00                      CS FOR HOUSE BILL NO. 495(FIN)                                                                    
01 "An Act allowing a joint action agency to encumber property interests for security                                      
02 purposes; declaring certain joint action agencies to be political subdivisions for certain                              
03 purposes; restricting the sale of property of the joint action agency; allowing the joint                               
04 action agency to transfer property to security interest holders under a security interest                               
05 or to other parties without legislative approval; and providing for an effective date."                                 
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1.  AS 42.45.310(c) is amended to read:                                                                  
08            (c)  The agency is a body corporate and politic and an instrumentality of the                                
09       public utilities that form the agency, but has a separate and independent legal                                   
10       existence from the public utilities.  A debt, obligation, or liability of the agency does                         
11       not constitute a debt, obligation, or liability of a public utility or the state.  A liability                    
12       incurred by the agency shall be satisfied exclusively from the assets or revenue of the                           
13       agency, and a creditor of the agency or any other person does not have any right of                               

01       action or claim against a public utility or the state, because of a debt, obligation, or                          
02       liability of the agency.  The agency has the powers of a public utility under AS 42.05                            
03       and the immunities of a public utility.  In addition to the powers granted to the agency                          
04       under AS 42.45.300 and this section, the agency has the power                                                     
05                 (1)  to adopt bylaws of the agency;                                                                     
06                 (2)  to sue and be sued;                                                                                
07                 (3)  to carry out the authorized purposes of the agency;                                                
08                 (4)  subject to (e) of this section, to issue revenue bonds and other                                   
09       obligations that are not obligations of either the state or the public utilities that are                         
10       parties to the agency agreement to provide financing to carry out the authorized                                  
11       purposes of the agency; [AND]                                                                                     
12                 (5)  in addition to the powers of eminent domain in AS 42.05.631, to                                    
13       exercise the powers of eminent domain and a declaration of taking to acquire land or                              
14       materials within the boundaries of the power project purchased by the agency from the                             
15       Alaska Energy Authority under the procedures set out in AS 09.55.240 - 09.55.460 to                               
16       carry out the authorized purposes of a joint action agency; and                                               
17                 (6)  to use facilities, projects, and related assets owned, leased, or                              
18       operated by the joint action agency as security for bonds, notes, mortgages, credit                           
19       enhancement devices, or other obligations.                                                                    
20    * Sec. 2.  AS 42.45.310(h) is amended to read:                                                                     
21            (h)  An agency formed by, and that continues to include, one or more                                         
22       municipal public utilities is a political subdivision for purposes of AS 38.05.810, and                       
23       functions as a political subdivision in the acquisition and ownership of the power                            
24       project under the agreement authorized by this section.  Except as provided in                                
25       this subsection, the agency is not a political subdivision of the state.                                      
26    * Sec. 3.  AS 42.45.310 is amended by adding new subsections to read:                                              
27            (j)  The agency may not sell a project owned by the agency to any purchaser                                  
28       without the approval of the legislature in advance of the effective date of the sale,                             
29       except that a sale made to a public utility that is a party to the agreement does not                             
30       require legislative approval.                                                                                     
31            (k)  Notwithstanding (j) of this section, the project and related assets may be                              

01       transferred in connection with a foreclosure or other enforcement of a lien or security                           
02       interest to a party holding a lien or security interest acquired under (c)(6) of this                             
03       section or to another party without legislative approval.  A party obtaining a property                           
04       interest under this subsection may transfer that interest without legislative approval.                           
05    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       LEGISLATIVE AUTHORIZATION TO AMEND MEMORANDUM OF                                                                  
08 UNDERSTANDING REGARDING SALE OF FOUR DAM POOL HYDROELECTRIC                                                             
09 PROJECT.  Notwithstanding the restriction imposed by sec. 15(a), ch. 60, SLA 2000, the                                  
10 memorandum of understanding that authorizes the sale of the four dam pool hydroelectric                                 
11 project may be amended consistent with the provisions of AS 42.45.310(j) and (k), added by                              
12 sec. 3 of this Act, if sec. 3 of this Act becomes effective.                                                            
13    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).