HB 268-AIDEA: DIVIDEND TO STATE; INCOME; VALUATION  2:02:24 PM CHAIR COSTELLO reconvened the meeting and announced the consideration of HB 268. She noted that the committee heard the Senate version of the bill. 2:03:15 PM GENE THERRIAULT, Policy Director, Alaska Industrial Development and Export Authority (AIDEA), said the committee heard the Senate version of HB 268 on 2/25/16 and this language is identical to the Senate version. He summarized on page 2, line 3, the bill intends to add an exclusion to the calculation of the AIDEA dividend. He discussed what wasn't anticipated when the legislation passed initially. HB 268 will result in the dividend being calculated on the true net income. He explained the two problems the bill attempts to fix - the mark-to-market adjustment and outside appropriation net income issues. He noted the slide program in members' packets. He explained the stacking of Governmental Accounting Standards Board (GASB) rules that will increase the uncertainty of the dividend. 2:09:03 PM CHAIR COSTELLO referenced page 2, beginning on line 9, and asked why the bill adds definitions to project development, and what AS 44.88.900 is. MR. THERRIAULT explained that on page 2, line 5, excluding the losses is discussed. Because there are multiple programs, the money could come into various funds. Project development is added along with the list of financing tools AIDEA has. CHAIR COSTELLO asked if the other bill creating another fund would be added, were it to pass. MR. THERRIAULT said yes, if it passes. 2:11:02 PM SENATOR MEYER asked what affect this will have on the dividend. MR. THERRIAULT said it will probably not increase the dividend, just "narrow the band of uncertainty around the expectation of what the dividend is likely to be." CHAIR COSTELLO asked why that is significant. MR. THERRIAULT explained that it brings more predictability for both the state and AIDEA. CHAIR COSTELLO asked about the genesis of suggestions made in the bill. MR. THERRIAULT said they came at the suggestion of Mr. Lamb at AIDEA. SENATOR STEVENS asked if additional GASB issues are anticipated. MR. THERRRIAULT deferred the question to Mr. Lamb. 2:13:56 PM MICHAEL LAMB, Chief Financial Officer, Alaska Industrial Development and Export Authority (AIDEA), answered questions related to HB 268. He listed the upcoming GASB statements and advised that they are constantly coming out. Currently, there are about 79 GASB statements. The bill uses the mark-to-market fair value to capture future rules. 2:16:16 PM CHAIR COSTELLO closed public testimony on HB 268 and solicited a motion. 2:16:27 PM SENATOR GIESSEL moved to report HB 268, labeled 29-GH2708\A, from committee with individual recommendations and attached fiscal note. 2:16:44 PM CHAIR COSTELLO announced that without objection, HB 268 is reported from the Senate Labor and Commerce Standing Committee.