2000-01-21                     Senate Journal                      Page 2031
SB 210                                                                       
SENATE BILL NO. 210 BY THE SENATE 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 Resources, Judiciary and           
Finance Committees.                                                            
                                                                               
Fiscal note published today from Department of Environmental                   
Conservation. Zero fiscal note published today from Department of              
Revenue.                                                                       
                                                                               
Governors transmittal letter dated January 20:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
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                     Senate Journal                      Page 2032
SB 210                                                                       
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