Legislature(2009 - 2010)

04/17/2010 11:39 AM Senate FIN

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HOUSE BILL NO. 363                                                                                                            
     "An Act relating to the membership of the Alaska                                                                         
     Industrial Development and Export Authority."                                                                            
ROB EARL,  STAFF REPRESENTATIVE BOB HERON,  testified to the                                                                    
details  of   the  bill.  He   explained  that   the  Alaska                                                                    
Industrial  Development and  Export Authority  (AIDEA) is  a                                                                    
public development  finance corporation whose mission  is to                                                                    
promote economic  development in Alaska by  various means of                                                                    
financing  and  investment.  It   fulfills  its  mission  by                                                                    
providing  Alaskans with  long-term financing  options at  a                                                                    
reasonable cost. Each  year 25 percent to 50  percent of the                                                                    
return on AIDEA's assets is  redistributed back to the state                                                                    
general  fund as  a dividend.  This year  that dividend  was                                                                    
about $23 million.                                                                                                              
1:45:09 PM                                                                                                                    
Mr.  Earl related  that  the bill  changes  the AIDEA  Board                                                                    
membership,  which   also  serves   as  the   Alaska  Energy                                                                    
Authority (AEA)  Board. He detailed  the current  make-up of                                                                    
the board which consists  of five members: the commissioners                                                                    
of  the   Department  of  Revenue  and   the  Department  of                                                                    
Commerce,    Community   and    Economic   Development,    a                                                                    
discretionary  commissioner   appointed  by   the  governor,                                                                    
currently   the   commissioner    of   the   Department   of                                                                    
Transportation  and   Public  Facilities,  and   two  public                                                                    
members,  also appointed  by the  governor. The  legislation                                                                    
would increase  the board  by three  more public  members in                                                                    
order to increase the voice  of the private sector. The bill                                                                    
expands  the  board from  five  to  seven members  and  also                                                                    
stipulates  public members  must possess  business and,  or,                                                                    
industry expertise  and leadership skills. The  expansion to                                                                    
seven  members  would  give   AIDEA  more  flexibility  when                                                                    
forming  subcommittees,  more   diverse  experience  on  the                                                                    
board, and broader geographical representation.                                                                                 
1:47:03 PM                                                                                                                    
Co-Chair  Stedman  noted  one  zero  fiscal  note  from  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
for $22,800 in AIDEA receipts.                                                                                                  
HB 363 was Heard and Held in committee for further review.                                                                      
1:48:02 PM                                                                                                                    

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