Legislature(1999 - 2000)

2000-02-08 Senate Journal

Full Journal pdf

2000-02-08                     Senate Journal                      Page 2216
SB 248                                                                       
SENATE BILL NO. 248 BY THE SENATE 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                           

2000-02-08                     Senate Journal                      Page 2217
SB 248                                                                       
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                               
was read the first time and referred to the Community and Regional             
Affairs, Labor and Commerce and Finance Committees.                            
Zero fiscal note published today from Department of Community and              
Economic Development.                                                          
Governors transmittal letter dated February 3:                                 
Dear President Pearce:                                                         
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 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.                                         

2000-02-08                     Senate Journal                      Page 2218
SB 248                                                                       
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.                                             
					Tony Knowles