SCS CSHB 281(FIN): "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, public housing facilities of the Alaska Housing Finance Corporation, 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."
00SENATE CS FOR CS FOR HOUSE BILL NO. 281(FIN) 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, public housing facilities of the 09 Alaska Housing Finance Corporation, and facilities for ports and harbors; 10 providing for the creation of subsidiary corporations of the Alaska Housing 11 Finance Corporation for the purpose of financing or facilitating the financing of 12 public school construction, facilities for the University of Alaska, and facilities for 13 ports and harbors; and providing for an effective date." 14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
01 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 02 section to read: 03 INTENT. (a) In connection with the authorization contained in sec. 10(b) of this Act, 04 the legislature restates and reaffirms its intent as expressed in sec. 1, ch. 129, SLA 1998, that 05 the sum of withdrawals for repayment of bonds under sec. 10(b) of this Act and for all other 06 purposes described in sec. 1, ch. 129, SLA 1998, should not exceed the Alaska Housing 07 Finance Corporation's net income for the preceding fiscal year, which the Alaska Housing 08 Finance Corporation projects to be $103,000,000 for each of the fiscal years beginning with 09 2000 through 2008, for a total during that nine-year period of $927,000,000. 10 (b) It is the intent of the legislature that the portion of the revenue that is not sold to 11 the Alaska Housing Finance Corporation under sec. 9(a) of this Act be deposited into the 12 general fund, and that at least $1,400,000 of the amount deposited in the general fund be used 13 for smoking education and cessation programs administered by the state. 14 * Sec. 2. AS 14.11.100(a) is amended to read: 15 (a) During each fiscal year, the state shall allocate to a municipality that is a 16 school district the following sums: 17 (1) payments made by the municipality during the fiscal year two years 18 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 19 indebtedness incurred before July 1, 1977, to pay costs of school construction; 20 (2) 90 percent of 21 (A) payments made by the municipality during the fiscal year 22 two years earlier for the retirement of principal and interest on outstanding 23 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 24 July 1, 1978, to pay costs of school construction; 25 (B) cash payments made after June 30, 1976, and before July 1, 26 1978, by the municipality during the fiscal year two years earlier to pay costs 27 of school construction; 28 (3) 90 percent of 29 (A) payments made by the municipality during the fiscal year 30 two years earlier for the retirement of principal and interest on outstanding 31 bonds, notes, or other indebtedness incurred after June 30, 1978, and before
01 January 1, 1982, to pay costs of school construction projects approved under 02 AS 14.07.020(a)(11); 03 (B) cash payments made after June 30, 1978, and before July 1, 04 1982, by the municipality during the fiscal year two years earlier to pay costs 05 of school construction projects approved under AS 14.07.020(a)(11); 06 (4) subject to (h) and (i) of this section, up to 90 percent of 07 (A) payments made by the municipality during the current fiscal 08 year for the retirement of principal and interest on outstanding bonds, notes, or 09 other indebtedness incurred after December 31, 1981, and authorized by the 10 qualified voters of the municipality before July 1, 1983, to pay costs of school 11 construction, additions to schools, and major rehabilitation projects that exceed 12 $25,000 and are approved under AS 14.07.020(a)(11); 13 (B) cash payments made after June 30, 1982, and before July 1, 14 1983, by the municipality during the fiscal year two years earlier to pay costs 15 of school construction, additions to schools, and major rehabilitation projects 16 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 17 (C) payments made by the municipality during the current fiscal 18 year for the retirement of principal and interest on outstanding bonds, notes, or 19 other indebtedness to pay costs of school construction, additions to schools, and 20 major rehabilitation projects that exceed $25,000 and are submitted to the 21 department for approval under AS 14.07.020(a)(11) before July 1, 1983, and 22 approved by the qualified voters of the municipality before October 15, 1983, 23 not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of 24 average daily membership of the municipality is more than 7 percent but less 25 than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily 26 membership of the municipality is 12 percent or more; payments made by a 27 municipality under this subparagraph on total project costs that exceed the 28 amounts set out in (i) and (ii) of this subparagraph are subject to (5)(A) of this 29 subsection; 30 (5) subject to (h) - (j) of this section, 80 percent of 31 (A) payments made by the municipality during the fiscal year
01 for the retirement of principal and interest on outstanding bonds, notes, or other 02 indebtedness authorized by the qualified voters of the municipality 03 (i) after June 30, 1983, but before March 31, 1990, to 04 pay costs of school construction, additions to schools, and major 05 rehabilitation projects that exceed $25,000 and are approved under 06 AS 14.07.020(a)(11); or 07 (ii) before July 1, 1989, and reauthorized before 08 November 1, 1989, to pay costs of school construction, additions to 09 schools, and major rehabilitation projects that exceed $25,000 and are 10 approved under AS 14.07.020(a)(11); and 11 (B) cash payments made after June 30, 1983, by the 12 municipality during the fiscal year two years earlier to pay costs of school 13 construction, additions to schools, and major rehabilitation projects that exceed 14 $25,000 and are approved by the department before July 1, 1990, under 15 AS 14.07.020(a)(11); 16 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 17 made by the municipality during the fiscal year for the retirement of principal and 18 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 19 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 20 costs of school construction, additions to schools, and major rehabilitation projects that 21 exceed $200,000 and are approved under AS 14.07.020(a)(11); 22 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 23 made by the municipality during the fiscal year for the retirement of principal and 24 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 25 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 26 costs of school construction, additions to schools, and major rehabilitation projects; 27 (8) subject to (h), (i), (j)(2) - (4), and (n) of this section and after 28 projects funded by the bonds, notes, or other indebtedness have been approved by the 29 commissioner, 70 percent of payments made by the municipality during the fiscal year 30 for the retirement of principal and interest on outstanding bonds, notes, or other 31 indebtedness authorized by the qualified voters of the municipality on or after July 1,
01 1995, but before July 1, 1998, to pay costs of school construction, additions to schools, 02 and major rehabilitation projects that exceed $200,000 and are approved under 03 AS 14.07.020(a)(11); 04 (9) subject to (h), (i), (j), and (n) of this section and after projects 05 funded by the bonds, notes, or other indebtedness have been approved by the 06 commissioner, 70 percent of payments made by the municipality during the fiscal year 07 for the retirement of principal and interest on outstanding bonds, notes, or other 08 indebtedness authorized by the qualified voters of the municipality on or after July 1, 09 1998, but before July 1, 2004, to pay costs of school construction, additions to 10 schools, and major rehabilitation projects that exceed $200,000 and are approved under 11 AS 14.07.020(a)(11) ; 12 (10) subject to (h), (i), (j), and (p) of this section, and after projects 13 funded by the bonds, notes, or other indebtedness have been approved by the 14 commissioner, 70 percent of payments made by the municipality during the fiscal 15 year for the retirement of principal and interest on outstanding bonds, notes, or 16 other indebtedness authorized by the qualified voters of the municipality on or 17 after June 30, 1998, to pay costs of school construction, additions to schools, and 18 major rehabilitation projects that exceed $200,000, are approved under 19 AS 14.07.020(a)(11), and are not reimbursed under (n) of this section . 20 * Sec. 3. AS 14.11.100(h) is amended to read: 21 (h) An allocation under (a)(4), (5), (6), (7), (8), [OR] (9) , or (10) of this 22 section for school construction begun after July 1, 1982, shall be reduced by the 23 amount of money used for the construction of residential space, hockey rinks, 24 planetariums, saunas, and other facilities for single purpose sporting or recreational 25 uses that are not suitable for other activities and by the money used for construction 26 that exceeds the amount needed for construction of a facility of efficient design as 27 determined by the department. An allocation under (a)(4), (5), (6), (7), (8), [OR] (9) , 28 or (10) of this section may not be reduced by the amount of money used for 29 construction of a small swimming pool, tank, or water storage facility used for water 30 sports. However, an allocation shall be reduced by the difference between the amount 31 of money used to construct a swimming pool that exceeds the standards adopted by
01 the department and the amount of money that would have been used to construct a 02 small swimming pool, tank, or water storage facility, as determined by the 03 commissioner. 04 * Sec. 4. AS 14.11.100(i) is amended to read: 05 (i) For the purposes of (a)(4) - (10) [(9)] of this section, 06 (1) an indebtedness for bonds is incurred after the bonds are sold; 07 (2) reimbursement for a cash payment may only be made after the 08 payment is made to a vendor; and 09 (3) payments may not be made for costs that are incurred under a 10 contract after the contract has been released. 11 * Sec. 5. AS 14.11.100(j) is amended to read: 12 (j) Except as provided in (l) of this section, the state may not allocate money 13 to a municipality for a school construction project under (a)(5), (6), (7), [OR] (9) , or 14 (10) of this section unless the municipality complies with the requirements of (1) - (4) 15 of this subsection, the project is approved by the commissioner before the local vote 16 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 17 or before April 30, 1993, the bonds are approved by the commissioner before 18 reimbursement by the state, and the local vote occurs before July 1, 1987, or after June 19 30, 1988. In approving a project under this subsection, and to the extent required under 20 (a)(8) of this section, the commissioner shall require 21 (1) the municipality to include on the ballot for the bond issue, for 22 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 23 total cost of each project including estimated total interest, estimated annual operation 24 and maintenance costs, the estimated amounts that will be paid by the state and by the 25 municipality, and the approximate amount that would be due in annual taxes on 26 $100,000 in assessed value to retire the debt; 27 (2) that the bonds may not be refunded unless the annual debt service 28 on the refunding issue is not greater than the annual debt service on the original issue; 29 (3) that the bonds must be repaid in approximately equal annual 30 principal payments or approximately equal debt service payments over a period of at 31 least 10 years;
01 (4) the municipality to demonstrate need for the project by establishing 02 that the school district has 03 (A) projected long-term student enrollment that indicates the 04 district has inadequate facilities to meet present or projected enrollment; 05 (B) facilities that require repair or replacement in order to meet 06 health and safety laws or regulations or building codes; 07 (C) demonstrated that the project will result in a reduction in 08 annual operating costs that economically justifies the cost of the project; or 09 (D) facilities that require modification or rehabilitation for the 10 purpose of improving the instructional program. 11 * Sec. 6. AS 14.11.100 is amended by adding a new subsection to read: 12 (p) The total amount of school construction projects approved for 13 reimbursement by the department under (a)(10) of this section 14 (1) may not exceed $151,019,000; and 15 (2) after June 30, 1998, and until July 1, 2004, shall be allocated as 16 follows: 17 (A) $77,897,000 to projects in a municipality with a public 18 school enrollment of 25,000 or more students in fiscal year 2000, as determined 19 under AS 14.17.500; 20 (B) $14,571,000 to projects in a municipality with a public 21 school enrollment of at least 15,000 but less than 25,000 students in fiscal year 22 2000, as determined under AS 14.17.500; 23 (C) $14,143,000 to projects in a municipality with a public 24 school enrollment of at least 10,000 but less than 15,000 students in fiscal year 25 2000, as determined under AS 14.17.500; 26 (D) $7,429,000 to projects in a municipality with a public 27 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 28 2000, as determined under AS 14.17.500; 29 (E) $7,717,000 to projects in a municipality with a public 30 school enrollment of at least 5,000 but less than 7,500 students in fiscal year 31 2000, as determined under AS 14.17.500;
01 (F) $2,660,000 to projects in a municipality with a public school 02 enrollment of at least 2,750 but less than 3,000 students in fiscal year 2000, as 03 determined under AS 14.17.500. 04 (G) $454,000 to projects in a municipality with a public school 05 enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as 06 determined under AS 14.17.500; 07 (H) $22,790,000 to projects in a municipality with a public 08 school enrollment of at least 2,050 but less than 2,400 students in fiscal year 09 2000, as determined under AS 14.17.500; 10 (I) $329,000 to projects in a municipality with a public school 11 enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as 12 determined under AS 14.17.500; 13 (J) $286,000 to projects in a municipality with a public school 14 enrollment of at least 650 but less than 725 students in fiscal year 2000, as 15 determined under AS 14.17.500; 16 (K) $519,000 to projects in a municipality with a public school 17 enrollment of at least 500 but less than 525 students in fiscal year 2000, as 18 determined under AS 14.17.500; 19 (L) $2,224,000 to projects in a municipality with a public 20 school enrollment of at least 425 but less than 482 students in fiscal year 2000, 21 as determined under AS 14.17.500. 22 * Sec. 7. AS 18.56 is amended by adding a new section to read: 23 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 24 subsidiary corporations for the purpose of financing or facilitating the financing of 25 school construction, facilities for the University of Alaska, or facilities for ports and 26 harbors. A subsidiary corporation created under this section may be incorporated 27 under AS 10.20.146 - 10.20.166. The corporation may transfer assets of the 28 corporation to a subsidiary created under this section. A subsidiary created under this 29 section may borrow money and issue bonds as evidence of that borrowing and has all 30 the powers of the corporation that the corporation grants to it. Unless otherwise 31 provided by the corporation, the debts, liabilities, and obligations of a subsidiary
01 corporation created under this section are not the debts, liabilities, or obligations of the 02 corporation. 03 * Sec. 8. AS 29.60 is amended by adding a new section to read: 04 Article 9. Reimbursement for Costs of Bonds. 05 Sec. 29.60.700. Reimbursement for costs of ports and harbors. (a) Subject 06 to appropriations for the purpose, during each fiscal year, the Department of 07 Transportation and Public Facilities shall allocate to each municipality an amount to 08 reimburse the costs paid by the municipality during the fiscal year two years earlier 09 for the retirement of principal and interest on outstanding general obligation bonds for 10 projects listed in (b) of this section. An allocation may be made to a municipality only 11 if 12 (1) the general obligation bonds were issued after July 1, 2000, and 13 before July 1, 2003; 14 (2) the port or harbor facility financed with the bond proceeds is 15 located in the municipality and the facility is owned and operated by the municipality; 16 (3) ownership of the port or harbor facility financed with the bond 17 proceeds has been transferred from the state to the municipality by a transfer 18 agreement under AS 35.10.120; and 19 (4) the state has completed a bill of sale transferring the port or harbor 20 facility from the state to the municipality. 21 (b) The Department of Transportation and Public Facilities may make an 22 allocation to a municipality under (a) of this section only for reimbursement of costs 23 incurred for the following port and harbor facility construction and renovation projects 24 and only for reimbursement of total project costs incurred up to the following amounts: 25 PROJECT 26 Ketchikan $ 7,000,000 27 Petersburg 3,300,000 28 Sitka 4,038,900 29 Klawock 860,000 30 Seldovia 2,500,000 31 Whittier 1,835,600
01 Valdez 3,013,500 02 Cordova 4,337,800 03 Nome 1,000,000 04 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 07 commissioner of revenue is authorized to sell to the Alaska Housing Finance Corporation the 08 right to receive 40 percent annually of the revenue derived from the settlement of State of 09 Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915CI (Alaska Super. 1997). 10 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 11 this section are anticipated to be at least $93,000,000. 12 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 BOND AUTHORIZATION AND PROVISIONS. (a) Notwithstanding the limitation 15 in AS 18.56.090 or other provisions of law, the Alaska Housing Finance Corporation or a 16 subsidiary corporation created under AS 18.56.086 is authorized to issue revenue bonds in 17 principal amounts sufficient to acquire the right to receive revenue described in sec. 9 of this 18 Act from the commissioner of revenue at a price agreed upon by the Alaska Housing Finance 19 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 20 of the Alaska Housing Finance Corporation or of the subsidiary corporation secured solely by 21 the right to receive revenue sold to the Alaska Housing Finance Corporation under sec. 9 of 22 this Act, and the Alaska Housing Finance Corporation or the subsidiary corporation may 23 include in agreements with the bondholders a pledge of the right to receive that revenue and 24 the promise of the state to honor that pledge. 25 (b) In addition to the authorization provided by (a) of this section, and notwithstanding 26 the limitation contained in AS 18.56.090 or other provisions of law, the Alaska Housing 27 Finance Corporation is authorized to issue an amount of bonds sufficient to finance 28 construction of public school facilities, facilities for the University of Alaska, public housing 29 facilities of the Alaska Housing Finance Corporation, and facilities for ports and harbors 30 described under (e)(2) of this section. The bonds issued under this subsection are secured 31 solely by the revenue of the Alaska Housing Finance Corporation.
01 (c) Bonds issued under (b) of this section may be further secured by a capital reserve 02 fund described in AS 18.56.125. AS 18.56.110 - 18.56.190 apply to bonds issued under this 03 section. 04 (d) Subject to agreements with bondholders and appropriation as described in (e) of 05 this section, the Alaska Housing Finance Corporation shall make the proceeds of the bonds 06 issued under 07 (1) (a) of this section available to the Department of Education and Early 08 Development to pay for expenditures described in (e)(1) of this section, including 09 reimbursement to the Department of Education and Early Development for the expenditures; 10 and 11 (2) (b) of this section available to the 12 (A) University of Alaska to pay for expenditures described in (e)(2)(A) 13 of this section, including reimbursement to the University of Alaska for the 14 expenditures; 15 (B) Department of Transportation and Public Facilities to pay for 16 expenditures described in (e)(2)(B) of this section, including reimbursement to the 17 Department of Transportation and Public Facilities for the expenditures; and 18 (C) Department of Education and Early Development to pay for 19 expenditures authorized in (e)(2)(C) of this section; and 20 (D) Alaska Housing Finance Corporation to pay for public housing 21 facilities described under (e)(2)(D) of this section. 22 (e) Subject to appropriation, the proceeds of bonds issued under 23 (1) (a) of this section shall be used by the Department of Education and Early 24 Development to pay for construction, renovation, and improvement of public schools as 25 follows: 26 PROJECT 27 Lower Yukon - Pilot Station School Replacement $17,654,000 28 Lower Yukon - Kotlik School Replacement 17,911,000 29 Kashunamiut - Chevak School Replacement 28,273,000 Bering Strait Schools 30 Elim School, Phase III 12,147,000 31 Southwest Region Schools
01 Manokotak School Replacement 14,689,000 02 Kake - Elementary School Addition 2,237,000 03 __________ 04 TOTAL $92,911,000 05 (2) (b) of this section shall be used by the 06 (A) University of Alaska to pay for construction and renovation of 07 university facilities as follows: 08 PROJECT 09 University of Alaska - Southeast 10 Deferred Maintenance, Renewal and Replacement, $ 1,388,000 11 Code Compliance 12 Classroom Building 5,500,000 13 University of Alaska - Anchorage 14 Consortium Library 34,000,000 15 Deferred Maintenance, Renewal and Replacement, 2,200,000 16 Code Compliance 17 University of Alaska - Fairbanks 18 Deferred Maintenance, Renewal and Replacement, 18,700,000 19 Code Compliance __________ 20 TOTAL $ 61,788,000 21 (B) Department of Transportation and Public Facilities to pay for 22 construction and renovation of port and harbor facilities as follows: 23 PROJECT 24 CORPS OF ENGINEERS MATCH 25 Program Formulation 100,000 26 Ketchikan Harbor Study 200,000 27 Wrangell 500,000 28 Metlakatla - Tamgass 850,000 29 Ouzinkie 1,300,000 30 Seward Harbor Expansion 2,925,000 31 Perryville Harbor Feasibility 102,000
01 TOTAL $ 5,977,000 02 (C) Department of Education and Early Development to pay for 03 construction of vocational education facilities as follows: 04 PROJECT 05 AVTEC - Seward $ 4,200,000 06 Student Housing 07 (D) Alaska Housing Finance Corporation to pay for renovation and 08 deferred maintenance of corporation facilities as follows: 09 PROJECT 10 AHFC Chugach View Renovation $2,000,000 11 (Anchorage Senior Units) 12 AHFC Eyak Manor Renovation 1,600,000 13 (Cordova) 14 AHFC Senior and Statewide Facility Deferred Maintenance 800,000 15 and Renovation _________ 16 TOTAL $4,400,000 17 GRAND TOTAL $169,276,000 18 * Sec. 11. This Act takes effect July 1, 2000.