05/06/2001 05:33 PM House FIN

CS FOR SENATE BILL 218(TRA) AM                                                                                                
                                                                                                                                
     An Act relating to international  airports revenue bonds                                                                   
     and   requiring   that  the   spending   plan  for   the                                                                   
     International   Airports   Construction   Fund   include                                                                   
     information about the amounts  spent during the previous                                                                   
     fiscal year  for cost overruns  on certain  projects and                                                                   
     the identification  of time delays on  certain projects;                                                                   
     relating   to   customer   facility  charges   to   fund                                                                   
     facilities in  airports to be constructed  without using                                                                   
     international airport  revenue bonds; and  providing for                                                                   
     an effective date.                                                                                                         
                                                                                                                                
KURT    PARKAN,    DEPUTY   COMMISSIONER,    DEPARTMENT    OF                                                                   
TRANSPORTATION AND PUBLIC FACILITIES  testified in support of                                                                   
the   legislation.   He  explained   that   the   legislation                                                                   
authorizes  revenue bonds for  financing capital  improvement                                                                   
projects at the international  airport systems: Fairbanks and                                                                   
Anchorage. The  airlines requested a new method  of financing                                                                   
the annual capital  improvement program at the  airports. The                                                                   
state  of  Alaska  agreed  and  the  legislation  would  debt                                                                   
finance  the annual  capital improvements  project (CIP)  for                                                                   
the two  airports. He  clarified that  the annual CIP's  have                                                                   
been cash  funded through  the International Airport  Revenue                                                                   
Fund. The  airlines have  requested debt  financing to  allow                                                                   
the cost  to be paid  overtime. Debt financing  authorization                                                                   
would be  increased. There are  two years of CIP  included in                                                                   
the bill. The airlines that use  the system pay for projects.                                                                   
                                                                                                                                
Representative  Foster MOVED to  report CSSB 218  (TRA)am out                                                                   
of Committee with  the accompanying fiscal note.  There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
HCS SB 218 (TRA)am  was REPORTED out of Committee  with a "do                                                                   
pass" recommendation  and with a previously  published fiscal                                                                   
impact note (#2) by the Department of Revenue.