HOUSE BILL NO. 466 am An Act authorizing the issuance of bonds by the Alaska Housing Finance Corporation to pay for the costs of repair and rehabilitation of student housing facilities of the University of Alaska; authorizing the issuance of bonds by the University of Alaska to pay for the costs of repair and rehabilitation of facilities of the University of Alaska; amending powers of the Alaska Housing Finance Corporation; amending the definition of "public building"; relating to the Alaska debt retirement fund; and providing for an effective date. Co-chair Pearce directed that HB 466am be brought on for discussion. ALISON ELGEE, Budget Director, University of Alaska, came before committee. She explained that the legislation was introduced by the Governor on behalf of the University. It contains $75 million in bond authorization to deal with one-half of the University's identified deferred maintenance. A $30 million bond authorization through the Alaska Housing Finance Corporation addresses maintenance in student dormitories and housing, and $45 millions issued under the University will provide for other deferred maintenance projects. Ms. Elgee next referenced a listing of projects to be covered by the funding and noted the companion Senate bill (SB 304). Senator Kelly directed attention to Amendment No. 1 which he explained would provide funding for construction of new student housing facilities at the University of Alaska, Anchorage and University of Alaska, Southeast. Inclusion would require a title change. Senator Kelly then MOVED for adoption of Amendment No. 1. Co-chair Pearce OBJECTED. She explained that the committee already passed legislation allowing the University to "get private financing for student housing." The House removed provisions contained in the amendment from the proposed bill. Co-chair Pearce voiced concern that reinsertion of those provisions, at this time, would "kill the bill." She expressed a preference for a parking garage at the Anchorage campus. Senator Rieger inquired concerning need for construction at University of Alaska, Southeast. Alison Elgee explained that the $6 million would purchase an additional 129 beds. The project received planning and design money in the current fiscal year. It has been designed and is ready for construction. Student housing at both Anchorage and Juneau is completely occupied, and there is a waiting list. Co-chair Pearce called for a show of hands on adoption of Amendment No. 1. The motion failed on a vote of 2 to 4, and Amendment No. 1 was NOT ADOPTED. Senator Rieger acknowledged a substantial deferred maintenance problem at the University but voiced concern over use of reserves and issuance of additional debt. Senator Kelly pointed to the fact that Alaska's latest bond issue was rated AA by Wall Street. That indicates that Alaska is a good investment risk because of the state's low debt. He further attested to deferred maintenance needs within the University and voiced his belief that the board of regents has been irresponsible over the past decade in using funding for other things. Co-chair Pearce queried members on disposition of the bill. Senator Kelly MOVED that HB 466am pass from committee with individual recommendations. OBJECTION was voiced. The Co- chair called for a show of hands. The motion carried on a vote of 4 to 3, and HB 466am was REPORTED OUT of committee with zero fiscal notes from the Office of the Governor, University of Alaska, and Dept. of Revenue. Co-chairs Pearce and Frank and Senators Kelly and Sharp signed the committee report with a "do pass" recommendation. Senator Rieger signed "no recommendation." Senator Jacko signed, "do not pass." Senator Kerttula signed, "do not pass, use GFs." RECESS Co-chair Pearce acknowledged the impending Senate floor session and the fact that remaining bills on the agenda would require "some testimony." She then directed that the meeting be recessed and reconvened later in the day at the call of the chair. The meeting was recessed at 2:20 p.m.