2001-03-09                     House Journal                      Page 0518
HB 169                                                                                            
HOUSE BILL NO. 169 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the financing of construction and major                                    
     maintenance of public school facilities; authorizing the                                       
     commissioner of revenue to sell the right to receive a portion of                              
     the anticipated revenue from a certain tobacco litigation settlement                           

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     to the Northern Tobacco Securitization Corporation; relating to                                
     the deposit of certain anticipated revenue from a certain tobacco                              
     litigation settlement; authorizing the issuance of bonds by the                                
     Northern Tobacco Securitization Corporation with proceeds to                                   
     finance public school construction and major maintenance; and                                  
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
2.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated February 28, 2001, appears                                  
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
With declining general fund capital budgets, the backlog of needed                                  
school construction and major maintenance projects across our state                                 
has continued to grow. Last year we addressed a few of these needs                                  
recognizing it was just the beginning of a several-year plan. This bill I                           
am transmitting today is the next phase in our effort to provide                                    
adequate, safe and well-maintained schools in which our children can                                
learn. This legislation proposes a bond package addressing some $127                                
million in statewide school construction and major maintenance to                                   
cover the highest priorities on the current statewide list. It is the intent                        
of this legislation that the entire list totaling some $547 million in                              
school construction and maintenance needs be addressed within five                                  
years.                                                                                              
                                                                                                    
This bill provides for the sale of a portion of the revenues from the                               
settlement of the state's tobacco litigation, to the Northern Tobacco                               
Securitization Corporation, a subsidiary corporation of the Alaska                                  
Housing Finance Corporation created under AS 18.56.086. Similar to                                  
the program the Legislature approved last year, the bill authorizes the                             
corporation to issue revenue bonds secured by the litigation revenues                               

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to finance state grants for the specified school construction and major                             
maintenance projects.                                                                               
                                                                                                    
Those projects are comprised of some $69 million for the first four                                 
school construction projects on the statewide priority list: Togiak,                                
Golovin, Koyuk, and Tuluksak schools; and $58 million for the top 46                                
major maintenance projects on the list.                                                             
                                                                                                    
We know we have needs beyond those included in this bill. However,                                  
this proposal addresses a significant portion of our existing need and                              
provides adequate space and safe learning environments for Alaska's                                 
children. I urge your prompt and favorable action.                                                  
                                                                                                    
                                 Sincerely,                                                        
                                /s/                                                                 
                                Tony Knowles                                                        
                                 Governor"