CSSB 247(2D FIN): "An Act making subject to prior legislative approval contracts entered into or renewed by the executive branch of state government, the legislative council, the Alaska Court System, and the University of Alaska for the lease of real property if the lease has an annual rent payable that is anticipated to exceed $500,000 or has total payments that exceed $2,500,000 for the term of the lease, including any renewal options that are defined in the lease; prohibiting these entities from entering into or renewing a lease of real property if any or all renewal periods in the lease exceed the original term of the lease; making subject to prior legislative approval lease-purchase agreements that may be entered into by these entities to acquire real property, other than lease-purchase agreements to refinance outstanding balances on existing lease-purchase agreements and lease-purchase agreements secured by University of Alaska student fees and university receipts; authorizing these entities to enter into lease-purchase agreements only in the capacity of lessee under the proposed lease-purchase agreement; defining procedures that these entities must follow when considering whether or not to enter into lease-purchase agreements, and setting limits on the duration of these agreements; providing definitions for applicable terms; and providing for an effective date."
00CS FOR SENATE BILL NO. 247(2d FIN) 01 "An Act making subject to prior legislative approval contracts entered into or 02 renewed by the executive branch of state government, the legislative council, the 03 Alaska Court System, and the University of Alaska for the lease of real property 04 if the lease has an annual rent payable that is anticipated to exceed $500,000 05 or has total payments that exceed $2,500,000 for the term of the lease, including 06 any renewal options that are defined in the lease; prohibiting these entities from 07 entering into or renewing a lease of real property if any or all renewal periods 08 in the lease exceed the original term of the lease; making subject to prior 09 legislative approval lease-purchase agreements that may be entered into by these 10 entities to acquire real property, other than lease-purchase agreements to refinance 11 outstanding balances on existing lease-purchase agreements and lease-purchase 12 agreements secured by University of Alaska student fees and university receipts; 13 authorizing these entities to enter into lease-purchase agreements only in the 14 capacity of lessee under the proposed lease-purchase agreement; defining
01 procedures that these entities must follow when considering whether or not to 02 enter into lease-purchase agreements, and setting limits on the duration of these 03 agreements; providing definitions for applicable terms; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 14.40.040 is amended to read: 07 Sec. 14.40.040. GENERAL POWERS OF THE UNIVERSITY. There is 08 created and established a corporation to be called the University of Alaska. It may in 09 that name 10 (1) sue and be sued; 11 (2) receive and hold real and personal property; 12 (3) contract and be contracted with; a contract entered into by the 13 University of Alaska for the 14 (A) rent or lease of premises for use and occupancy by the 15 University of Alaska is subject to AS 36.30.080(c); 16 (B) acquisition of property by a lease-purchase or lease-financing agreement for the benefit of the 17 University of Alaska is subject 18 to AS 36.30.085; 19 (4) adopt, use, and alter a corporate seal; 20 (5) borrow money, issue debt, or enter into long-term obligations [,] for 21 the purchase of facilities, goods, or services; the obligations may secure, in whole or 22 in part, debt issued by another party; 23 (6) do and have done all matters necessary for the purpose of any 24 function set out in this chapter. 25 * Sec. 2. AS 22.05.025(a) is amended to read: 26 (a) The [SUBJECT TO AS 36.30.080, THE] supreme court has authority over 27 (1) all matters relating to the 28 (A) [PLANNING, DESIGN, CONSTRUCTION,] maintenance, 29 occupancy, [LEASING,] and operation of all court facilities; 30 (B) rent or lease of facilities for court system purposes, 31 subject to AS 36.30.080(c); and
01 (C) acquisition of facilities for court system purposes by 02 lease-purchase or lease-financing agreements, subject to AS 36.30.085; and 03 (2) the planning, design, and construction of court facilities but, in 04 the exercise of its authority under this paragraph, the supreme court shall 05 cooperate and coordinate with the Department of Transportation and Public Facilities 06 so that court facility construction projects are carried out in accordance with the 07 statutes and regulations applicable to state public works projects. 08 * Sec. 3. AS 24.20.060 is amended to read: 09 Sec. 24.20.060. POWERS. The legislative council has the power 10 (1) to organize and adopt rules for the conduct of its business; 11 (2) to hold public hearings, administer oaths, issue subpoenas, compel 12 the attendance of witnesses and production of papers, books, accounts, documents, and 13 testimony, and to have the deposition of witnesses taken in a manner prescribed by 14 court rule or law for taking depositions in civil actions when consistent with the 15 powers and duties assigned to the council by AS 24.20.010 - 24.20.140; 16 (3) to call upon all state officials, agencies, and institutions to give full 17 cooperation to the council and its executive director by collecting and furnishing 18 information, conducting studies, and making recommendations; 19 (4) in addition to providing the administrative services required for the 20 operation of the legislative branch, 21 (A) to provide the technical staff assistance in research, 22 reporting, drafting, and counseling requested by standing, interim, and special 23 committees and spot research and drafting services for individual members in 24 conformity with law and legislative rules; 25 (B) to conduct a continuing program for the revision and 26 publication of the acts of the legislature; 27 (C) to execute a program for the oversight of the administration 28 and construction of laws by state agencies and the courts through regulations, 29 opinions, and rulings; 30 (D) to operate and maintain the state legislative reference 31 library;
01 (E) to do all things necessary to carry out legislative directives 02 and law, and the duties set out in the uniform rules of the legislature; 03 (F) to sue in the name of the legislature during the interim 04 between sessions if authorized by majority vote of the full membership of the 05 council; 06 (5) to exercise control and direction over all legislative space, supplies, 07 and equipment and permanent legislative help between legislative sessions; the 08 exercise of control over legislative space is subject to AS 36.30.080(c) if the 09 exercise involves the rent or lease of facilities, and to AS 36.30.085 if the exercise 10 involves the acquisition of facilities by lease-purchase or lease-financing 11 agreement; 12 (6) to produce, publish, distribute, and to contract for the printing of 13 reports, memoranda, and other materials it finds necessary to the accomplishment of 14 its work; 15 (7) to take appropriate action for the preconvening and post-session 16 work of each legislative session including the employment one week in advance of 17 each session of not more than 10 temporary legislative employees; the continuing 18 employment of the temporary legislative employees is subject to legislative approval 19 when the session convenes; 20 (8) to establish a legislative internship program on a cooperative basis 21 with the University of Alaska that will provide for the assignment of interns to 22 standing committees of each house of the legislature during regular sessions of the 23 legislature; [,] and 24 (9) to establish reasonable fees for services and materials provided by 25 the Legislative Affairs Agency to entities outside of the legislative branch of state 26 government and charges for collecting the fees; all fees and charges collected under 27 this paragraph shall be deposited into the general fund. 28 * Sec. 4. AS 36.30.020 is amended to read: 29 Sec. 36.30.020. LEGISLATURE. The Legislative Council shall adopt and 30 publish procedures to govern the procurement of supplies, services, professional 31 services, and construction by the legislative branch. The procedures must be based on
01 the competitive principles consistent with this chapter and must be adapted to the 02 special needs of the legislative branch as determined by the Legislative Council. The 03 procedures must be consistent with the provisions of AS 36.30.080(c) - (e) and 04 36.30.085 [AS 36.30.080(b) - (e)]. 05 * Sec. 5. AS 36.30.030 is amended to read: 06 Sec. 36.30.030. COURT SYSTEM. The administrative director of courts shall 07 adopt and publish procedures to govern the procurement of supplies, services, 08 professional services, and construction by the judicial branch. The procedures must 09 be based on the competitive principles consistent with this chapter and must be adapted 10 to the special needs of the judicial branch as determined by the administrative director 11 of courts. The procedures must be consistent with the provisions of AS 36.30.080(c) - 12 (e) and 36.30.085 [AS 36.30.080(b) - (c)]. 13 * Sec. 6. AS 36.30.080(c) is amended to read: 14 (c) If the department, the Board of Regents of the University of Alaska, the 15 legislative council [BRANCH], or the supreme court [JUDICIAL BRANCH] intends 16 to enter into or renew a lease of real property with an annual rent to the department, 17 University of Alaska, legislative council [BRANCH], or supreme court [JUDICIAL 18 BRANCH] that is anticipated to exceed $500,000 [$1,000,000], or with total lease 19 payments that exceed $2,500,000 [$10,000,000] for the full term of the lease, 20 including any renewal options that are defined in the lease, the department, the 21 Board of Regents, the legislative council [BRANCH], or supreme court [JUDICIAL 22 BRANCH] shall provide notice to the legislature. [IF THE DEPARTMENT, 23 LEGISLATIVE BRANCH, OR JUDICIAL BRANCH INTENDS TO ENTER INTO 24 OR RENEW A LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT FOR 25 REAL PROPERTY, OTHER THAN (1) AN AGREEMENT RELATED TO THE 26 REFINANCING OF AN OUTSTANDING BALANCE OWING OR (2) A 27 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT BY THE 28 UNIVERSITY OF ALASKA THAT IS SECURED BY STUDENT FEES OR 29 UNIVERSITY RECEIPTS AS DEFINED IN AS 14.40.491, THAT HAS ANNUAL 30 LEASE PAYMENTS OF LESS THAN $1,000,000, AND FOR WHICH THE TOTAL 31 LEASE PAYMENTS FOR THE FULL TERM WILL NOT EXCEED $10,000,000,
01 THE DEPARTMENT, LEGISLATIVE BRANCH, OR JUDICIAL BRANCH SHALL 02 PROVIDE NOTICE TO THE LEGISLATURE.] The notice must include the 03 anticipated annual lease obligation amount [, THE ANTICIPATED TOTAL 04 CONSTRUCTION, ACQUISITION, OR OTHER COSTS OF THE PROJECT,] and 05 the total lease payments for the full term of the lease [, IF THE AGREEMENT IS A 06 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT, OR IF THE 07 AGREEMENT IS A LEASE OTHER THAN A LEASE-PURCHASE OR 08 LEASE-FINANCING AGREEMENT AND THE TOTAL LEASE PAYMENTS FOR 09 THE FULL TERM OF THE LEASE EXCEED $10,000,000]. The department, the 10 Board of Regents, the legislative council, and the supreme court may not enter into 11 or renew a lease of real property 12 (1) [AN AGREEMENT] requiring notice under this subsection unless 13 the proposed lease or renewal of a lease [PROJECT] has been approved by the 14 legislature by law; an [. AN] appropriation for the rent payable during the initial 15 period of the lease or the initial period of lease renewal [PROJECT] constitutes 16 approval of the proposed lease or renewal of a lease [PROJECT] for purposes of this 17 paragraph [SUBSECTION]; 18 (2) [. THE DEPARTMENT MAY NOT ENTER INTO AN 19 AGREEMENT] under this subsection if the total of all optional renewal periods 20 provided for in [PERIOD ALLOWED UNDER] the lease [AGREEMENT] exceeds 21 the original term of the lease exclusive of the total period of all renewal options 22 [TWO YEARS. IN THIS SUBSECTION, "TERM" INCLUDES DEFINED 23 RENEWAL OPTIONS]. 24 * Sec. 7. AS 36.30 is amended by adding a new section to read: 25 Sec. 36.30.085. LEASE-PURCHASE AGREEMENTS. (a) To perform its 26 duties and statutory functions, the department, the Board of Regents of the University 27 of Alaska, the legislative council, or the supreme court may enter into lease-purchase 28 agreements. The department, the Board of Regents, the legislative council, or the 29 supreme court may enter into a lease-purchase agreement only if the department, the 30 Board of Regents, the legislative council, or the supreme court is the lessee under the 31 agreement.
01 (b) When evaluating proposals to acquire real property under a lease-purchase 02 agreement, the department, the Board of Regents, the legislative council, or the 03 supreme court shall consider 04 (1) in addition to lease costs, the life cycle costs, function, indoor 05 environment, public convenience, planning, design, appearance, and location of the real 06 property proposed for acquisition; and 07 (2) whether acquisition of the real property by lease-purchase 08 agreement is likely to be the least costly means to provide the space. 09 (c) A lease-purchase agreement 10 (1) may not provide for a period of occupancy under the full term of 11 the lease-purchase agreement that is greater than 40 years; 12 (2) must provide that lease payments made by the department, the 13 Board of Regents, the legislative council, or the supreme court are subject to annual 14 appropriation. 15 (d) If the department, Board of Regents, legislative council, or supreme court 16 intends to enter into or renew a lease-purchase agreement for real property, the 17 department, Board of Regents, legislative council, or supreme court shall provide 18 notice to the legislature. The notice must include the 19 (1) anticipated total construction, acquisition, or other costs of the 20 project; 21 (2) anticipated annual amount of the rental obligation; and 22 (3) total lease payments for the full term of the lease-purchase 23 agreement. 24 (e) The department, the Board of Regents, the legislative council, or the 25 supreme court may not enter into a lease-purchase agreement to acquire real property 26 unless the agreement has been approved by the legislature by law. 27 (f) The provisions of (d) and (e) of this section do not apply to a lease-purchase agreement 28 (1) related to the refinancing of an outstanding balance owing on an 29 existing lease-purchase agreement; or 30 (2) by the University of Alaska if the lease-purchase agreement is 31 secured by student fees or university receipts as defined in AS 14.40.491.
01 (g) In this section, 02 (1) "full term of the lease-purchase agreement" includes all renewal 03 options that are defined within the lease-purchase agreement; 04 (2) "lease-purchase agreement" includes a lease-financing agreement. 05 * Sec. 8. AS 36.30.850(b)(5) is amended to read: 06 (5) acquisitions or disposals of real property or interest in real property, 07 except as provided in AS 36.30.080 and 36.30.085; 08 * Sec. 9. AS 36.30.850(c) is amended to read: 09 (c) Except for AS 36.30.085 and 36.30.700 - 36.30.790 [AS 36.30.700 - 10 36.30.790], this chapter does not apply to contracts between two or more agencies, the 11 state and its political subdivisions, or the state and other governments. 12 * Sec. 10. AS 38.05.030 is amended by adding a new subsection to read: 13 (g) This chapter does not authorize the commissioner or any employee of the 14 department to acquire title to real property through the use of lease-purchase 15 agreements or lease-financing agreements in which the department is the lessor. For 16 purposes of this section, "lease-purchase agreement" and "lease-financing agreement" 17 have the meanings given those terms in AS 36.30.990. 18 * Sec. 11. AS 36.30.080(b) is repealed. 19 * Sec. 12. This Act takes effect immediately under AS 01.10.070(c).