00 CS FOR HOUSE BILL NO. 234(FIN) 01 "An Act relating to subsidiaries of the Alaska Housing Finance Corporation; relating to 02 the smoking education and cessation account and to smoking education and cessation 03 programs; relating to funding the smoking education and cessation account; relating to 04 financing of construction and major maintenance of public school facilities, facilities for 05 the University of Alaska, and facilities for ports and harbors; authorizing the 06 commissioner of revenue to sell the right to receive a portion of the anticipated revenue 07 from a tobacco litigation settlement to the Northern Tobacco Securitization 08 Corporation; relating to the deposit of certain anticipated revenue from a tobacco 09 litigation settlement; authorizing the issuance of bonds by the Northern Tobacco 10 Securitization Corporation with proceeds to fund the smoking education and cessation 11 account and to finance public school construction and major maintenance, facilities for 12 the University of Alaska, and facilities for ports and harbors; and providing for an 13 effective date." 01 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 FINDINGS; INTENT. (a) Except for the harbors and docks in Nome and Adak, the 05 facilities described in sec. 5(c)(3) of this Act are currently owned by the state and are in need 06 of substantial investment in capital maintenance and upgrades. The City of Nome is in need 07 of additional money for a capital project at the Nome harbor and dock. The Adak harbor and 08 dock facilities are currently in federal ownership but will pass to Adak interests in the fall of 09 2001. 10 (b) The legislature intends to provide for the required investment, and intends transfer 11 of ultimate ownership of and responsibility for the state-owned harbor facilities to local 12 municipalities. 13 (c) The legislature intends to provide public investment in the Adak harbor and dock 14 facilities under this Act if the ownership of the harbor and dock facilities is ultimately vested 15 in the City of Adak. 16 * Sec. 2. AS 18.56.086 is amended to read: 17 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 18 subsidiary corporations for the purpose of financing or facilitating the financing of 19 school construction, facilities for the University of Alaska, or facilities for ports and 20 harbors, or for the purpose of managing the smoking education and cessation  21 account established under AS 37.05.580. A subsidiary corporation created under 22 this section may be incorporated under AS 10.20.146 - 10.20.166. The corporation 23 may transfer assets of the corporation to a subsidiary created under this section. A 24 subsidiary created under this section may borrow money and issue bonds as evidence 25 of that borrowing and has all the powers of the corporation that the corporation grants 26 to it. Unless otherwise provided by the corporation, the debts, liabilities, and 27 obligations of a subsidiary corporation created under this section are not the debts, 28 liabilities, or obligations of the corporation. 29 * Sec. 3. AS 37.05 is amended by adding a new section to read: 01 Sec. 37.05.580. Smoking education and cessation account. (a) There is 02 created as a special account in the Northern Tobacco Securitization Corporation the 03 smoking education and cessation account. The corporation shall manage the account 04 and income earned on money in the account shall be retained in the account until it is 05 appropriated. 06 (b) The legislature may make appropriations from the smoking education and 07 cessation account under AS 37.05.315 - 37.05.325 for grants for smoking education, 08 tobacco use prevention, and tobacco control or cessation programs. 09 (c) Nothing in this section creates a dedicated fund. 10  * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 11 read:  12 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 13 commissioner of revenue is authorized to sell to the Northern Tobacco Securitization 14 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created 15 under AS 18.56.086, the right to receive 40 percent annually of the revenue derived from the 16 settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 CI (Alaska 17 Super. 1997). The sale of the right to receive revenue under this subsection is in addition to 18 the sale of the right to receive revenue under sec. 9, ch. 130, SLA 2000. 19 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 20 this section are anticipated to be at least $127,529,127. 21  * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 22 read:  23 BOND AUTHORIZATION AND PROVISIONS. (a) The Northern Tobacco 24 Securitization Corporation is authorized to issue revenue bonds in principal amounts 25 sufficient to acquire the right to receive revenue described in sec. 4 of this Act from the 26 commissioner of revenue at a price agreed upon by the Northern Tobacco Securitization 27 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 28 of the Northern Tobacco Securitization Corporation secured solely by the right to receive 29 revenue sold to the Northern Tobacco Securitization Corporation under sec. 4 of this Act, and 30 the Northern Tobacco Securitization Corporation may include in agreements with the 31 bondholders a pledge of the right to receive that revenue and the promise of the state to honor 01 that pledge. A pledge made under this section is subject to the provisions of AS 18.56.120, 02 and bonds issued under this section are subject to the provisions of AS 18.56.170, in each case 03 as though "corporation" in those statutes were to mean the Northern Tobacco Securitization 04 Corporation. 05 (b) Subject to agreements with bondholders and appropriation, the Northern Tobacco 06 Securitization Corporation shall make the proceeds of the bonds issued under (a) of this 07 section available to the 08 (1) Department of Education and Early Development to pay for expenditures 09 described in (c)(1) of this section, including reimbursement to the Department of Education 10 and Early Development for the expenditures; 11 (2) University of Alaska to pay for expenditures described in (c)(2) of this 12 section, including reimbursement to the University of Alaska for the expenditures; and 13 (3) Department of Transportation and Public Facilities to pay for expenditures 14 described in (c)(3) of this section, including reimbursement to the Department of 15 Transportation and Public Facilities for the expenditures. 16 (c) The proceeds of bonds issued under (a) of this section shall be used by the 17 (1) Department of Education and Early Development to pay for construction, 18 renovation, and improvement of public schools as follows: 19 PROJECT 20 Southwest Region - Togiak School Replacement $29,182,163 21 Bering Strait - Golovin School Phase III 9,888,192 22 Petersburg City - Fascia/Soffit Repair and Replacement 116,236 23 Yukon-Koyukuk - Nulato Structural Repairs 314,387 24 Bering Strait - Shishmaref School Roof Replacement/ 8,342,525 25 Renovate, Phase III 26 Iditarod Area - Blackwell School Heating Renovation/ 173,754 27 Site Repair 28 Sitka City Borough - Blatchley Exterior Renovation/Repair 346,500 29 Chatham - Angoon Elementary School Major Maintenance 2,066,257 30 Skagway City - Skagway Major Maintenance 35,598 31 Yupiit - Akiak School Repairs 177,571 01 Pribilof Island - St. George School Remodel 4,513,164 02 Galena - Project Education Food Service Renovation 261,806 03 Southwest Region - Clarks Point School Generator Building 35,989 04 Ketchikan - Schoenbar Renovation 4,891,992 05 Southwest Region - Koliganek School Improvement 451,993 06 Juneau City Borough - Juneau-Douglas High School 7,000,000 07 Renovation/ADA Upgrade __________ 08 TOTAL $67,798,127 09 (2) University of Alaska to pay for construction and renovation of university 10 facilities as follows: 11 PROJECT 12 University of Alaska - Southeast 13 Egan Classroom $ 2,000,000 14 Robertson/Hamilton Technical Education Complex Remodel 1,500,000 15 University of Alaska - Anchorage 16 University Center Facility Acquisition and Renovation 13,000,000 17 University of Alaska - Fairbanks 18 Museum Expansion 8,000,000 19 __________ 20 TOTAL $ 24,500,000 21 (3) Department of Transportation and Public Facilities to pay for construction 22 and renovation of port and harbor facilities as follows: 23 PROJECT 24 Whittier - Whittier Small Boat Harbor $ 2,449,000 25 Valdez - Valdez Small Boat Harbor 3,212,000 26 Seldovia - Seldovia Small Boat Harbor 2,628,000 27 Petersburg - North Harbor, Middle Harbor, South Harbor 3,729,000 28 Ketchikan - Thomas Basin, Ryus Float, Bar Harbor South, 7,876,000 29 Bar Harbor North, Hole-in-the-Wall Harbor, Knudson 30 Cove Harbor 31 Sitka - Thomsen Harbor, Crescent Harbor, Sealing 4,469,000 01 Cove Harbor 02 Cordova - Cordova Harbor 4,876,000 03 Wrangell - Standard Harbor, Reliance Harbor, Inner 3,492,000 04 Harbor Fish and Game Dock, Shoemaker Harbor 05 Nome - Nome Harbor and Dock 2,000,000 06 Adak - Adak Boat Harbor 500,000 07 ___________ 08 TOTAL $ 35,231,000 09 (d) In this section, "Northern Tobacco Securitization Corporation" means the 10 subsidiary corporation of the Alaska Housing Finance Corporation created under 11 AS 18.56.086. 12  * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 13 read:  14 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 15 commissioner of revenue is authorized to sell to the Northern Tobacco Securitization 16 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created 17 under AS 18.56.086, the right to receive 20 percent annually of the revenue derived from the 18 settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 CI (Alaska 19 Super. 1997). The sale of the right to receive revenue under this subsection is in addition to 20 the sale of the right to receive revenue under sec. 9, ch. 130, SLA 2000. 21 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 22 this section are anticipated to be at least $63,635,075. 23  * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 24 read:  25 BOND AUTHORIZATION AND PROVISIONS. (a) The Northern Tobacco 26 Securitization Corporation is authorized to issue revenue bonds in principal amounts 27 sufficient to acquire the right to receive revenue described in sec. 6 of this Act from the 28 commissioner of revenue at a price agreed upon by the Northern Tobacco Securitization 29 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 30 of the Northern Tobacco Securitization Corporation secured solely by the right to receive 31 revenue sold to the Northern Tobacco Securitization Corporation under sec. 6 of this Act, and 01 the Northern Tobacco Securitization Corporation may include in agreements with the 02 bondholders a pledge of the right to receive that revenue and the promise of the state to honor 03 that pledge. A pledge made under this section is subject to the provisions of AS 18.56.120, 04 and bonds issued under this section are subject to the provisions of AS 18.56.170, in each case 05 as though "corporation" in those statutes were to mean the Northern Tobacco Securitization 06 Corporation.  07 (b) Subject to agreements with bondholders, the Northern Tobacco Securitization 08 Corporation shall deposit the proceeds of the bonds issued under (a) of this section into the 09 smoking education and cessation account established in AS 37.05.580. 10 * Sec. 8. Section 1(b), ch. 130, SLA 2000, is repealed. 11 * Sec. 9. This Act takes effect July 1, 2001.