Legislature(2009 - 2010)

04/13/2010 09:46 AM House FIN


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 300                                                                                                             
                                                                                                                                
     "An   Act   relating   to    loan   participations   and                                                                   
     development  finance projects  of the Alaska  Industrial                                                                   
     Development  and  Export   Authority;  and  relating  to                                                                   
     loans from the rural development initiative fund."                                                                         
                                                                                                                                
10:30:35 AM                                                                                                                   
                                                                                                                                
TED   LEONARD,   EXECUTIVE   DIRECTOR,    ALASKA   INDUSTRIAL                                                                   
DEVELOPMENT  AND EXPORT AUTHORITY,  explained the  difference                                                                   
between  SB 300  and the  companion  bill HB  410. He  stated                                                                   
that an amendment  was added to SB 300 in the  Senate Finance                                                                   
Committee  that adds  a new  power  under AS  44.0880 to  the                                                                   
Alaska Industrial  Development and Export  Authority (AIDEA).                                                                   
The  law allows  AIDEA  to  consider  the interest  of  local                                                                   
governments  and the  impact of  financed  projects on  local                                                                   
governments  and to  ensure local  governments  share in  the                                                                   
benefits  of  AIDEA's  activities   when  exercising  AIDEA's                                                                   
financial  authority.  The  interest of  AIDEA to preserve  a                                                                   
healthy   financial  position   and  bond   rating  and   the                                                                   
project's  economic  benefits   as  well  as  impact  on  the                                                                   
community will all be considered.                                                                                               
                                                                                                                                
Mr. Leonard  furthered that the  new authority  is consistent                                                                   
with  existing  legislative directives  embedded  in  AIDEA's                                                                   
development  program.  He  explained   that  any  development                                                                   
projects  AIDEA engages  in  and issues  over  $6 million  in                                                                   
bonds   requires  scrutiny   by  a   regional  committee   to                                                                   
determine  local impact.  The  same statute  also requires  a                                                                   
consultation  with  local communities  affected  by  existing                                                                   
development   projects.  He  summarized   that  the   statute                                                                   
directs   AIDEA's   board   to  consider   the   impacts   of                                                                   
development projects  on the local community when  engaged in                                                                   
any  of  AIDEA's  broad  range  of  economic  activities  and                                                                   
programs.                                                                                                                       
                                                                                                                                
10:33:51 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stoltze  questioned the  language  in  the bill  on                                                                   
page 4, line 6, that reads;                                                                                                     
                                                                                                                                
     "Connected by road" does not include a connection by                                                                       
     the Alaska marine highway system.                                                                                          
                                                                                                                                
He presumed that  the marine highway is not part  of the road                                                                   
system and wondered why the language was necessary.                                                                             
                                                                                                                                
GREG  WINEGAR,  DIRECTOR,  ALASKA  DIVISION  OF  INVESTMENTS,                                                                   
DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT,                                                                   
DIVISION  DIRECTOR, stated  that the language  been in  place                                                                   
since the  inception of  the Rural  Development loan  program                                                                   
in  FY 2000.                                                                                                                    
                                                                                                                                
Representative  Doogan asked  if  the Senate  changes to  the                                                                   
legislation are found  in Section 1 of the  bill. Mr. Winegar                                                                   
affirmed.                                                                                                                       
                                                                                                                                
Representative Gara  noted that the [Rural  Development loan]                                                                   
program does  include communities  of fewer than  2000 people                                                                   
connected by road systems to Anchorage or Fairbanks.                                                                            
                                                                                                                                
10:36:34 AM                                                                                                                   
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
Co-Chair  Stoltze  noted that  there  are three  zero  fiscal                                                                   
notes [FN1  (EED), FN2  (REV), FN3  (DOT)], accompanying  the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Mr.  Leonard  made  final  comments   in  support  of  moving                                                                   
forward with the legislation.                                                                                                   
                                                                                                                                
Vice-Chair  Thomas MOVED  to  report CS  SB  300(FIN) out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  notes. There being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  SB 300(FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and  with  previously  published  zero                                                                   
fiscal notes: FN1 (CED), FN2 (REV), FN3 (DOT)                                                                                   
                                                                                                                                
10:38:46 AM         RECESSED                                                                                                  
10:52:28 AM         RECONVENED                                                                                                
                                                                                                                                

Document Name Date/Time Subjects