00                SENATE CS FOR 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 $11,705,800.  Of that amount, it is the intent of the legislature that                                                  
11            (1)  $11,595,800 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; and                                    
13            (2)  $110,000 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.                                       

01    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03       NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE-                                                       
04 PURCHASE AGREEMENT.  (a)  Subject to annual appropriation, the Department of                                            
05 Administration is authorized to enter into a lease-purchase agreement for a seafood and food                            
06 safety laboratory facility to be constructed under the lease-purchase agreement and to be                               
07 operated by the Department of Environmental Conservation.                                                               
08       (b)  The state bond committee is authorized to provide for the issuance of certificates                           
09 of participation in one or more series in the aggregate principal amount of $11,595,800 for the                         
10 construction of a seafood and food safety laboratory facility under the lease-purchase                                  
11 agreement authorized in (a) of this section.  The remaining balance of the construction and                             
12 equipping costs shall be paid from investment income of $110,000 earned on the proceeds of                              
13 the sale of the certificates of participation.  The estimated total cost of construction,                               
14 acquisition, and other costs of the project is $11,705,800.  The estimated annual amount of                             
15 rental obligations under the lease-purchase agreement is $913,000.  The estimated total lease                           
16 payments for the full term of the lease-purchase agreement is $18,525,000.  In this subsection,                         
17 "cost of construction" includes credit enhancement and underwriting expenses, rating agency                             
18 fees, bond counsel fees, financial advisor fees, printing fees, advertising fees, capitalized                           
19 interest, and interest earnings used for lease payments.                                                                
20       (c)  The state bond committee may contract for credit enhancement, underwriting,                                  
21 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that                       
22 the committee considers necessary in financing the project described in this section.                                   
23    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
24 read:                                                                                                                   
25       APPROVAL OF AGREEMENT.  Section 2 of this Act constitutes the approval                                            
26 required by AS 36.30.085.                                                                                               
27    * Sec. 4.  This Act takes effect March 1, 2003.