CS FOR HOUSE BILL NO. 90(FIN) "An Act relating to bonding limitations and confidentiality of records and information of the Alaska Industrial Development and Export Authority; relating to municipal taxation of interests in certain property of the Alaska Industrial Development and Export Authority; providing for an effective date by amending the effective date of sec. 3, ch. 117, SLA 2000, as amended by sec. 2, ch. 74, SLA 2003, and by sec. 3, ch. 67, SLA 2008; and providing for an effective date." Co-Chair Hoffman noted it was the first hearing on the bill. TED LEONARD, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), summarized the bill. He related that the first goal of the bill is to remove refunding bonds from AIDEA's bond cap. Refunding bonds retire old debt with new debt, with more favorable terms. He used the refunding of mortgages as an example. Refunding bonds does not affect agency liability. The second part of the bill would reinstate AIDEA's authority to issue bonds that existed before the July 1, 2000 sunset. It would require AIDEA to receive legislative approval for any bond over $10 million that is issued to finance a development project. He pointed out that AIDEA bonds do not incur a liability for the state. 10:10:24 AM Mr. Leonard shared how AIDEA is expanding its role in loan participation programs and in how development projects are done. Having the same bond debt process that was previously in place would allow for more flexibility to fund loans at the best rate. Mr. Leonard shared the importance of the passage of SB 269, which allows AIDEA to have recovery zone bond allocation. In order for small businesses to participate, especially in rural areas, AIDEA needs to have a new program that could pool small projects in order to issue one bond. 10:11:43 AM Mr. Leonard addressed another provision in HB 90 that clarifies which records and information AIDEA would keep confidential. Section 7, the part the House Finance Committee added last year that would extend the DMTS tax exemption, would have a gap due to the bill crossing fiscal years. He understood that HB 10 would take care of that problem. He concluded that the passage of HB 90, in conjunction with SB 269 and HB 10, would provide a stronger, more effective toolbox for AIDEA to assist businesses with attaining access to long-term capital, and to move forward with its strategic plan. Co-Chair Hoffman noted a zero fiscal note from the Department of Commerce, Community, and Economic Development. HB 90 was heard and HELD in Committee for further consideration. 10:14:04 AM