05/03/2006 08:30 AM House FINANCE

CS FOR SENATE BILL NO. 188(FIN)                                                                                               
                                                                                                                                
     "An Act relating to the maximum amount of loans from                                                                       
     the bulk fuel revolving loan fund to one borrower in a                                                                     
     fiscal year."                                                                                                              
                                                                                                                                
SENATOR DONNY OLSON related the  purpose of SB 188.  The bill                                                                   
increases  the cap  on  the bulk  fuel  revolving loan  fund,                                                                   
which  was started  in  1980 to  allow  small communities  to                                                                   
purchase  fuel.   The  cap would  increase  from $300,000  to                                                                   
$400,000  for individual  communities and  would allow  up to                                                                   
$1.5 million for organized communities.                                                                                         
                                                                                                                                
Representative Kelly asked what  the bad debt ratio currently                                                                   
is.  Senator Olson replied that there is money in the fund.                                                                     
                                                                                                                                
JIM  MCMILLAN,   DEPUTY  DIRECTOR  OF  CREDIT   AND  BUSINESS                                                                   
DEVELOPMENT (AIDEA), clarified  that delinquencies are around                                                                   
the 5 percent level.                                                                                                            
                                                                                                                                
Representative  Hawker asked  about  a need  to increase  the                                                                   
capitalization of the revolving loan fund.                                                                                      
                                                                                                                                
Mr. McMillan  replied that  would not be  a necessity  for at                                                                   
least  a few  years  and is  dependent on  fuel  price.   The                                                                   
amount  of uncommitted  cash available  after the loans  have                                                                   
gone out has been from $1.5 million  to $2 million.  There is                                                                   
no need for additional capitalization.                                                                                          
                                                                                                                                
8:58:27 AM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT CSSB 188  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSSB  188 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and  with   zero  fiscal  note  #2  by                                                                   
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
8:59:30 AM