Legislature(1999 - 2000)
2000-02-08 Senate Journal
Full Journal pdf2000-02-08 Senate Journal Page 2216 SB 248 SENATE BILL NO. 248 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to the financing authority, payment in lieu of tax agreements, and tax exemption for assets and projects of the Alaska Industrial Development and Export Authority; relating to renaming and contingently repealing the rural 2000-02-08 Senate Journal Page 2217 SB 248 development initiative fund within the Department of Community and Economic Development, and establishing the rural development initiative fund within the Alaska Industrial Development and Export Authority; and providing for an effective date. was read the first time and referred to the Community and Regional Affairs, Labor and Commerce and Finance Committees. Zero fiscal note published today from Department of Community and Economic Development. Governors transmittal letter dated February 3: Dear President Pearce: The Alaska Industrial Development and Export Authority (AIDEA) has been a key player in many of Alaska's economic successes through the years. AIDEA programs have financed smaller projects, such as the Unalaska Marine Center dock, and the multi-million dollar Red Dog mine and Federal Express aircraft maintenance facility. This bill I transmit today continues AIDEA's role in boosting economic development and creating jobs in the state by extending its bonding authority for development projects of up to $10 million and for conduit bond financing that does not involve the assets or credit of AIDEA or the state. Under the bill, AIDEA's general bonding authority for projects up to $10 million would be extended for three years, until June 30, 2003. The bill also clarifies that the sunset provision does not apply to conduit revenue financing transactions. Projects larger than $10 million would still require specific legislative authorization. In addition, this bill clarifies the procedures available to municipalities to grant tax exemptions for privately held interests in AIDEA-owned assets and projects, and instead enter into agreements and receive payments in lieu of taxes. 2000-02-08 Senate Journal Page 2218 SB 248 The bill also provides for the transfer of the rural development initiative fund (RDIF) program from the Department of Community and Economic Development (DCED) to AIDEA. This makes formal the program transfers authorized in last year's departmental merger bill. Transferring the RDIF program would enable AIDEA to further its economic development mission in communities of 5,000 or less. The state is fortunate to have a financially healthy agency like the AIDEA to forge public-private partnerships that can strengthen Alaska's economic base. This bill will enhance the tools available to the AIDEA to further this mission. Sincerely, /s/ Tony Knowles Governor