00 HOUSE BILL NO. 234 01 "An Act relating to the financing of construction and renovation of certain public 02 facilities; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS; INTENT. (a) The facilities described in sec. 2 of this Act are currently 07 owned by the state and are in need of substantial investment in capital maintenance and 08 upgrades. 09 (b) The legislature intends to provide for the required investment, and intends transfer 10 of ultimate ownership of and responsibility for the state-owned harbor facilities to the 11 municipality. 12 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 13 read:  14 HARBOR FACILITIES LEASES AUTHORIZED. (a) The Department of 01 Transportation and Public Facilities is authorized and directed to develop a plan for 02 improvement and financing of the state-owned harbor facilities listed in (b) of this section and 03 for the transfer of ownership and responsibility for the improved facilities, subject to the 04 limitations set out in this Act, to the municipality listed in (b) of this section. The Department 05 of Transportation and Public Facilities is authorized to lease the harbor facilities from the 06 municipality listed in (b) of this section under the authority of AS 35.10.110. 07 (b) The Department of Transportation and Public Facilities shall allocate the net 08 proceeds derived from the lease-financing agreements authorized in sec. 5 of this Act for 09 capital maintenance and upgrade projects to the following harbor facility projects: 10 Ketchikan - Thomas Basin Harbor, Ryus Float, Bar Harbor $7,876,000 11 South, Bar Harbor North, Hole-in-the-Wall Harbor, 12 Knudson Cove Harbor 13 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 14 read:  15 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 16 Department of Transportation and Public Facilities is delegated the Department of 17 Administration's authority under AS 36.30.085 to enter into lease-financing agreements for 18 the harbor facility projects described in sec. 2 of this Act. 19 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 22 financing agreements executed under sec. 3 of this Act are subject to annual appropriation by 23 the legislature. 24 (b) The legislature intends that the marine motor fuel tax collected under 25 AS 43.40.010 will provide enough revenue to the general fund to make all lease payments; 26 however, if that revenue source is insufficient, the payments may be made from any other 27 valid revenue source, subject to appropriation. 28 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 NOTICE OF THE ENTRY INTO AND FINANCING OF LEASE-FINANCING 31 AGREEMENTS. (a) Subject to annual appropriation, the Department of Transportation and 01 Public Facilities is authorized to enter into lease-financing agreements for the harbor facility 02 projects described in sec. 2 of this Act. 03 (b) The state bond committee is authorized to provide for the issuance of certificates 04 of participation in one or more series in the aggregate principal amount of $7,876,000 for the 05 cost of the projects described in sec. 2 of this Act. The estimated total cost of construction, 06 acquisition, and equipping the projects is $7,876,000. The estimated annual amount of rental 07 obligations under the lease-financing agreements is $815,000. The estimated total lease 08 payments for the full term of the lease-financing agreements is $12,225,000. In this 09 subsection, "costs of construction" includes credit enhancement and underwriting expenses, 10 rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee fees, 11 capitalized interest, and interest earnings used for lease payments. 12 (c) Under terms approved by the Department of Transportation and Public Facilities, 13 the leasehold interests of the state in projects described in sec. 2 of this Act that are financed 14 under this section may terminate following the payment and retirement of the certificates of 15 participation or at another later date as considered reasonable by the Department of 16 Transportation and Public Facilities. The plan prepared by the Department of Transportation 17 and Public Facilities under sec. 2 of this Act may provide for the transfer of title to some or all 18 of the state-owned harbor facilities to the municipality identified in sec. 2 of this Act, with a 19 leaseback to the department, as long as the title to the state-owned facilities transfers to 20 municipal ownership no later than the final payment and retirement of all certificates of 21 participation issued to finance the respective projects. 22 (d) The state bond committee may contract for credit enhancement, underwriting, 23 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 24 committee considers necessary in financing the projects described in sec. 2 of this Act. 25  * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 NOTICE AND APPROVAL OF AGREEMENTS. Section 5 of this Act constitutes 28 the notice and approval of the lease-financing agreements described in sec. 2 this Act that is 29 required by AS 36.30.085. 30 * Sec. 7. AS 29.60.700 is repealed.  31  * Sec. 8. This Act takes effect July 1, 2001.