2000-01-21                     House Journal                      Page 1969
HB 304                                                                       
HOUSE BILL NO. 304 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to issuance and sale of revenue bonds to fund                
drinking water projects, to creation of an Alaska clean water                  
administrative fund and an Alaska drinking water administrative                
fund, to fees to be charged in connection with loans made from                 
the Alaska clean water fund and the Alaska drinking water fund,                
and to clarification of the character and permissible uses of the              
Alaska drinking water fund; amending Rule 3, Alaska Rules of                   
Civil Procedure; and providing for an effective date."                         
                                                                               
was read the first time and referred to the Community & Regional               
Affairs, Judiciary and Finance Committees.                                     
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Environmental Conservation, 1/21/00                      
Zero fiscal note, Dept. of Revenue, 1/21/00                                    
                                                                               
                                                                               
The Governor's transmittal letter dated January 20, 2000, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
Low-interest state loans from the Alaska Drinking Water Fund and the           
Alaska Clean Water Fund offer municipalities the means to build                
drinking water and sewage facility projects.  This bill I transmit today       
will allow the state to use revenue bonds to capitalize the Alaska             
Drinking Water Fund.                                                           
                                                                               
                                                                               
Both the Drinking Water and Clean Water funds are capitalized by               
annual federal grants that require a 20 percent state match.  Bond             
revenues will help provide the state match for federal drinking water          
project money.  But the state is only authorized to sell bonds for the         
Clean Water Fund.  It makes sense to extend this leveraging power to           
the Drinking Water Fund.                                                       
                                                                               

2000-01-21                     House Journal                      Page 1970
HB 304                                                                       
As with existing law, the bill requires the state bond committee to            
conduct its activities in the best interests of the state, in a manner that    
will accomplish the most advantageous sale of the bonds.  The bill also        
provides for a new, self-supporting structure to pay for the costs of          
operating these important loan programs.                                       
                                                                               
I urge your prompt consideration and passage of this bill.                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"