CSSB 207(CRA): "An Act authorizing the issuance and sale of revenue bonds to fund public wastewater systems, nonpoint source water pollution control projects, including solid waste management systems, and estuary conservation and management projects; authorizing the use of the Alaska clean water fund to pay and secure the bonds and to pay costs related to issuance and administration of the bonds; authorizing certain measures to secure payment of the bonds; and amending Rule 3, Alaska Rules of Civil Procedure."
00CS FOR SENATE BILL NO. 207(CRA) 01 "An Act authorizing the issuance and sale of revenue bonds to fund public 02 wastewater systems, nonpoint source water pollution control projects, including 03 solid waste management systems, and estuary conservation and management 04 projects; authorizing the use of the Alaska clean water fund to pay and secure 05 the bonds and to pay costs related to issuance and administration of the bonds; 06 authorizing certain measures to secure payment of the bonds; and amending 07 Rule 3, Alaska Rules of Civil Procedure." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. POLICY AND PURPOSES. The legislature finds that the expenditures, 10 transfers, and applications of money, and the use of the public credit through the issuance of 11 revenue bonds, as authorized by this Act, will serve a public purpose by allowing the financing 12 of needed public water quality improvements substantially sooner than would otherwise be 13 possible. 14 * Sec. 2. AS 37.15 is amended by adding new sections to read:
01 ARTICLE 3A. ALASKA CLEAN WATER FUND BONDS. 02 Sec. 37.15.560. BOND AUTHORIZATION. (a) For purposes of providing part 03 of the money to be used to provide financial assistance to municipalities and other 04 qualified entities for the purposes stated in AS 46.03.032(d), including the costs of bond 05 issuance and administration, the issuance and sale of revenue bonds of the state is 06 authorized, subject to (b) of this section. The bonds are to be issued by the state bond 07 committee, as provided in AS 37.15.560 - 37.15.605, as part of the Alaska clean water 08 fund revolving loan fund program (AS 46.03.032), a public enterprise of the state. The 09 net proceeds of the sale of the bonds, remaining after any payment of costs of issuance 10 and administration, shall be paid into the Alaska clean water fund. Accrued interest paid 11 on the bonds shall be paid into the Alaska clean water fund for transfer to the Alaska 12 clean water fund revenue bond redemption fund (AS 37.15.565). 13 (b) The state bond committee may not issue more than $15,000,000 in revenue 14 bonds during a fiscal year, excluding refunding bonds. The total amount of revenue 15 bonds outstanding at any one time may not exceed $150,000,000, including principal and 16 interest owed on the bonds. 17 (c) The bonds do not constitute a general obligation of the state. Authorization 18 by the voters of the state or the legislature is not required. 19 (d) The state bond committee may enter into agreements with other state 20 agencies as necessary or convenient to implement AS 37.15.560 - 37.15.605. 21 (e) The state bond committee may contract for the services of underwriters, 22 paying agents, trustees, bond printers, rating agencies, bond insurance, credit 23 enhancement providers, accountants, financial advisors, and bond counsel, and other 24 services as are necessary to accomplish the bond issuance and sale. 25 Sec. 37.15.565. BOND REDEMPTION FUND. (a) There is established a 26 special fund of the state, known as the "Alaska clean water fund revenue bond 27 redemption fund," which is a trust fund for paying and securing the payment of the 28 principal of and interest and redemption premium, if any, on the bonds and which shall 29 be at all times completely segregated and set apart from all other funds of the state. The 30 committee, on behalf of the state, may obligate and bind the state to set aside and pay 31 into the bond redemption fund, on a monthly or other periodic basis, any part or parts
01 of, or all of, or a fixed proportion of, or a fixed amount of the money in the Alaska clean 02 water fund (AS 46.03.032) sufficient to pay the principal of and interest and redemption 03 premium, if any, on the bonds and, if it considers it necessary, to set aside and maintain 04 reserves for this purpose. The bond redemption fund shall be drawn upon only for the 05 purpose of paying the principal of and interest and redemption premium, if any, on the 06 bonds, together with related trustee fees, if any. 07 (b) Money in the bond redemption fund may be invested in the same manner and 08 on the same conditions as permitted for investment of money belonging to the state or 09 held in the treasury under AS 37.10.070; however, the committee may agree with the 10 bondholders to further limit these investments. Earnings on investments must be retained 11 in the bond redemption fund. 12 (c) Separate accounts may be created in the bond redemption fund for the 13 purposes of paying and securing the bonds. The accounts may be combined for purposes 14 of investment. 15 Sec. 37.15.570. BOND TERMS. (a) The bonds may be issued and sold at 16 public or negotiated sale in the manner, in the amounts or series, and at the time or times 17 that the committee determines. The bonds, or each series of them, shall be sold at the 18 price and upon the terms, conditions, and covenants set by the committee after 19 considering market conditions. Interest rates may be fixed or variable. 20 (b) The bonds mature at the time or times fixed by the committee. The bonds 21 may be subject to redemption before their fixed maturities, as determined by the 22 committee, with or without a premium or premiums. The bonds may be in 23 denominations determined by the committee; may be issued in fully or partially 24 registered form; must be payable as to principal and interest at the place or places 25 determined by the committee; must be signed on behalf of the state in the manner 26 provided by the committee; must be issued under and subject to the terms, conditions, 27 covenants, and protective features safeguarding payment of the bonds and relating to the 28 funding of projects as found necessary by the committee, including covenants requiring 29 the setting aside and maintenance of certain reserves to secure the payment of principal 30 and interest, all under regulations and conditions of the committee. 31 (c) The committee may pledge to the payment of the principal of and interest
01 on bonds issued by the committee part or all of the legally available money or other 02 assets on hand in the Alaska clean water fund (AS 46.03.032); part or all of the revenue 03 of the Alaska clean water fund, including federal capitalization grants, the proceeds of 04 loan repayments, and interest on money in the fund; the proceeds of the sale of bonds; 05 and money on hand in the bond redemption fund. Revenue of the Alaska clean water 06 fund, if so pledged, must be paid into the Alaska clean water fund. The committee may 07 provide for the issuance of additional bonds, secured by a pledge of money and revenue, 08 ranking junior to, senior to, or on a parity with, outstanding bonds, upon conditions 09 prescribed in the bond resolution. A pledge of loan repayments securing bonds may be 10 made applicable to specific loans from the Alaska clean water fund or, on a pooled basis, 11 to all loan repayments received. 12 (d) If the committee finds it reasonably necessary, the committee may select a 13 trustee or trustees for the holders of the bonds, or any series of them, for the 14 safeguarding and disbursement of any of the money in the bond redemption fund created 15 by AS 37.15.565, or for duties with respect to the enforcement, authentication, delivery, 16 payment, and registration of the bonds as the committee may determine. The committee 17 shall fix the rights, duties, powers, and obligations of the trustee or trustees. 18 (e) In its determination of all matters and questions relating to the issuance and 19 sale of the bonds and the fixing of their maturities, terms, conditions, and covenants as 20 provided in (a) - (d) of this section, the decisions of the committee shall be those that 21 are reasonably necessary for the best interests of the state and its inhabitants and that will 22 accomplish the most advantageous sale of the bonds, with due regard, however, for the 23 continued funding under AS 46.03.032 of the categories of projects identified in 24 AS 46.03.032(d). Decisions of the committee, as expressed in a bond resolution, are 25 final and are conclusively considered to comply with the requirements of AS 37.15.560 - 26 37.15.605 and AS 46.03.032. 27 (f) A bond resolution may provide that the bonds issued must contain a recital 28 that they are issued under AS 37.15.560 - 37.15.605 and AS 46.03.032, and a bond 29 containing this recital is conclusively considered to be valid and to have been issued in 30 conformity with AS 37.15.560 - 37.15.605 and AS 46.03.032. 31 Sec. 37.15.573. BOND RESOLUTION. The committee shall authorize the
01 issuance of bonds by adopting a resolution and shall prepare all other documents and 02 proceedings necessary for the issuance, sale, and delivery of the bonds or any part or 03 series of them. The bond resolution must fix the principal amount, denominations, date, 04 maturities, manner of sale, place or places of payment, rights of redemption, if any, 05 terms, form, conditions, and covenants of the bonds or each series of them. A bond 06 resolution may state terms, conditions, amounts, and other limitations on loans to be 07 made from the Alaska clean water fund (AS 46.03.032) from the relevant bond proceeds. 08 Sec. 37.15.575. STATE AID INTERCEPT. If a municipality is in default on 09 the payment of principal or interest on a loan from the Alaska clean water fund 10 (AS 46.03.032), the committee may provide written notice of default to the state agency 11 that is the custodian of money that is payable to the municipality. If the committee 12 determines to provide notice, a separate written notice shall be given in each instance of 13 default. Notwithstanding any other provision of law, at any time after receipt of written 14 notice of default, the agency head shall withhold payment of the money from the 15 municipality. The agency head shall pay over the withheld money to the committee for 16 deposit in the Alaska clean water fund for the purpose of paying or securing the principal 17 and interest on the loan. 18 Sec. 37.15.580. PLEDGE OF THE STATE. The state pledges to and agrees 19 with the holders of bonds issued by the committee under AS 37.15.560 - 37.15.605 and 20 AS 46.03.032 that the state will not limit or alter the rights and powers vested in the 21 committee by AS 37.15.560 - 37.15.605 and AS 46.03.032 to fulfill the terms of any 22 contract made by the committee with the holders, or in any way impair the rights and 23 remedies of the holders until the principal amount of the bonds, together with the interest 24 on them with interest on unpaid installments of interest, are fully met and discharged. 25 The committee may include this pledge and agreement of the state in a contract with the 26 holders. 27 Sec. 37.15.583. ENFORCEMENT BY BONDOWNER. (a) The owner or 28 owners of not less than 10 percent of the aggregate principal amount of any series or 29 issue of bonds or the trustee for the owners of the bonds or any series of them may, by 30 appropriate proceedings in state court, require and compel the transfer, setting aside, and 31 payment of money and the enforcement of all of the terms, conditions, and covenants as
01 required and provided in AS 37.15.560 - 37.15.605, AS 46.03.032, and the bond 02 resolution. 03 (b) A proceeding under (a) of this section may be commenced and conducted 04 only in the Superior Court for the State of Alaska, First Judicial District at Juneau. 05 Sec. 37.15.585. AMOUNTS REQUIRED FOR PAYMENTS. The committee 06 shall, before June 30 of each year or from time to time within the year, as appropriate, 07 commencing with the year in which the bonds are issued, certify to the commissioners 08 of revenue and environmental conservation the amounts required in the current fiscal 09 year and the next ensuing fiscal year by the bond resolution or resolutions to be paid out 10 of the Alaska clean water fund into the bond redemption fund and to be paid into and 11 maintained in any reserve fund or account or other fund or account created by the bond 12 resolution or resolutions, and shall also certify to the commissioners the last date or dates 13 upon which payments may be made. 14 Sec. 37.15.587. PURPOSES AND SUFFICIENCY OF REVENUE. The 15 proceeds of bonds may be used for the purposes described in AS 46.03.032(d). Bonds 16 may not be issued unless the committee first finds that revenue to be derived from 17 repayment of loans from the Alaska clean water fund will be sufficient, together with 18 other available money, to comply with all the covenants of the bond resolutions. 19 Sec. 37.15.590. REFUNDING. (a) The committee may refund the bonds or any 20 part of them at or before their maturities or redemption dates by the issuance of 21 refunding revenue bonds of the state if, in the opinion of the committee, refunding is 22 advantageous to and in the best interests of the state and its inhabitants. 23 (b) The issuance of refunding bonds need not be authorized by the voters of the 24 state or by an act of the legislature. The committee shall adopt the resolution or 25 resolutions and prepare all other documents and proceedings necessary for the issuance, 26 exchange or sale, and delivery of the refunding. All provisions of AS 37.15.560 - 27 37.15.605 and AS 46.03.032 applicable to revenue bonds are applicable to the refunding 28 bonds and to the issuance, sale, or exchange of them, except as otherwise provided in 29 this section. 30 (c) Refunding bonds may be issued in a principal amount sufficient to provide 31 money for the advance or current refunding of all bonds to be refunded and interest on
01 the refunded bonds and, in addition, for the payment of all costs of issuance and 02 administration of the refunding bonds. These expenses also include the difference in 03 amount between the par value of the refunding bonds and any amount less than par for 04 which the refunding bonds are sold; the premium, if any, necessary to be paid in order 05 to call or retire the outstanding bonds and the interest accruing on them to date of the 06 call or retirement; and other such costs. The committee is authorized to incur such 07 expenses. 08 (d) The committee may contract with a refunding trustee to hold the proceeds 09 of refunding bonds in trust until the proceeds, together with earnings on the proceeds, 10 are applied to pay the principal of, premium, if any, and interest on the bonds to be 11 refunded. Until the refunding bond proceeds are applied, the proceeds may be invested 12 in direct obligations of, or obligations guaranteed by, the United States or an agency or 13 corporation of the United States whose obligations constitute direct obligations of, or 14 obligations guaranteed by, the United States. 15 Sec. 37.15.595. BONDS AS LEGAL INVESTMENTS. The bonds are legal 16 investments for all banks, trust companies, savings banks, savings and loan associations, 17 and other persons carrying on a banking business, all insurance companies and other 18 persons carrying on an insurance business, and all executors, administrators, trustees, and 19 other fiduciaries. The bonds may be accepted as security for deposits of all money of 20 the state and its political subdivisions. 21 Sec. 37.15.603. REGULATIONS. The committee may adopt regulations 22 necessary to implement the provisions of AS 37.15.560 - 37.15.605. 23 Sec. 37.15.605. DEFINITIONS. In AS 37.15.560 - 37.15.605, 24 (1) "bond redemption fund" means the Alaska clean water fund revenue 25 bond redemption fund established in AS 37.15.565; 26 (2) "bond resolution" means the resolution or resolutions adopted by the 27 committee under AS 37.15.573 authorizing the issuance of bonds; 28 (3) "bonds" means the Alaska clean water fund revenue bonds authorized 29 in AS 37.15.560 - 37.15.605; 30 (4) "commissioner of revenue" means the principal executive officer of 31 the Department of Revenue as provided in AS 44.25.010, or a successor;
01 (5) "commissioner of environmental conservation" means the principal 02 executive officer of the Department of Environmental Conservation as provided in 03 AS 44.46.010, or a successor; 04 (6) "committee" means the state bond committee created in AS 37.15.110 05 or any other committee, body, department, or officer of the state that succeeds to the 06 rights, powers, duties, and obligations of the state bond committee by lawful act of the 07 legislature; 08 (7) "costs of issuance and administration" means all costs associated with 09 issuance and administration of Alaska clean water fund revenue bonds and refunding 10 bonds, including costs of bond printing, official statements, financial advisors, travel 11 costs, rating agencies, bond insurance, letters and lines of credit for credit enhancement, 12 underwriters, legal services, paying agents, bond registrars, bond and escrow trustees, 13 arbitrage rebate, and all other costs, including administrative costs, both direct and 14 indirect. 15 * Sec. 3. AS 46.03.032(a) is amended to read: 16 (a) There is established as a separate fund the Alaska clean water fund, which 17 is distinct from any other money or fund in the treasury, and which consists of money 18 appropriated by the legislature to meet federal matching requirements, federal 19 capitalization grants, loan repayments, interest received from loan repayments, [AND] 20 interest received from investment of money in the Alaska clean water fund, and the 21 proceeds and accrued interest received from the sale of revenue bonds issued under 22 AS 37.15.560 - 37.15.605 and secured by the Alaska clean water fund. Separate 23 accounts may be created in the Alaska clean water fund. The accounts may be 24 combined for purposes of investment. 25 * Sec. 4. AS 46.03.032(b) is amended to read: 26 (b) The department shall administer the Alaska clean water fund consistent with 27 the requirements of this section and AS 37.15.560 - 37.15.605. 28 * Sec. 5. AS 46.03.032(c) is amended to read: 29 (c) The department may accept and make use of all capitalization grants 30 provided by the federal government under 33 U.S.C. 1251 - 1387 (the federal Clean 31 Water Act), as amended [BY P.L. 100-4].
01 * Sec. 6. AS 46.03.032(d) is repealed and reenacted to read: 02 (d) Except as otherwise limited by federal law, the Alaska clean water fund may 03 be used 04 (1) for the following categories of projects: 05 (A) planning, designing, building, constructing, and rehabilitating 06 a public wastewater collection, treatment, or discharge system; 07 (B) implementing a management program for controlling water 08 pollution from nonpoint sources under 33 U.S.C. 1329, including planning, 09 designing, building, constructing, and rehabilitating a solid waste management 10 system; and 11 (C) developing and implementing an estuary conservation and 12 management program under 33 U.S.C. 1330; 13 (2) to provide the following types of financial assistance for the 14 categories of projects listed in (1) of this subsection: 15 (A) making loans to municipalities and other qualified entities; 16 (B) buying or refinancing the debt obligations of a municipality 17 or other qualified entity; 18 (C) providing collateral security for or purchasing insurance for 19 a municipal or other qualified entity debt obligation; and 20 (3) to pay and secure the payment of the principal of and interest on 21 revenue bonds issued by the state and to pay the costs of issuance and administration of 22 the bonds, so long as the proceeds of the bond sale are deposited in the Alaska clean 23 water fund. 24 * Sec. 7. AS 46.03.032(f) is repealed and reenacted to read: 25 (f) The department 26 (1) may spend money from the Alaska clean water fund to pay the costs 27 of 28 (A) administering the fund; and 29 (B) the department in conducting activities under this section and 30 AS 37.15.560 - 37.15.605, including the costs of issuance and administration as 31 defined in AS 37.15.605;
01 (2) shall spend money from the Alaska clean water fund to pay 02 (A) into the bond redemption fund (AS 37.15.565), and into any 03 other bond redemption fund or account created by a relevant bond resolution, the 04 amount certified by the state bond committee under AS 37.15.585; and 05 (B) the costs of the state bond committee in conducting activities 06 under this section and AS 37.15.560 - 37.15.605, including the costs of issuance 07 and administration as defined in AS 37.15.605. 08 * Sec. 8. AS 46.03.032(g) is amended to read: 09 (g) A municipality or other qualified entity wishing to borrow money from the 10 Alaska clean water fund shall demonstrate to the satisfaction of the department that it 11 [THE MUNICIPALITY] 12 (1) has sufficient legal authority to incur the debt for which it is 13 applying; and 14 (2) will establish and maintain a dedicated source of revenue or other 15 acceptable revenue source for repayment of the loan and sufficient reserves for the 16 loan as may be necessary. 17 * Sec. 9. AS 46.03.032(j) is amended to read: 18 (j) Except as necessary to comply with the covenants of a bond resolution 19 under AS 37.15.573, a [A] loan made by the department shall be made according to the 20 standards, criteria, and procedures established by regulations under this section. A loan 21 made from the Alaska clean water fund may be subject to the state aid intercept 22 provisions of AS 37.15.575. Except as necessary to comply with the covenants of 23 a bond resolution under AS 37.15.573, in [IN] making a loan from the Alaska clean 24 water fund for a solid waste management system [FACILITY], the department shall give 25 priority to a project that will alleviate severe health or environmental concerns in the 26 community or region proposing the system [FACILITY]. In addition, the department 27 may consider 28 (1) the extent of local or regional support for the proposed system 29 [FACILITY]; and 30 (2) the extent to which the applicant can demonstrate that the full range 31 of solid waste management options has been reasonably considered and that the proposed
01 system [FACILITY] is consistent with the promotion of the solid and hazardous waste 02 management practices established in AS 46.06.021 [IN THE FOLLOWING ORDER OF 03 PRIORITY: 04 (A) WASTE SOURCE REDUCTION; 05 (B) RECYCLING OF WASTE; 06 (C) WASTE TREATMENT; AND 07 (D) WASTE DISPOSAL]. 08 * Sec. 10. AS 46.03.032(k) is amended to read: 09 (k) The department shall prepare reports required by the federal government in 10 conjunction with federal capitalization grant award conditions. The department shall 11 also prepare reports and notices, including notices of default, required by the state 12 bond committee in conjunction with bonds issued under AS 37.15.560 - 37.15.605. 13 The department shall also prepare a biennial report on the Alaska clean water fund and 14 notify the legislature that it is available on or before the first day of each first regular 15 session of the legislature. 16 * Sec. 11. AS 46.03.032(o) is amended to read: 17 (o) In this section, 18 (1) "other qualified entity" means an intermunicipal or interstate 19 agency as those terms are used in 33 U.S.C. 1383, and may include an authority, 20 corporation, instrumentality, enterprise, or other entity formed through an 21 agreement between a municipality and one or more other governmental entities 22 under AS 29.35.010(13) or under art. X, sec. 13, Constitution of the State of 23 Alaska, or between a municipality and a regional housing authority under 24 AS 18.55.996(b); 25 (2) "solid waste management system [FACILITY]" includes capital 26 improvements and equipment used for the purpose of solid and hazardous waste source 27 reduction, recycling, treatment, or disposal. 28 * Sec. 12. AS 46.03.032 is amended by adding a new subsection to read: 29 (p) Regulations adopted by the department under this section that would affect 30 issuance or repayment of revenue bonds under AS 37.15.560 - 37.15.605 may not be 31 inconsistent with those statutes or with regulations adopted by the state bond
01 committee under those statutes. To the extent that regulations adopted by the 02 department are inconsistent with AS 37.15.560 - AS 37.15.605, with regulations 03 adopted by the state bond committee under those statutes, or with the covenants of a 04 bond resolution adopted under AS 37.15.573, the provisions of AS 37.15.560 - 05 37.15.605, the regulations adopted under those statutes, and the covenants of the bond 06 resolution govern. 07 * Sec. 13. The provisions of AS 37.15.583(b), enacted by sec. 2 of this Act, have the effect 08 of changing Rule 3, Alaska Rule of Civil Procedure by limiting, to the Superior Court for the 09 State of Alaska, First Judicial District at Juneau, the venue district in which a proceeding 10 under AS 37.15.583(a), enacted by sec. 2 of this Act, may be commenced and conducted. 11 * Sec. 14. The provisions of AS 37.15.583(b), enacted by sec. 2 of this Act, take effect 12 only if sec. 13 of this Act receives the two-thirds majority vote of each house required by 13 art. IV, sec. 15, Constitution of the State of Alaska.