04/24/2006 01:30 PM House FINANCE

SENATE BILL NO. 308                                                                                                           
                                                                                                                                
     "An Act  authorizing the Alaska Railroad  Corporation to                                                                   
     issue  revenue  bonds  to  finance  rail  transportation                                                                   
     projects    that   qualify    for   federal    financial                                                                   
     participation; and providing for an effective date."                                                                       
                                                                                                                                
2:18:24 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted that the  bill had been heard on Friday,                                                                   
4/21,2006, and that no amendments were being offered.                                                                           
                                                                                                                                
WENDY LINDSKOOG, DIRECTOR, EXTERNAL  AFFAIRS, ALASKA RAILROAD                                                                   
CORPORATION  provided  information  on the  legislation.  She                                                                   
explained that the federal transit  administration funds were                                                                   
similar  to   federal  highway   administration  funds.   The                                                                   
railroad  qualifies under  formula  funding,  under the  FTA.                                                                   
This is  a new tool  to bond against  revenues and  would not                                                                   
affect  highway   funds.  Responding  to  a   follow-up,  she                                                                   
confirmed  that  the  appropriation would  not  affect  other                                                                   
agency funds of affect highway funds.                                                                                           
                                                                                                                                
Responding  to another question  by Representative  Chenault,                                                                   
Ms. Lindskoog  noted that this  would not affect  funding for                                                                   
other agencies. Only  30 to 50 percent of the  FTA funds were                                                                   
actually used to  repay the bond debt, leaving  the remainder                                                                   
of the funds for use in other capital projects.                                                                                 
                                                                                                                                
Representative Chenault  MOVED   to  REPORT   SB308  out   of                                                                   
Committee, with individual recommendations  and a zero fiscal                                                                   
note  from  the  Department  of   Commerce.  There  being  NO                                                                   
OBJECTIONS, it was so ordered.                                                                                                  
                                                                                                                                
SB  308 was  REPORTED OUT  of Committee  with one  previously                                                                   
published,   zero    fiscal   note   (#1;   CED)    and   "No                                                                   
Recommendation".