2006-01-18                     Senate Journal                      Page 1929
SB 243                                                                                            
SENATE BILL NO. 243 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    

2006-01-18                     Senate Journal                      Page 1930
     "An Act relating to the financing of construction, major                                       
     maintenance, and renovation of facilities for the University                                   
     of Alaska; relating to the financing of construction of a                                      
     correctional facility; authorizing the commissioner of                                         
     revenue to sell the right to receive a portion of the                                          
     anticipated revenue from a tobacco litigation settlement to                                    
     the Northern Tobacco Securitization Corporation, with the                                      
     proceeds of that sale to finance construction, major                                           
     maintenance, and renovation of facilities for the University                                   
     of Alaska and to finance the construction of a correctional                                    
     facility; providing for the establishment of funds for deposit                                 
     of those proceeds; authorizing the issuance of bonds by the                                    
     Northern Tobacco Securitization Corporation for the                                            
     purpose of acquiring the right to receive a portion of                                         
     anticipated revenue from a tobacco litigation settlement;                                      
     and providing for an effective date."                                                          
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Administration                                              
                                                                                                    
Governor's transmittal letter dated January 17:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the financing of construction, major                                
maintenance, and renovation of facilities for the University of Alaska;                             
relating to the financing of construction of a correctional facility;                               
authorizing the commissioner of revenue to sell the right to receive a                              
portion of the anticipated revenue from a tobacco litigation settlement                             
to the Northern Tobacco Securitization Corporation, with the proceeds                               
of that sale to finance construction, major maintenance, and renovation                             
of facilities for the University of Alaska and to finance the                                       
construction of a correctional facility; providing for the establishment                            
of funds for deposit of those proceeds; and authorizing the issuance of                             
bonds by the Northern Tobacco Securitization Corporation for the                                    
purpose of acquiring the right to receive a portion of anticipated                                  
revenue from a tobacco litigation settlement.                                                       

2006-01-18                     Senate Journal                      Page 1931
This bill is quite similar to previous measures that securitized a total of                         
80 percent of the tobacco Master Settlement Agreement revenue                                       
stream.  See secs. 9 and 10, ch. 130, SLA 2000 and secs. 3 and 4, ch.                               
96, SLA 2001.  This bill would securitize the residual revenue stream                               
that reverts back to the general fund once the outstanding tobacco                                  
bonds authorized by the previous legislation are repaid.  In other                                  
words, that 80 percent of the revenue stream from the settlement of                                 
State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915                               
CI (Alaska Super. 1997) will remain securitized for a longer period.                                
The bill anticipates that the state will realize at least $89,250,000 in                            
proceeds, with a possibility that additional amounts would be raised.                               
The bill authorizes the proceeds to be spent on certain University of                               
Alaska capital projects, and on a prison in the Matanuska-Susitna                                   
Borough, subject to appropriation for those purposes.                                               
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor