03/19/1998 01:50 PM House FIN

SENATE BILL NO. 261                                                            
                                                                               
"An Act relating to the Special Olympics World Winter                          
Games to be held in Anchorage in the year 2001;                                
establishing a reserve fund for the games; providing                           
certain duties and authority for the Alaska Industrial                         
Development and Export Authority regarding financing                           
for those games; and providing for an effective date."                         
                                                                               
Co-Chair Therriault explained that during previous                             
Committee discussion, the intent was to add language to the                    
legislation clarifying that the State would limit it's                         
moral obligation to the first $4 million dollars of                            
currency raised and expended on the special Olympic effort.                    
                                                                               
MARY GORE, STAFF, SENATOR MIKE MILLER, addressed Committee                     
concerns regarding how the funds would increase the overall                    
budget.  She assured members that the particular segment of                    
the operating agreement between the game organizing                            
committee clearly stipulates that the budget is to remain                      
at $8 million dollars.  The $4 million State dollars would                     
be the entire cost to the State.                                               
                                                                               
Ms. Gore acknowledged that the investment would be a risk                      
to the State.  In order to be awarded this bid, Senator                        
Miller, Representative Phillips and Governor Knowles had to                    
agree that the Legislature would provide moral obligation                      
by being the financial backer for the games.  Providing the                    
guarantee, Alaska was awarded the bid, although, the final                     
agreement has not yet been signed. It will be signed with                      
Jim Palmer of BP Exploration and Carl Mars, who will then                      
take the agreement to Washington D.C. and present it to                        
Senator Stevens.  Ms. Gore emphasized that it is the intent                    
that this agreement will not cost the State any money.                         
                                                                               
Co-Chair Hanley commented that the bill does not specify                       
that the State's contribution would be limited to $4                           
million dollars.  He understood that the intent was to                         
receive $4 million dollars in in-kind contributions.  Co-                      
Chair Hanley stressed that the language of the bill needs                      
to be coherent with the intent and that the $4 million                         
State dollars should be clearly specified.  Ms. Gore                           
replied that the understanding with Special Olympics                           
International (SOI) is that the State Legislature would be                     
the "backend guarantor" of the event.                                          
                                                                               
Co-Chair Hanley reiterated that the language needs to                          
clearly specify the amount the State is responsible for.                       
Ms. Gore reported that the International Committee would                       
like to guarantee that any Olympic committee, SOI or the                       
hosting city will not go into the "hole" as a result of the                    
event.  Co-Chair Hanley understood, although, he continued                     
to disagree with the proposed legislation's verbiage.                          
                                                                               
Co-Chair Therriault recommended that the wording specify                       
that the total budget not exceed $8 million dollars.  Co-                      
Chair Hanley pointed out that there is no language                             
specifying the in-kind monies.                                                 
                                                                               
Representative Mulder noted that Alaska Industrial                             
Development Export Authority (AIDEA) supports the                              
legislation and is willing to be the "stake holder".                           
                                                                               
Representative Grussendorf requested a copy of                                 
correspondence received by Senator Miller's office,                            
November 1997, from Special Olympic International (SOI).                       
                                                                               
Ms. Gore suggested inserting language from the SOI Charter,                    
placing it on Page 3, Line 7 and Line 30, and Page 4, Line                     
1.  She advised adding language: "Of the total operating                       
budget of $8 million dollars".  Representative Mulder                          
recommended adding an additional reference: "As pertained                      
in Article #10 of the Special Olympic International                            
Charter".                                                                      
                                                                               
Representative Mulder MOVED the proposed conceptual                            
amendment.  There being NO OBJECTION, it was adopted.                          
                                                                               
Co-Chair Hanley asked who would receive the money.  Ms.                        
Gore explained that it would go to the organizing                              
committee.  A Reserved Established Fund was created in the                     
case that there would be a government who wanted to                            
financially participate by donating funds to the organizing                    
committee, but were not able to give it to a nonprofit,                        
those funds could then be directly deposited into the                          
reserve.  That fund would be used as a portion of the                          
State's $4 million dollar appropriation.                                       
                                                                               
Co-Chair Therriault noted that the bill would be held in                       
Committee until the committee substitute was received back                     
from the legal drafters.                                                       
                                                                               
CSSB 261 (FIN) was HELD in Committee for further                               
consideration.