SENATE BILL NO. 261 "An Act relating to the Special Olympics World Winter Games to be held in Anchorage in the year 2001; establishing a reserve fund for the games; providing certain duties and authority for the Alaska Industrial Development and Export Authority regarding financing for those games; and providing for an effective date." Co-Chair Therriault explained that during previous Committee discussion, the intent was to add language to the legislation clarifying that the State would limit it's moral obligation to the first $4 million dollars of currency raised and expended on the special Olympic effort. MARY GORE, STAFF, SENATOR MIKE MILLER, addressed Committee concerns regarding how the funds would increase the overall budget. She assured members that the particular segment of the operating agreement between the game organizing committee clearly stipulates that the budget is to remain at $8 million dollars. The $4 million State dollars would be the entire cost to the State. Ms. Gore acknowledged that the investment would be a risk to the State. In order to be awarded this bid, Senator Miller, Representative Phillips and Governor Knowles had to agree that the Legislature would provide moral obligation by being the financial backer for the games. Providing the guarantee, Alaska was awarded the bid, although, the final agreement has not yet been signed. It will be signed with Jim Palmer of BP Exploration and Carl Mars, who will then take the agreement to Washington D.C. and present it to Senator Stevens. Ms. Gore emphasized that it is the intent that this agreement will not cost the State any money. Co-Chair Hanley commented that the bill does not specify that the State's contribution would be limited to $4 million dollars. He understood that the intent was to receive $4 million dollars in in-kind contributions. Co- Chair Hanley stressed that the language of the bill needs to be coherent with the intent and that the $4 million State dollars should be clearly specified. Ms. Gore replied that the understanding with Special Olympics International (SOI) is that the State Legislature would be the "backend guarantor" of the event. Co-Chair Hanley reiterated that the language needs to clearly specify the amount the State is responsible for. Ms. Gore reported that the International Committee would like to guarantee that any Olympic committee, SOI or the hosting city will not go into the "hole" as a result of the event. Co-Chair Hanley understood, although, he continued to disagree with the proposed legislation's verbiage. Co-Chair Therriault recommended that the wording specify that the total budget not exceed $8 million dollars. Co- Chair Hanley pointed out that there is no language specifying the in-kind monies. Representative Mulder noted that Alaska Industrial Development Export Authority (AIDEA) supports the legislation and is willing to be the "stake holder". Representative Grussendorf requested a copy of correspondence received by Senator Miller's office, November 1997, from Special Olympic International (SOI). Ms. Gore suggested inserting language from the SOI Charter, placing it on Page 3, Line 7 and Line 30, and Page 4, Line 1. She advised adding language: "Of the total operating budget of $8 million dollars". Representative Mulder recommended adding an additional reference: "As pertained in Article #10 of the Special Olympic International Charter". Representative Mulder MOVED the proposed conceptual amendment. There being NO OBJECTION, it was adopted. Co-Chair Hanley asked who would receive the money. Ms. Gore explained that it would go to the organizing committee. A Reserved Established Fund was created in the case that there would be a government who wanted to financially participate by donating funds to the organizing committee, but were not able to give it to a nonprofit, those funds could then be directly deposited into the reserve. That fund would be used as a portion of the State's $4 million dollar appropriation. Co-Chair Therriault noted that the bill would be held in Committee until the committee substitute was received back from the legal drafters. CSSB 261 (FIN) was HELD in Committee for further consideration.