CSHB 275(FIN): "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 CS FOR HOUSE BILL NO. 275(FIN) 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 7,500,000 04 (5) Fairbanks: Gaffney Road upgrade 6,250,000 05 (6) Fairbanks: Shaw Creek Bridge on Richardson Highway 3,500,000 06 (7) Fairbanks: Cartwright Road extension 3,650,000 07 (8) Kenai Peninsula Borough: Kalifornsky Beach Road 19,000,000 08 rehabilitation 09 (9) Matanuska-Susitna Borough: Multi-modal alternate 2,000,000 10 Parks Highway and Alaska Railroad corridors 11 (10) Matanuska-Susitna Borough: Palmer-Wasilla Highway 6,000,000 12 expansion 13 (11) Richardson Highway passing lane additions 7,500,000 14 mileposts 265 - 341 15 (12) Prince of Wales: Hollis to Klawock pavement 10,000,000 16 (13) Sitka: Rocky Gutierrez Airport access 3,500,000 17 improvements 18 (14) Port of Anchorage: Terminal Road relocation 10,000,000 19 and expansion, Ocean Dock Road and Terminal 20 Road intersection upgrade 21 (15) Fairbanks: Homestead Road/NPHS Boulevard 3,800,000 22 extension 23 (16) Parks Highway: Rex railroad grade separated 7,300,000 24 crossing 25 (17) Kodiak: Otmeloi Way rehabilitation 3,300,000 26 (18) Nome: city streets, phase 2 5,000,000 27 (19) Glenn Highway: Eklutna River Bridge #1230 load 10,000,000 28 capacity increase 29 (20) Tok Cutoff Highway: Gakona River Bridge #646 5,500,000 30 replacement 31 (21) Parks Highway: passing and intersection lanes 15,000,000
01 (22) Richardson Highway: MP 2 - 3 combination 3,000,000 02 vehicle turn lanes to Valdez container terminal 03 (23) Glacier Highway: road extension 10,000,000 04 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 07 Department of Transportation and Public Facilities is delegated the Department of 08 Administration's authority under AS 36.30.085 to enter into lease-financing agreements in 09 connection with the issuance of revenue obligations to finance the state transportation projects 10 described in sec. 1 of this Act. 11 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 14 financing agreements executed under sec. 2 of this Act are subject to annual appropriation by 15 the legislature. 16 (b) The legislature intends that federal money in the form of apportionments from the 17 Federal Highway Administration for federal highway grants will provide enough revenue to 18 the general fund to make substantially all of the lease payments; however, if that revenue 19 source is insufficient, the payments may be made from any other valid revenue source, subject 20 to appropriation. 21 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE 24 OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and 25 Public Facilities is authorized to enter into lease-financing agreements for the issuance of 26 revenue obligations for the state transportation projects described in sec. 1 of this Act. 27 (b) The state bond committee is authorized to provide for the issuance of revenue 28 obligations in one or more series in the aggregate principal amount of $195,800,000 for the 29 costs of construction of the projects described in sec. 1 of this Act. The principal amount 30 includes the estimated cost of $193,300,000 for constructing, acquiring, and equipping the 31 projects described in sec. 1 of this Act; and an amount for the cost of issuing the revenue
01 obligations of $2,500,000. The estimated annual amount of rental obligations under the lease- 02 financing agreements is $16,860,000. The estimated total lease payments for the full term of 03 the lease-financing agreements is $269,760,000. 04 (c) The state bond committee may contract for credit enhancement, underwriting, 05 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 06 committee considers necessary in financing the projects described in sec. 1 of this Act. 07 (d) In this section, 08 (1) "costs of construction" includes credit enhancement and underwriting 09 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee 10 fees, and interest earnings used for lease payments; 11 (2) "revenue obligation" means a certificate of participation in the right to 12 receive a payment under a lease-financing agreement made to finance the costs of 13 construction or acquisition of a state transportation project. 14 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 NOTICE AND APPROVAL OF AGREEMENTS. Section 4 of this Act constitutes 17 the notice and approval of lease-financing agreements to finance the transportation projects 18 described in sec. 1 of this Act that is required by AS 36.30.085. 19 * Sec. 6. This Act takes effect July 1, 2005.