CSSB 248(FIN): "An Act relating to the financing authority, payment in lieu of tax agreements, and tax exemption for assets and projects of the Alaska Industrial Development and Export Authority; relating to renaming and contingently repealing the rural development initiative fund within the Department of Community and Economic Development, and establishing the rural development initiative fund within the Alaska Industrial Development and Export Authority; and providing for an effective date."
00CS FOR SENATE BILL NO. 248(FIN) 01 "An Act relating to the financing authority, payment in lieu of tax agreements, 02 and tax exemption for assets and projects of the Alaska Industrial Development 03 and Export Authority; relating to renaming and contingently repealing the rural 04 development initiative fund within the Department of Community and Economic 05 Development, and establishing the rural development initiative fund within the 06 Alaska Industrial Development and Export Authority; and providing for an 07 effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 29.45.050 is amended by adding a new subsection to read: 10 (p) A municipality may by ordinance partially or totally exempt from taxation 11 a private leasehold, contract, or other interest held by or through an applicant or 12 proposed applicant in any property, assets, project, or development project owned by 13 the Alaska Industrial Development and Export Authority under AS 44.88. Nothing in 14 this subsection prohibits a municipality from entering into an agreement and receiving
01 payments in lieu of taxes authorized under AS 44.88.140(b). 02 * Sec. 2. AS 44.33.765(a) is amended to read: 03 (a) The rural economic development initiative fund is created in the 04 department. Unless provided otherwise in the appropriation act, an appropriation to the 05 fund is retained in the fund for use under AS 44.33.765 - 44.33.775 and does not lapse 06 at the end of a fiscal year. Each year the commissioner shall request an appropriation 07 to the fund of interest and other income earned on loans or investments of the fund. 08 Money in the fund may be appropriated for costs of administering AS 44.33.765 - 09 44.33.775. 10 * Sec. 3. AS 44.33.770(a) is amended to read: 11 (a) The department may use money from the rural economic development 12 initiative fund to make a loan of up to $100,000 to a person, or a loan of up to 13 $200,000 to two or more persons, to be used for working capital, equipment, 14 construction, or other commercial purposes by a business located in a community with 15 a population of 5,000 or less. A person who has received a loan under this subsection 16 may not be granted another loan until after the original loan is entirely repaid. 17 * Sec. 4. AS 44.33.775 is amended to read: 18 Sec. 44.33.775. Disposal of property acquired by default or foreclosure. 19 The department shall dispose of property acquired through default or foreclosure of a 20 loan made from the rural economic development initiative fund. Disposal shall be 21 made in a manner that serves the best interests of the state, and may include the 22 amortization of payments over a period of years. The commissioner shall request an 23 appropriation to the fund of proceeds from disposal of property under this section. 24 * Sec. 5. AS 44.88.095(g) is amended to read: 25 (g) Before July 1, 2003 [JULY 1, 2000], the authority may issue bonds in an 26 amount greater than $10,000,000 to assist in the financing of a development project 27 under AS 44.88.172 - 44.88.177 only with legislative approval. Beginning July 1, 28 2003 [JULY 1, 2000], and thereafter, without prior legislative approval, the authority 29 may not issue bonds, except refunding and conduit revenue bonds. 30 * Sec. 6. AS 44.88.140(a) is amended to read: 31 (a) Except as provided in AS 29.45.030(a)(1), the real and personal property
01 of the authority and its assets, income, and receipts are declared to be the property of 02 a political subdivision of the state and, together with any project or development 03 project financed under AS 44.88.155 - 44.88.159 or 44.88.172 - 44.88.177, and a 04 leasehold interest created in a project or development project financed under 05 AS 44.88.155 - 44.88.159 or 44.88.172 - 44.88.177, devoted to an essential public and 06 governmental function and purpose, and the property, assets, income, receipts, project, 07 development project, and leasehold interests shall be exempt from all taxes and special 08 assessments of the state or a political subdivision of the state, including, without 09 limitation, all boroughs, cities, municipalities, school districts, public utility districts, 10 and other taxing units. All bonds of the authority are declared to be issued by a 11 political subdivision of the state and for an essential public and governmental purpose 12 and to be a public instrumentality, and the bonds, and the interest on them, the income 13 from them and the transfer of the bonds, and all assets, income, and receipts pledged 14 to pay or secure the payments of the bonds, or interest on them, shall at all times be 15 exempt from taxation by or under the authority of the state, except for inheritance and 16 estate taxes and taxes on transfers by or in contemplation of death. Nothing in this 17 section affects or limits an exemption from license fees, property taxes, or excise, 18 income, or any other taxes, provided under any other law . Except as provided in 19 AS 29.45.050(p), nothing in this section creates [, NOR DOES IT CREATE] a tax 20 exemption with respect to the interest of any business enterprise or other person, other 21 than the authority, in any property, assets, income, receipts, project, development 22 project, or lease whether or not financed under this chapter. By January 10 of each 23 year, the authority shall submit to the governor a report describing the nature and 24 extent of the tax exemption of the property, assets, income, receipts, project, 25 development project, and leasehold interests of the authority under this section. The 26 authority shall notify the legislature that the report is available. 27 * Sec. 7. AS 44.88.140(b) is amended to read: 28 (b) An [THE AUTHORITY MAY ENTER INTO AGREEMENTS WITH AN] 29 applicant or proposed applicant under this chapter and the local political subdivision 30 may enter into agreements providing for payments in lieu of taxes , computed on a 31 formula basis or otherwise [IN LIEU OF TAXES, WHICH THE AUTHORITY MAY
01 CONSIDER APPROPRIATE]. The agreement may provide that the payments be 02 made to the local political subdivision [OF THE STATE IN WHICH A PROJECT OR 03 DEVELOPMENT PROJECT IS OR IS TO BE LOCATED] or to any other taxing unit 04 of the state including, without limitation, a borough, city, municipality, school district 05 or public utility district, the area of which is coterminous in whole or in part with that 06 of the local political subdivision. 07 * Sec. 8. AS 44.88.140 is amended by adding a new subsection to read: 08 (d) In this section, "local political subdivision" means the political subdivision 09 of the state in which a project or development project financed under AS 44.88.155 - 10 44.88.159 or 44.88.172 - 44.88.177 is or is to be located. 11 * Sec. 9. AS 44.88 is amended by adding new sections to read: 12 Article 6A. Rural Development Initiative Fund. 13 Sec. 44.88.600. Rural development initiative fund. The rural development 14 initiative fund is created in the authority outside of the revolving fund. The rural 15 development initiative fund is a fund for the uses and purposes of AS 44.88.600 - 16 44.88.620. The rural development initiative fund consists of money or assets 17 appropriated or transferred to the authority for the purposes of this section, loan 18 repayments, interest or other income earned on loans or investments of the fund, and 19 other assets deposited into the fund by the authority. The assets transferred to the fund 20 by the authority may not exceed $2,000,000. The authority, in its discretion, may 21 transfer money or other assets from the rural development initiative fund to the 22 revolving fund. 23 Sec. 44.88.610. Rural development loans. (a) The authority may use money 24 from the rural development initiative fund to make a loan of up to $100,000 to a 25 person, or a loan of up to $200,000 to two or more persons, to be used for working 26 capital, equipment, construction, or other commercial purposes by a business located 27 in a community with a population of 5,000 or less. A person who has received a loan 28 under this subsection may not be granted another loan until after the original loan is 29 entirely repaid. 30 (b) The authority shall require collateral for each loan made under this section 31 and shall require that a reasonable amount of money from other nonstate sources be
01 committed for use on any project or enterprise for which money from a loan will be 02 used. The authority by regulation may establish other conditions for loans. The 03 authority shall by regulation establish rates of interest that are not less than six percent 04 a year and terms of repayment for loans made under this section. 05 Sec. 44.88.620. Disposal of property acquired by default or foreclosure. 06 The authority shall dispose of property acquired through default or foreclosure of a 07 loan made from the rural development initiative fund. Disposal shall be made in a 08 manner that serves the best interests of the authority, and may include the amortization 09 of payments over a period of years. Proceeds from the disposal of property under this 10 section shall be deposited into the fund. 11 * Sec. 10. AS 44.33.765, 44.33.770, and 44.33.775 are repealed. 12 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 TRANSITIONAL PROVISIONS. (a) Notwithstanding the repeal of AS 44.33.765, 15 44.33.770, and 44.33.775 by sec. 10 of this Act, regulations in effect immediately before the 16 effective date of sec. 10 of this Act that were issued or adopted under authority of 17 AS 44.33.765, 44.33.770, or 44.33.775 remain in effect and may be implemented and 18 enforced by the Alaska Industrial Development and Export Authority to implement the 19 provisions of AS 44.88.600 - 44.88.620, enacted by sec. 9 of this Act, until the Alaska 20 Industrial Development and Export Authority adopts regulations to implement AS 44.88.600 - 21 44.88.620. 22 (b) Wherever in AS 44.88.600 - 44.88.620 there is a reference to regulations adopted 23 under a section of law and there are no regulations adopted under that section because 24 previous regulations adopted under AS 44.33.765 - 44.33.775 are being enforced under (a) of 25 this section, the reference shall be construed to refer to the previously adopted regulations 26 until the Alaska Industrial Development and Export Authority adopts regulations to implement 27 AS 44.88.600 - 44.88.620. 28 (c) Contracts, rights, liabilities and obligations created by or under AS 44.33.765, 29 44.33.770, or 44.33.775, repealed by sec. 10 of this Act, and in effect on the day before the 30 effective date of sec. 10 of this Act, remain in effect notwithstanding this Act's taking effect. 31 (d) Amounts retained in the rural economic development initiative fund for use under
01 AS 44.33.765 - 44.33.775 lapse into the general fund on the effective date of sec. 10 of this 02 Act. 03 * Sec. 12. Section 5 of this Act takes effect June 30, 2000. 04 * Sec. 13. Sections 10 and 11 of this Act take effect only if the Alaska Industrial 05 Development and Export Authority purchases loans and other assets of the rural economic 06 development initiative fund (AS 44.33.765) as an investment for the Alaska Industrial 07 Development and Export Authority. 08 * Sec. 14. If secs. 10 and 11 of this Act take effect under sec. 13 of this Act, secs. 10 and 09 11 of this Act take effect on the day after the effective date of the purchase of the rural 10 economic development initiative fund loans and other assets by the Alaska Industrial 11 Development and Export Authority. The executive director of the Alaska Industrial 12 Development and Export Authority shall certify the effective date of the purchase to the 13 lieutenant governor and the revisor of statutes. 14 * Sec. 15. Except as provided in secs. 12 - 14 of this Act, this Act takes effect July 1, 15 2000.