2000-02-07                     House Journal                      Page 2115
HB 342                                                                       
HOUSE BILL NO. 342 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to the financing authority, payment in lieu of tax           
agreements, and tax exemption for assets and projects of the                   
Alaska Industrial Development and Export Authority; relating to                
renaming and contingently repealing the rural development                      
initiative fund within the Department of Community and Economic                
Development, and establishing the rural development initiative                 
fund within the Alaska Industrial Development and Export                       
Authority; and providing for an effective date."                               
                                                                               
was read the first time and referred to the Community & Regional               
Affairs, Labor & Commerce, and Finance Committees.                             
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Community & Economic Development,                   
2/7/00                                                                         
                                                                               
The Governor's transmittal letter dated February 3, 2000, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
The Alaska Industrial Development and Export Authority (AIDEA) has             
been a key player in many of Alaska's economic successes through the           
years.  AIDEA programs have financed smaller projects, such as the             
Unalaska Marine Center dock, and the multi-million dollar Red Dog              

2000-02-07                     House Journal                      Page 2116
HB 342                                                                       
mine and Federal Express aircraft maintenance facility.  This bill I           
transmit today continues AIDEA's role in boosting economic                     
development and creating jobs in the state by extending its bonding            
authority for development projects of up to $10 million and for conduit        
bond financing that does not involve the assets or credit of AIDEA or          
the state.                                                                     
                                                                               
Under the bill, AIDEA's general bonding authority for projects up to           
$10 million would be extended for three years, until June 30, 2003.            
The bill also clarifies that the sunset provision does not apply to            
conduit revenue financing transactions.  Projects larger than $10              
million would still require specific legislative authorization.                
                                                                               
In addition, this bill clarifies the procedures available to municipalities    
to grant tax exemptions for privately held interests in AIDEA-owned            
assets and projects, and instead enter into agreements and receive             
payments in lieu of taxes.                                                     
                                                                               
The bill also provides for the transfer of the rural development               
initiative fund (RDIF) program from the Department of Community                
and Economic Development (DCED) to AIDEA.  This makes formal                   
the program transfers authorized in last year's departmental merger bill.      
Transferring the RDIF program would enable AIDEA to further its                
economic development mission in communities of 5,000 or less.                  
                                                                               
The state is fortunate to have a financially healthy agency like the           
AIDEA to forge public-private partnerships that can strengthen                 
Alaska's economic base.  This bill will enhance the tools available to         
the AIDEA to further this mission.                                             
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"