HCS CSSB 247(FIN) AM H: "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, with certain exceptions, 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, setting limits on the duration of these agreements; and providing definitions for applicable terms; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 247(FIN) am H 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, with certain exceptions, the University of Alaska for 04 the lease of real property if the lease has an annual rent payable that is 05 anticipated to exceed $500,000 or has total payments that exceed $2,500,000 for 06 the term of the lease, including any renewal options that are defined in the 07 lease; prohibiting these entities from entering into or renewing a lease of real 08 property if any or all renewal periods in the lease exceed the original term of 09 the lease; making subject to prior legislative approval lease-purchase agreements 10 that may be entered into by these entities to acquire real property, other than 11 lease-purchase agreements to refinance outstanding balances on existing lease-purchase agreements and 12 lease-purchase agreements secured by University of 13 Alaska student fees and university receipts; authorizing these entities to enter into 14 lease-purchase agreements only in the capacity of lessee under the proposed lease-purchase agreement;
01 defining procedures that these entities must follow when 02 considering whether or not to enter into lease-purchase agreements, setting limits 03 on the duration of these agreements; and providing definitions for applicable 04 terms; and providing for an 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); however, 16 notwithstanding the limitation imposed by AS 36.30.080(c)(2), the Board 17 of Regents of the University of Alaska 18 (i) may enter into a lease with a term described in (ii) 19 of this subparagraph if the rent under the lease will be paid solely 20 from a grant or contract made by the federal government or an 21 agency of the federal government, and the grant or contract 22 contains a firm commitment of not more than two years, or if the 23 rent payable under the lease will be paid solely from university 24 receipts as that term is defined in AS 14.40.491; and 25 (ii) when authorized by (i) of this subparagraph, may 26 enter into a lease with an initial term equal to the period of the 27 firm commitment of the grant or contract, or with an initial term 28 not to exceed two years when the rent is payable from university 29 receipts; the lease may contain one or more optional renewal 30 periods, but the total of all optional renewal periods may not exceed 31 an additional five years;
01 (B) acquisition of property by a lease-purchase or lease-financing agreement for the benefit of the 02 University of Alaska is subject 03 to AS 36.30.085; 04 (4) adopt, use, and alter a corporate seal; 05 (5) borrow money, issue debt, or enter into long-term obligations [,] for 06 the purchase of facilities, goods, or services; the obligations may secure, in whole or 07 in part, debt issued by another party; 08 (6) do and have done all matters necessary for the purpose of any 09 function set out in this chapter. 10 * Sec. 2. AS 22.05.025(a) is amended to read: 11 (a) The [SUBJECT TO AS 36.30.080, THE] supreme court has authority over 12 (1) all matters relating to the 13 (A) [PLANNING, DESIGN, CONSTRUCTION,] maintenance, 14 occupancy, [LEASING,] and operation of all court facilities; 15 (B) rent or lease of facilities for court system purposes, 16 subject to AS 36.30.080(c); and 17 (C) acquisition of facilities for court system purposes by 18 lease-purchase or lease-financing agreements, subject to AS 36.30.085; and 19 (2) the planning, design, and construction of court facilities but, in 20 the exercise of its authority under this paragraph, the supreme court shall 21 cooperate and coordinate with the Department of Transportation and Public Facilities 22 so that court facility construction projects are carried out in accordance with the 23 statutes and regulations applicable to state public works projects. 24 * Sec. 3. AS 24.20.060 is amended to read: 25 Sec. 24.20.060. POWERS. The legislative council has the power 26 (1) to organize and adopt rules for the conduct of its business; 27 (2) to hold public hearings, administer oaths, issue subpoenas, compel 28 the attendance of witnesses and production of papers, books, accounts, documents, and 29 testimony, and to have the deposition of witnesses taken in a manner prescribed by 30 court rule or law for taking depositions in civil actions when consistent with the 31 powers and duties assigned to the council by AS 24.20.010 - 24.20.140;
01 (3) to call upon all state officials, agencies, and institutions to give full 02 cooperation to the council and its executive director by collecting and furnishing 03 information, conducting studies, and making recommendations; 04 (4) in addition to providing the administrative services required for the 05 operation of the legislative branch, 06 (A) to provide the technical staff assistance in research, 07 reporting, drafting, and counseling requested by standing, interim, and special 08 committees and spot research and drafting services for individual members in 09 conformity with law and legislative rules; 10 (B) to conduct a continuing program for the revision and 11 publication of the acts of the legislature; 12 (C) to execute a program for the oversight of the administration 13 and construction of laws by state agencies and the courts through regulations, 14 opinions, and rulings; 15 (D) to operate and maintain the state legislative reference 16 library; 17 (E) to do all things necessary to carry out legislative directives 18 and law, and the duties set out in the uniform rules of the legislature; 19 (F) to sue in the name of the legislature during the interim 20 between sessions if authorized by majority vote of the full membership of the 21 council; 22 (5) to exercise control and direction over all legislative space, supplies, 23 and equipment and permanent legislative help between legislative sessions; the 24 exercise of control over legislative space is subject to AS 36.30.080(c) if the 25 exercise involves the rent or lease of facilities, and to AS 36.30.085 if the exercise 26 involves the acquisition of facilities by lease-purchase or lease-financing 27 agreement; 28 (6) to produce, publish, distribute, and to contract for the printing of 29 reports, memoranda, and other materials it finds necessary to the accomplishment of 30 its work; 31 (7) to take appropriate action for the preconvening and post-session
01 work of each legislative session including the employment one week in advance of 02 each session of not more than 10 temporary legislative employees; the continuing 03 employment of the temporary legislative employees is subject to legislative approval 04 when the session convenes; 05 (8) to establish a legislative internship program on a cooperative basis 06 with the University of Alaska that will provide for the assignment of interns to 07 standing committees of each house of the legislature during regular sessions of the 08 legislature; [,] and 09 (9) to establish reasonable fees for services and materials provided by 10 the Legislative Affairs Agency to entities outside of the legislative branch of state 11 government and charges for collecting the fees; all fees and charges collected under 12 this paragraph shall be deposited into the general fund. 13 * Sec. 4. AS 36.30.020 is amended to read: 14 Sec. 36.30.020. LEGISLATURE. The Legislative Council shall adopt and 15 publish procedures to govern the procurement of supplies, services, professional 16 services, and construction by the legislative branch. The procedures must be based on 17 the competitive principles consistent with this chapter and must be adapted to the 18 special needs of the legislative branch as determined by the Legislative Council. The 19 procedures must be consistent with the provisions of AS 36.30.080(c) - (e) and 20 36.30.085 [AS 36.30.080(b) - (e)]. 21 * Sec. 5. AS 36.30.030 is amended to read: 22 Sec. 36.30.030. COURT SYSTEM. The administrative director of courts shall 23 adopt and publish procedures to govern the procurement of supplies, services, 24 professional services, and construction by the judicial branch. The procedures must 25 be based on the competitive principles consistent with this chapter and must be adapted 26 to the special needs of the judicial branch as determined by the administrative director 27 of courts. The procedures must be consistent with the provisions of AS 36.30.080(c) - 28 (e) and 36.30.085 [AS 36.30.080(b) - (c)]. 29 * Sec. 6. AS 36.30.080(c) is amended to read: 30 (c) If the department, the Board of Regents of the University of Alaska, the 31 legislative council [BRANCH], or the supreme court [JUDICIAL BRANCH] intends
01 to enter into or renew a lease of real property with an annual rent to the department, 02 University of Alaska, legislative council [BRANCH], or supreme court [JUDICIAL 03 BRANCH] that is anticipated to exceed $500,000 [$1,000,000], or with total lease 04 payments that exceed $2,500,000 [$10,000,000] for the full term of the lease, 05 including any renewal options that are defined in the lease, the department, the 06 Board of Regents, the legislative council [BRANCH], or supreme court [JUDICIAL 07 BRANCH] shall provide notice to the legislature. [IF THE DEPARTMENT, 08 LEGISLATIVE BRANCH, OR JUDICIAL BRANCH INTENDS TO ENTER INTO 09 OR RENEW A LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT FOR 10 REAL PROPERTY, OTHER THAN (1) AN AGREEMENT RELATED TO THE 11 REFINANCING OF AN OUTSTANDING BALANCE OWING OR (2) A 12 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT BY THE 13 UNIVERSITY OF ALASKA THAT IS SECURED BY STUDENT FEES OR 14 UNIVERSITY RECEIPTS AS DEFINED IN AS 14.40.491, THAT HAS ANNUAL 15 LEASE PAYMENTS OF LESS THAN $1,000,000, AND FOR WHICH THE TOTAL 16 LEASE PAYMENTS FOR THE FULL TERM WILL NOT EXCEED $10,000,000, 17 THE DEPARTMENT, LEGISLATIVE BRANCH, OR JUDICIAL BRANCH SHALL 18 PROVIDE NOTICE TO THE LEGISLATURE.] The notice must include the 19 anticipated annual lease obligation amount [, THE ANTICIPATED TOTAL 20 CONSTRUCTION, ACQUISITION, OR OTHER COSTS OF THE PROJECT,] and 21 the total lease payments for the full term of the lease [, IF THE AGREEMENT IS A 22 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT, OR IF THE 23 AGREEMENT IS A LEASE OTHER THAN A LEASE-PURCHASE OR 24 LEASE-FINANCING AGREEMENT AND THE TOTAL LEASE PAYMENTS FOR 25 THE FULL TERM OF THE LEASE EXCEED $10,000,000]. The department, the 26 Board of Regents, the legislative council, and the supreme court may not enter into 27 or renew a lease of real property 28 (1) [AN AGREEMENT] requiring notice under this subsection unless 29 the proposed lease or renewal of a lease [PROJECT] has been approved by the 30 legislature by law; an [. AN] appropriation for the rent payable during the initial 31 period of the lease or the initial period of lease renewal [PROJECT] constitutes
01 approval of the proposed lease or renewal of a lease [PROJECT] for purposes of this 02 paragraph [SUBSECTION]; 03 (2) [. THE DEPARTMENT MAY NOT ENTER INTO AN 04 AGREEMENT] under this subsection if the total of all optional renewal periods 05 provided for in [PERIOD ALLOWED UNDER] the lease [AGREEMENT] exceeds 06 the original term of the lease exclusive of the total period of all renewal options 07 [TWO YEARS. IN THIS SUBSECTION, "TERM" INCLUDES DEFINED 08 RENEWAL OPTIONS]. 09 * Sec. 7. AS 36.30 is amended by adding a new section to read: 10 Sec. 36.30.085. LEASE-PURCHASE AGREEMENTS. (a) To perform its 11 duties and statutory functions, the department, the Board of Regents of the University 12 of Alaska, the legislative council, or the supreme court may enter into lease-purchase 13 agreements. The department, the Board of Regents, the legislative council, or the 14 supreme court may enter into a lease-purchase agreement only if the department, the 15 Board of Regents, the legislative council, or the supreme court is the lessee under the 16 agreement. 17 (b) When evaluating proposals to acquire real property under a lease-purchase 18 agreement, the department, the Board of Regents, the legislative council, or the 19 supreme court shall consider 20 (1) in addition to lease costs, the life cycle costs, function, indoor 21 environment, public convenience, planning, design, appearance, and location of the real 22 property proposed for acquisition; and 23 (2) whether acquisition of the real property by lease-purchase 24 agreement is likely to be the least costly means to provide the space. 25 (c) A lease-purchase agreement 26 (1) may not provide for a period of occupancy under the full term of 27 the lease-purchase agreement that is greater than 40 years; 28 (2) must provide that lease payments made by the department, the 29 Board of Regents, the legislative council, or the supreme court are subject to annual 30 appropriation. 31 (d) If the department, Board of Regents, legislative council, or supreme court
01 intends to enter into or renew a lease-purchase agreement for real property, the 02 department, Board of Regents, legislative council, or supreme court shall provide 03 notice to the legislature. The notice must include the 04 (1) anticipated total construction, acquisition, or other costs of the 05 project; 06 (2) anticipated annual amount of the rental obligation; and 07 (3) total lease payments for the full term of the lease-purchase 08 agreement. 09 (e) The department, the Board of Regents, the legislative council, or the 10 supreme court may not enter into a lease-purchase agreement to acquire real property 11 unless the agreement has been approved by the legislature by law. 12 (f) The provisions of (d) and (e) of this section do not apply to a lease-purchase agreement 13 (1) related to the refinancing of an outstanding balance owing on an 14 existing lease-purchase agreement; or 15 (2) by the University of Alaska if the lease-purchase agreement is 16 secured by student fees or university receipts as defined in AS 14.40.491. 17 (g) In this section, 18 (1) "full term of the lease-purchase agreement" includes all renewal 19 options that are defined within the lease-purchase agreement; 20 (2) "lease-purchase agreement" includes a lease-financing agreement. 21 * Sec. 8. AS 36.30.850(b)(5) is amended to read: 22 (5) acquisitions or disposals of real property or interest in real property, 23 except as provided in AS 36.30.080 and 36.30.085; 24 * Sec. 9. AS 36.30.850(c) is amended to read: 25 (c) Except for AS 36.30.085 and 36.30.700 - 36.30.790 [AS 36.30.700 - 26 36.30.790], this chapter does not apply to contracts between two or more agencies, the 27 state and its political subdivisions, or the state and other governments. 28 * Sec. 10. AS 38.05.030 is amended by adding a new subsection to read: 29 (g) This chapter does not authorize the commissioner or any employee of the 30 department to acquire title to real property through the use of lease-purchase 31 agreements or lease-financing agreements in which the department is the lessor. For
01 purposes of this section, "lease-purchase agreement" and "lease-financing agreement" 02 have the meanings given those terms in AS 36.30.990. 03 * Sec. 11. AS 36.30.080(b) is repealed. 04 * Sec. 12. APPLICABILITY TO ALASKA COURT SYSTEM AND DEPARTMENT OF 05 NATURAL RESOURCES. (a) Notwithstanding the amendments of AS 22.05.025(a) made 06 by sec. 2 of this Act, AS 36.30.030 made by sec. 5 of this Act, and AS 36.30.080(c) made 07 by sec. 6 of this Act, the addition of AS 36.30.085 made by sec. 7 of this Act, and the repeal 08 of AS 36.30.080(b) made by sec. 11 of this Act, after the effective date of this section and 09 until December 31, 1994, the Alaska Supreme Court may continue to enter into lease-purchase 10 or lease-financing agreements for the judicial branch under the provisions of AS 22.05.025(a), 11 AS 36.30.030, 36.30.080(b), and 36.30.080(c) as they read before their amendment or repeal 12 by this Act. 13 (b) Notwithstanding the amendments of AS 36.30.080(c) made by sec. 6 of this Act, 14 AS 36.30.850(b)(5) made by sec. 8 of this Act, and AS 36.30.850(c) made by sec. 9 of this 15 Act, the addition of AS 36.30.085 made by sec. 7 of this Act and of AS 38.05.030(g) made 16 by sec. 10 of this Act, and the repeal of AS 36.30.080(b) made by sec. 11 of this Act, after 17 the effective date of this section and until December 31, 1994, the Department of Natural 18 Resources may continue to enter into lease-purchase or lease-financing agreements under the 19 provisions of AS 36.30.080(b), 36.30.080(c), 36.30.850(b)(5), 36.30.850(c), and AS 38.05 as 20 they read before their amendment or repeal by this Act, but only if the Department of Natural 21 Resources is the lessor of the property and the judicial branch is lessee. 22 * Sec. 13. This Act takes effect immediately under AS 01.10.070(c).