SENATE BILL NO. 269 "An Act relating to the waiver of volume cap of recovery zone economic development bonds authorized by 26 U.S.C. 1400U-2 and reallocation by the Alaska Municipal Bond Bank Authority of the waived volume cap; relating to the waiver of volume cap of recovery zone facility bonds authorized by 26 U.S.C. 1400U-3 and reallocation by the Alaska Industrial Development and Export Authority of the waived volume cap; increasing the total amount of bonds and notes that the Alaska Municipal Bond Bank Authority may have outstanding; relating to revenue bonds issued by the Alaska Municipal Bond Bank Authority; and providing for an effective date." 9:05:21 AM Co-Chair Stedman stated that he had requested the Department of Revenue to provide a schedule for outstanding bonds and for debt service by community. That information has been provided. Co-Chair Hoffman MOVED to ADOPT a new CS for SB 269 labeled 26-GS2880\E, Cook, 3/8/2010. Co-Chair Stedman OBJECTED for discussion purposes. 9:06:13 AM DARWIN PETERSON, STAFF, CO-CHAIR BART STEDMAN, explained the four changes in the bill. The first change is a list of technical changes that Legislative Legal made in the first CS of the governor's bill. The second change is found on page 4, lines 14 and 15. This change deletes the words "for equipment for building improvements", which allows the Municipal Bond Bank to partner with municipalities to finance lease purchase options for any lease, not just a lease for building equipment or improvements. The third change is in the form of an amendment by the Department of Revenue found on page 3, lines 9 - 14, adding the new subsection (2), and on page 8, lines 9 - 10, with new Section 7. The change is a catchall amendment for any future bond authority that comes to the state from the federal government. 9:07:59 AM Mr. Peterson described the fourth change, which is at the request of Senator Thomas. It is found on page 4, line 25, beginning with "unless the borough" and continuing on to the subsection at the end of line 29. It is also found on page 5, line 28, beginning with "if a borough" and continuing on to page 6, the end of line 1. The change continues on page 6, line 16 and continuing on to the end of the subsection on line 20. It continues on page 7, line 17, to the end of the subsection on page 21. 9:08:56 AM Senator Thomas explained that the changes would allow a sixty-day extension for boroughs or entities to make use of the bonds before AIDEA takes over. Due to the federal government's misunderstanding of Alaskan entities, some of the money was given to entities that do not have an opportunity to sell bonds. 9:11:07 AM Co-Chair Stedman requested an explanation of the other amendment. Mr. Peterson related that the previous version of the bill would allow for the Municipal Bond Bank to enter into a relationship with the municipality in order to lease equipment or building improvements, but did not include existing buildings or land. The Department of Revenue suggested the change in order to enter into a lease purchase option with any municipality in the state. Senator Thomas added that the amendment allows boroughs to cooperate with the Bond Bank and AIDEA to continue to continue development activity outside of borough jurisdiction. 9:13:19 AM Co-Chair Stedman WITHDREW his objection to adopt the new CS. There being NO further OBJECTION, it was so ordered. DEVEN MITCHELL, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL BOND BANK AUTHORITY, DEPARTMENT OF REVENUE, testified via teleconference. He spoke in favor of the bill as amended. Co-Chair Stedman noted a zero fiscal note from the Department of Commerce, Community and Economic Development and a fiscal note from the Department of Revenue. 9:15:01 AM Co-Chair Hoffman MOVED to report CSSB 269 (FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSB 269 (FIN) was REPORTED out of committee with a "do pass" recommendation and with zero FN 1 (CED) and FN 2 (REV). AT-EASE 9:16:46 AM RECONVENED 9:17:11 AM