04/19/2014 08:30 AM House FINANCE

CS FOR SENATE BILL NO. 218(FIN)                                                                                                 
                                                                                                                                
     "An Act  relating to financing; relating  to the Alaska                                                                    
     Municipal   Bond   Bank  Authority;   authorizing   the                                                                    
     University  of Alaska  to issue  bonds  to finance  the                                                                    
     design, construction, acquisition,  and equipping costs                                                                    
     of the  University of Alaska  Fairbanks heat  and power                                                                    
     plant; authorizing  the University of Alaska  to borrow                                                                    
     money from the Alaska  Municipal Bond Bank Authority to                                                                    
     finance  the  design,  construction,  acquisition,  and                                                                    
     equipping costs  of the University of  Alaska Fairbanks                                                                    
     heat and  power plant;  and providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
4:45:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman MOVED  to  ADOPT  the proposed  committee                                                                    
substitute  for   CSSB  218(FIN),  Work   Draft  28-LS1567\P                                                                    
(Wallace, 4/19/14).                                                                                                             
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
DANIEL   GEORGE,   STAFF,   REPRESENTATIVE   BILL   STOLTZE,                                                                    
explained the changes in the  CS. The first change was found                                                                    
on  page  4, line  17  related  to  the  bonds or  notes  in                                                                    
principal  for  the  purpose  of   providing  loans  to  the                                                                    
University of Alaska  that was changed from  $150 million to                                                                    
$87.5  million. Page  5, line  29 addressed  the legislative                                                                    
approval  for  loan  authorization  for  the  University  of                                                                    
Alaska Fairbanks Heat and Power  Plant was previously stated                                                                    
at  $150 million  and changed  to $87.5  million. He  stated                                                                    
that the amendments were clarifying.                                                                                            
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
SUZANNE ARMSTRONG,  STAFF, SENATOR KEVIN MEYER,  thanked the                                                                    
committee for its time and work on the CS.                                                                                      
                                                                                                                                
Representative Gara  asked what portion of  the debt service                                                                    
would  be repaid  by university  receipts  and what  portion                                                                    
would be paid by the state per the language in the bill.                                                                        
                                                                                                                                
PAT PITNEY,  UNIVERSITY OF ALASKA FAIRBANKS,  FAIRBANKS (via                                                                    
teleconference), replied  that the university would  pay $70                                                                    
million, while the state would pay $87.5 million.                                                                               
                                                                                                                                
4:48:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  believed the bill  had been vetted  in the                                                                    
past meeting.                                                                                                                   
                                                                                                                                
Representative   Costello  addressed   the  two   previously                                                                    
published  fiscal notes  including  one  fiscal impact  note                                                                    
from the  University of  Alaska and  one fiscal  impact note                                                                    
from the Department of Revenue.                                                                                                 
                                                                                                                                
Representative  Costello  referred  to  page 2  of  the  DOR                                                                    
fiscal note  and the lack  of reflection of changes  made in                                                                    
the CS.                                                                                                                         
                                                                                                                                
Ms. Armstrong replied that the  original version of the bill                                                                    
established the  cap of $150  million, while the  CS changed                                                                    
the cap  to $87.5 million.  She directed members to  page 6,                                                                    
line 4 of  the bill which enumerated  the anticipated annual                                                                    
payment  amount of  $7 million  as reflected  in the  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
4:51:41 PM                                                                                                                    
                                                                                                                                
Representative Costello  replied that  the bill  allowed for                                                                    
$87.5   million,  while   the   fiscal  note   documentation                                                                    
reflected the original bill's intent.                                                                                           
                                                                                                                                
Co-Chair Stoltze  noted that the  issue would be  debated in                                                                    
conference committee.                                                                                                           
                                                                                                                                
Representative  Thompson MOVED  to  REPORT HCSCSSB  218(FIN)                                                                    
out  of committee  with individual  recommendations and  the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS  CSSB 218(FIN)  was REPORTED  out of  committee with  no                                                                    
recommendation  and  with  two previously  published  fiscal                                                                    
notes: FN1 (UA) and FN4 (REV).                                                                                                  
                                                                                                                                
Co-Chair  Stoltze  noted  that  the fiscal  notes  would  be                                                                    
updated in the conference committee.                                                                                            
                                                                                                                                
4:53:47 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:02:21 PM                                                                                                                    
RECONVENED