Legislature(1999 - 2000)
03/06/2000 01:37 PM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 248-AIDEA: BONDS & RURAL DEVELOPMENT
MR. KEITH LAUFER, Alaska Industrial Development & Export Authority
(AIDEA), stated support for SB 248. SB 248 extends AIDEA's bonding
authority and transfers the rural development initiative fund loan
program from the Department of Community & Economic Development to
AIDEA. SB 248 also makes technical changes to tax provisions
concerning AIDEA's projects.
AIDEA's general bonding authority is subject to a sunset that takes
place July 1, 2000. The sunset would prevent AIDEA from issuing
general obligation bonds under $10 million for projects AIDEA owns,
and it will prevent AIDEA from issuing conduit revenue bonds. The
sunset will have no effect on bonds over $10 million, those bonds
require specific legislative authorization.
The rural loan program is a small business loan program for rural
Alaska, for communities with populations under 5000 people, and
loans of $200,000 or less. In 1993 and 1996, the legislature
authorized AIDEA to purchase several loan portfolios from the
State. Transferring this program to AIDEA will eliminate the need
for the periodic recapitalization. Mr. Laufer referred to changes
of provisions if SB 248 passed.
Number 436
SENATOR PHILLIPS asked what the public policy was.
MR. LAUFER stated the loan program is an enterprise fund and there
will be no general fund impact.
VICE-CHAIR MACKIE asked if Mr. Laufer had heard of opposition on SB
248.
MR. LAUFER stated no.
SENATOR HOFFMAN moved SB 248 from committee with individual
recommendations. Without objection, the motion carried.
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