1996-01-08                     Senate Journal                      Page 2067
SB 207                                                                       
SENATE BILL NO. 207 BY THE SENATE 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 and Regional             
Affairs, State Affairs, Judiciary and Finance Committees.                      
                                                                               
Zero fiscal notes published today from Department of Revenue,                  
Department of Environmental Conservation.                                      
                                                                               
Governors transmittal letter dated January 8:                                  
                                                                               
Dear President Pearce:                                                         
                                                                               
                                                                               

1996-01-08                     Senate Journal                      Page 2068
SB 207                                                                       
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.                           
                                                                               
                                                                               
I urge your prompt consideration and passage of this bill.                     
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor