04/17/2016 08:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 143(FIN)                                                                                                
                                                                                                                                
     "An Act  authorizing the Alaska  Industrial Development                                                                    
     and  Export Authority  to issue  bonds  to finance  the                                                                    
     infrastructure   and   construction    costs   of   the                                                                    
     Sweetheart Lake hydroelectric project."                                                                                    
                                                                                                                                
9:53:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CATHY  MUNOZ,  SPONSOR,  discussed  HB  143,                                                                    
which would  allow Alaska Industrial Development  and Export                                                                    
Authority (AIDEA)  go through  a due-diligence  process with                                                                    
Juneau Hydropower,  Inc. for  consideration of  conduit bond                                                                    
financing  for  a 19.8  megawatt  project  located 43  miles                                                                    
south of  Juneau. The project would  increase hydro-electric                                                                    
capacity in the Juneau area by approximately 20 percent.                                                                        
                                                                                                                                
Representative Munoz  addressed a  question from  the bill's                                                                    
most  recent  hearing,  as  to   whether  the  conduit  bond                                                                    
financing  would affect  the $400  million rolling  12-month                                                                    
limit  for AIDEA  bonding capacity.  She clarified  that the                                                                    
purely  conduit financing  would not  affect the  limit, and                                                                    
AIDEA would be acting as an agent in the project.                                                                               
                                                                                                                                
Co-Chair  Kelly   requested  a  brief  summary   of  conduit                                                                    
financing.                                                                                                                      
                                                                                                                                
Representative  Munoz explained  that conduit  financing was                                                                    
outside financing  that was not  an instrument of  the State                                                                    
of Alaska.  She used  the example of  a bond  possibility in                                                                    
energy bonding, for which the Juneau project could compete.                                                                     
                                                                                                                                
Co-Chair  Kelly  asked for  the  anticipated  total for  the                                                                    
conduit financing.                                                                                                              
                                                                                                                                
Representative  Munoz  stated  that  the  conduit  financing                                                                    
would be up to $120 million.                                                                                                    
                                                                                                                                
Senator Dunleavy asked if,  as sponsor, Representative Munoz                                                                    
would ponder  adding any  amendments or  additional projects                                                                    
to the bill.                                                                                                                    
                                                                                                                                
Representative Munoz  expressed a desire to  know more about                                                                    
hypothetical projects that  could be added to  the bill, and                                                                    
stated that  if the projects  were important to  a community                                                                    
she was open to the idea.                                                                                                       
                                                                                                                                
Medicaid discussed FN 1 (CED),  which was a zero fiscal note                                                                    
with no capital and no added personnel.                                                                                         
                                                                                                                                
Vice-Chair  Micciche MOVED  to report  CSHB 143(FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
CSHB  143(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation and with  one previously published zero                                                                    
fiscal note: FN1 (CED).                                                                                                         
                                                                                                                                
9:57:04 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:00:21 AM                                                                                                                   
RECONVENED