CHAIRMAN HALFORD brought  SB 240  (MUNICIPAL TAX EXEMPT'N/STUDENT             
 HOUSING) before the committee as the next order of business.  He              
 directed attention to a Rules CS which changes the title on the               
 bill.                                                                         
                                                                               
 ALLISON ELGEE, Statewide Budget Director, University of Alaska,               
 explained that during this past year the university has been                  
 exploring a variety of options of developing public/private                   
 partnerships for construction of student housing so that they would           
 not have to rely solely on general fund financing in order to build           
 such housing.  One of the proposals put before the university is a            
 proposal that would allow private construction of student housing             
 that would be on university property, adjacent to the present                 
 student housing in Fairbanks.  The proposal would be contingent               
 upon the further property tax exemption than of the improvements to           
 that property.  The language proposed in the committee substitute             
 would allow for an optional municipal tax exemption.                          
                                                                               
 SENATOR RIEGER pointed out that the Finance Committee considered              
 the property tax exemption.  He said the Rules CS prevents it from            
 inadvertently, on the part of the municipality, becoming a                    
 permanent exemption, which, he thought, was a good addition.                  
                                                                               
 CHAIRMAN HALFORD asked for the will of the committee on the Rules             
 CS.                                                                           
                                                                               
 SENATOR RIEGER moved that CSSB 240(RLS) be adopted.  Hearing no               
 objection, the motion carried.                                                
                                                                               
 SENATOR RIEGER moved that CSSB 240(RLS) be passed out of committee            
 with individual recommendations.  Hearing no objection, it was so             
 ordered.                                                                      
                                                                               
 SENATOR ZHAROFF moved and asked unanimous consent that SB 240                 
 be approved for calendaring at the Chair's discretion.  Hearing no            
 objection, it was so ordered.