04/06/2010 01:30 PM Senate LABOR & COMMERCE

        HB 354-AK CAPSTONE AVIONICS REVOLVING LOAN FUND                                                                     
                                                                                                                                
CHAIR PASKVAN announced HB 354 to be up for consideration.                                                                      
                                                                                                                                
1:34:19 PM                                                                                                                    
REPRESENTATIVE WES KELLER,  sponsor of HB 354, said  he has heard                                                               
no negatives about  the Capstone Project. He said  this FAA pilot                                                               
program in  Southeast and Southwest  Alaska claimed a  47 percent                                                               
reduction in  accidents. Since then  the challenge is to  get all                                                               
the aircraft equipped with the  proper equipment. All HB 354 does                                                               
is  correct an  oversight  by making  aircraft  operators in  the                                                               
state who  lease their  aircraft eligible for  the loan  that was                                                               
put in place for purchasing the equipment.                                                                                      
                                                                                                                                
SENATOR BUNDE asked if this revolving loan fund supports itself.                                                                
                                                                                                                                
REPRESENTATIVE KELLER answered  yes and that HB  354 is supported                                                               
by the  Division of  Investments in  the Department  of Commerce,                                                               
Community and Economic Development (DCCED).                                                                                     
                                                                                                                                
SENATOR BUNDE asked what the Capstone equipment costs.                                                                          
                                                                                                                                
1:36:18 PM                                                                                                                    
MATT JOHNSON,  staff to Representative Keller,  answered that the                                                               
upper  end  equipment costs  around  $15,000  and purchasers  can                                                               
borrow up to 80 percent of that which would be about $12,000.                                                                   
                                                                                                                                
SENATOR BUNDE  said that  jibes with his  memory; that  amount is                                                               
not something that someone would get on a lark.                                                                                 
                                                                                                                                
CHAIR PASKVAN closed public testimony.                                                                                          
                                                                                                                                
SENATOR  THOMAS  moved  to  report HB  354  from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
SENATOR BUNDE objected to note  a possible conflict because he is                                                               
an aircraft  owner and could  conceivably take advantage  of this                                                               
particularly  if  the price  comes  down  substantially; then  he                                                               
removed his  objection. There were  no further objections  and HB
 moved from committee.                                                                                                       
                                                                                                                                
1:38:40 PM                                                                                                                    
CHAIR PASKVAN announced an at ease from 1:38 to 1:39 p.m.                                                                       
                                                                                                                                
1:39:46 PM                                                                                                                    
CHAIR PASKVAN called the meeting back to order at 1:39 p.m.