HOUSE BILL NO. 119                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Alaska                                                                       
     regional economic assistance program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
KACI SCHROEDER, STAFF, HOUSE COMMUNITY  AND REGIONAL AFFAIRS,                                                                   
explained the bill.                                                                                                             
                                                                                                                                
1:48:50 PM                                                                                                                    
                                                                                                                                
WANETTA  AYERS,  EXECUTIVE  DIRECTOR,   SW  ALASKA  MUNICIPAL                                                                   
CONFERENCE,  spoke in  favor of  HB 119.   She explained  the                                                                   
benefits of  the program  and how funds  are generated.   She                                                                   
related the  funding formula used  for the various  tiers and                                                                   
explained how reauthorization  is a distraction from economic                                                                   
development.   She  spoke of  past  funding mechanisms,  AIDA                                                                   
receipts,  a balanced  long-term  fiscal  plan,  and a  well-                                                                   
funded regional development plan.                                                                                               
                                                                                                                                
1:54:31 PM                                                                                                                    
                                                                                                                                
JASON CARROLL,  CHAIR, KENAI  PENINSULA ECONOMIC  DEVELOPMENT                                                                   
DISTRICT, spoke of  difficulties and how much  easier it will                                                                   
be if the date is extended.                                                                                                     
                                                                                                                                
ROB WELL, EXECUTIVE  DIRECTOR, MATSU RESOURCE  CONSERVATION &                                                                   
DEVELOPMENT COUNCIL, read a statement (copy on file.)                                                                           
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
1:56:52 PM                                                                                                                    
                                                                                                                                
SALLY SADDLER,  LEGISLATIVE LIAISON, DEPARTMENT  OF COMMUNITY                                                                   
AND ECONOMIC DEVELOPMENT, in response to a question from Co-                                                                    
Chair Meyer, spoke about the new fiscal note.                                                                                   
                                                                                                                                
Representative Kelly asked about  the $650,000 amount and how                                                                   
it is funded.                                                                                                                   
                                                                                                                                
Ms. Saddler  explained that it  was intended to be  funded by                                                                   
business licenses,  but now  is funded  by the general  fund.                                                                   
Now there are two fiscal notes;  one takes AIDA receipts, and                                                                   
one    transfers   those    receipts    to   the    division.                                                                   
Representative Kelly asked if  it is funded by AIDA receipts.                                                                   
Ms. Saddler said it is.                                                                                                         
                                                                                                                                
2:01:02 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED to ADOPT Amendment 1:                                                                            
                                                                                                                                
     Page 1, line 6                                                                                                             
     Delete "2013"                                                                                                              
     Insert "2010"                                                                                                              
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Co-Chair Chenault  spoke against the  2013 date and  in favor                                                                   
of the 2010 date.                                                                                                               
                                                                                                                                
Vice-Chair Stoltze  WITHDREW his  OBJECTION.  There  being NO                                                                   
OBJECTION, Amendment 1 was adopted.                                                                                             
                                                                                                                                
Representative Foster  MOVED to report CSHB 119  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  119 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation and with  two new fiscal impact notes by                                                                   
the House Finance Committee.                                                                                                    
                                                                                                                                
2:03:45 PM