(JUNEAU) - The Alaska House of Representatives unanimously approved House Bill 203 by a vote of 39 to zero on Tuesday. Sponsored by the House Finance Committee and carried by Finance member Rep. Mike Hawker (R-Anchorage), HB 203 clarifies the definition of income that is subject to dividends to the General Fund from the Alaska Industry Development and Export Authority. HB 203 excludes expenses recorded as a result of recognizing impairment losses on development projects owned and operated by the authority. All actual cash expenses will continue to be subtracted from gross income that determines how much of a dividend that AIDEA will pay the state; however, impairment losses will not affect the authority's income.

"Impairment losses do not require any current cash expenditures," Hawker said. "Impairment losses recognize non-cash valuations of projects that the authority already paid for."

Under current statute, impairment losses recognized on the Healy Clean Coal Project and Alaska Seafood International will negate any dividend from AIDEA in Fiscal Year 2004; however, AIDEA has $789 million in unrestricted net assets and $356 million of unrestricted cash and investments from which a dividend could be paid. The dividend formula proposed by House Bill 203 will provide a nine to 18 million-dollar dividend for Fiscal Year 2004.

"AIDEA has a very successful portfolio of assets," Hawker said. "The state needs a steady dividend on its investments, and, this amended AIDEA dividend policy is sound financial practice and good fiscal policy."

HB 203 moves to the Senate.

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