HOUSE BILL NO. 265                                                                                                              
                                                                                                                                
An Act extending the termination date of the Alaska                                                                             
regional economic assistance program; and providing for                                                                         
an effective date.                                                                                                              
                                                                                                                                
CHARLES PARKER, (TESTIFIED VIA TELECONFERENCE), MATSU, spoke                                                                    
in support of the ARDOR program and offered to answer                                                                           
questions of the Committee.                                                                                                     
                                                                                                                                
Representative Austerman noted that last year, the                                                                              
Legislature passed HB 40 which contained a number of changes                                                                    
identified in Section #1.                                                                                                       
                                                                                                                                
Co-Chair Therriault noted that there were two fiscal notes                                                                      
in member's packets.  The House Finance Committee fiscal                                                                        
note proposes phasing out State funding over a three-year                                                                       
period.  The Department of Community & Economic Development                                                                     
fiscal note proposes action to happen within a five-year                                                                        
period.                                                                                                                         
                                                                                                                                
(TAPE CHANGE HFC 00 - 101, Side 1).                                                                                             
                                                                                                                                
Co-Chair Therriault commented that adoption of the fiscal                                                                       
note would send a message regarding the fund during the out                                                                     
years.                                                                                                                          
                                                                                                                                
Representative Austerman advised that there has been several                                                                    
discussions regarding the need for the State of Alaska to                                                                       
become a player in the economic development of the State.                                                                       
He noted that the "small" amount placed into the ARDOR's                                                                        
budget is something that the State should be doing.                                                                             
Representative Austerman stated that he would not support                                                                       
the new note.                                                                                                                   
                                                                                                                                
Representative J. Davies echoed concerns registered by                                                                          
Representative Austerman. He addressed the need of                                                                              
diversifying the economy within the State.  He agreed that                                                                      
the State should determine if these dollars spent are being                                                                     
effective and recommended that the mechanism that the bill                                                                      
be determined by the measures.                                                                                                  
                                                                                                                                
Co-Chair Therriault stated that for the next year, it is                                                                        
important to begin the weaning process from State monies.                                                                       
Co-Chair Therriault noted that he would not oppose the                                                                          
original fiscal note submitted by the Department.                                                                               
                                                                                                                                
Representative Austerman MOVED to report HB 265 out of                                                                          
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.  There being NO OBJECTION, it was                                                                     
so ordered.                                                                                                                     
                                                                                                                                
HB 265 was reported out of Committee with a "do pass"                                                                           
recommendation and with a fiscal note by Department of                                                                          
Community & Economic Development dated 3/1/00.