CSHB 275(FIN) am: "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) am 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: Lake Otis and Tudor intersection improvements 4,300,000 02 (3) Anchorage: Raspberry Road extension 2,400,000 03 (4) Fairbanks: Gaffney Road upgrade 6,250,000 04 (5) Fairbanks: Cartwright Road extension 3,650,000 05 (6) Kenai Peninsula Borough: Kalifornsky Beach Road 10,000,000 06 rehabilitation 07 (7) Matanuska-Susitna Borough: Palmer-Wasilla Highway 6,000,000 08 expansion 09 (8) Richardson Highway passing lane additions 5,000,000 10 mileposts 265 - 341 11 (9) Prince of Wales: Hollis to Klawock pavement 5,000,000 12 (10) Sitka: Rocky Gutierrez Airport access 3,500,000 13 improvements 14 (11) Kodiak: Rezanof Drive rehabilitation and intersection 4,300,000 15 safety improvements 16 (12) Nome: city streets, phase 2 5,000,000 17 (13) Glacier Highway: road extension 5,000,000 18 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 21 Department of Transportation and Public Facilities is delegated the Department of 22 Administration's authority under AS 36.30.085 to enter into lease-financing agreements in 23 connection with the issuance of revenue obligations to finance the state transportation projects 24 described in sec. 1 of this Act. 25 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 28 financing agreements executed under sec. 2 of this Act are subject to annual appropriation by 29 the legislature. 30 (b) The legislature intends that federal money in the form of apportionments from the 31 Federal Highway Administration for federal highway grants will provide revenue that may be
01 appropriated for the lease payments; however, if that revenue source is insufficient, the 02 payments may be appropriated from any other valid revenue source. 03 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE 06 OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and 07 Public Facilities is authorized to enter into lease-financing agreements for the issuance of 08 revenue obligations for the state transportation projects described in sec. 1 of this Act. 09 (b) The state bond committee is authorized to provide for the issuance of revenue 10 obligations in one or more series in the aggregate principal amount of $99,400,000 for the 11 costs of construction of the projects described in sec. 1 of this Act. The principal amount 12 includes the estimated cost of $97,900,000 for constructing, acquiring, and equipping the 13 projects described in sec. 1 of this Act; and an amount for the cost of issuing the revenue 14 obligations of $1,500,000. The estimated annual amount of rental obligations under the lease- 15 financing agreements is $8,561,000. The estimated total lease payments for the full term of 16 the lease-financing agreements is $136,976,000. 17 (c) The average annual debt service on revenue obligations to be issued under this Act 18 may not exceed 25 percent of the most recent annual obligation authority received by the 19 State of Alaska from the Federal Highway Administration for the state's federal highway 20 program. As further protection for the holders of the revenue obligations, the resolution of the 21 state bond committee authorizing the issuance of the revenue obligations authorized under 22 this Act shall include the same percentage limitation on the average annual debt service for all 23 outstanding revenue obligations payable from the State of Alaska's federal highway program. 24 (d) The state bond committee may contract for credit enhancement, underwriting, 25 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 26 committee considers necessary in financing the projects described in sec. 1 of this Act. 27 (e) There is created the 2005 state transportation project fund. The proceeds of the 28 revenue obligations issued under this Act shall be deposited into the 2005 state transportation 29 project fund. 30 (f) In this section, 31 (1) "costs of construction" includes credit enhancement and underwriting
01 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee 02 fees, and interest earnings used for lease payments; 03 (2) "revenue obligation" means a certificate of participation in the right to 04 receive a payment under a lease-financing agreement made to finance the costs of 05 construction or acquisition of a state transportation project. 06 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 NOTICE AND APPROVAL OF AGREEMENTS. Section 4 of this Act constitutes 09 the notice and approval of lease-financing agreements to finance the transportation projects 10 described in sec. 1 of this Act that is required by AS 36.30.085. 11 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 STATE TRANSPORTATION PROJECTS IN METROPOLITAN PLANNING 14 AREAS. If an amount allocated in sec. 1 of this Act for a state transportation project in a 15 metropolitan planning area is not sufficient to complete the project, it is the intent of the 16 legislature that the metropolitan planning organization for the metropolitan planning area 17 include the project in the organization's transportation improvement program and fund the 18 project to completion. 19 * Sec. 7. This Act takes effect July 1, 2005.