Juneau -- The House Community and Regional Affairs Committee Thursday passed out House Bill 40, sponsored by Representative Vic Kohring (R-Wasilla/Peters Creek). By a vote of the full House, the bill has been waived from the House Labor and Commerce Committee and will move directly to the House Finance Committee.

"It is becoming increasingly apparent that now is the time for us to look deeper to find the cost savings and efficiencies that low oil prices and declining oil production have made necessary," said Kohring. "House Bill 40 would bring significant savings and efficiencies by reengineering our government, eliminating one commissioner's office with its attendant bureaucracy, but not eliminating services, particularly to rural Alaska."

Under Kohring's bill, the Department of Commerce and Economic Development and the Department of Community and Regional Affairs would be combined into the Department of Commerce and Rural Development. This consolidation is designed to create budget savings as well as to enhance and streamline program delivery and economic development to provide better service to rural communities and to Alaska as a whole.

"It is our understanding that the Administration is now onboard with this consolidation," Kohring said. "With our bill now before the House Finance Committee, it appears that this process is now moving into high gear."

Editors note: House Bill 40 is scheduled for a hearing in the House Finance Committee Friday, March 26, at 1:30 pm.