Legislature(2001 - 2002)
02/12/2002 03:40 PM Senate STA
Audio | Topic |
---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 268-GUARANTEED REVENUE BONDS FOR VETERANS JOHN BITNEY from the Alaska Housing Finance Corporation explained that Alaska is one of five states that qualifies to issue tax- exempt bonds under the IRS code. The bonds are issued to provide home mortgages for qualified veterans. This program defines a qualified veteran as someone who served in the United States Armed Services prior to January 1, 1977. Because there is a diminishing pool of qualified veterans, they anticipate that the next requested $500 million bond authorization will be the last unless Congress takes action as requested by SJR 31. The nature of the tax exemption in the IRS code requires that the state provide a guarantee behind the bonds. SB 268 takes that question to the general election ballot for the voters to approve as a general obligation of the state. As a matter of record, he stated this does not cost the state money from the treasury. The structure is such that the mortgages that the bond proceeds purchase are pledged against the debt and are used to repay that debt. This guarantee helps the state to qualify for the tax exemption but it does not cost the state. In the view of the rating agencies, this structure does not limit the state's general obligation bond capacity. He said it is a good program and he asked the committee to take favorable action. CHAIRMAN THERRIAULT asked if he would be back to ask for increased authorization if Congress acts favorably on H.R. 959 and S. 615 because this bill wouldn't cover the expected demand. MR. BITNEY replied he would probably be back in 2004 if the bills pass, but if Congress did not take action, this authorization would last until about 2010 when the program would most probably end. CHAIRMAN THERRIAULT noted the fiscal notes from the Division of Elections and AHFC. There was no further testimony and no amendments were offered. He asked for the will of the committee. SENATOR PHILLIPS asked to be exempt from voting to move the bill because he works for the state's largest mortgage company and it might be perceived that he is benefiting. CHAIRMAN THERRIAULT thanked him for his disclosure but objected to his exemption. SENATOR PHILLIPS made a motion to move SB 268 and attached fiscal notes from committee with individual recommendations. There being no objection, SB 268 moved from committee.
Document Name | Date/Time | Subjects |
---|