CSHB 51(FIN): "An Act giving notice of and approving the entry into and the issuance of certificates of participation for a lease-purchase agreement for a seafood and food safety laboratory facility; relating to the use of certain investment income for certain construction costs; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 51(FIN) 01 "An Act giving notice of and approving the entry into and the issuance of certificates of 02 participation for a lease-purchase agreement for a seafood and food safety laboratory 03 facility; relating to the use of certain investment income for certain construction costs; 04 and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 INTENT. It is the intent of the legislature that the amount of money to be used for the 09 construction and equipping of a new seafood and food safety laboratory facility is 10 $12,788,000. Of that amount, it is the intent of the legislature that 11 (1) $11,600,000 shall come from the proceeds of the certificates of 12 participation to be issued by the state bond committee under sec. 2 of this Act; 13 (2) $878,000 shall come from the investment income earned on the proceeds 14 of the sale of the certificates of participation described in sec. 2 of this Act; and
01 (3) $310,000 shall come from the general fund for nonbondable costs. 02 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE- 05 PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of 06 Administration is authorized to enter into a lease-purchase agreement for a seafood and food 07 safety laboratory facility to be constructed under the lease-purchase agreement and to be 08 operated by the Department of Environmental Conservation. 09 (b) The state bond committee is authorized to provide for the issuance of certificates 10 of participation in one or more series in the aggregate principal amount of $11,600,000 for the 11 construction of a seafood and food safety laboratory facility under the lease-purchase 12 agreement authorized in (a) of this section. The remaining balance of the construction and 13 equipping costs shall be paid from the other money sources described in sec. 1 of this Act, 14 including investment income of $878,000 earned on the proceeds of the sale of the certificates 15 of participation. The estimated total cost of construction, acquisition, and other costs of the 16 project is $12,788,000. The estimated annual amount of rental obligations under the lease- 17 purchase agreement is $1,000,000. The estimated total lease payments for the full term of the 18 lease-purchase agreement is $20,400,000. In this subsection, "cost of construction" includes 19 credit enhancement and underwriting expenses, rating agency fees, bond counsel fees, 20 financial advisor fees, printing fees, advertising fees, capitalized interest, and interest earnings 21 used for lease payments. 22 (c) The state bond committee may contract for credit enhancement, underwriting, 23 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that 24 the committee considers necessary in financing the project described in this section. 25 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 APPROVAL OF AGREEMENT. Section 2 of this Act constitutes the approval 28 required by AS 36.30.085. 29 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).