03/12/2010 09:00 AM House FINANCE

HOUSE BILL NO. 339                                                                                                            
                                                                                                                                
     "An Act relating to the dividend paid to the state by                                                                      
     the Alaska Housing Finance Corporation; and providing                                                                      
     for an effective date."                                                                                                    
                                                                                                                                
9:21:07 AM                                                                                                                    
                                                                                                                                
BRYAN  BUTCHER,  DIRECTOR,  GOVERNMENT  AFFAIRS  AND  PUBLIC                                                                    
RELATIONS,  ALASKA HOUSING  FINANCE CORPORATION,  DEPARTMENT                                                                    
OF  REVENUE, explained  that the  legislation  would make  a                                                                    
minor adjustment to statute  establishing the Alaska Housing                                                                    
Finance  Corporation  (AHFC)  transfer  plan  for  paying  a                                                                    
dividend  to  the  state.  The  2003  bill  established  the                                                                    
transfer as the  lesser of 75 percent of net  income or $103                                                                    
million.  He  reported  that  AHFC  had  come  back  to  the                                                                    
legislature  in 2006  to adjust  statute wording  because of                                                                    
changes   to  generally   accepted  accounting   principles;                                                                    
similar   accounting   changes    related   to   contractual                                                                    
obligations required additional language changes.                                                                               
                                                                                                                                
Co-Chair  Stoltze  provided  information  about  the  bill's                                                                    
passage through the legislature.                                                                                                
                                                                                                                                
DAN FAUSKE,  CEO/EXECUTIVE DIRECTOR, ALASKA  HOUSING FINANCE                                                                    
CORPORATION,  DEPARTMENT  OF REVENUE  (via  teleconference),                                                                    
spoke in  support of the  added language. He noted  that the                                                                    
language change  should ensure that the  dividends would not                                                                    
go through changes that could be harmful.                                                                                       
                                                                                                                                
9:24:26 AM                                                                                                                    
                                                                                                                                
Representative  Fairclough queried  the effective  date. Mr.                                                                    
Butcher  replied  that  the  intent was  to  make  sure  the                                                                    
measure would apply to the current fiscal year.                                                                                 
                                                                                                                                
Co-Chair  Hawker informed  the  committee  that the  measure                                                                    
reflected  the continuing  evolution of  statute sparked  by                                                                    
continuing  evolution in  accounting practices.  He believed                                                                    
the change would result in better reporting and management.                                                                     
                                                                                                                                
HB  339  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.