1996-01-08                     House Journal                      Page 2378
HB 401                                                                       
HOUSE BILL NO.  401 by the House Rules Committee by request of                 
the Governor, entitled:                                                        
                                                                               
An Act authorizing the issuance and sale of revenue bonds to                  
fund public wastewater systems, nonpoint source water pollution                
control projects, including solid waste management systems, and                
estuary conservation and management projects; authorizing the use              
of the Alaska clean water fund to pay and secure the bonds and to              
pay costs related to issuance and administration of the bonds;                 
authorizing certain measures to secure payment of the bonds; and               
amending Alaska Rule of Civil Procedure 3.                                     
                                                                               
was read the first time and referred to the Community & Regional               
Affairs, State Affairs, Resources and Finance Committees.                      

1996-01-08                     House Journal                      Page 2379
HB 401                                                                       
The following fiscal  notes apply:                                             
                                                                               
Zero fiscal note, Dept. of Revenue, 1/8/96                                     
Zero fiscal note, Dept. of Environmental Conservation, 1/8/96                  
                                                                               
The Governors transmittal letter, dated January 8, 1996, appears               
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill to authorize the state bond committee to issue and         
sell state revenue bonds to fund public wastewater treatment systems,          
solid waste management systems, nonpoint source water pollution                
control projects, and estuary conservation and management projects.            
This bill also authorizes the Department of Environmental                      
Conservation to use the Alaska clean water fund, a revolving loan              
fund, as security for the payment of the principal and interest on the         
bonds, provided the bond proceeds are deposited in the fund.  By using         
the fund as security for the bonds, the state will be able to leverage or      
increase the amount of money in the fund that is available to                  
municipalities and state agencies for water pollution control projects.        
                                                                               
Section 2 of the bill provides the legal framework for the bond                
issuance and sale.  This section is patterned after the  international         
airports revenue bonds statutes, and establishes a cooperative                 
relationship between DEC, which administers the Alaska clean water             
fund, and the state bond committee, which will administer the bond             
program.  The bill requires the state bond committee to conduct its            
activities in the best interests of the state and its inhabitants, in a        
manner that will accomplish the most advantageous sale of the bonds,           
with due regard for the continued funding of projects under the Alaska         
clean water fund program.                                                      
                                                                               
Sections 3-12 of the bill amend the clean water fund loan program to           
clarify the statute.  It authorizes DEC to use the fund to secure state-       
issued bonds and to make other amendments necessary to acknowledge             
the bond-issuance and repayment process.                                       
                                                                               
                                                                               

1996-01-08                     House Journal                      Page 2380
HB 401                                                                       
I urge your prompt consideration and passage of this bill.                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor