2001-01-10                     House Journal                      Page 0052
HB 51                                                                                             
HOUSE BILL NO. 51 by the House Rules Committee by request of                                        
the Governor, entitled:                                                                             
                                                                                                    
     "An Act giving notice of and approving the entry into, and the                                 
     issuance of certificates of participation for, a lease-purchase                                
     agreement for a seafood and food safety laboratory facility; and                               
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Administration                                                                 
2.  Fiscal, Dept. of Environmental Conservation                                                     
3.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated January 10, 2001, appears                                   
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
The state's food safety laboratory plays a vital role in protecting the                             
health of Alaskans.  It tests finfish, shellfish and dairy products to be                           
certain they're safe for human consumption, certifies private drinking                              
water laboratories, and works with commercial processors in                                         
developing food products.                                                                           

2001-01-10                     House Journal                      Page 0053
The laboratory facility is now outdated and woefully inadequate.  In                                
addition, the current lease will soon expire, requiring the facility to be                          
relocated.  The Legislature has recognized the need for replacement                                 
through previous planning and design appropriations.  This bill I                                   
transmit today is the next and final step in providing Alaskans with a                              
worthwhile facility by setting up a bonding structure for its                                       
construction.  The proposed method is the issuance of certificates of                               
participation for a lease-purchase agreement.                                                       
                                                                                                    
                                                                                                    
The anticipated total construction, acquisition, and other costs of the                             
project under the lease-purchase agreement are not to exceed                                        
$13,655,000 and the total anticipated annual amount of the rental                                   
obligation is $1,220,000.  The total anticipated lease payments for the                             
full term of the lease-purchase agreement amount to $24,440,000.  The                               
state would own the facility at the end of the lease term under the                                 
operation of the Department of Environmental Conservation.                                          
                                                                                                    
                                                                                                    
In the interest of the public health for Alaskans and consumers of our                              
food, fish and dairy products as well as the economic health of these                               
industries, I urge your prompt and favorable action on this measure.                                
                                                                                                    
                                Sincerely,                                                         
                                /s/                                                                 
                                Tony Knowles                                                        
                                Governor"