2011-01-24                     House Journal                      Page 0104
HB 119                                                                                                                        
HOUSE BILL NO. 119 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act relating to the procurement of supplies, services,                                                                  
    professional services, and construction for the Alaska Industrial                                                           
    Development and Export Authority; relating to the definition of                                                             
    'own' for the economic development account; relating to the                                                                 
    definitions of 'development project', 'plant', 'facility', and 'project'                                                    
    for the Alaska Industrial Development and Export Authority; and                                                             
    providing for an effective date."                                                                                           
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Economic Development, Trade, & Tourism and the Finance                                                                          
Committee.                                                                                                                      
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Commerce, Community, & Economic Development                                                                  
                                                                                                                                
The Governor's transmittal letter dated January 21, 2011, follows:                                                              
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill to provide the Alaska Industrial                                                         
Development and Export Authority (AIDEA) with more flexibility to                                                               
encourage greater investment and Alaska resource development. This                                                              
bill would amend AS 44.88.172(a) to enable AIDEA to invest directly                                                             
in a corporation or limited liability company which holds a                                                                     
development project as its sole asset. Under its strategic plan, AIDEA                                                          
works to encourage other investors to join in financing development                                                             
projects, and to do so, must establish working relationships with those                                                         
other investors. The proposed legislation will accomplish that goal by                                                          
providing greater flexibility in how AIDEA and other investors may                                                              
jointly invest in development projects.                                                                                         
                                                                                                                                
This bill would expand the types of development projects for which                                                              
AIDEA may own and operate. Under existing law, development                                                                      
projects are basically limited to projects related to making, processing,                                                       

2011-01-24                     House Journal                      Page 0105
or transporting goods or products; developing or transporting natural                                                           
resources; generating or transmitting energy; and infrastructure for                                                            
tourism destination facilities. This bill would expand the definition of                                                        
"project" to include projects which enhance or promote economic                                                                 
development. The project must also be associated with transportation,                                                           
communications, community public purposes, technical innovations,                                                               
prototype commercial applications of intellectual property, or                                                                  
research. Second, the definition of "project" would expand to include                                                           
federal facilities, including a United States military, National Guard,                                                         
or Coast Guard facility, and would also clarify that a component of a                                                           
project may be a road.                                                                                                          
                                                                                                                                
In addition, this bill amends the procurement code (AS 36.30.015(f))                                                            
to empower AIDEA to adopt regulations to govern AIDEA's                                                                         
procurement of supplies, services, professional services, and                                                                   
construction.                                                                                                                   
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"