Legislature(1995 - 1996)

05/02/1996 03:26 PM TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
        CSHB 526 AIDEA(FIN) am OPERATIONS/PROJECTS/LOANS                      
                                                                               
  CHAIRMAN RIEGER called the Senate Transportation Committee meeting          
 to order at 3:26 p.m., and brought HB 526 before the committee.  He           
 directed attention to a proposed SCS CSHB 526(TRA) version "R"                
 dated 5/1/96.                                                                 
                                                                               
 Number 012                                                                    
                                                                               
 SENATOR TAYLOR moved adoption of SCS CSHB 526(TRA) for purposes of            
 discussion.  Hearing no objection, it was so ordered.                         
                                                                               
 Number 020                                                                    
                                                                               
 CHAIRMAN RIEGER outlined the following changes made in the                    
 Transportation SCS, which was before the committee:                           
 (1)  Section 1:   The language in the House version "related to an            
 integrated transportation facility" has been changed to "made with            
 the developer of an integrated transportation."                               
                                                                               
 (2)  Section 2:  The language is entirely new.  Section 2 adds to             
 the Alaska Statutes a minimum formula for payment of a dividend to            
 the state each fiscal year.  The amount of the dividend for a                 
 fiscal year may not be less than 40 percent of the net income of              
 the authority for that fiscal year, unless that amount exceeds the            
 total unrestricted net income of the authority for that year, etc.            
                                                                               
 (3)  Section 3:  The issuance of bonds of greater than $10,000,000            
 to assist in the financing of a development project has been                  
 reinstated, as well as adding a sunset date of July 1, 1998.                  
                                                                               
 (4)  Section 6:  Language has been added describing the interest              
 rate on loans which are not purchased from borrowed funds, but                
 instead, purchased from the general assets of the authority.  It              
 provides that if it is a tax exempt type of project, the rate would           
 be what it would have been if it were bonded at tax exempt rates              
 for that project.  If it's a taxable type, it would be at the                 
 taxable rates.                                                                
                                                                               
 (5)  Section 10:  On page 5, line 13 the words "up to" were added             
 in language which refers to the guarantee of a loan.  It gives the            
 flexibility to guarantee less than 80 percent.                                
                                                                               
 (6)  Section 13:  On page 6, line 16 it was felt the language                 
 "protection of the authority's interest" was too broad and that               
 has been changed to "protection of the authority's interest in a              
 loan or loan guarantee."                                                      
                                                                               
 (7)  Section 14:  "Prime rate" has been further defined as the                
 United States prime rate.                                                     
                                                                               
 (8)  Section 18:  The repealer of the Midrex authorization has been           
 changed to a modification of the Midrex language.  Instead of                 
 referencing the Midrex project, it references a bulk commodity                
 loading and shipping terminal, which may located anywhere within              
 Cook Inlet.  This authorization would be subject to the ordinary              
 tests of feasibility that are elsewhere in the AIDEA statutes.                
                                                                               
 (9)  Section 19:  This is an extension of additional sunset                   
 provisions in the bill to July 1, 1998 instead of repealing on July           
 1, 1996.                                                                      
                                                                               
 (10)  Section 21:  This is a repealer of the Business Assistance              
 Loan Guarantee program.                                                       
                                                                               
 (11)  Section 22:  This is transition language that was added in              
 Senate State Affairs.  There is new transition language on lines 10           
 through 12 referring to the dividend payment.                                 
 Number 112                                                                    
                                                                               
 CHAIRMAN RIEGER asked if there was any testimony on SCS CSHB                  
 526(TRA).  Hearing none, he asked for the pleasure of the                     
 committee.                                                                    
                                                                               
 SENATOR TAYLOR moved SCS CSHB 526(TRA) be passed out of committee             
 with individual recommendations.  He commented that he would have             
 liked to see the Bradfield project in the bill, but it is his                 
 understanding they will be able to do that through other authority,           
 if a feasible project is developed.  Hearing no objection, the                
 Chairman stated the motion carried.                                           
                                                                               
 There being no further business to come before the committee, the             
 meeting was adjourned at 3:34 p.m.                                            

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