SB 62-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM    CHAIR WAGONER asked Mary Jackson to introduce SB 62. MS. MARY JACKSON, staff to Senator Wagoner, explained SB 62 is the companion bill to HB 79 and extends the termination date of the Alaska Regional Economic Assistance Program, which is the funding source for the Alaska Regional Development Organizations (ARDOR) program from 2003 to 2008. HB 79 was on the House floor and would move to the Senate on February 28, 2003. If SB 62 were to pass from committee that day it would move to the Finance Committee and be heard simultaneously with HB 75. In the packets there is a sectional analysis, a list of the thirteen programs, and a series of questions and answers regarding the ARDOR program. [See bill file.] She asked whether there were any questions. SENATOR LINCOLN asked whether HB 75 had exactly the same language. MS. JACKSON replied the language was the same. Although someone could have asked for reconsideration in order to make a change, when she left her office a short time ago that had not happened. SENATOR LINCOLN said she is a big supporter of ARDORs. SENATOR TAYLOR asked whether Legislative Budget and Audit had done an audit since this was a sunset issue. MS. JACKSON wasn't aware of one having been done. SENATOR ELTON commented the ARDOR is one of the best ways to get value for the dollar on regional economic development. Previously he suggested shifting money from the commissioner's office to make sure some of the economic development decisions are made in the regions. Although he was not suggesting that now, he did want it clear this is one of the few state programs that meets market test. They leverage the money they receive five fold, which is seldom seen in governmental programs. Increasing the money given to this program is a sound investment. CHAIR WAGONER called for public testimony. MEILANI SCHIJVENS, Southeast Conference Administrative Director, urged members to authorize and fully fund the ARDOR program. She gave the following testimony. ARDORS use the seed money provided by the state to build on - leveraging approximately 5 times as much money for business assistance, infrastructure development, community assistance, and other functions. ARDORS regionally address and support the vast diversity of economic challenges and opportunities in our huge state. Here in Southeast, the Southeast Conference focuses on infrastructure issues, primarily the AMHS, and the regional electrical inter-tie - In other areas of the state, ARDORS are very involved with business assistance, because that need is unfilled. The NW Arctic ARDOR, for example, developed an innovative revolving loan fund utilizing PFD payments as loan guarantees. ARDORS supply a useful resource to the state and federal government when it comes to dealing with regional or multi-regional issues. The South West AK Municipal Conf ARDOR was designated by the federal government to disburse over $30 million in Stellar sea lion regulation mitigation money, and was successful in getting it done on time with an administrative overhead under 1%. We work to keep leaders from across the state informed on regional issues and problems. Southeast Conference, for example, helps facilitate meetings of the Southeast Conference of Mayors, the Southeast Conference of Chambers, and provides information to the Southeast Caucus. The Southeast Conference has been around for 45 years. We have over 100 members, including 29 Southeast communities. We have 9 committees, and 90 volunteers who volunteered approximately 10,000 hours this last year. We leverage 15 times the value of the ARDOR grant in funding for projects around the region. Our Ardor was instrumental in obtaining a federal authorization for a regional electric inter-tie, with the help of then Senator Frank Murkowski and we are hard at work on the next steps of that project. For the last 10 years, we have been working with the state on a low cost method of collecting household hazardous waste around the region. Each year we collect approximately 13,000 gallons of hazardous material that could have ended up in our ground water or landfills. All at a very low cost to the state - approximately $1 per gallon. ARDORS help bring people in remote regions together. Our annual meeting in September held on Prince of Wales Island, attracted more that 200 leaders from across the region, where collectively they decided to pursue a whole range of regional projects. SENATOR GARY STEVENS expressed his overwhelming support of the ARDOR program. MS. SUE COGSWELL, representative of the Prince William Sound Economic Development District, briefly outlined the projects they are involved in and advised they leveraged $1.5 million in state funds into over $6 million in Prince William Sound projects. She urged passage of SB 62. WANETTA AYERS, Executive Director of the Southwest Alaska Municipal Conference (SWAMC), spoke in favor of SB 62 on behalf of the 54 communities and 131 members of SWAMC. SWAMC received ARDOR designation in 1989 and that funding has provided about 25 percent of their funding over the last few years. They are also federally designated and save Southwestern Alaska communities hundreds of thousands of dollars annually by reducing the local match requirement for many federally funded projects. Their mission is to increase economic opportunities and improved quality of life by providing education, networking, and communication. She noted SWAMC was selected to administer a $30 million Stellar Sea Lion Mitigation Fund. They not only operated in a timely manner, they kept administrative cost to less than one percent. CHAIR WAGONER stated that was the second time he heard the administrative costs were less than one percent and thought others could learn from the example. MR. JIM CARTER, Executive Director of the Kenai Peninsula Economic Development District (KPEDD), testified in support of SB 62 and explained the KPEDD ARDOR has been fostering economic development since 1988. In the next several years they will be doing everything possible to encourage oil and natural gas exploration and development on Cook Inlet. SENATOR TAYLOR complimented him on successful project management. MR. DAVID LEONE, Fairbanks North Star Borough Economic Development Commission representative echoed support of SB 62. He described ARDORs as an excellent method of fostering a partnership between state and regional efforts to bring about economic development. He encouraged expanded use of this successful model. There was no further testimony on SB 62. CHAIR WAGONER asked for a motion to move the bill from committee. SENATOR TAYLOR made a motion to move SB 62 and accompanying fiscal note from committee with individual recommendations. There being no objection, it was so ordered.