SB 329: An Act establishing a grant program relating to veterans' services. Senator Jacko, sponsor of SB 329 testified in support of the bill. Jeff Morrison, Legislative Liaison, Department of Military & Veteran Affairs, spoke to his concerns regarding page 2, lines 5-7 that at least 25 percent of the money received under the grant be used for expenses in communities with a population of less than 400. Senator Kelly brought some questions to the committee as to what percent of veterans were in rural areas and what qualified a person as a "veteran." SB 329 was REPORTED OUT of committee with individual recommendations and a zero fiscal note from the Department of Military & Veteran Affairs. SENATE BILL NO. 329: An Act establishing a grant program relating to veterans' services. Co-chair Pearce announced that SB 329 was before the committee. She asked Senator Jacko to speak to the bill. SENATOR JACKO, sponsor of SB 329, said that the bill basically affirmed that the welfare of Alaska residents was important to the state of Alaska, it permitted more efficient operations of the Veteran services programs, and improved legislative oversight of program accomplishments and emphasized the need for veterans in a remote areas. He encouraged the department to simplify existing regulations and streamline grantee selections to reduce overhead even more than it had already. He noted that SB 329 had a zero fiscal note. This bill called for a report on a quarterly basis. He said that for years, the rural areas had been ignored in the area of veteran services. He urged the department to find creative ways to fill the void. A list of names and phone numbers was not enough. Because of funding reductions, almost three-quarters of Alaska veterans would go unserved, particularly in rural areas and small towns. This was offensive to him and he wanted a more equitable distribution of the much needed services. In answer to Senator Kelly, Senator Jacko said the VPSO program was codified in statute and before it was a line item. This bill did not effect VPSO's, only veterans. JEFF MORRISON, Legislative Liaison, Department of Military & Veteran Affairs, said his department had no problem with establishing this in statute. Currently, regulations were in place that created a grant program for administering the Veteran Service Officer Grant Program. This would give statutory recognition to it. The department had concern with language on page 2, lines 5-7, that would require 25 percent of the money be spent on areas with a population of less than 400. He said there were overriding practical concerns about putting this in statute. First, the department and the veteran service organization were very supportive of the concept of outreach to rural Alaska. Money targeted for that area had doubled but the practical aspect was that, in order to maximize the travel funds and make the money most efficient, the veteran's service officers would travel to Bethel and Nome and by a variety of means, get the word out to surrounding communities including scanners on TV, word of mouth, advertisement through senior centers, and other efforts to let veterans know that they would be at a certain place at a certain time. They would meet with anyone, receive phone calls on the advertised 800 number and do anything they could to reach the communities short of traveling to them. Traveling to smaller communities was very expensive and could incur costs if up to $200 a veteran. Working out of a hub community would drop it to $25 a veteran. It would be very difficult to keep track of what percent was used to reach the smaller communities. A reporting system was being developed to track recipients by general area using veteran's telephone number. He was concerned that this requirement would require time that would be better used in contacts and services to the veterans. In answer to Senator Kelly, Mr. Morrison did not know how many of the veterans lived in areas with a population less than 400. He thought this might be part of the problem. He believed that a veteran needed to have 20 years of service to receive benefits. Senator Jacko MOVED for passage of SB 329 out of committee with individual recommendations. No objection being heard, it was REPORTED OUT of committee with individual recommendations, and a zero fiscal note for the Department of Military & Veteran Affairs. Co-chairs Pearce and Frank, and Senator Jacko signed "do pass." Senators Kelly and Rieger signed "no recommendation."