HOUSE BILL NO. 314                                                                                                            
                                                                                                                                
     "An  Act  relating  to  the   Alaska  regional  economic                                                                   
     assistance  program; extending  the termination  date of                                                                   
     the  Alaska regional  economic  assistance program;  and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
8:28:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SHELLEY   HUGHES,  SPONSOR,   introduced  the                                                                   
legislation.  She  stated  that  the bill  would  extend  the                                                                   
sunset  date  of  the  Alaska  Regional  Economic  Assistance                                                                   
(ARDOR) program.                                                                                                                
                                                                                                                                
8:31:59 AM                                                                                                                    
                                                                                                                                
STUART KRUEGER, STAFF, REPRESENTATIVE SHELLEY HUGHES,                                                                           
addressed the summary of changes from version N to version                                                                      
P of the bill (copy on file):                                                                                                   
                                                                                                                                
     Page  3,  Line 6-11:  The  Senate  Labor &  Commerce  CS                                                                   
     reinstates  the  requirement   that  the  Department  of                                                                   
     Commerce, Community  & Economic Development  compile and                                                                   
     deliver  a  report to  the  senate secretary  and  chief                                                                   
     clerk on  regional development organization  activities.                                                                   
     It does so  by removing language from  the original bill                                                                   
     starting  on  page 3,  line  9,  stating "that,  in  the                                                                   
     preceding  fiscal year,  received  assistance under  (a)                                                                   
     of  this  10  section  or  a grant  under  (b)  of  this                                                                   
     section"                                                                                                                   
                                                                                                                                
     Page 4, line 9: Repeals the sun set clause.                                                                                
                                                                                                                                
8:33:40 AM                                                                                                                    
                                                                                                                                
Mr. Krueger discussed the sectional analysis (copy on                                                                           
file):                                                                                                                          
                                                                                                                                
     Section  1.  Lists  the  duties  of  the  department  in                                                                   
     providing  assistance to  new and  existing ARDORs.  New                                                                   
     language    added   to    make   duties   "subject    to                                                                   
     appropriation".                                                                                                            
     Section  2. Provides the  department with the  authority                                                                   
     to make  regional development  grants to ARDORs.  Limits                                                                   
     the number  of grants that the department  can make, and                                                                   
     allows  the  department  to  set  procedures  for  grant                                                                   
     applications.                                                                                                              
                                                                                                                                
     Section  3.  Sets  reporting   requirement  deadline  of                                                                   
     February 1  of each year  for the department  to compile                                                                   
     a  report   on  the  activities  of  ARDORs   that  have                                                                   
     received  funding  in the  preceding  fiscal year.  Also                                                                   
     establishes  requirement for  ARDORs that have  received                                                                   
     assistance  or funding in  the preceding fiscal  year to                                                                   
     provide information  to the department to  assist in the                                                                   
     compiling of the department's report.                                                                                      
                                                                                                                                
     Section 4.  Extends the sunset  date of program  to July                                                                   
     1, 2021                                                                                                                    
                                                                                                                                
     Section 5. Retroactivity clause.                                                                                           
                                                                                                                                
     Section 6. Effective date.                                                                                                 
                                                                                                                                
8:34:37 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  asked about FN  1, which had  a $774,100                                                                   
grant, but  had been removed  in the subcommittee  budget. He                                                                   
assumed that  there would be a  new zero fiscal note  for the                                                                   
bill.                                                                                                                           
                                                                                                                                
Representative  Hughes explained that  the second  column was                                                                   
information only.  She remarked that  it was included  in the                                                                   
governor's   original  budget   request   in  December.   The                                                                   
department agreed  to go to  zero, and the subcommittees  had                                                                   
zeroed   out  the  fiscal   note.  She   stressed  that   the                                                                   
Legislative Finance  Division (LFD)  felt that it was  a zero                                                                   
fiscal  note, because  the  column was  strictly  information                                                                   
only.                                                                                                                           
                                                                                                                                
HB  314  was   HEARD  and  HELD  in  committee   for  further                                                                   
consideration.