HOUSE FINANCE COMMITTEE                                   
                        February 11, 1997                                      
                            1:36 P.M.                                          
                                                                               
  TAPE HFC 97-22, Side 1, #000 - end.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Therriault  called  the  House  Finance  Committee                 
  meeting to order at 1:36 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kelly                           
  Co-Chair Therriault           Representative Kohring                         
  Representative Davies         Representative Martin                          
  Representative Davis          Representative Mulder                          
  Representative Foster                                                        
  Representative Grussendorf                                                   
                                                                               
  Representative Moses was absent from the vote.                               
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Garrey Peska, Alaska State Hospital and Nursing Association.                 
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 102    "An  Act  abolishing the  Alaska  Medical Facility                 
            Authority; and providing for an effective date."                   
                                                                               
            HB   102  was   HELD  in  Committee   for  further                 
  consideration.                                                               
                                                                               
  HB 103    "An Act repealing certain state funds and accounts                 
            and boards,  limitations, and programs  related to                 
            those  funds and  accounts;  and providing  for an                 
            effective date."                                                   
                                                                               
            CSHB 103 (FIN) was reported  out of Committee with                 
            a "do pass" recommendation and  with a zero fiscal                 
            note by the Office of the Governor.                                
                                                                               
  HB 104    "An  Act repealing  the  search and  rescue  fund;                 
            relating  to expenditures  for  search and  rescue                 
            activities; and providing for an effective date."                  
                                                                               
            HB  104   was  HELD   in  Committee  for   further                 
            consideration.                                                     
  HOUSE BILL NO. 102                                                           
                                                                               
                                                                               
       "An  Act   abolishing  the   Alaska  Medical   Facility                 
       Authority; and providing for an effective date."                        
                                                                               
  Co-Chair Therriault provided members with a memorandum  from                 
  Garrey Peska, dated 2/11/97 (copy on file).                                  
                                                                               
  GARREY PESKA, ALASKA STATE HOSPITAL  AND NURSING ASSOCIATION                 
  responded to questions posed by committee members during the                 
  meeting  on   February  10,   1997.     He  clarified   that                 
  municipalities can sell tax exempt revenue bonds for private                 
  non-profit  corporations.     He  added  that  it   is  more                 
  complicated  to  sell  tax exempt  revenue  bonds  through a                 
  municipality  than  through  the   Alaska  Medical  Facility                 
  Authority.   He observed that the maximum tax exempt benefit                 
  is $10.0 million dollars.  He  urged the Committee to retain                 
  the Fund.                                                                    
                                                                               
  Co-Chair Therriault noted that the legislation was  intended                 
  to be non-controversial.   He stated  that since there is  a                 
  group of people that  may exercise this Fund in  the future,                 
  that he would be comfortable holding the bill in Committee.                  
                                                                               
  HB 102 was HELD in Committee for further consideration.                      
  HOUSE BILL NO. 103                                                           
                                                                               
       "An Act repealing certain state  funds and accounts and                 
       boards,  limitations,  and  programs  related to  those                 
       funds  and  accounts;  and providing  for  an effective                 
       date."                                                                  
                                                                               
  Co-Chair  Therriault  provided  members  with  a   committee                 
  substitute for HB 103, Work  Draft O-LS0095\F, dated 2/11/97                 
  (copy on file).  He explained  that the committee substitute                 
  rolled HB  104 as amended  during the 2/10/96  House Finance                 
  Committee meeting into HB 103.                                               
                                                                               
  Co-Chair Hanley MOVED to adopt  Work Draft O-LS0095\F, dated                 
  2/11/97.  There being NO OBJECTION, it was so ordered.                       
                                                                               
  Co-Chair  Hanley  MOVED  to report  CSHB  103  (FIN)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being  NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 103  (FIN) was  reported out  of Committee  with a  "do                 
  pass"  recommendation and  with a  zero fiscal  note by  the                 
  Office of the Governor.                                                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 1:45 p.m.