2005-02-28                     House Journal                      Page 0449
HB 187                                                                                            
HOUSE BILL NO. 187 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act establishing the Alaska capital income account within the                              
     Alaska permanent fund; relating to deposits into the account;                                  
     relating to certain transfers regarding the Amerada Hess                                       
     settlement to offset the effects of inflation on the Alaska                                    
     permanent fund; and providing for an effective date."                                          
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Revenue                                                                          
                                                                                                    
The Governor's transmittal letter dated February 25, 2005, follows:                                 
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill establishing the State of Alaska Capital Corporation                            
(corporation).  The corporation would be a public corporation with the                              
authority to issue bonds to finance up to $350 million in state capital                             
improvements, including the cost of issuing the bonds.                                              
                                                                                                    
My intent is that the debt service on bonds issued by the corporation                               
would be annually covered by appropriations from the earnings on the                                
settlement proceeds derived from the Amerada Hess royalty                                           
settlement.  I also am transmitting a companion bill that would                                     
separately identify the Amerada Hess earnings so that they are                                      
available to the legislature if there is a desire to use the money for this                         
purpose.                                                                                            
                                                                                                    
The financing technique proposed in this bill would permit the state to                             
leverage a funding source to obtain money for needed capital                                        
improvements from the sale of bonds on the major financial markets.                                 
                                                                                                    

2005-02-28                     House Journal                      Page 0450
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"