HOUSE BILL NO. 290                                                                                                            
                                                                                                                                
     "An Act creating the endow Alaska grant program in the                                                                     
     Department of Commerce, Community, and Economic                                                                            
     Development to encourage community development."                                                                           
                                                                                                                                
Vice-chair  Fairclough  MOVED  to  ADOPT  proposed  committee                                                                   
substitute    for   HB    290,    Work   Draft    27-LS1094\R                                                                   
(Mischel/Kirsch, 4/3/12).                                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
ERIN HARRINGTON,  STAFF, REPRESENTATIVE AUSTERMAN,  explained                                                                   
the changes  in the committee  substitute (CS).  She observed                                                                   
that  alterations were  made after  feedback  from the  House                                                                   
Finance  Committee  during  the 3/29/12  hearing.  She  noted                                                                   
that Representative  Edgmon had  raised a question  regarding                                                                   
the possible  ambiguity of the term "community  development."                                                                   
The  CS  addressed the  concern  by  replacing  "development"                                                                   
with "philanthropy" on Page 1, lines 2, 6 and 8.                                                                                
                                                                                                                                
Ms. Harrington  spoke to a  concern by Representative  Doogan                                                                   
and  Vice-chair Fairclough  that the  order of  the items  in                                                                   
the  legislation  could  be  perceived  as  a  "ranking".  To                                                                   
address   the  concern,   "ranking"   was  substituted   with                                                                   
"evaluating" on Page 2, line 10 and 11.                                                                                         
                                                                                                                                
Ms.   Harrington    recalled   discussions    regarding   the                                                                   
restrictiveness  of  the  list. Consideration  was  given  to                                                                   
changing  "may" to  "shall" on  page 2, line  11. The  change                                                                   
was  not  made  due  to  constitutional  issues,  which  took                                                                   
control away  from the  legislature and  transferred it  to a                                                                   
third party.                                                                                                                    
                                                                                                                                
Ms. Harrington  observed  that on Page  3, lines  8 and  9, a                                                                   
new  subsection (3)  was  added to  AS  44.33.180 that  read:                                                                   
"state general  funds may not  be used as the  matching funds                                                                   
for  this program."  The  new section  was  added to  clarify                                                                   
that a community  could not use state funds as  its match for                                                                   
a project.                                                                                                                      
                                                                                                                                
Co-Chair  Stoltze  WITHDREW  his OBJECTION.  There  being  NO                                                                   
further OBJECTION, Work Draft 27-KS1094\R was ADOPTED.                                                                          
                                                                                                                                
2:45:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ALAN   AUSTERMAN,   SPONSOR,   thanked   the                                                                   
committee.                                                                                                                      
                                                                                                                                
Vice-chair Fairclough  reviewed the new zero fiscal  note for                                                                   
the   Department   of  Commerce,   Community   and   Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSHB 290  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
Co-Chair  Stoltze  OBJECTED  for purpose  of  discussion.  He                                                                   
noted  philosophical  hesitations regarding  the  legislation                                                                   
but  allowed the  bill to  move from  committee. He  WITHDREW                                                                   
his OBJECTION.                                                                                                                  
                                                                                                                                
There  being   NO  further   OBJECTION,  CSHB  290(FIN)   was                                                                   
REPORTED  out of committee  with a  "do pass"  recommendation                                                                   
and with  one new  zero fiscal  note from  the Department  of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
2:47:02 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:50:08                                                                                                                       
RECONVENED