Sponsor's Floor Statements on HB 386

There are 4 major elements in HB 386.

The first element is the reauthorization of AIDEA’s bonding authority. Currently AIDEA’s bonding authority will sunset on July 1, 1998. The passage of this bill would extend that date until July 1, 2001. All bonds in excess of $10 million would continue to come before this body for approval.

The second element in HB 386 is the integration of AIDEA’s Business Assistance and Export Assistance Loan Guarantee Programs. The Export Assistance Program has been on the books for 10 years and has never been used. While the Loan Guarantee Program does work, it was not designed to support export transactions. HB 386 modifies the programs to create a new Business and Export Assistance Program that can both effectively support Alaskan business that export goods and services, and also continue to help small businesses as the Business Assistance Program is intended to do.

The third thing that HB 386 does is define in statute what documents provided to AIDEA by the private sector are confidential. It specifies that income tax returns, financial business plans, marketing strategy information and information required by federal or state law to be confidential if the applicant or the borrower requests that the information be kept confidential. In brief, the bill specifies what proprietary information will be kept in the loan file, to protect the applicant’s commercial or business interests.

The final part of HB 386 projects authorization for two projects that may be financed under AIDEA’s development program. The first project is an $80 million dollar authorization for a deep-water port and related improvements at the Red Dog Mine. The second project is a $30 million dollar port improvement project in Nome. Both projects are important and will create jobs and help businesses operate more safely and efficiently.

These projects are in the preliminary stages of review but because of timing are before us now for approval. AIDEA has testified that if the projects do not pencil out or if it makes more sense to finance the projects through a conduit issuance, the authorization will allow for this.

AIDEA is a prudent partner with commercial banks and businesses and has proven itself an important tool for business growth in Alaska. This bill is a bipartisan bill and I ask that you vote its passage.