial Development Export Authority (AIDEA) was not included in the work draft. Representative Grussendorf questioned why Vocational Technology was being moved to the Department of Education. Mr. Tibbles replied that function had been left in the Department of Labor and Work Force Development. Representative Grussendorf voiced concern for the Alaska Peer Information system because of the increased need to move people into the work force. Mr. Tibbles interjected that from public testimony, the idea was to move that item to the Department of Administration. Co-Chair Therriault updated members regarding the process. Representative Kohring voiced his appreciation on the work provided by Mr. Tibbles and all the efforts put forth by the individuals departments and agencies. He acknowledged that he was hopeful that the bill would provide greater efficiency in government with less management. Representative G. Davis questioned the need to change the names of agencies. He believed that changing the names would complicate concerns of the public. Co-Chair Therriault explained that when working with "mission and measures", it is important to indicate the work performed by specific agencies. He added that constituents are interested in being able to access budget documents through the Internet and he believed that the proposed new titles could assist and expedite that service. HB 40 was HELD in Committee for further consideration.