03/20/2000 01:20 PM House JUD

HB 233 - MUNICIPAL BANKRUPTCY                                                                                                   
                                                                                                                                
Number 0893                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced that the next order of business would be                                                                
HOUSE BILL NO. 233, "An Act granting authority to each municipality                                                             
to be a debtor under 11 U.S.C. (Federal Bankruptcy Act) and to take                                                             
any appropriate action authorized by federal law relating to                                                                    
bankruptcy of a municipality."  [Before the committee was CSHB
(CRA).]                                                                                                                      
                                                                                                                                
JONATHON LACK, Staff to Representative Halcro, testified on behalf                                                              
of Representative Halcro.  Mr. Lack began by explaining that HB 233                                                             
had been introduced last year when Representative Halcro was co-                                                                
chairing the House Community and Regional Affairs Standing                                                                      
Committee, which is listed as the sponsor of HB 233.  Mr. Lack then                                                             
told members that in 1994, the United States Congress had changed                                                               
federal bankruptcy law to require local governments to get                                                                      
authority from their state government before they could go through                                                              
any type of bankruptcy reorganization.  Most states (43) have                                                                   
granted that authority to their local governments, but Alaska is                                                                
one of the few states that have not.  House Bill 233 would allow                                                                
local governments to seek protection in Chapter 9 of the federal                                                                
bankruptcy law.                                                                                                                 
                                                                                                                                
CHAIRMAN KOTT asked if anyone wished to testify; there was no                                                                   
response.  He then asked if anyone had questions for the sponsor's                                                              
representative.  Seeing and hearing none, he announced that public                                                              
testimony on HB 233 was closed.                                                                                                 
                                                                                                                                
Number 0824                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to move CSHB 233(CRA) out of                                                                 
committee with individual recommendations and the zero fiscal note.                                                             
There being no objection, it was so ordered and CSHB 233(CRA) was                                                               
moved from the House Judiciary Standing Committee.