05/18/2003 01:03 PM Senate FIN

                                                                                                                                
     SENATE BILL NO. 73                                                                                                         
     "An Act relating to the authority of the Alaska Industrial                                                                 
     Development and Export Authority to issue bonds; and providing                                                             
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This was  the second hearing  for this bill  in the Senate  Finance                                                             
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken reminded this bill relates to the Alaska Industrial                                                             
Development  and Export  Authority (AIDEA)  loan participation.  He                                                             
spoke to  a proposed committee  substitute Version "I",  which only                                                             
contains  language  addressing  the AIDEA  loan  participation.  He                                                             
pointed out that the original bill  includes language pertaining to                                                             
the purchase of the  Healy Clean Coal project by the  Alaska Energy                                                             
Authority  (AEA),   to  an  extension  of  AIDEA  general   bonding                                                             
authority, and to the Red Dog Mine.                                                                                             
                                                                                                                                
Co-Chair Green  moved for adoption  of CS SB 73, 23-GS1018\I,  as a                                                             
working document.                                                                                                               
                                                                                                                                
Co-Chair Wilken objected for further explanation.                                                                               
                                                                                                                                
MIKE  BARRY,   Chair,   Board  of  Directors,   Alaska   Industrial                                                             
Development  and Export  Authority,  testified  to affirm  Co-Chair                                                             
Wilken's  explanation  of the  committee substitute.  He  expressed                                                             
intent  that  the House  of  Representatives  would  consider  this                                                             
"clean" committee  substitute, pointing  out that House  committees                                                             
have held hearings  on each of the issues included  in the original                                                             
bill.                                                                                                                           
                                                                                                                                
Co-Chair Wilken furthered that  the utility in which he is a member                                                             
had concerns  with  other items  in the  original legislation  that                                                             
could be alleviated with additional  discussion. He indicated those                                                             
issues would be addressed the following session.                                                                                
                                                                                                                                
Co-Chair  Wilken  removed his  objection  to  the adoption  of  the                                                             
committee substitute and it was ADOPTED.                                                                                        
                                                                                                                                
Senator Taylor offered  a motion to report SB 73, as  amended, from                                                             
Committee with individual  recommendations and accompanying  fiscal                                                             
note.                                                                                                                           
                                                                                                                                
Senator Olson commented  that because the matters relating  to Tech                                                             
Cominco, Inc. and  the Red Dog Mine have been addressed  in HB 112,                                                             
he therefore had no objection to this bill.                                                                                     
                                                                                                                                
There was no objection and CS SB 73 (FIN) MOVED from Committee with                                                             
zero fiscal note  #1 from the Department of Community  and Economic                                                             
Development.