SENATE BILL NO. 381: An Act relating to the construction of the Alaska Orbital Launch Complex by the Alaska Aerospace Development Corporation. Co-chair Pearce invited Bill Paulick, Business Development Information Network, Division of Economic Development, Commerce & Economic Development, to speak to SB 381. BILL PAULICK explained he also was a member of the Aerospace Development Corporation Board of Directors. SB 381 authorized the Aerospace Development Corporation to engage in a project that would cost more than $1M. He noted that projects over $1M had to be authorized by the legislature. He felt the aerospace industry represented a new industry for the state, new employment, and new income for Alaskans. He was instrumental in setting up the new Corporation, as well as selecting the new Director and very pleased to be a part of the operation. Mr. Paulick went on to say that SB 381 marked the commercialization of aerospace for Alaska. The bill had a zero fiscal note and in no way obligated the legislature for future authorizations. It would allow the Corporation to bond and construct a commercial launch facility on Kodiak Island to be serviced by the ground facilities at the University of Alaska Geophysical Institute in Fairbanks. He offered to answer questions from committee members. In answer to Senator Kelly, Mr. Paulick said that bonds would be a combination of revenue and possibly AIDEA bonds. Since it would be a dual use facility through the Department of Defense, there were about five commercial contractors, including Lockheed Aerospace, that would participate in commercial debt funding in the facility. He did not anticipate any state financing besides AIDEA bonds for this project. In answer to Senator Rieger, Mr. Paulick said the facility had been planned and approved by the Aerospace Development Corporation Board of Directors. They had reviewed the draft plan and the plans could be adjusted depending upon commercial requirements decided over the next eighteen months prior to launch. Mr. Paulick handed out an aerial photo artist mock-up of the proposed facility. He then showed the committee a notebook of specifications for the facility. He went on to explain the relationship between Fairbanks and Kodiak. He said that Kodiak represented a unique location and opportunity for launching different directions and into different orbits. In comparing Vandenberg to Kodiak, he said the weather was as good in Kodiak as it was in Florida and the rainfall and cloud cover was about the same. He admitted that the temperature was different. He also noted that it was economically more feasible to launch out of Kodiak that Vandenberg. In answer to Senator Jacko, Mr. Paulick agreed there was existing infrastructure at Kodiak (about 32 miles out of town) and other places around the state. Fairbanks and Kenai had been ruled out. In answer to Senator Kelly, Mr. Paulick said the first launch would hopefully be in late 1995. The safety analysis would be complete early 1995. The Japanese and several others were interested in using the launch site. He said the people in Kodiak were very supportive of the project. Co-chair Frank MOVED for passage of SB 381 from committee with individual recommendations. No objection being heard, the bill was REPORTED out with a "do pass", and a zero fiscal note for the Department of Commerce & Economic Development. Co-chair Pearce, Senators Kelly, Rieger, and Jacko signed "do pass," and Senator Sharp signed a "no recommendation".