HB 235: "An Act relating to the Alaska Railroad; authorizing the Alaska Railroad Corporation to provide for the acquisition, construction, improvement, maintenance, equipping, and operation of facilities for the transportation and distribution of natural gas, propane air, and manufactured gas within and outside the state; authorizing the Alaska Railroad Corporation to issue bonds to finance certain public utility service facilities; and providing for an effective date."
00 HOUSE BILL NO. 235 01 "An Act relating to the Alaska Railroad; authorizing the Alaska Railroad Corporation 02 to provide for the acquisition, construction, improvement, maintenance, equipping, and 03 operation of facilities for the transportation and distribution of natural gas, propane air, 04 and manufactured gas within and outside the state; authorizing the Alaska Railroad 05 Corporation to issue bonds to finance certain public utility service facilities; and 06 providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 FINDINGS, INTENT, AND PURPOSE. (a) The Alaska State Legislature finds that 11 (1) the Alaska Railroad Corporation is uniquely suited to serve essential 12 functions of the state by providing for financing and operation of facilities for the 13 transportation and distribution of certain gas products within and outside the state;
01 (2) providing financing for the facilities furthers the purposes of both the state 02 and the Alaska Railroad Corporation by assuring that the state's natural gas resources will be 03 transported to their appropriate markets and that Alaskans will have access to gas products, 04 thus creating revenue for the Alaska Railroad Corporation and for the state and providing 05 employment opportunities for residents of the state; 06 (3) these results are essential purposes of the state, and the achievement of 07 these purposes is critical to the health and welfare of the state. 08 (b) A purpose of this Act is to clarify the statutory functions and powers of the Alaska 09 Railroad Corporation by expressly including the power to provide financing for and operation 10 of facilities for the transportation and distribution of natural gas, propane air, and 11 manufactured gas. 12 (c) It is the intent of the legislature that 13 (1) this Act be construed broadly to permit the Alaska Railroad Corporation 14 the greatest flexibility to accomplish the purpose described in (b) of this section within the 15 limitations set out in this Act; and 16 (2) other provisions of AS 42.40 in existence before the enactment of this Act 17 be similarly construed to complement the provisions of this Act. 18 * Sec. 2. AS 42.40.250 is amended by adding a new paragraph to read: 19 (31) provide financing for the acquisition, construction, improvement, 20 maintenance, equipping, and operation of facilities for the transportation and 21 distribution of natural gas, propane air, or manufactured gas within and outside the 22 state without regard to whether the facilities may be owned in whole or in part by the 23 corporation or located on land owned by the corporation, and provide for the operation 24 of those facilities by the corporation or others. 25 * Sec. 3. AS 42.40.630 is amended by adding a new subsection to read: 26 (b) Before issuing bonds to provide the financing described in 27 AS 42.40.250(31) for a facility to be owned in whole or in part by an entity other than 28 the corporation, the corporation shall enter into a contract, lease, or other form of 29 agreement that will, in the judgment of the corporation, provide sufficient 30 consideration to 31 (1) pay the principal of and interest on the bonds as they become due;
01 (2) create and maintain the reserves for the payments that the 02 corporation considers necessary or desirable; and 03 (3) pay all costs necessary to service or additionally secure the bonds, 04 including trustee's fees and bond insurance premiums, unless these costs are to be paid 05 by a party other than the corporation. 06 * Sec. 4. AS 42.40 is amended by adding a new section to read: 07 Sec. 42.40.695. Public purpose of bonds. Bonds of the corporation issued to 08 finance facilities described in AS 42.40.250(31) are issued by a public corporation and 09 an instrumentality of the state for an essential public and governmental purpose. 10 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 LEGISLATIVE AUTHORIZATION AND APPROVAL. (a) Subject to the 13 requirements of AS 42.40.630(b), enacted by sec. 3 of this Act, the Alaska Railroad 14 Corporation is authorized to issue bonds under the power granted to it in AS 42.40 to finance 15 the acquisition, design, construction, inventory, and operation of facilities to provide natural 16 gas, propane air, or manufactured gas public utility service under Regulatory Commission of 17 Alaska Certificate of Public Convenience and Necessity No. 572 to the unified municipalities 18 of Juneau and Sitka, the boroughs of Haines, Ketchikan, Kodiak, and Yakutat, the cities of 19 Angoon, Cordova, Craig, Kake, Klawock, Petersburg, Skagway, Valdez, and Wrangell, and 20 the communities of Klukwan and Metlakatla. The maximum principal amount of bonds that 21 the Alaska Railroad Corporation may issue under this section is $76,000,000. The Alaska 22 Railroad Corporation may issue the bonds in a single issuance or in several issuances, without 23 limitation as to number of issuances or timing, and as the Alaska Railroad Corporation 24 determines best furthers the purpose of financing the facilities described in this section. The 25 Alaska Railroad Corporation shall negotiate with the sponsors of the project and shall enter 26 into agreements with the sponsors to provide revenue sufficient to accomplish the purposes 27 described in AS 42.40.630. 28 (b) This section constitutes the approval required by AS 42.40.285 for the issuance of 29 the bonds described in this section. 30 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).