CS FOR HOUSE BILL NO. 381(FIN) "An Act relating to the financing of construction, major maintenance, and renovation of certain capital projects; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco Securitization Corporation, and relating to that sale and the use of the revenue; authorizing the Northern Tobacco Securitization Corporation to issue bonds and use the proceeds to acquire the right to receive a portion of anticipated revenue from a tobacco litigation settlement and for other purposes, and relating to those bonds; and providing for an effective date." This was the second hearing for this bill in the Senate Finance Committee. Co-Chair Wilken moved to adopt Senate Finance committee substitute Version 24-GH2071\L as the working document. There being no objection, the Version "L" committee substitute was ADOPTED. Co-Chair Green stated Version "L" would clarify that the proceeds from the bonds secured by the Tobacco Master Settlement Agreement revenue would be utilized to finance construction, major maintenance and renovation projects at the University of Alaska; to construct a new correctional facility; and to fund other capital projects such as facility replacement and sewage projects. 9:06:29 AM Senator Bunde understood that 20 percent of the revenue generated from the Tobacco Master Settlement Agreement would continue to support preventive health care and smoking cessation. 9:07:05 AM BRYAN BUTCHER, Director, Governmental Affairs & Public Relations, Alaska Housing Finance Corporation, Department of Revenue affirmed Senator Bunde's remark. Co-Chair Wilken moved to report the bill from Committee with individual recommendations and accompanying fiscal notes. There being no objection, SCS CS HB 381(FIN) was REPORTED from Committee with previous zero fiscal note #1 dated December 23, 2005 from the Department of Administration. [NOTE: This bill was readdressed later in the meeting. See Time Stamp 9:35:11 AM.] CS FOR HOUSE BILL NO. 381(FIN) "An Act relating to the financing of construction, major maintenance, and renovation of certain capital projects; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco Securitization Corporation, and relating to that sale and the use of the revenue; authorizing the Northern Tobacco Securitization Corporation to issue bonds and use the proceeds to acquire the right to receive a portion of anticipated revenue from a tobacco litigation settlement and for other purposes, and relating to those bonds; and providing for an effective date." The bill was brought back before the Committee for further consideration. Co-Chair Wilken moved to rescind the Committee's earlier action of reporting the bill from Committee. There being no objection, the action was RESCINDED. Committee substitute, Version 24-GH2071\L, was again before the Committee. Amendment #1: This amendment deletes "$2,000,000" in Section 1, page 4 line 18 and replaces it with "$4,000,000". In addition, line 19 on page 4 of Section 1 is deleted in its entirety. Co-Chair Wilken moved to adopt Amendment #1. Co-Chair Green communicated the amendment was offered at the request of the [unspecified] Legislator who originally requested the affected projects. Amendment #1 was ADOPTED without objection. Co-Chair Wilken moved to report the bill, as amended, from Committee with individual recommendations and accompanying fiscal notes. Without objection, SCS CS HB 381(FIN) was REPORTED from Committee with previous zero fiscal note #1 dated December 23, 2005 from the Department of Administration. 9:36:49 AM