04/19/1999 09:04 AM Senate FIN

                                                                                                                                
SENATE BILL NO. 113                                                                                                             
"An Act making activities of the Alaska Housing                                                                                 
Finance Corporation subject to the Executive Budget                                                                             
Act, relating to appropriations to the Alaska Housing                                                                           
Finance Corporation; relating to bonds and bond                                                                                 
anticipation notes issued by the Alaska Housing                                                                                 
Finance Corporation; and providing for an effective                                                                             
date."                                                                                                                          
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill.                                                                                      
                                                                                                                                
Co-Chair John Torgerson spoke to a proposed amendment that                                                                      
would insert language to eliminate concerns about selling                                                                       
or refinancing bonds and appropriations. He stated it was                                                                       
his intention that the committee adopt the amendment,                                                                           
prepare and adopt a committee substitute for distribution                                                                       
and then bring the bill back for a hearing at a later date.                                                                     
                                                                                                                                
Senator Sean Parnell moved for adoption of Amendment #1.                                                                        
Senator Al Adams objected. Co-Chair John Torgerson spoke to                                                                     
the amendment. This would exempt the practice of refunding                                                                      
of bonds and payment of principle or interest on bonds from                                                                     
the Executive Budget Act and state that payments or                                                                             
interest on bonds would not be subject to appropriation.                                                                        
This would leave the integrity of the corporation to sell                                                                       
bonds and make payments and refinance their bonds.                                                                              
                                                                                                                                
Senator Al Adams maintained his objection as he did not                                                                         
know why the bill was even before the committee. There was                                                                      
nothing broken with AHFC and he had received many letters                                                                       
of support for the corporation.                                                                                                 
                                                                                                                                
Amendment #1 was adopted by a vote of 6-1-2. Senator Al                                                                         
Adams cast the nay vote. Senator Dave Donley and Senator                                                                        
Randy Phillips were absent.                                                                                                     
                                                                                                                                
The bill was held in committee.                                                                                                 
                                                                                                                                
[NOTE: A committee substitute, 1-LS0640/G 4/19/99, was                                                                          
ordered after this meeting to reflect the changes made to                                                                       
the bill by Amendment #1. Although the Committee has not                                                                        
formally adopted this committee substitute as a Working                                                                         
Draft, is it still considered the Workdraft before the                                                                          
Committee because it incorporates action previously taken                                                                       
by the Committee.]