CSHB 281(FIN) AM: "An Act relating to the financing of construction of public school facilities, facilities for the University of Alaska, and facilities for ports and harbors; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a certain tobacco litigation settlement to the Alaska Housing Finance Corporation; relating to the deposit of certain anticipated revenue from a certain tobacco litigation settlement; authorizing the issuance of bonds by the Alaska Housing Finance Corporation with proceeds to finance public school construction, facilities for the University of Alaska, and facilities for ports and harbors; providing for the creation of subsidiary corporations of the Alaska Housing Finance Corporation for the purpose of financing or facilitating the financing of public school construction, facilities for the University of Alaska, and facilities for ports and harbors; and providing for an effective date."
00CS FOR HOUSE BILL NO. 281(FIN) am 01 "An Act relating to the financing of construction of public school facilities, 02 facilities for the University of Alaska, and facilities for ports and harbors; 03 authorizing the commissioner of revenue to sell the right to receive a portion of 04 the anticipated revenue from a certain tobacco litigation settlement to the Alaska 05 Housing Finance Corporation; relating to the deposit of certain anticipated revenue 06 from a certain tobacco litigation settlement; authorizing the issuance of bonds by 07 the Alaska Housing Finance Corporation with proceeds to finance public school 08 construction, facilities for the University of Alaska, and facilities for ports and 09 harbors; providing for the creation of subsidiary corporations of the Alaska 10 Housing Finance Corporation for the purpose of financing or facilitating the 11 financing of public school construction, facilities for the University of Alaska, and 12 facilities for ports and harbors; and providing for an effective date." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 14 * Section 1. The uncodified law of the State of Alaska is amended by adding a new
01 section to read: 02 INTENT. (a) In connection with the authorization contained in sec. 4(b) of this Act, 03 the legislature restates and reaffirms its intent as expressed in sec. 1, ch. 129, SLA 1998, that 04 the sum of withdrawals for repayment of bonds under sec. 4(b) of this Act and for all other 05 purposes described in sec. 1, ch. 129, SLA 1998, should not exceed the Alaska Housing 06 Finance Corporation's net income for the preceding fiscal year, which the Alaska Housing 07 Finance Corporation projects to be $103,000,000 for each of the fiscal years beginning with 08 2000 through 2008, for a total during that nine-year period of $927,000,000. 09 (b) It is the intent of the legislature that the sale of a portion of the revenue derived 10 from tobacco settlement litigation described under sec. 3(a) of this Act result in funding of 11 $1,400,000 annually for smoking education and cessation programs administered by the state. 12 It is also the intent of the legislature that tobacco settlement revenues that are determined by 13 the commissioner of revenue to be in excess of those needed to pay planned debt service on 14 tobacco bonds be deposited into the general fund. 15 * Sec. 2. AS 18.56 is amended by adding a new section to read: 16 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 17 subsidiary corporations for the purpose of financing or facilitating the financing of 18 school construction, facilities for the University of Alaska, or facilities for ports and 19 harbors. A subsidiary corporation created under this section may be incorporated 20 under AS 10.20.146 - 10.20.166. The corporation may transfer assets of the 21 corporation to a subsidiary created under this section. A subsidiary created under this 22 section may borrow money and issue bonds as evidence of that borrowing and has all 23 the powers of the corporation that the corporation grants to it. Unless otherwise 24 provided by the corporation, the debts, liabilities, and obligations of a subsidiary 25 corporation created under this section are not the debts, liabilities, or obligations of the 26 corporation. 27 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 28 to read: 29 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 30 commissioner of revenue is authorized to sell to the Alaska Housing Finance Corporation the 31 right to receive all but $1,400,000 annually of the revenue derived from the settlement of State
01 of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915CI (Alaska Super. 1997) up to 02 the amount needed to yield $269,000,000 in proceeds from bonds sold at investment grade 03 rates. In this subsection, "investment grade rates" means a Moody's Investor Service rating 04 of Baa3 or better or a Standard and Poors and Fitch IBCA rating of BBB- or better. 05 (b) The proceeds of the sale of the right to receive revenue sold under (a) of this 06 section are anticipated to be $269,000,000. 07 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 BOND AUTHORIZATION AND PROVISIONS. (a) Notwithstanding the limitation 10 in AS 18.56.090 or other provisions of law, the Alaska Housing Finance Corporation or a 11 subsidiary corporation created under AS 18.56.086 is authorized to issue revenue bonds in 12 principal amounts sufficient to acquire the right to receive revenue described in sec. 3 of this 13 Act from the commissioner of revenue at a price agreed upon by the Alaska Housing Finance 14 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 15 of the Alaska Housing Finance Corporation or of the subsidiary corporation secured solely by 16 the right to receive revenue sold to the Alaska Housing Finance Corporation under sec. 3 of 17 this Act, and the Alaska Housing Finance Corporation or the subsidiary corporation may 18 include in agreements with the bondholders a pledge of the right to receive that revenue and 19 the promise of the state to honor that pledge. 20 (b) In addition to the authorization provided by (a) of this section, and notwithstanding 21 the limitation contained in AS 18.56.090 or other provisions of law, the Alaska Housing 22 Finance Corporation is authorized to issue an amount of bonds sufficient to finance 23 construction of public school facilities, facilities for the University of Alaska, public housing 24 facilities of the Alaska Housing Finance Corporation, and facilities for ports and harbors 25 described under 4(e) of this section. The bonds issued under this subsection are secured solely 26 by the revenue of the Alaska Housing Finance Corporation. 27 (c) Bonds issued under this section may be further secured by a capital reserve fund 28 described in AS 18.56.125. AS 18.56.110 - 18.56.190 apply to bonds issued under this 29 section. 30 (d) Subject to agreements with bondholders and appropriation as described in (e) of 31 this section, the Alaska Housing Finance Corporation shall make the proceeds of the bonds
01 issued under (a) of this section available to the 02 (1) Department of Education and Early Development to pay for expenditures 03 described in (e)(1) of this section, including reimbursement to the Department of Education 04 and Early Development for the expenditures; 05 (2) University of Alaska to pay for expenditures described in (e)(2) of this 06 section, including reimbursement to the University of Alaska for the expenditures; and 07 (3) Department of Transportation and Public Facilities to pay for expenditures 08 described in (e)(3) of this section, including reimbursement to the Department of 09 Transportation and Public Facilities for the expenditures. 10 (e) Subject to appropriation and (f) of this section, the proceeds of bonds issued under 11 (a) of this section shall be used by the 12 (1) Department of Education and Early Development to pay for construction, 13 renovation, and improvement of public elementary and secondary schools as follows: 14 PROJECT 15 Petersburg - Fascia/Soffit Repair/Replacement $ 112,960 16 Kake City - Kake Elementary School Addition 2,237,460 17 Juneau Schools 18 Auke Bay Elementary Roof Replacement 653,842 19 Marie Drake Roof Replacement 599,501 20 Harborview Elementary Gym Roof Replacement 106,604 21 High School Heating/Ventilation 65,303 22 High School Auxiliary Gym Floor Replacement 109,386 23 Floyd Dryden School Gym Floor 108,236 24 Gastineau Elementary Heating Coil Replacement 133,053 25 Floyd Dryden Middle School Renovation 3,629,683 26 Kodiak Island Schools 27 Peterson Elementary Addition 756,000 28 Kodiak High School 1,106,875 29 Kenai/Soldotna Schools 30 McNeil Elementary Wastewater Plant 225,300 31 Kenai Central High School Reinsulate Exterior Walls 367,648
01 Anchorage Schools 02 Bartlett High School, Phase I 3,500,000 03 Eagle River/Chugiak High School 14,563,500 04 East High School, Phase I 7,295,400 05 Service High School, Phase I 4,998,000 06 Wendler Middle School, Phase I 4,231,500 07 Denali Elementary, Replacement 8,211,000 08 District Wide Projects/Major Maintenance 11,730,600 09 Matanuska-Susitna Schools 10 Matanuska-Susitna - Fire Alarm System - Five Schools 620,648 11 Matanuska-Susitna - Colony High School Septic System 159,416 12 Matanuska-Susitna - Fuel Tank Replacement 126,261 13 Matanuska-Susitna - Fire Sprinklers and Piping (3) 1,381,770 14 Matanuska-Susitna - Boiler/Heater Replacement 221,051 15 - Four Schools 16 Matanuska-Susitna - Carpet Replacement - six schools 423,507 17 Fairbanks North Star Borough Schools 18 District Wide Projects/Major Maintenance 750,000 19 Lower Yukon - Pilot Station School Replacement 17,654,003 20 Lower Yukon - Kotlik School Replacement 17,910,901 21 Kashunamiut - Chevak School Replacement 28,272,551 Northwest Arctic Schools 22 Ambler K-12 Improvements 924,586 23 Kiana K-12 Improvements 1,395,000 24 Noorvik K-12 Improvements 17,528,378 25 Bering Strait Schools 26 Elim School, Phase III 12,146,788 27 Southwest Region Schools 28 Manokotak School Replacement 14,689,464 29 Pribilof Island - St. George School Remodel 4,385,970 30 Lake and Peninsula - Pedro Bay School 1,557,714 31 Renovation/Relocation/Reconstruction __________
01 TOTAL $184,889,859 02 (2) University of Alaska to pay for construction and renovation of university 03 facilities as follows: 04 PROJECT 05 University of Alaska - Southeast 06 Deferred Maintenance, Renewal and Replacement, $1,687,854 07 Code Compliance 08 Classroom Building 7,600,000 09 University of Alaska - AVTEC Seward 10 Student Housing 4,200,000 11 University of Alaska - Anchorage 12 Consortium Library 36,000,000 13 Deferred Maintenance, Renewal and Replacement, 4,220,000 14 Code Compliance 15 Matanuska-Susitna Ortner Building Replacement 685,000 16 University of Alaska - Fairbanks 17 Deferred Maintenance, Renewal and Replacement, 25,199,054 18 Code Compliance __________ 19 TOTAL $79,591,908 20 (3) Department of Transportation and Public Facilities to pay for construction 21 and renovation of port and harbor facilities as follows: 22 PROJECT 23 Ketchikan $ 7,000,000 24 Petersburg 3,300,000 25 Sitka 4,038,900 26 Juneau Area Harbors 27 Auke Bay Harbor 492,325 28 Douglas Dock/Harbor 1,241,421 29 Taku Harbor 38,566 30 Klawock 860,000 31 Seldovia 2,500,000
01 Whittier 1,835,600 02 Valdez 3,013,500 03 Cordova 4,337,800 04 Nome 1,000,000 05 CORPS OF ENGINEERS MATCH 06 Program Formulation 100,000 07 Ketchikan Harbor Study 200,000 08 Wrangell 500,000 09 Kake 404,000 10 Metlakatla - Tamgass 850,000 11 Ouzinkie 1,300,000 12 Seward Harbor Expansion 2,925,000 13 Perryville Harbor Feasibility 102,100 14 TOTAL $36,039,212 15 GRAND TOTAL $300,520,979 16 (f) Funds may not be expended for a port or harbor facility described in (e)(3) of this 17 section unless 18 (1) the port or harbor facility is located in a municipality in which the port or 19 harbor facility is owned and operated by the municipality; 20 (2) ownership of the port or harbor facility that is being funded has been 21 transferred from the state to the municipality by a transfer agreement under AS 35.10.120; and 22 (3) the state completes a bill of sale transferring the port or harbor facility from 23 the state to the municipality. 24 * Sec. 5. This Act takes effect July 1, 2000.