00                            HOUSE BILL NO. 191                                                                          
01 "An Act authorizing financing for certain public transportation projects; giving notice                                 
02 of and approving the entry into, and the issuance of revenue obligations that provide                                   
03 participation in, lease-financing agreements for those transportation projects; and                                     
04 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 state take full advantage of                                
09 innovative financing methods recognized by the Federal Highway Administration.  The                                     
10 legislature intends that the revenue obligations issued under this Act will be repaid from                              
11 appropriations of federal money derived from annual apportionments paid to the state by the                             
12 Federal Highway Administration.                                                                                         
13    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
14 read:                                                                                                                 

01       TRANSPORTATION PROJECT ALLOCATION.  The Department of Transportation                                              
02 and Public Facilities shall allocate the net proceeds derived from the sale of revenue                                  
03 obligations authorized in sec. 5 of this Act for construction or acquisition of the Glenn                               
04 Highway, Gambell Street to McCarrey Street, transportation project.                                                     
05    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                 
07       DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS.  The                                                      
08 Department of Transportation and Public Facilities is delegated the Department of                                       
09 Administration's authority under AS 36.30.085 to enter into lease-financing agreements in                               
10 connection with the issuance of revenue obligations to finance the state transportation project                         
11 described in sec. 2 of this Act.                                                                                        
12    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       LEASE-FINANCING PAYMENTS.  (a)  The lease payments owed under lease-                                              
15 financing agreements executed under sec. 3 of this Act are subject to annual appropriation by                           
16 the legislature.                                                                                                        
17       (b)  The legislature intends that federal money in the form of apportionments from the                            
18 Federal Highway Administration for federal highway grants will provide enough revenue to                                
19 the general fund to make substantially all of the lease payments; however, if that revenue                              
20 source is insufficient, the payments may be made from any other valid revenue source, subject                           
21 to appropriation.                                                                                                       
22    * Sec. 5.  The uncodified law of the State of Alaska is amended by adding a new section to                         
23 read:                                                                                                                   
24       NOTICE OF ENTRY INTO AND FINANCING OF REVENUE OBLIGATIONS.                                                        
25 (a)  Subject to annual appropriation, the Department of Transportation and Public Facilities is                         
26 authorized to enter into lease-financing agreements for the issuance of revenue obligations for                         
27 the state transportation project described in sec. 2 of this Act.                                                       
28       (b)  The state bond committee is authorized to provide for the issuance of revenue                                
29 obligations in one or more series in the aggregate principal amount of $58,365,000 for the                              
30 costs of construction of the project described in sec. 2 of this Act.  The principal amount                             
31 includes the estimated cost of $56,000,000 for constructing, acquiring, and equipping the                               

01 project described in sec. 2 of this Act; capitalized interest payments in the total amount of                           
02 $1,635,000; and an amount for the cost of issuing the revenue obligations of $730,000.  The                             
03 estimated annual amount of rental obligations under the lease-financing agreements is                                   
04 $5,600,000.  The estimated total lease payments for the full term of the lease-financing                                
05 agreements is $92,530,000.  Payment of principal and interest on revenue bonds issued under                             
06 this subsection is subject to annual appropriation.                                                                     
07       (c)  The state bond committee may contract for credit enhancement, underwriting,                                  
08 credit ratings, bond counsel, financial advisor, printing, and trustee services that the                                
09 committee considers necessary in financing the project described in sec. 2 of this Act.                                 
10       (d)  In this section,                                                                                             
11            (1)  "costs of construction" includes credit enhancement and underwriting                                    
12 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee                         
13 fees, capitalized interest, and interest earnings used for lease payments; and                                          
14            (2)  "revenue obligation" means a certificate of participation in the right to                               
15 receive a payment under a lease-financing agreement made to finance the costs of                                        
16 construction or acquisition of a state transportation project.                                                          
17    * Sec. 6.  The uncodified law of the State of Alaska is amended by adding a new section to                         
18 read:                                                                                                                   
19       NOTICE AND APPROVAL OF AGREEMENTS.  Section 5 of this Act constitutes                                             
20 the notice and approval of lease-financing agreements to finance the transportation project                             
21 described in sec. 2 this Act that is required by AS 36.30.085.                                                          
22    * Sec. 7.  This Act takes effect July 1, 2001.