Legislature(1997 - 1998)
1998-02-06 Senate Journal
Full Journal pdf1998-02-06 Senate Journal Page 2422 SB 279 SENATE BILL NO. 279 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to the financing authority, programs, operations, and projects of the Alaska Industrial Development and Export Authority; and providing for an effective date. was read the first time and referred to the Transportation and Finance Committees. 1998-02-06 Senate Journal Page 2423 SB 279 Zero fiscal note published today from Department of Commerce and Economic Development. Governors transmittal letter dated February 5: Dear President Miller: I am transmitting a bill to support economic development in Alaska and create jobs in the state by extending the bonding authority of the Alaska Industrial Development and Export Authority (AIDEA). The bill also merges AIDEA's export assistance program with its business assistance program to enable AIDEA to better serve Alaska businesses that export products and services. In addition, the bill clarifies provisions related to AIDEA's financing programs to make those programs more effective. First, the bill extends AIDEA's general bonding authority which sunsets July 1, 1998. Bonding for development projects of $10,000,000 or more would continue to require legislative approval. The ability of AIDEA to issue bonds is essential to fulfill the authoritys statutory mission. Allowing AIDEAs bonding authority to expire would severely restrict its ability to assist in financing key development projects and also conduit revenue financing transactions that do not involve the credit of the AIDEA or the state. In 1997 alone, AIDEA issued tax-exempt conduit revenue bonds to help finance the Fort Knox gold mine ($71 million) and the Goat Lake Hydroelectric project ($23 million). These bonds helped lower the cost of financing for these projects without any financial risk to AIDEA or the state. The bill will ensure that AIDEA continues to have the ability to issue bonds that benefit Alaska businesses. Second, the bill merges AIDEAs export assistance program with its business assistance program by repealing the export assistance program while modifying and continuing the business assistance program. AIDEAs 10-year old export assistance program does not meet the needs of the banks and businesses it was intended to serve and, in fact, has not been used by any Alaska business. While AIDEA has been able, in limited circumstances, to support some export transactions through its business assistance program, the current structure is not effective for the types of 1998-02-06 Senate Journal Page 2424 SB 279 Alaska export transactions prevalent today. This bill will create a business and export assistance program that can effectively support Alaska businesses that export goods and services. The bill also clarifies other provisions of AIDEA's statutes, including strengthening AIDEAs ability to support economic development through its loan participation program and expanding the current limited confidentiality provision so it applies to all of AIDEA's financial programs. It has been thirty years since our predecessors had the forethought to create AIDEA. Since that time, AIDEA has helped create thousands of jobs for Alaskans by forging public-private partnerships that strengthen the states economic base. This bill will ensure that AIDEA has the tools to continue its vital mission to benefit Alaskans today and in future generations. I urge your prompt consideration and passage of this bill. Sincerely, /s/ Tony Knowles Governor