00 SENATE CS FOR CS FOR HOUSE BILL NO. 234(FIN) 01 "An Act relating to the tobacco use education and cessation fund and to smoking 02 education and cessation programs; relating to funding the tobacco use education and 03 cessation fund; relating to financing of construction and major maintenance of public 04 school facilities, facilities for the University of Alaska, and facilities for ports and 05 harbors; authorizing the commissioner of revenue to sell the right to receive a portion of 06 the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco 07 Securitization Corporation; relating to the deposit of certain anticipated revenue from a 08 tobacco litigation settlement; authorizing the issuance of bonds by the Northern 09 Tobacco Securitization Corporation with proceeds to finance public school construction 10 and major maintenance, facilities for the University of Alaska, and facilities for ports 11 and harbors; and providing for an effective date." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 01  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 02 to read: 03 INTENT. The legislature intends to provide for the required investment, and intends 04 transfer of ultimate ownership of and responsibility for the state-owned harbor facilities to 05 local municipalities. 06 * Sec. 2. AS 37.05 is amended by adding a new section to read: 07 Sec. 37.05.580. Tobacco use education and cessation fund.  (a) There is 08 created as a special account in the general fund the tobacco use education and 09 cessation fund consisting of appropriations made to the tobacco use education and 10 cessation fund. The purpose of the tobacco use education and cessation fund is to 11 provide a source to finance the comprehensive smoking education, tobacco use 12 prevention, and tobacco control program authorized by AS 44.29.020(a)(15). 13 (b) The legislature may make appropriations from the tobacco use education 14 and cessation fund for the comprehensive smoking education, tobacco use prevention, 15 and tobacco control program established under AS 44.29.020(a)(15). 16 (c) Nothing in this section creates a dedicated fund. 17  * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 18 read:  19 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 20 commissioner of revenue is authorized to sell to the Northern Tobacco Securitization 21 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created 22 under AS 18.56.086, the right to receive 40 percent annually of the revenue derived from the 23 settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 CI (Alaska 24 Super. 1997). The sale of the right to receive revenue under this subsection is in addition to 25 the sale of the right to receive revenue under sec. 9, ch. 130, SLA 2000. 26 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 27 this section are anticipated to be at least $89,683,207. 28  * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 29 read:  30 BOND AUTHORIZATION AND PROVISIONS. (a) The Northern Tobacco 31 Securitization Corporation is authorized to issue revenue bonds in principal amounts 01 sufficient to acquire the right to receive revenue described in sec. 3 of this Act from the 02 commissioner of revenue at a price agreed upon by the Northern Tobacco Securitization 03 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 04 of the Northern Tobacco Securitization Corporation secured solely by the right to receive 05 revenue sold to the Northern Tobacco Securitization Corporation under sec. 3 of this Act, and 06 the Northern Tobacco Securitization Corporation may include in agreements with the 07 bondholders a pledge of the right to receive that revenue and the promise of the state to honor 08 that pledge. A pledge made under this section is subject to the provisions of AS 18.56.120, 09 and bonds issued under this section are subject to the provisions of AS 18.56.170, in each case 10 as though "corporation" in those statutes were to mean the Northern Tobacco Securitization 11 Corporation. 12 (b) Subject to agreements with bondholders and appropriation, the Northern Tobacco 13 Securitization Corporation shall make the proceeds of the bonds issued under (a) of this 14 section available to the 15 (1) Department of Education and Early Development to pay for expenditures 16 described in (c)(1) of this section, including reimbursement to the Department of Education 17 and Early Development for the expenditures; 18 (2) University of Alaska to pay for expenditures described in (c)(2) of this 19 section, including reimbursement to the University of Alaska for the expenditures; and 20 (3) Department of Transportation and Public Facilities to pay for expenditures 21 described in (c)(3) of this section, including reimbursement to the Department of 22 Transportation and Public Facilities for the expenditures. 23 (c) The proceeds of bonds issued under (a) of this section shall be used by the 24 (1) Department of Education and Early Development to pay for construction, 25 renovation, and improvement of public schools as follows: 26 PROJECT 27 Southwest Region - Togiak School Replacement $29,182,163 28 Bering Strait - Golovin School Phase III 9,888,192 29 Petersburg City - Fascia/Soffit Repair and Replacement 116,236 30 Yukon-Koyukuk - Nulato Structural Repairs 314,387 31 Bering Strait - Shishmaref School Roof Replacement/ 8,342,525 01 Renovation, Phase III 02 Iditarod Area - Blackwell School Heating Renovation/ 173,754 03 Site Repair 04 Sitka City Borough - Blatchley Exterior Renovation/Repair 346,500 05 Chatham - Angoon Elementary School Major Maintenance 2,066,257 06 Skagway City - Skagway Major Maintenance 35,598 07 Pribilof Island - St. George School Remodel 4,513,164 08 Southwest Region - Clarks Point School Generator Building 35,989 09 __________ 10 TOTAL $55,014,765 11 (2) University of Alaska to pay for construction and renovation of university 12 facilities as follows: 13 PROJECT 14 University of Alaska - Anchorage 15 Science/Biomedical Facilities Renovations/ 16 Classroom Renovation/Housing Safety Upgrades/ 17 Pool Replacement $10,990,800 18 Kodiak - Vocational/Technical Classroom 19 Rehabilitation and Completion 400,000 20 University of Alaska - Southeast 21 Egan Classroom $ 2,500,000 22 Ketchikan - Robertson/Hamilton Technical 23 Education Complex Remodel 1,500,000 24 Matanuska-Susitna Ortner Warehouse Replacement 654,000 25 University of Alaska - Fairbanks 26 Museum Expansion 4,000,000 27 Bristol Bay Campus Addition 1,000,000 28 __________ 29 TOTAL $ 21,044,800 30 (3) Department of Transportation and Public Facilities to pay for construction 31 and renovation of port and harbor facilities as follows: 01 PROJECT 02 Ketchikan - Thomas Basin Harbor, Ryus Float, 3,938,000 03 Bar Harbor South, Bar Harbor North, 04 Hole-in-the-Wall Harbor, Knudson Cove Harbor 05 Sitka - Thomsen Harbor, Crescent Harbor, Sealing 2,234,500 06 Cove Harbor 07 Anchorage - Intermodal Marine Facility - Harbor 6,000,000 08 Dock and Supporting Facilities Improvement 09 Pelican - Pelican Boat Harbor 1,451,142 10 ___________ 11 TOTAL $ 13,623,642 12 (d) In this section, "Northern Tobacco Securitization Corporation" means the 13 subsidiary corporation of the Alaska Housing Finance Corporation created under 14 AS 18.56.086. 15 * Sec. 5. Section 1(b), ch. 130, SLA 2000, is repealed. 16 * Sec. 6. This Act takes effect July 1, 2001.