Legislature(2013 - 2014)SENATE FINANCE 532

03/27/2014 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 140 AIDEA: ARCTIC DEVELOPMENT PROGRAM/FUND TELECONFERENCED
Heard & Held
+ SB 166 BOARD OF NURSING; NURSES TELECONFERENCED
Moved CSSB 166(FIN) Out of Committee
+ HB 199 VPSO FIREARMS TELECONFERENCED
Scheduled But Not Heard
+= HB 266 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 267 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 195 POSTSECONDARY EDUCATION LOANS/GRANTS
Moved CSSB 195(FIN) Out of Committee
SENATE BILL NO. 140                                                                                                           
                                                                                                                                
     "An Act creating the Arctic infrastructure development                                                                     
     program and fund in the Alaska Industrial Development                                                                      
     and Export Authority."                                                                                                     
                                                                                                                                
10:30:53 AM                                                                                                                   
                                                                                                                                
SENATOR LESIL  MCGUIRE, introduced  SB 140 and  related that                                                                    
the bill  was a  result of  work that had  been done  by the                                                                    
Alaska   Arctic   Policy   Commission.  She   relayed   some                                                                    
background on the make-up and  duties of the commission. She                                                                    
shared that over  the course of one year  the commission had                                                                    
compiled  a  preliminary report,  which  could  be found  at                                                                    
akarctic.com. The bill would develop  and contrive a funding                                                                    
and   implementation   mechanism    for   constructing   and                                                                    
maintaining Arctic infrastructure  and economic development.                                                                    
She asserted  that the Alaskan  Arctic was one of  the least                                                                    
developed areas of  the state, yet one of the  most open and                                                                    
ready for opportunity. The intent  of the legislation was to                                                                    
develop   the  vision   statements,  policy   statement  and                                                                    
strategic  recommendations  of   the  Alaska  Arctic  Policy                                                                    
Commission. She contended  that Arctic policy was  part of a                                                                    
global discussion  and that the  state was behind  the other                                                                    
seven  Arctic   Nations  when  it  came   to  infrastructure                                                                    
development.  She  relayed  that   Alaska  has  the  longest                                                                    
coastline in  the United  States; Alaska's  Arctic coastline                                                                    
extends from  the Northeastern Canadian border,  west across                                                                    
the Arctic  Ocean, and south  covering western  Alaska, then                                                                    
1500  miles down  to  the Aleutian  Chain.  She stated  that                                                                    
within the entire coastline the  only deep draft port was in                                                                    
Dutch Harbor.  She lamented that the  lack of infrastructure                                                                    
in Unalaska limited any support  for new traffic coming from                                                                    
the  Northwest Passage.  She added  that telecommunications,                                                                    
emergency and  spill response,  search and  rescue, national                                                                    
defense and  other critical needs were  all addressed within                                                                    
the legislation.                                                                                                                
                                                                                                                                
Senator  McGuire proclaimed  that  Alaska  was blessed  with                                                                    
untold  natural resource  wealth  in the  Arctic that  would                                                                    
provide  opportunity  for  future generations,  but  nothing                                                                    
could be done without  sufficient infrastructure. She shared                                                                    
that there was an estimated  $100 billion in private funding                                                                    
that was  waiting to  be invested in  the Arctic,  which was                                                                    
considered  to be  one  of the  last  great economic  global                                                                    
opportunities.                                                                                                                  
                                                                                                                                
                                                                                                                                
10:38:07 AM                                                                                                                   
                                                                                                                                
Senator McGuire provided a further sponsor statement:                                                                           
                                                                                                                                
     Globally, all eyes are on the Arctic. The World                                                                            
     Economic Forum has recently identified Arctic                                                                              
     Infrastructure development as one of the top Four (4)                                                                      
     challenges facing the regions. Alaska's future is in                                                                       
     the Arctic, and in order for Alaskans to capitalize on                                                                     
     the incredible opportunities and overcome the                                                                              
     significant challenges that this region presents, we                                                                       
     must begin to build infrastructure now.                                                                                    
                                                                                                                                
     Aside from a few areas in Norway and the Russian                                                                           
     Federation the Arctic as a whole remains vastly                                                                            
     underserved by transportation, ports, communication,                                                                       
     emergency response, defense and other critical                                                                             
     infrastructure. For further development to occur,                                                                          
     which Alaskans deserve, both public and private                                                                            
     interests must come together to boost the investment                                                                       
     in the Arctic.                                                                                                             
     For these reasons I have introduced Senate Bill 140,                                                                       
     Arctic Infrastructure Development Fund ("AIDF"). The                                                                       
     CS SB 140 (L&C) expands AIDEA's tool bag by extending                                                                      
     the same authority for loans, loan guarantees, bonds                                                                       
     and bond guarantees that it currently utilizes in the                                                                      
     energy sector via the SETS fund (AS 44.88.650- 690) in                                                                     
     order to develop Infrastructure in the Arctic. AIDEA                                                                       
     used SETS to facilitate the financing of the Interior                                                                      
     Energy Project. This tool helps to create the public-                                                                      
     private partnerships that are needed to encourage                                                                          
     large investment in capital intensive infrastructure.                                                                      
     CS SB 140 (L&C) extends AIDEA's existing power to                                                                          
    finance, or facilitate the financing of projects to                                                                         
    the realm of Arctic Infrastructure by granting the                                                                          
     Authority the ability to:                                                                                                  
                                                                                                                                
     1. Insure project obligations and guarantee loans or                                                                       
     bonds for projects.                                                                                                        
     2. Defer principle payments and capitalize interest.                                                                       
     3. Offer financing terms of up to 40 years.                                                                                
     4. Enter into lease agreements, sales-lease-back                                                                           
     agreements, build-operate-transfer agreements and                                                                          
     other agreements to finance Arctic infrastructure                                                                          
     projects.                                                                                                                  
     5. Finance certain aspects of Fisheries in the Arctic.                                                                     
                                                                                                                                
    Many of these powers already provide flexible terms                                                                         
     that can reduce the ultimate cost of energy (via the                                                                       
     SETS program) to consumers, and if it can work in the                                                                      
     energy realm, it can work for infrastructure. However,                                                                     
     CSSB 140 (L&C) also requires legislative approval for                                                                      
     investments that are more than one-third of a                                                                              
     project's capital costs or if a loan guarantee exceeds                                                                     
     $20 Million. By subjecting certain investments to                                                                          
     legislative approval, CSSB 140 (L&C) maintains an                                                                          
     appropriate level of due diligence for projects.                                                                           
     By making financing available we can empower                                                                               
    communities and attract a global pool of investment                                                                         
     that is an alternative to the traditional grant model                                                                      
     that too often underfunds projects and leads to                                                                            
     delays. Relying on credit also ensures that sponsors                                                                       
     have some skin in the game and a stake in the                                                                              
    project's success. Most importantly, we expand the                                                                          
     arena of where Alaskan assets are working in order to                                                                      
     grow our own economy. Currently, many of Alaska's                                                                          
     savings accounts are invested in stocks and bonds that                                                                     
     drive economic activity outside of Alaska. CSSB
     140(L&C) suggests instead that some of those savings                                                                       
     be invested here in Alaska through AIDEA, not as blank                                                                     
    checks for development, but as investments for our                                                                          
     future in Arctic Infrastructure.                                                                                           
                                                                                                                                
     For the purposes of this Act, I propose that this                                                                          
     program and fund focus infrastructure development in                                                                       
     the geographical definition of the Arctic as laid out                                                                      
     in Arctic Research and Policy Act (amended 1990). That                                                                     
    definition includes the area of the State of Alaska                                                                         
     north of the Arctic Circle, north and west of the                                                                          
     boundary formed by the Porcupine, Yukon, and Kuskokwim                                                                     
     Rivers, all contiguous seas, including the Arctic                                                                          
     Ocean, and the Beaufort, Bering, and Chukchi Seas, and                                                                     
     the Aleutian chain.                                                                                                        
                                                                                                                                
     With AIDF I am proposing that the State expand AIDEA's                                                                     
     existing authority to finance, or facilitate the                                                                           
     financing of, Arctic Infrastructure.                                                                                       
                                                                                                                                
10:43:01 AM                                                                                                                   
                                                                                                                                
Senator McGuire asserted that it would be irresponsible to                                                                      
ignore   the   obligation   of    the   state   to   develop                                                                    
infrastructure in the Arctic.                                                                                                   
                                                                                                                                
10:43:41 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer requested that the sponsor list any                                                                              
sideboards that had been written into the bill.                                                                                 
                                                                                                                                
10:44:02 AM                                                                                                                   
                                                                                                                                
JESSE LOGAN, STAFF, SENATOR LESIL MCGUIRE, offered a                                                                            
sectional analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1. AS 44.88.088(a) is amended                                                                                      
                                                                                                                                
          o  This   section  establishes  that   the  Alaska                                                                    
          Industrial   Development   and  Export   Authority                                                                    
          (AIDEA)  shall adopt  a policy  for  payment of  a                                                                    
          dividend    from    the   Arctic    infrastructure                                                                    
          development fund (AS 44.88.810)  to the state each                                                                    
          fiscal year.                                                                                                          
          o The dividend may not be less than 25% nor more                                                                      
          than 50% of the net income of the fund.                                                                               
          o  This   puts  the  AIDF  in-line   with  AIDEA's                                                                    
          sustainable   energy   transmission   and   supply                                                                    
          development fund (SETS) (AS 44.88.660).                                                                               
                                                                                                                                
     Section 2. AS 44.88.088(b)(2) is amended                                                                                   
                                                                                                                                
          o  This  section  defines  "net  income"  for  the                                                                    
          purposes of this chapter.                                                                                             
          o The definition now includes the AIDF.                                                                               
                                                                                                                                
     Section 3. AS 44.88.088(b)(3) is amended                                                                                   
                                                                                                                                

Document Name Date/Time Subjects
CS SB 140 (LC) letter of Support_North Slope Borough.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (CL) ARPA_Polar map.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (CL) Letter of Support- City of Seward.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (CL) Letter of Support- NANA.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (CL) Letter of Support- Stephen Trimble.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (CL) Sponsor Statement.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (LC) Sectional Analysis.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140 (SL) Supporting Document-Planning and Infrastructure Section of AAPC Preliminary Report.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB 140(LC) Explanation of Changes.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
CSSB166 Sectional Analysis vsn R.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 Backup re backgrnd checks.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 changes from O to R.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 Comments DeLapp.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 Nursing 2014 Stats.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 Support Evans.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 Support Farnstrom.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 Support Sanders.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB166 Sponsor Statement.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB166 Support APNO.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB166 Support Gillette.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
HB 199 2014 Sponsor Statement.pdf SFIN 3/27/2014 9:00:00 AM
HB 199
HB 199 ADPS Draft Regulation Change to 13 AAC 96.pdf SFIN 3/27/2014 9:00:00 AM
HB 199
HB 199 Information Hearing BBNA Testimony and Resolutions CEO Ralph Anderson.pdf SFIN 3/27/2014 9:00:00 AM
HB 199
HB 199 Informational Meeting Summary 9 26 2013.pdf SFIN 3/27/2014 9:00:00 AM
HB 199
HB 199 Letters--Informational Hearing--9 26 2013.pdf SFIN 3/27/2014 9:00:00 AM
HB 199
HB 199 Media-Resolutions-Letters.pdf SFIN 3/27/2014 9:00:00 AM
HB 199
SB 140 Letter of Support_ PT Public Policy.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
SB 140 Senate Resources mar 27.pdf SFIN 3/27/2014 9:00:00 AM
SB 140
SB 166 Blank CS for FIN.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB 166 SEctional vsn G.pdf SFIN 3/27/2014 9:00:00 AM
SB 166
SB195 work draft version N.pdf SFIN 3/27/2014 9:00:00 AM
SB 195
SB195CS(FIN)-EED-ACPE-3-26-14.pdf SFIN 3/27/2014 9:00:00 AM
SB 195
HB266 Summary of Changes for HB266 version E and HB267 version R.pdf SFIN 3/27/2014 9:00:00 AM
HB 266
HB 267
HB266 work draft version E.pdf SFIN 3/27/2014 9:00:00 AM
HB 266
HB267 work draft version R.pdf SFIN 3/27/2014 9:00:00 AM
HB 267
HB266 Amendment #1 - Hoffman-Olson-Bishop-Kelly.pdf SFIN 3/27/2014 9:00:00 AM
HB 266
SB140 LUKIN_SarahTestimony 3-27-14.pdf SFIN 3/27/2014 9:00:00 AM
SB 140