HB 275: "An Act authorizing financing for certain public transportation projects; giving notice of and approving the entry into, and the issuance of revenue obligations that provide participation in, lease-financing agreements for those transportation projects; and providing for an effective date."
00 HOUSE BILL NO. 275 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 TRANSPORTATION PROJECT ALLOCATION. The Department of Transportation 09 and Public Facilities shall allocate the net proceeds derived from the sale of revenue 10 obligations authorized in sec. 4 of this Act for construction or acquisition of the following 11 state transportation projects among those projects as follows, subject to reallocation among 12 the projects under AS 37.07.080(e): 13 PROJECT ALLOCATION 14 (1) Anchorage: Glenn Highway congestion $ 37,500,000
01 (2) Anchorage: Tudor-Bragaw intersection improvements 9,000,000 02 (3) Copper River Highway rehabilitation 5,000,000 03 (4) Dalton Highway Washington Creek Bridge 5,000,000 04 (5) Fairbanks North Star Borough: University-Geist intersection 5,000,000 05 (6) Fairbanks: Shaw Creek Bridge on Richardson Highway 3,500,000 06 (7) Fairbanks: Richardson Highway Northbound Chena 16,000,000 07 (#1364) Overflow Bridge 08 (8) Kenai Peninsula Borough: Kalifornsky Beach Road 19,000,000 09 rehabilitation 10 (9) Matanuska-Susitna Borough: Multi-modal alternate 2,000,000 11 Parks Highway and Alaska Railroad corridors 12 (10) Matanuska-Susitna Borough: Palmer-Wasilla Highway 6,000,000 13 expansion 14 (11) Richardson Highway passing lane additions 7,500,000 15 mileposts 265 - 341 16 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 19 Department of Transportation and Public Facilities is delegated the Department of 20 Administration's authority under AS 36.30.085 to enter into lease-financing agreements in 21 connection with the issuance of revenue obligations to finance the state transportation projects 22 described in sec. 1 of this Act. 23 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 26 financing agreements executed under sec. 2 of this Act are subject to annual appropriation by 27 the legislature. 28 (b) The legislature intends that federal money in the form of apportionments from the 29 Federal Highway Administration for federal highway grants will provide enough revenue to 30 the general fund to make substantially all of the lease payments; however, if that revenue 31 source is insufficient, the payments may be made from any other valid revenue source, subject
01 to appropriation. 02 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE 05 OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and 06 Public Facilities is authorized to enter into lease-financing agreements for the issuance of 07 revenue obligations for the state transportation projects described in sec. 1 of this Act. 08 (b) The state bond committee is authorized to provide for the issuance of revenue 09 obligations in one or more series in the aggregate principal amount of $116,620,000 for the 10 costs of construction of the projects described in sec. 1 of this Act. The principal amount 11 includes the estimated cost of $115,500,000 for constructing, acquiring, and equipping the 12 projects described in sec. 1 of this Act; and an amount for the cost of issuing the revenue 13 obligations of $1,120,000. The estimated annual amount of rental obligations under the lease- 14 financing agreements is $11,475,000. The estimated total lease payments for the full term of 15 the lease-financing agreements is $172,125,000. 16 (c) The state bond committee may contract for credit enhancement, underwriting, 17 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 18 committee considers necessary in financing the projects described in sec. 1 of this Act. 19 (d) In this section, 20 (1) "costs of construction" includes credit enhancement and underwriting 21 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee 22 fees, and interest earnings used for lease payments; 23 (2) "revenue obligation" means a certificate of participation in the right to 24 receive a payment under a lease-financing agreement made to finance the costs of 25 construction or acquisition of a state transportation project. 26 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 NOTICE AND APPROVAL OF AGREEMENTS. Section 4 of this Act constitutes 29 the notice and approval of lease-financing agreements to finance the transportation projects 30 described in sec. 1 of this Act that is required by AS 36.30.085. 31 * Sec. 6. This Act takes effect July 1, 2005.