00 SENATE BILL NO. 96 01 "An Act relating to the issuance of certificates of participation to finance demolition of 02 all or part of the existing facility known as the Alaska Psychiatric Institute and 03 construction of a new facility to be known as the Alaska Psychiatric Institute; giving 04 notice of and approving the entry into, and the issuance of certificates of participation 05 in, a lease-purchase agreement for demolition of all or part of the existing facility known 06 as the Alaska Psychiatric Institute and construction of a new facility to be known as the 07 Alaska Psychiatric Institute; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 FINDINGS AND INTENT. (a) The legislature previously appropriated money for 12 the construction or the purchase of facilities to replace the existing Alaska Psychiatric 13 Institute. Construction of a replacement within the appropriated amount proved impossible 01 when all bids received for the designed replacement were substantially higher than estimated 02 and exceeded the money available for the project. The attempt to replace the existing facility 03 through purchase of another existing facility failed when local zoning processes made it 04 impossible to complete the purchase contract and ultimately use the other facility. At present, 05 $19,200,000 has been appropriated and is available for the purpose of replacing the existing 06 Alaska Psychiatric Institute facility. It is the intent of the legislature that that money, along 07 with the proceeds of certificates of participation to be issued by the state bond committee 08 under sec. 4 of this Act, be used to construct a new facility to be known as the Alaska 09 Psychiatric Institute. 10 (b) To assist in replacing the existing Alaska Psychiatric Institute facility, the Alaska 11 Mental Health Trust Authority has set aside available money in the amount of $3,000,000 that 12 could be used for the construction of a new facility to be known as the Alaska Psychiatric 13 Institute. 14 (c) It is the intent of the legislature that the amount of money to be used for 15 construction, acquisition, and equipping a new facility to be known as the Alaska Psychiatric 16 Institute is $58,750,000. Of that amount, $22,200,000 would be from sources described in (a) 17 and (b) of this section and $36,550,000 would be from the proceeds of certificates of 18 participation issued under sec. 4 of this Act. 19 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 20 read:  21 DELEGATION OF AUTHORITY FOR LEASE-PURCHASE AGREEMENT. The 22 Department of Health and Social Services is delegated the Department of Administration's 23 authority under AS 36.30.085 to enter into a lease-purchase agreement for a new facility to be 24 known as the Alaska Psychiatric Institute. 25 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 LEASE-PURCHASE PAYMENTS. (a) The lease payments owed under a lease- 28 purchase agreement executed under sec. 2 of this Act are subject to annual appropriation by 29 the legislature. 30  * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 31 read: 01 NOTICE OF THE ENTRY INTO AND FINANCING OF LEASE-PURCHASE 02 AGREEMENT. (a) Subject to annual appropriation, the Department of Health and Social 03 Services is authorized to enter into a lease-purchase agreement for a facility to be known as 04 the Alaska Psychiatric Institute. 05 (b) The state bond committee is authorized to provide for the issuance of certificates 06 of participation in one or more series in the aggregate principal amount of $36,550,000 for the 07 construction of a facility to be known as the Alaska Psychiatric Institute, with the remaining 08 balance of the construction costs, in the amount of $22,200,000, to be paid from other money 09 as described in sec. 1 of this Act. The estimated total cost of construction, acquisition, and 10 equipping the project is $58,750,000. The estimated annual amount of rental obligations 11 under the lease-purchase agreement is $3,700,000. The estimated total lease payments for the 12 full term of the lease-purchase agreement is $55,000,000. In this subsection, "cost of 13 construction" includes demolition of all or part of the existing facility known as the Alaska 14 Psychiatric Institute, credit enhancement and underwriting expenses, rating agency fees, bond 15 counsel fees, financial advisor fees, printing fees, trustee fees, advertising fees, capitalized 16 interest, and interest earnings used for lease payments. 17 (c) Under terms approved by the Department of Health and Social Services, upon the 18 payment of all principal and interest payments under the certificates of participation, title to 19 the new facility known as Alaska Psychiatric Institute shall vest in the State of Alaska. 20 (d) The state bond committee may contract for credit enhancement, underwriting, 21 credit ratings, bond counsel, financial advisor, printing, advertising fees, and trustee services 22 that the committee considers necessary in financing the project described in this section. 23 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 NOTICE AND APPROVAL OF AGREEMENT. Section 4 of this Act constitutes the 26 notice and approval required by AS 36.30.085. 27 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 DEFINITION. In this Act, "construction" includes the cost of demolition of all or part 30 of the existing facility known as the Alaska Psychiatric Institute. 31 * Sec. 7. This Act takes effect July 1, 2001.