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HB 122: "An Act excluding buildings used primarily for office space from the Housing Project and Public Building Assistance Act, restricting state ownership of buildings used primarily for office space, and providing for the disposal of state ownership interests in certain state buildings used primarily for office space; and providing for an effective date."

00HOUSE BILL NO. 122 01 "An Act excluding buildings used primarily for office space from the Housing 02 Project and Public Building Assistance Act, restricting state ownership of buildings 03 used primarily for office space, and providing for the disposal of state ownership 04 interests in certain state buildings used primarily for office space; and providing 05 for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 18.55.288(3) is amended to read: 08  (3) "public building" means a publicly owned structure leased to the 09 state for governmental, public, or educational use , but does not include a building 10 that is used primarily for office space . 11 * Sec. 2. AS 23.20.130(d) is amended to read: 12  (d) The training and building fund consists of all interest and penalties 13 collected under AS 23.20.185, 23.20.190, and 23.20.195 and all sums recovered on 14 official bond for losses sustained by the fund. Training and building fund money shall

01 be deposited in the clearing account of the unemployment compensation fund for 02 clearance only, and does not become a part of the fund. The unobligated amount in 03 the training and building fund in excess of $100,000 on the close of business of the 04 30th day following the last day of each fiscal year shall be transferred within 20 days 05 to this state's account in the unemployment trust fund. The fund shall be included in 06 the budget submitted to the legislature under AS 37.07 (Executive Budget Act). Funds 07 available in the training and building fund shall be expended upon the direction of the 08 department, with the approval of the governor, when it appears to the governor that the 09 expenditure is necessary for but not limited to 10  (1) the proper administration of this chapter if no federal funds are 11 available for the specific purpose for which the expenditure is to be made [,] and if the 12 funds are not substituted for appropriations from federal funds that would be made 13 available in the absence of those funds; 14  (2) the proper administration of this chapter [,] if appropriations from 15 federal funds have been requested but not yet received [,] and the training and building 16 fund will be reimbursed upon receipt of the requested federal appropriation; 17  (3) the purposes specified in AS 23.15.611 [; 18  (4) THE PURPOSES SPECIFIED IN AS 23.20.075]. 19 * Sec. 3. AS 35.27.020(c) is amended to read: 20  (c) At least one percent or, in the case of a rural school facility, at least one- 21 half of one percent of the construction cost of a building or facility approved for construction 22 by the legislature after September 1, 1977, will be reserved for the following purposes: the 23 design, construction, mounting , and administration of works of art in a school, [OFFICE 24 BUILDING,] court building, vessel of the marine highway system, or other building or facility 25 that [WHICH] is subject to substantial public use. 26 * Sec. 4. AS 35.27.030(1) is amended to read: 27  (1) "building" or "facility" means a permanent improvement constructed 28 by the department; the term 29  (A) includes, but is not limited to, 30  (i) schools [, OFFICE BUILDINGS,] and court 31 buildings;

01  (ii) other buildings that [WHICH] the commissioner 02 determines are designed for substantial public use; 03  (iii) boats and vessels of the marine highway system; 04  (iv) transportation facilities that [WHICH] accommodate 05 traveling passengers; 06  (B) excludes other transportation facilities; 07 * Sec. 5. AS 36.30.005(b) is amended to read: 08  (b) Except as otherwise provided, all rights, powers, duties, and authority 09 relating to the procurement of construction and procurements of equipment or services 10 for the state equipment fleet and the control over construction of state facilities and the 11 state equipment fleet vested in or exercised by an agency on January 1, 1988, are 12 transferred to the commissioner of transportation and public facilities, subject to 13 regulations adopted by the commissioner of administration. Notwithstanding other 14 provisions of law, the commissioner of transportation and public facilities may not 15 procure or exercise control over construction of a building that will be used 16 primarily for office space. Notwithstanding AS 44.68.110, authority relating to 17 disposals from the state equipment fleet is vested in the commissioner of transportation 18 and public facilities, subject to regulations adopted by the commissioner of 19 administration. Authority granted under this subsection shall be exercised in 20 accordance with this chapter. 21 * Sec. 6. AS 36.30.085(a) is amended to read: 22  (a) To perform its duties and statutory functions, the department, the Board of 23 Regents of the University of Alaska, the legislative council, or the supreme court may 24 enter into lease-purchase agreements. The department, the Board of Regents, the 25 legislative council, or the supreme court may enter into a lease-purchase agreement 26 only if the department, the Board of Regents, the legislative council, or the supreme 27 court is the lessee under the agreement. Notwithstanding the foregoing, the 28 department may not enter into a lease-purchase agreement for a building that is 29 or will be used primarily for office space. 30 * Sec. 7. AS 44.68.120(a) is amended to read: 31  (a) The Department of Administration may

01  (1) acquire from the United States under the [THE] Federal Property 02 and Administrative Services Act of 1949 , as amended, referred to in AS 44.68.120 - 03 44.68.140 as the "Federal Act," and other applicable federal statutes and regulations, 04 (63 Stat. 377 et seq., 40 U.S.C.A. 471 et seq.) property under the control of a 05 department or agency of the United States that is usable and necessary for purposes 06 of education (including educational activities that [WHICH] are of special interest to 07 the armed services), public health or civil defense, and other purposes authorized by 08 federal law , except that the department may not acquire property that is primarily 09 used or will be primarily used for office space ; 10  (2) warehouse property acquired under (a)(1) of this section; and 11  (3) distribute the property to tax-supported medical institutions, 12 hospitals, clinics, health centers, school systems, colleges, schools, and universities in 13 the state, to other nonprofit medical institutions, hospitals, clinics, health centers, 14 schools, colleges , and universities exempt from taxation under Sec. 501(c)(3) of the 15 United States Internal Revenue Code of 1954, including future amendments, to civil 16 defense organizations of the state established under state law, to organizations or 17 institutions engaged in educational activities that [WHICH] are of special interest to 18 the armed services, and to other types of institutions or activities eligible under federal 19 law to acquire the property. 20 * Sec. 8. AS 44.68 is amended by adding a new section to read: 21 Article 6. General Provisions. 22  Sec. 44.68.350. State ownership of office building restricted. (a) 23 Notwithstanding other provisions of law, the state may not acquire an ownership 24 interest in a building that is used primarily for office space. If a building in which the 25 state has an ownership interest is converted to a building that is used primarily for 26 office space, the state shall sell or otherwise dispose of its interest in the building 27 within two years after the conversion is completed. 28  (b) This section does not apply to 29  (1) the state capitol; or 30  (2) a building owned by or under the control of 31  (A) the judicial branch;

01  (B) the legislative branch; 02  (C) the University of Alaska; or 03  (D) a public corporation of the state. 04 * Sec. 9. DISPOSAL AND LEASE OF CERTAIN STATE OFFICE BUILDINGS. (a) 05 Within two years after the effective date of this Act, the state shall sell or otherwise dispose 06 of its ownership interest in any building that is primarily used for office space. This 07 subsection does not apply to 08 (1) the state capitol; or 09 (2) a building owned by or under the control of 10 (A) the judicial branch; 11 (B) the legislative branch; 12 (C) the University of Alaska; 13 (D) a public corporation of the state. 14 (b) The state may lease space in a building that has been disposed of under (a) of this 15 section for an initial period of up to five years and with up to three options to extend the 16 lease. Each option may provide for an extension of up to five years. AS 36.30 does not 17 apply to a lease agreement or to an option to extend a lease agreement entered into under this 18 subsection. 19 (c) Proceeds from disposals under (a) of this section shall be separately accounted for 20 and may be appropriated to the Alaska permanent fund. 21 * Sec. 10. AS 23.20.075 and AS 35.40.110 are repealed. 22 * Sec. 11. This Act takes effect July 1, 1999.