SENATE BILL NO. 88 "An Act authorizing the state bond committee to issue certificates of participation to finance the construction and equipping of residential housing to serve the Anchorage campus of the Alaska Native Medical Center; and authorizing the Department of Administration to enter into a lease-purchase agreement for the benefit of the Alaska Native Tribal Health Consortium." 3:03:45 PM Co-Chair Stoltze explained that the bill related to a certificate of participation, which was a bond that did not require voter approval. He detailed that the bill would finance a residential facility on the Alaska Native Medical Center campus in Anchorage. The significant expenditure would be funded on an annual basis through the operating budget. He noted that Medicaid savings resulting from the facility offset the costs to the state. Representative Holmes discussed that the Department of Revenue (DOR) and the sponsor's office had been incredibly responsive to her questions from the previous day. She discussed that five floors of the building would be paid for by the certificate of participation and one floor would be paid for by the Alaska Native Tribal Health Consortium (ANTHC). She was satisfied with the bill's language because the project described in Section 2 referred to a residential housing facility and related pedestrian bridge; the residential portion would be funded by the certificates of participation. She continued that ANTHC would pay for the classroom treatment section. Page 2, lines 10 through 12 referenced a memorandum of agreement to be entered into by ANTHC and the state; the memorandum would flush out any details including ANTHC's monetary contribution to the project. Additionally, she clarified that DOR would have the ability to use any bond premiums generated by the certificates of participation for the cost of construction. 3:07:22 PM Representative Costello discussed the three fiscal notes: one zero note from the Department of Administration; one fiscal impact note from the Department of Health and Social Services including $3,849,800 in incoming federal receipts in FY 15 through FY 19 and a reduction out of the general fund in the same amount; and one fiscal impact note from the Department of Revenue including $765,000 in FY 14, $2,791,600 in FY 15, $2,792,500 in FY 16, $2,793,700 in FY 17, $2,795,700 in FY 18, and $2,793,900 in FY 19. Representative Costello MOVED to REPORT SB 88 out of committee with individual recommendations and the accompanying fiscal notes. Co-Chair Stoltze OBJECTED for discussion. Co-Chair Austerman spoke to the fiscal notes and the cost over time. He appreciated the direction of the bill and the need for the project; however, he cautioned about the fiscal obligation and the uncertainty of federal government financing. Co-Chair Stoltze echoed Co-Chair Austerman's comments. He commented on his preference for bonds versus certificates of participation given the additional checks and voter approval requirement. He remarked that the project had tangible benefits. Co-Chair Stoltze WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. SB 88 was REPORTED out of committee with a "do pass" recommendation and with three previously published fiscal impact notes: FN1 (ADM), FN2 (DHS), FN3 (REV). 3:12:32 PM AT EASE 3:14:43 PM RECONVENED