05/06/2006 09:00 AM Senate FINANCE

                                                                                                                                
     CS FOR HOUSE BILL NO. 381(FIN)                                                                                             
     "An  Act relating  to the  financing of  construction, major                                                               
     maintenance,  and renovation  of  certain capital  projects;                                                               
     authorizing the  commissioner of  revenue to sell  the right                                                               
     to  receive a  portion  of the  anticipated  revenue from  a                                                               
     tobacco  litigation  settlement   to  the  Northern  Tobacco                                                               
     Securitization Corporation,  and relating  to that  sale and                                                               
     the  use of  the revenue;  authorizing the  Northern Tobacco                                                               
     Securitization  Corporation  to  issue  bonds  and  use  the                                                               
     proceeds  to  acquire the  right  to  receive a  portion  of                                                               
     anticipated  revenue from  a  tobacco litigation  settlement                                                               
     and for  other purposes,  and relating  to those  bonds; and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken   moved  to   adopt  Senate   Finance  committee                                                               
substitute Version 24-GH2071\L as the working document.                                                                         
                                                                                                                                
There being  no objection, the  Version "L"  committee substitute                                                               
was ADOPTED.                                                                                                                    
                                                                                                                                
Co-Chair  Green  stated  Version   "L"  would  clarify  that  the                                                               
proceeds from the bonds secured  by the Tobacco Master Settlement                                                               
Agreement  revenue would  be  utilized  to finance  construction,                                                               
major maintenance  and renovation  projects at the  University of                                                               
Alaska; to  construct a  new correctional  facility; and  to fund                                                               
other capital  projects such as  facility replacement  and sewage                                                               
projects.                                                                                                                       
                                                                                                                                
9:06:29 AM                                                                                                                    
                                                                                                                                
Senator  Bunde   understood  that  20  percent   of  the  revenue                                                               
generated  from the  Tobacco  Master  Settlement Agreement  would                                                               
continue   to  support   preventive  health   care  and   smoking                                                               
cessation.                                                                                                                      
                                                                                                                                
9:07:05 AM                                                                                                                    
                                                                                                                                
BRYAN   BUTCHER,   Director,   Governmental  Affairs   &   Public                                                               
Relations,  Alaska  Housing  Finance Corporation,  Department  of                                                               
Revenue affirmed Senator Bunde's remark.                                                                                        
                                                                                                                                
Co-Chair  Wilken moved  to report  the bill  from Committee  with                                                               
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being  no objection, SCS  CS HB 381(FIN) was  REPORTED from                                                               
Committee with  previous zero fiscal  note #1 dated  December 23,                                                               
2005 from the Department of Administration.                                                                                     
                                                                                                                                
[NOTE: This bill  was readdressed later in the  meeting. See Time                                                               
Stamp 9:35:11 AM.]                                                                                                            
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 381(FIN)                                                                                             
     "An  Act relating  to the  financing of  construction, major                                                               
     maintenance,  and renovation  of  certain capital  projects;                                                               
     authorizing the  commissioner of  revenue to sell  the right                                                               
     to  receive a  portion  of the  anticipated  revenue from  a                                                               
     tobacco  litigation  settlement   to  the  Northern  Tobacco                                                               
     Securitization Corporation,  and relating  to that  sale and                                                               
     the  use of  the revenue;  authorizing the  Northern Tobacco                                                               
     Securitization  Corporation  to  issue  bonds  and  use  the                                                               
     proceeds  to  acquire the  right  to  receive a  portion  of                                                               
     anticipated  revenue from  a  tobacco litigation  settlement                                                               
     and for  other purposes,  and relating  to those  bonds; and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
The  bill  was brought  back  before  the Committee  for  further                                                               
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Wilken  moved to rescind the  Committee's earlier action                                                               
of reporting the bill from Committee.                                                                                           
                                                                                                                                
There being no objection, the action was RESCINDED.                                                                             
                                                                                                                                
Committee substitute,  Version 24-GH2071\L, was again  before the                                                               
Committee.                                                                                                                      
                                                                                                                                
Amendment #1:  This amendment deletes "$2,000,000"  in Section 1,                                                               
page 4 line 18 and replaces it with "$4,000,000".                                                                               
                                                                                                                                
In addition,  line 19 on  page 4 of Section  1 is deleted  in its                                                               
entirety.                                                                                                                       
                                                                                                                                
Co-Chair Wilken moved to adopt Amendment #1.                                                                                    
                                                                                                                                
Co-Chair  Green communicated  the  amendment was  offered at  the                                                               
request of the [unspecified]  Legislator who originally requested                                                               
the affected projects.                                                                                                          
                                                                                                                                
Amendment #1 was ADOPTED without objection.                                                                                     
                                                                                                                                
Co-Chair  Wilken  moved to  report  the  bill, as  amended,  from                                                               
Committee  with   individual  recommendations   and  accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
Without  objection,   SCS  CS  HB  381(FIN)   was  REPORTED  from                                                               
Committee with  previous zero fiscal  note #1 dated  December 23,                                                               
2005 from the Department of Administration.                                                                                     
                                                                                                                                
9:36:49 AM