SB 243: "An Act relating to the financing of construction, major maintenance, and renovation of facilities for the University of Alaska; relating to the financing of construction of a correctional facility; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco Securitization Corporation, with the proceeds of that sale to finance construction, major maintenance, and renovation of facilities for the University of Alaska and to finance the construction of a correctional facility; providing for the establishment of funds for deposit of those proceeds; authorizing the issuance of bonds by the Northern Tobacco Securitization Corporation for the purpose of acquiring the right to receive a portion of anticipated revenue from a tobacco litigation settlement; and providing for an effective date."
00 SENATE BILL NO. 243 01 "An Act relating to the financing of construction, major maintenance, and renovation of 02 facilities for the University of Alaska; relating to the financing of construction of a 03 correctional facility; authorizing the commissioner of revenue to sell the right to receive 04 a portion of the anticipated revenue from a tobacco litigation settlement to the Northern 05 Tobacco Securitization Corporation, with the proceeds of that sale to finance 06 construction, major maintenance, and renovation of facilities for the University of 07 Alaska and to finance the construction of a correctional facility; providing for the 08 establishment of funds for deposit of those proceeds; authorizing the issuance of bonds 09 by the Northern Tobacco Securitization Corporation for the purpose of acquiring the 10 right to receive a portion of anticipated revenue from a tobacco litigation settlement; 11 and providing for an effective date." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
01 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 02 to read: 03 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE; USE OF 04 PROCEEDS FOR UNIVERSITY OF ALASKA FACILITIES AND A CORRECTIONAL 05 FACILITY. (a) The commissioner of revenue is authorized to sell to the Northern Tobacco 06 Securitization Corporation, a subsidiary corporation of the Alaska Housing Finance 07 Corporation created under AS 18.56.086, the right to receive up to 80 percent annually of the 08 revenue derived from the settlement of State of Alaska v. Philip Morris, Incorporated, et al, 09 No. 1JU-97-915 CI (Alaska Super. 1997). The sale of the right to receive revenue under this 10 subsection is of the residual revenue stream that reverts to the state following the full 11 repayment of the bonds authorized by sec. 10, ch. 130, SLA 2000 and sec. 4, ch. 96, SLA 12 2001. 13 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 14 this section are anticipated to be at least $89,250,000. Of the proceeds, $89,250,000 shall be 15 deposited in the University of Alaska facilities fund established under sec. 3 of this Act. Any 16 proceeds in excess of $89,250,000 shall be deposited in the correctional facility fund 17 established under sec. 4 of this Act. 18 (c) Subject to appropriation, $89,250,000 of the proceeds of the sale under this section 19 of the right to receive revenue shall be used by the University of Alaska to pay for 20 construction, major maintenance, and renovation of university facilities, including 21 reimbursement to the University of Alaska for expenditures for the projects, as follows: 22 PROJECT 23 University of Alaska - Systemwide 24 Critical Building Deficiencies $ 8,655,000 25 Required Renewal and Renovation 10,250,000 26 for Program Delivery 27 University of Alaska - Code and Compliance 28 Anchorage/Fairbanks/Southeast Campuses 13,050,000 29 Other Campuses 2,295,000 30 University of Alaska - Anchorage 31 Integrated Science Facility - Phase III 55,000,000
01 __________ 02 TOTAL $89,250,000 03 (d) Subject to appropriation, the proceeds, in excess of $89,250,000, of the sale under 04 this section of the right to receive revenue shall be used by the Department of Corrections to 05 pay for the construction of a prison in the Matanuska-Susitna Borough. 06 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 BOND AUTHORIZATION. (a) The Northern Tobacco Securitization Corporation is 09 authorized to issue revenue bonds in principal amounts sufficient to acquire the right to 10 receive revenue described in sec. 1 of this Act from the commissioner of revenue at a price 11 agreed upon by the Northern Tobacco Securitization Corporation and the commissioner of 12 revenue. The bonds may be special, limited obligations of the Northern Tobacco 13 Securitization Corporation secured solely by the right to receive revenue sold to the Northern 14 Tobacco Securitization Corporation under sec. 1 of this Act, and the Northern Tobacco 15 Securitization Corporation may include in agreements with the bondholders a pledge of the 16 right to receive that revenue and the promise of the state to honor that pledge. A pledge made 17 under this section is subject to the provisions of AS 18.56.120, and bonds issued under this 18 section are subject to the provisions of AS 18.56.170, in each case as though "corporation" in 19 those statutes were to mean the Northern Tobacco Securitization Corporation. 20 (b) In this section, "Northern Tobacco Securitization Corporation" means the 21 subsidiary corporation of the Alaska Housing Finance Corporation created under 22 AS 18.56.086. 23 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 UNIVERSITY OF ALASKA FACILITIES FUND. (a) If under sec. 1 of this Act the 26 commissioner of revenue sells to the Northern Tobacco Securitization Corporation the right to 27 receive certain revenue, a special fund of the state to be known as the "University of Alaska 28 facilities fund" shall be established, to which shall be credited $89,250,000 of the proceeds of 29 the sale of that revenue. The fund may be invested as provided in AS 37.10.071. Any earnings 30 of the fund shall be deposited in the Alaska debt retirement fund (AS 37.15.011). 31 (b) Money in the fund may be appropriated for the University of Alaska projects
01 described in sec. 1(c) of this Act, or for any other public purpose. 02 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 CORRECTIONAL FACILITY FUND. If under sec. 1 of this Act the commissioner of 05 revenue sells to the Northern Tobacco Securitization Corporation the right to receive certain 06 revenue, a special fund of the state to be known as the "correctional facility fund" shall be 07 established, to which shall be credited the proceeds, in excess of $89,250,000, of the sale of 08 that revenue. The fund may be invested as provided in AS 37.10.071. Any earnings of the 09 fund shall be deposited in the Alaska debt retirement fund (AS 37.15.011). 10 (b) Money in the fund may be appropriated for the correctional facility project 11 described in sec. 1(d) of this Act, or for any other public purpose. 12 * Sec. 5. This Act takes effect July 1, 2006.