04/29/1999 03:40 PM House FIN

HOUSE BILL NO. 209                                                                                                              
                                                                                                                                
"An Act amending the size of grants for which the                                                                               
Alaska Science and Technology Foundation must allocate                                                                          
at least 50 percent of endowment income and amending                                                                            
the maximum amount of the grant that the Alaska Science                                                                         
and Technology Foundation may award for development of                                                                          
the Kodiak launch complex and Fairbanks satellite                                                                               
ground station space park; and providing for an                                                                                 
effective date."                                                                                                                
                                                                                                                                
JAMES KENWORTHY, PHD, EXECUTIVE DIRECTOR, ALASKA SCIENCE AND                                                                    
TECHNOLOGY FOUNDATION, DEPARTMENT OF COMMERCE AND ECONOMIC                                                                      
DEVELOPMENT testified in support of HB 209. He explained                                                                        
that the legislation would make changes to AS 37.17, which                                                                      
governs the Alaska Science and Technology Foundation (ASTF).                                                                    
It raises the amount of funds that ASTF can spend on                                                                            
projects that are more than $100 thousand dollars. Current                                                                      
statutes require that 50 percent of ASTF grants be for                                                                          
projects under $100 thousand dollars. The legislation would                                                                     
increase the number of projects over $100 thousand dollars                                                                      
by changing $100 to $250 thousand dollars. He emphasized                                                                        
that large and small projects do not crowd each other out.                                                                      
Projects are funded based on their ability to meet technical                                                                    
and economic criteria. They are not funded based on size.                                                                       
                                                                                                                                
The second change to the statute would allow ASTF to fund                                                                       
the $5 million dollars in construction costs needed to                                                                          
complete the Kodiak Launch Complex. He noted that ASTF has                                                                      
agreed to complete the capital cost of the Kodiak Launch                                                                        
Complex. Their current statute only allows them to spend up                                                                     
to $5 million dollars. Statutory authorization for $11                                                                          
million dollars is needed.                                                                                                      
                                                                                                                                
Representative Austerman noted that the complex must be                                                                         
completed before newly acquired private launches can take                                                                       
place. He spoke in support of the legislation.                                                                                  
                                                                                                                                
Representative J. Davies MOVED to report out of Committee                                                                       
with the accompanying fiscal note.                                                                                              
                                                                                                                                
Mr. Kenworthy noted that there would be no general fund                                                                         
impact. The funding would come from endowment earnings. He                                                                      
noted that there were extra high earnings this year as a                                                                        
result of the performance of the permanent fund.                                                                                
                                                                                                                                
Vice-Chair Bunde pointed out that the funding is technically                                                                    
general funds.                                                                                                                  
                                                                                                                                
There being NO OBJECTION, HB 209 was reported out of                                                                            
Committee.                                                                                                                      
                                                                                                                                
HB 209 was REPORTED out of Committee with "no                                                                                   
recommendation" and a zero fiscal note by the Department of                                                                     
Commerce and Economic Development.