HOUSE BILL NO. 370 "An Act making an appropriation for relief of the 1997 fishery disaster in Bristol Bay and on the Kuskokwim River; and providing for an effective date." Senator Pearce MOVED SCS CSHB 370(FIN) version "Q". Senator Adams OBJECTED for discussion purposes. He felt it should be explained how the funding mechanism would work, including Federal funds and matching State general funds and how the actual monies would get out to the fishermen and local individuals. Co-chair Sharp asked that Lamar Cotton, Deputy Commissioner, Department of Community and Regional Affairs work closely with the committee to insure correct structuring language in the CS so they would be able to capture maximum Federal dollars and to apply those dollars in areas most beneficial. Representative Ivan Ivan was invited to join the committee. He briefly said this bill was introduced as a result of the disaster that occurred. He said the bottom line of his intent was to get maximum Federal funds to the disaster areas and affected individuals. He said that Mr. Cotton could comment to concerns that had been brought up. LAMAR COTTON, Deputy Commissioner, Department of Community and Regional Affairs was invited to join the committee. He said the key distinction, as noted by Representative Ivan, was that there was no general fund in the bill. He said this was to have been used as a match to trigger a release of Federal funds. He said following discussions with Co- chair Sharp and his staff, a way had been found to achieve the goal of releasing the Federal funds. The method was described in section three (1) and (2) of the bill. He briefly explained that the funding source would be from community or agency matching funds, goods and services that were compliant with the requirements of the Magnussen and Stevens Act. That meant, for example, the community grants program would have to come up with some non-Federal funds, which could also include capital matching grant funds. It could also come from revenue sharing. The actual trick would be to work closely with the Federal Department of Commerce to insure the expenditures did comply with their grant program. Senator Phillips asked how many communities were affected. Mr. Cotton said there were fifty-two communities total. Senator Phillips further asked what were the mechanics for the local communities to participate? Mr. Cotton said a good example would be for a community to take a portion or all of this year's or next year's capital matching program and apply it for matching funds. They could also use revenue sharing or municipal assistance. Further, another State grant or raw fish tax could be used. Representative Ivan said this plan was put together enlisting the help of everyone. He also said there were approximately fifty-two communities participating. In response to a question from Senator Phillips he said he did have commitments from all the communities. He felt the relief set out in the bill would work. Senator Torgerson asked about agency matching funds and was the department anticipating changing any of their programs to supplement funds for this relief? Mr. Cotton said the department was not. Senator Torgerson asked if in acquiring Federal funds this was an "all or none" deal as far as the Federal funding was concerned? Mr. Cotton said he did not know exactly. They were still in negotiation processes but the Federal government had been fairly reasonable considering the possible different mechanical changes. Senator Torgerson commended the efforts of Representative Ivan and Mr. Cotton in putting the bill together. Co-chair Sharp said a lot of shopping had been done with the departments and Mr. Cotton was the only one who had put in so much effort. He noted the main concern was to capture maximum Federal funds and put it out immediately to the affected areas. Senator Phillips asked if there was a deadline for community contributions? Mr. Cotton said there had not been one set because the desire to get the project underway will compel many to move quickly. JIM SANDERS, Supervisor, Southcentral Regional Office, Division of Municipal and Regional Assistance, Department of Community and Regional Affairs said he was available via teleconference to assist Mr. Cotton in answering any of the committee's questions. Senator Torgerson noted that the CS had not been adopted and therefore, notwithstanding the departure of Senator Adams, WITHOUT OBJECTION the new CS was ADOPTED as a working document before the committee. Senator Torgerson MOVED SCS CSHB 370(FIN) and WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and no accompanying fiscal notes. There followed a brief at ease at approximately 9:45 a.m. Co-chair Sharp called SB 350.