04/28/2003 09:04 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 173                                                                                                        
     "An  Act repealing statutes  pertaining  to the Alaska  Science                                                            
     and  Technology  Foundation   and  transferring  money  in  the                                                            
     foundation's  endowment;  repealing  statutes  relating to  the                                                            
     BIDCO assistance program;  repealing statutes pertaining to the                                                            
     international  trade  and business endowment  and transferring                                                             
     money  in  the  international  trade  and  business  endowment;                                                            
     transferring  oversight  administration  of outstanding  Alaska                                                            
     Science  and  Technology Foundation  loans  and  grants to  the                                                            
     Alaska   Industrial    Development   and   Export    Authority;                                                            
     establishing   an  Alaska  BIDCO   assistance  program   to  be                                                            
     administered  by  the  Department  of  Community  and  Economic                                                            
     Development;  making conforming  amendments; and providing  for                                                            
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken asked  for information  regarding  Alaska  Statutes                                                            
(AS) 37.17.500  - 37.17.690  that are repeatedly  referenced  in the                                                            
legislation.                                                                                                                    
                                                                                                                                
MARK  BENDERSKY,  Groups Project  Administrator,  Alaska  Science  &                                                            
Technology   Foundation,  Department   of  Community  and   Economic                                                            
Development  Anchorage testified via  teleconference from  an offnet                                                            
site   and  explained   that   these   statutes  provide   for   the                                                            
establishment  of  an Alaska  BIDCO  assistance program  within  the                                                            
Department  of Community  and Economic Development.  He stated  that                                                            
this program  would  mirror the  program currently  operated by  the                                                            
Alaska Science & Technology Foundation (ASTF).                                                                                  
                                                                                                                                
Co-chair Wilken asked how the program would function.                                                                           
                                                                                                                                
Mr. Bendersky  specified that this program would allow  the State to                                                            
provide loans  to new BIDCO companies, similar to  "a high-risk bank                                                            
that does not  take deposits but does do high risk  financing on the                                                            
debt side or on the equity side."                                                                                               
                                                                                                                                
Co-Chair  Green  moved  to  report  the  bill  from  Committee  with                                                            
accompanying fiscal notes and individual recommendations.                                                                       
                                                                                                                                
There being no  objections, SB 173 was REPORTED from  Committee with                                                            
a new  $75,500  fiscal note,  dated April  8, 2003  from the  Alaska                                                            
Industrial Development  & Export Authority, Department  of Community                                                            
and  Economic  Development  and previous  fiscal  note  #1 from  the                                                            
Alaska Science & Technology  Foundation, Department of Community and                                                            
Economic Development.