Legislature(2009 - 2010)SENATE FINANCE 532

04/15/2010 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 309 GAS EXPLORATION\DEVELOPMENT TAX CREDIT TELECONFERENCED
Heard & Held
+= HB 365 FISH PROCESSOR FEES, LICENSES, RECORDS TELECONFERENCED
Heard & Held
+= HB 424 G.O. BONDS:EDUC./LIBRARY/RESEARCH FACIL. TELECONFERENCED
Scheduled But Not Heard
+ HB 357 AK RAILROAD CORP. LAND SALES TELECONFERENCED
Heard & Held
+ HB 369 IN-STATE PIPELINE/ MANAGER/TEAM TELECONFERENCED
Scheduled But Not Heard
+ HB 90 AIDEA: BONDING/TAXATION/RECORDS TELECONFERENCED
Heard & Held
+ HB 314 WORKERS' COMPENSATION TELECONFERENCED
Heard & Held
+ HCR 22 ALASKA NORTHERN WATERS TASK FORCE TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 90(FIN)                                                                                                 
                                                                                                                                
     "An   Act   relating   to   bonding   limitations   and                                                                    
     confidentiality of records and information of the                                                                          
     Alaska Industrial Development and Export Authority;                                                                        
     relating to municipal taxation of interests in certain                                                                     
     property of the Alaska Industrial Development and                                                                          
     Export Authority; providing for an effective date by                                                                       
     amending the effective date of sec. 3, ch. 117, SLA                                                                        
     2000, as amended by sec. 2, ch. 74, SLA 2003, and by                                                                       
     sec. 3, ch. 67, SLA 2008; and providing for an                                                                             
     effective date."                                                                                                           
                                                                                                                                
Co-Chair  Hoffman noted  it  was the  first  hearing on  the                                                                    
bill.                                                                                                                           
                                                                                                                                
TED   LEONARD,   EXECUTIVE   DIRECTOR,   ALASKA   INDUSTRIAL                                                                    
DEVELOPMENT  AND EXPORT  AUTHORITY  (AIDEA), summarized  the                                                                    
bill.  He related  that the  first goal  of the  bill is  to                                                                    
remove  refunding bonds  from  AIDEA's  bond cap.  Refunding                                                                    
bonds retire  old debt  with new  debt, with  more favorable                                                                    
terms. He  used the  refunding of  mortgages as  an example.                                                                    
Refunding  bonds  does  not  affect  agency  liability.  The                                                                    
second part  of the  bill would reinstate  AIDEA's authority                                                                    
to issue bonds that existed  before the July 1, 2000 sunset.                                                                    
It would  require AIDEA to receive  legislative approval for                                                                    
any  bond over  $10  million  that is  issued  to finance  a                                                                    
development project. He pointed out  that AIDEA bonds do not                                                                    
incur a liability for the state.                                                                                                
                                                                                                                                
10:10:24 AM                                                                                                                   
                                                                                                                                
Mr. Leonard shared  how AIDEA is expanding its  role in loan                                                                    
participation programs  and in how development  projects are                                                                    
done. Having the same bond  debt process that was previously                                                                    
in place would  allow for more flexibility to  fund loans at                                                                    
the best rate.                                                                                                                  
                                                                                                                                
Mr. Leonard shared the importance  of the passage of SB 269,                                                                    
which allows  AIDEA to have  recovery zone  bond allocation.                                                                    
In order for small  businesses to participate, especially in                                                                    
rural areas,  AIDEA needs to  have a new program  that could                                                                    
pool small projects in order to issue one bond.                                                                                 
                                                                                                                                
10:11:43 AM                                                                                                                   
                                                                                                                                
Mr.  Leonard  addressed  another  provision in  HB  90  that                                                                    
clarifies  which records  and information  AIDEA would  keep                                                                    
confidential.  Section   7,  the  part  the   House  Finance                                                                    
Committee added  last year  that would  extend the  DMTS tax                                                                    
exemption, would have a gap  due to the bill crossing fiscal                                                                    
years.  He understood  that HB  10 would  take care  of that                                                                    
problem.  He  concluded  that  the  passage  of  HB  90,  in                                                                    
conjunction  with  SB  269  and   HB  10,  would  provide  a                                                                    
stronger,  more  effective  toolbox   for  AIDEA  to  assist                                                                    
businesses with  attaining access to long-term  capital, and                                                                    
to move forward with its strategic plan.                                                                                        
                                                                                                                                
Co-Chair  Hoffman   noted  a  zero  fiscal   note  from  the                                                                    
Department    of   Commerce,    Community,   and    Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
HB  90  was   heard  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:14:04 AM                                                                                                                   
                                                                                                                                

Document Name Date/Time Subjects
SB 309 Amendment 1 Huggins SFIN 041510.doc SFIN 4/15/2010 9:00:00 AM
SB 309
SB 309 Royalty Sheet 041510.pdf SFIN 4/15/2010 9:00:00 AM
SB 309
SB 309 041510 SFIN Memo from DOR.pdf SFIN 4/15/2010 9:00:00 AM
SB 309
SB 309 041510 Alaska Oil and Gas Tax and Royalty Incentives.pdf SFIN 4/15/2010 9:00:00 AM
SB 309
SB 309 041510 Alaska Oil and Gas Tax Legislation Comparison .pdf SFIN 4/15/2010 9:00:00 AM
SB 309
SB 309 041510 CIWellExample_ds_20100412.pdf SFIN 4/15/2010 9:00:00 AM
SB 309