CS FOR SENATE BILL NO. 279(FIN) An Act authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation for safe and clean water and hygienic sewage disposal facility capital projects and other capital projects; providing for the repayment of the bonds and bond costs; relating to the dividend paid to the state by the Alaska Housing Finance Corporation; and providing for an effective date. BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE CORPORATION (AHFC), DEPARTMENT OF REVENUE, ANCHORAGE, offered to answer questions from the Committee. Co-Chair Harris MOVED to report CS SB 279 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. Co-Chair Williams OBJECTED. Following a brief at-ease, Co-Chair Williams WITHDREW his OBJECTION. Representative Hawker acknowledged that the village safe water projects are needed, however, he voiced concern that the bill would deny general fund money for the future. He stated that until the entire State is behind a long-term fiscal policy change, money should not be added to special project concerns. Representative Hawker OBJECTED to moving the bill from Committee. Mr. Butcher pointed out that AHFC's Chief Executive Officer (CEO), Mr. Dan Fauske, had recommended that the State bond for village safe water projects and that traditionally, those projects were paid through dividends. This year, the Governor decided on a different proposal. Representative Hawker MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Meyer, Chenault, Croft, Fate, Foster, Harris, Williams OPPOSED: Stoltze, Hawker Representative Moses and Representative Joule were not present for the vote. The MOTION PASSED (7-2). CS SB 279 (FIN) was reported out of Committee with "individual" recommendations and with a zero note by the Department of Revenue. CS FOR SENATE BILL NO. 279(FIN) An Act authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation for safe and clean water and hygienic sewage disposal facility capital projects and other capital projects; providing for the repayment of the bonds and bond costs; relating to the dividend paid to the state by the Alaska Housing Finance Corporation; and providing for an effective date. Representative Croft MOVED to RESCIND previous action taken on failing to advance CS SB 279 (FIN). There being NO OBJECTION, the bill was before the Committee. Representative Croft MOVED to ADOPT Amendment #1. Co-Chair Harris OBJECTED. Representative Croft stated that the amendment addressed an important aspect of the Anchorage Convention Center project. Co-Chair Harris stated that the amount of the Alaska Housing Finance Corporation (AHFC) dividend authorized for the year was $45 million dollars. BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT OF REVENUE, ANCHORAGE, interjected that $103 million dollars was the amount this year and that the proposed number would come from that available amount. Co-Chair Harris inquired if the amount requested would come from that $5 million dollars. He asked if it would be authorized to move to the Municipality of Anchorage if the voters approved the Convention Center or if that amount would instead be used to purchase a parking garage. Representative Croft explained that the funds would be used to pay a portion of the difference in the price of the parking garage. Vice-Chair Meyer pointed out that if the Convention Center is approved, that there are two lots currently owned by the State, which could be used for parking. He added that the developer is proposing to build a new parking garage. If the voters do not approve the Convention Center, the request will go away. Co-Chair Harris requested to AMEND Amendment #1. He referenced the Harborview Developmental Center, which has not been used for a long time. The City needs about $1.5 million dollars to take care of that building. He thought SB 279 could be a vehicle to accommodate that request. Co- Chair Harris MOVED that the requested amount of $1.5 million dollars for the purchase of that facility be placed into Amendment #1. Co-Chair Williams OBJECTED. Co-Chair Harris countered that he would remove his request if Representative Croft was willing to remove Amendment #1. Representative Croft WITHDREW Amendment #1. Representative Foster MOVED to report CS SB 279 (FIN) out of Committee. Representative Hawker OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Meyer, Croft, Foster, Fate, Chenault, Harris, Williams OPPOSED: Hawker, Stoltze Representative Joule and Representative Moses were not present for the vote. The MOTION PASSED (7-2). CS SB 279 (FIN) was reported out of Committee with "individual" recommendations and with zero note #3 by the Department of Revenue.