02/11/1997 01:36 PM House FIN

  HOUSE BILL NO. 102                                                           
                                                                               
                                                                               
       "An  Act   abolishing  the   Alaska  Medical   Facility                 
       Authority; and providing for an effective date."                        
                                                                               
  Co-Chair Therriault provided members with a memorandum  from                 
  Garrey Peska, dated 2/11/97 (copy on file).                                  
                                                                               
  GARREY PESKA, ALASKA STATE HOSPITAL  AND NURSING ASSOCIATION                 
  responded to questions posed by committee members during the                 
  meeting  on   February  10,   1997.     He  clarified   that                 
  municipalities can sell tax exempt revenue bonds for private                 
  non-profit  corporations.     He  added  that  it   is  more                 
  complicated  to  sell  tax exempt  revenue  bonds  through a                 
  municipality  than  through  the   Alaska  Medical  Facility                 
  Authority.   He observed that the maximum tax exempt benefit                 
  is $10.0 million dollars.  He  urged the Committee to retain                 
  the Fund.                                                                    
                                                                               
  Co-Chair Therriault noted that the legislation was  intended                 
  to be non-controversial.   He stated  that since there is  a                 
  group of people that  may exercise this Fund in  the future,                 
  that he would be comfortable holding the bill in Committee.                  
                                                                               
  HB 102 was HELD in Committee for further consideration.