HB 382: "An Act relating to international airports revenue bonds; and providing for an effective date."
00HOUSE BILL NO. 382 01 "An Act relating to international airports revenue bonds; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.15.120 is amended to read: 05 Sec. 37.15.120. Regulations. The state bond committee may adopt regulations 06 for the performance of its duties and , except as otherwise provided in this chapter, 07 may designate by resolution one of its members to perform any act necessary to 08 effectuate its duties not required by statute to be performed by the state bond 09 committee in meeting or by resolution, or by another officer of the state. 10 * Sec. 2. AS 37.15.410 is amended to read: 11 Sec. 37.15.410. Bond authorization. For the purpose of providing part or all 12 of the money to be used, with or without any grants or other money that may become 13 available, the issuance and sale of revenue bonds of the state in the total principal sum 14 of not to exceed $304,825,000 [$100,825,000] is authorized to acquire, equip,
01 construct, and install the additions, improvements, extensions, and facilities authorized 02 in AS 37.15.510. The principal of and interest on these bonds shall be paid out of and 03 secured by the gross revenue derived by the state from the ownership, lease, use, and 04 operation of the airports, and of all the facilities of them and out of any other revenue 05 or money that the state legislature may provide exclusive of any state tax or license. 06 * Sec. 3. AS 37.15.420(a) is amended to read: 07 (a) There is established a capital project fund known as the "International 08 Airports Construction Fund," into which shall be paid the proceeds of the sale of the 09 bonds (except any accrued interest paid on them or capitalized interest , which shall 10 be paid into the bond redemption fund) and grant or other money that is legally 11 provided for the same purposes for which the bonds are authorized. The money in the 12 construction fund shall be used to pay the costs of acquiring, equipping, constructing , 13 and installing additions and improvements to and extensions of and facilities for the 14 airports and costs incidental thereto, including costs of the authorization, issuance , and 15 sale of the bonds , and the costs of underwriting, credit enhancement, and 16 payments required under federal tax law . To the extent provided in the bond 17 resolution, money in the construction fund may also be used for the payment of 18 interest on the bonds during the period of actual construction, and for a further period, 19 not exceeding one year after the period of construction, that may be provided in the 20 bond resolution. Money in the construction fund may also be transferred to the bond 21 redemption fund, to the extent provided in the bond resolution, to establish a reserve 22 for the payment of the principal of and interest on the bonds. 23 * Sec. 4. AS 37.15.430(a) is amended to read: 24 (a) There is established an enterprise fund known as the "International Airports 25 Revenue Fund," into which shall be paid all revenue, fees, charges, and rentals derived 26 by the state from the ownership, lease, use, and operation of the airports and all of the 27 facilities and improvements of them and facilities and improvements used in 28 connection with them. The revenue, charges, fees, and rentals may not include the 29 proceeds of any state tax or license. The money in the revenue fund may only be used 30 for the purpose of 31 (1) paying or securing the payment of the principal , redemption
01 premiums, [OF AND] interest , and other payment obligations with respect to [ON] 02 the bonds and of and on any other revenue bonds issued by authorization of the 03 legislature to provide money to acquire, equip, construct, and install additions and 04 improvements to, and extensions of and facilities for, the airports, and to be payable 05 out of the revenue fund; 06 (2) paying the normal and necessary costs of maintaining and operating 07 the airports and all of the improvements and facilities of them; 08 (3) paying the costs of renewals, replacements, and extraordinary 09 repairs to the airports and all of the improvements and facilities of them; 10 (4) redeeming before their fixed maturities any and all revenue bonds 11 issued for the purposes of the airports; 12 (5) providing money to acquire, construct , and install necessary 13 additions and improvements to and extensions of and facilities for the airports and all 14 of their facilities; 15 (6) making payments required under federal tax law and bond 16 administration expenses; and 17 (7) [(6)] providing money to pay any and all other costs relating to the 18 ownership, use, and operation of the airports. 19 * Sec. 5. AS 37.15.450(a) is amended to read: 20 (a) The bonds may be sold at public or private sale in the manner, in the 21 amounts or series, and at the time or times that the committee determines. However, 22 the bonds, or each series of them, shall be sold at such a price so that the effective 23 interest rate over the life of the bonds does not exceed 11 percent per year or that rate 24 of interest that is 125 percent of the rate of the Bond Buyer Index of 20 Municipal 25 Bond Average Yields for the week previous to the date of sale of the bonds, whichever 26 is higher. Interest shall be payable for the period determined by the committee 27 [ANNUALLY OR SEMIANNUALLY]. 28 * Sec. 6. AS 37.15.450(b) is amended to read: 29 (b) The bonds mature at the time or times fixed by the committee. The bonds 30 may be subject to redemption before their fixed maturities as determined by the 31 committee and with a premium or premiums fixed by the committee[, BUT A BOND
01 IS NOT SUBJECT TO REDEMPTION BEFORE ITS FIXED MATURITY DATE 02 UNLESS THE RIGHT SO TO REDEEM THAT BOND IS EXPRESSLY 03 MENTIONED ON THE FACE OF THE BOND]. The bonds may be in denominations 04 determined by the committee; may be issued in coupon form or in fully registered 05 form, and may be registrable as to principal or both principal and interest, all under 06 regulations and conditions that the committee shall provide; shall be payable as to 07 principal and interest at such place or places as may be determined by the committee; 08 shall be signed on behalf of the state by the governor and shall be attested by the 09 lieutenant governor, both of which signatures may be facsimile signatures; shall have 10 the seal of the state impressed, printed , or lithographed on them, and each of the 11 interest coupons attached to them shall be signed by the facsimile signatures of these 12 officials; shall be issued under and subject to such terms, conditions , and covenants 13 providing for the payment of the principal of them and interest on them and such other 14 terms, conditions, covenants , and protective features safeguarding this payment and 15 relating to the maintenance, operation , and improvement of the airports as found 16 necessary by the committee, which covenants may include a provision requiring the 17 setting aside and maintenance of certain reserves to secure the payment of this 18 principal and interest. The committee may provide that any additional bonds 19 authorized after June 27, 1972 by the legislature to be payable out of the same source 20 or sources as the bonds authorized as of that date may later be issued on a parity with 21 the bonds authorized as of that date upon compliance with any conditions which the 22 committee may prescribe. The committee may provide for credit enhancement to 23 secure bonds issued under AS 37.15.410 - 37.15.550 and may enter into 24 agreements with the issuer of the credit enhancement under terms considered 25 advisable by the committee. 26 * Sec. 7. AS 37.15.460 is amended to read: 27 Sec. 37.15.460. Bond resolution. The committee shall adopt the bond 28 resolution and prepare all other documents and proceedings necessary for the issuance, 29 sale , and delivery of the bonds or any part or series of them. The bond resolution 30 must fix the maximum principal amount, denomination, [DATE,] maximum 31 maturities, maximum interest rates, place or places of payment, [RIGHTS OF
01 REDEMPTION, IF ANY, TERMS, FORM,] conditions , and covenants of the bonds 02 or each series of them and may authorize a designee to execute a trust agreement 03 with respect to the bonds . The committee shall also determine and provide for the 04 [DATE AND] manner of sale of the bonds, and shall provide whether the notice of 05 sale is to be published elsewhere in addition to [THE] publication as described in 06 AS 37.15.040 [REQUIRED BY AS 37.15.450]. 07 * Sec. 8. AS 37.15.550(7) is amended to read: 08 (7) "committee" means the state bond committee created by 09 AS 37.15.110, staff of the committee acting under authority delegated by the 10 committee, or any other committee, body, department or officer of the state which or 11 who succeeds to the rights, powers, duties and obligations of the state bond committee 12 by lawful Act of the legislature. 13 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).