02/06/2001 01:39 PM House FIN

HB 90     An Act relating to reimbursement of municipal                                                                         
          bonds for school construction; and providing for                                                                      
          an effective date.                                                                                                    
                                                                                                                                
          HB 90 was HEARD and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HOUSE BILL 90                                                                                                                 
                                                                                                                                
     An Act relating to reimbursement of municipal bonds for                                                                    
     school construction; and providing for an effective                                                                        
     date.                                                                                                                      
                                                                                                                                
Co-Chair  Mulder  explained  that   HB  90  would  correct  a                                                                   
technical error to HB 281, Chapter  130, SLA 2000, the school                                                                   
capital funding and  bond debt reimbursement bill.   The bill                                                                   
intended to provide bond debt  reimbursement for several bond                                                                   
obligations   previously  approved   by   voters.     Several                                                                   
districts  had  voters  approved   bonds  prior  to  securing                                                                   
approval  from   the  Commissioner   of  the  Department   of                                                                   
Education and  Early Development.  The action  would preclude                                                                   
them   from  securing   intended   reimbursement  under   the                                                                   
provisions of last year's bill.                                                                                                 
                                                                                                                                
He added  that HB 90 would  correct that technical  error and                                                                   
that  it  would  not  expand  any  authorizations  previously                                                                   
provided.   It would simply  allow those intended  to receive                                                                   
bond  debt reimbursement  to  do  so.   He  advised that  the                                                                   
legislation would  affect the  Municipality of Anchorage  and                                                                   
the Northwest Arctic Borough.                                                                                                   
                                                                                                                                
Co-Chair  Mulder noted  that there was  another amendment  to                                                                   
the  proposed legislation.   He  requested that  the bill  be                                                                   
held in Committee for further work.                                                                                             
                                                                                                                                
Representative  Harris referenced Page  4, Line 19,  pointing                                                                   
out a typographical error; the  "P" should be changed to "O".                                                                   
Co-Chair Mulder agreed, noting  that the technical change and                                                                   
would be made by the legal drafters.                                                                                            
                                                                                                                                
EDDY JEANS, MANAGER, SCHOOL FINANCE,  DEPARTMENT OF EDUCATION                                                                   
AND EARLY DEVELOPMENT, commented  in response to queries made                                                                   
by  Representative  Whitaker and  Representative  J.  Davies,                                                                   
indicating that  the bill would  not change the  reallocation                                                                 
structure.   He added  that he  was not  aware of any  school                                                                   
districts opposed to the idea.                                                                                                  
                                                                                                                                
Co-Chair  Williams  directed that  HB  90  would be  HELD  in                                                                   
Committee for further consideration.