Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/07/2016 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB193 | |
| HB268 | |
| HB305 | |
| SB118 | |
| HB314 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| += | HB 268 | TELECONFERENCED | |
| + | HB 305 | TELECONFERENCED | |
| += | SB 118 | TELECONFERENCED | |
| + | HB 314 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 268-AIDEA: DIVIDEND TO STATE; INCOME; VALUATION
2:02:24 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 268. She noted that the committee heard the
Senate version of the bill.
2:03:15 PM
GENE THERRIAULT, Policy Director, Alaska Industrial Development
and Export Authority (AIDEA), said the committee heard the
Senate version of HB 268 on 2/25/16 and this language is
identical to the Senate version. He summarized on page 2, line
3, the bill intends to add an exclusion to the calculation of
the AIDEA dividend. He discussed what wasn't anticipated when
the legislation passed initially. HB 268 will result in the
dividend being calculated on the true net income.
He explained the two problems the bill attempts to fix - the
mark-to-market adjustment and outside appropriation net income
issues.
He noted the slide program in members' packets. He explained the
stacking of Governmental Accounting Standards Board (GASB) rules
that will increase the uncertainty of the dividend.
2:09:03 PM
CHAIR COSTELLO referenced page 2, beginning on line 9, and asked
why the bill adds definitions to project development, and what
AS 44.88.900 is.
MR. THERRIAULT explained that on page 2, line 5, excluding the
losses is discussed. Because there are multiple programs, the
money could come into various funds. Project development is
added along with the list of financing tools AIDEA has.
CHAIR COSTELLO asked if the other bill creating another fund
would be added, were it to pass.
MR. THERRIAULT said yes, if it passes.
2:11:02 PM
SENATOR MEYER asked what affect this will have on the dividend.
MR. THERRIAULT said it will probably not increase the dividend,
just "narrow the band of uncertainty around the expectation of
what the dividend is likely to be."
CHAIR COSTELLO asked why that is significant.
MR. THERRIAULT explained that it brings more predictability for
both the state and AIDEA.
CHAIR COSTELLO asked about the genesis of suggestions made in
the bill.
MR. THERRIAULT said they came at the suggestion of Mr. Lamb at
AIDEA.
SENATOR STEVENS asked if additional GASB issues are anticipated.
MR. THERRRIAULT deferred the question to Mr. Lamb.
2:13:56 PM
MICHAEL LAMB, Chief Financial Officer, Alaska Industrial
Development and Export Authority (AIDEA), answered questions
related to HB 268. He listed the upcoming GASB statements and
advised that they are constantly coming out. Currently, there
are about 79 GASB statements. The bill uses the mark-to-market
fair value to capture future rules.
2:16:16 PM
CHAIR COSTELLO closed public testimony on HB 268 and solicited a
motion.
2:16:27 PM
SENATOR GIESSEL moved to report HB 268, labeled 29-GH2708\A,
from committee with individual recommendations and attached
fiscal note.
2:16:44 PM
CHAIR COSTELLO announced that without objection, HB 268 is
reported from the Senate Labor and Commerce Standing Committee.