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." 10:13:44 AM Co-Chair MacKinnon noted that the public hearing for HB 314 was closed on April 13, 2016. Vice-Chair Micciche MOVED to ADOPT proposed committee substitute for HB 314(FIN), Work Draft 29-LS1381\G (Shutts, 4/16/16). Co-Chair MacKinnon OBJECTED for discussion. ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, pointed out that the only change between the previous version "I" and the committee substitute (CS) was on page 4, line 10. The CS had a sunset date of 2021, where the previous version had removed the sunset date altogether. Co-Chair MacKinnon explained that the change had been at her request. She mentioned an audit of the Alaska Regional Economic Assistance (ARDOR) program that she had found troubling, and noted that the sponsor had worked diligently with the program to ensure it was operating well. She wanted to include an element oversight before removing the sunset date. Co-Chair MacKinnon REMOVED her OBJECTION. There being NO OBJECTION, it was so ordered. 10:15:56 AM REPRESENTATIVE SHELLEY HUGHES, SPONSOR, stated that her original bill had contained a five-year sunset that had been removed during the committee process. Representative Hughes gave a high-level overview of the bill. She articulated that due state fiscal constraints, it was no longer possible to provide the same level of funding to ARDOR. She noted that there were 10 ARDORs (regional development programs) who had each received approximately $70,000 per year. She noted that 89 percent of ARDOR funding the previous year had not come from state funds. She stated that the bill would provide a designation and would ensure that the ARDORs could continue their important work at no cost to the state. She specified that the ARDORs would continue to do some basic reporting, which would provide the state with statistics and increase understanding of economic development in the state. She mentioned a project in Bethel that was building trusses for cold climate housing, a manufacturing focus in Southwest Alaska, and increased focus on start-ups. 10:18:16 AM AT EASE 10:19:33 AM RECONVENED Vice-Chair Micciche discussed FN 1 (CED), from DCCED (OMB component 2743). He stated that it was essentially a zero fiscal note, but for the governor's request of $774,000. Co-Chair MacKinnon understood that even though the numbers were listed as the governor's request, the House and Senate had both zeroed out the appropriation. Senator Olson asked what the governor's request was intended for. Co-Chair MacKinnon stated that the governor's request was to help support the program, and had been denied by the legislature. Representative Hughes understood that the column "Included in Governor's FY2017 Request" was there for informational purposes. She qualified that the department had worked with the sponsor and agreed to zero it out. Vice-Chair Micciche MOVED to report SCS HB 314(FIN) out of Committee with individual recommendations and the accompanying fiscal note. SCS HB 314(FIN) was REPORTED out of committee with "no recommendation" and with one previously published fiscal impact note: FN 1(CED). 10:21:31 AM AT EASE 10:26:20 AM RECONVENED