CSSB 269(FIN): "An Act relating to the waiver of volume cap of recovery zone economic development bonds authorized by 26 U.S.C. 1400U-2 and reallocation by the Alaska Municipal Bond Bank Authority of the waived volume cap; relating to the waiver of volume cap of recovery zone facility bonds authorized by 26 U.S.C. 1400U-3 and reallocation by the Alaska Industrial Development and Export Authority of the waived volume cap; increasing the total amount of bonds and notes that the Alaska Municipal Bond Bank Authority may have outstanding; relating to revenue bonds and to obligations secured by lease that are issued by the Alaska Municipal Bond Bank Authority; relating to allocations of tax credit and bonding limits imposed by the federal government; and providing for an effective date."
00 CS FOR SENATE BILL NO. 269(FIN) 01 "An Act relating to the waiver of volume cap of recovery zone economic development 02 bonds authorized by 26 U.S.C. 1400U-2 and reallocation by the Alaska Municipal Bond 03 Bank Authority of the waived volume cap; relating to the waiver of volume cap of 04 recovery zone facility bonds authorized by 26 U.S.C. 1400U-3 and reallocation by the 05 Alaska Industrial Development and Export Authority of the waived volume cap; 06 increasing the total amount of bonds and notes that the Alaska Municipal Bond Bank 07 Authority may have outstanding; relating to revenue bonds and to obligations secured 08 by lease that are issued by the Alaska Municipal Bond Bank Authority; relating to 09 allocations of tax credit and bonding limits imposed by the federal government; and 10 providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section
01 to read: 02 FINDINGS AND INTENT FOR SECS. 5 AND 6 OF THIS ACT. (a) The legislature 03 finds for secs. 5 and 6 of this Act that P.L. 111-5 (American Recovery and Reinvestment Act 04 of 2009) 05 (1) authorized the issuance of certain tax-advantaged bonds known as 06 recovery zone economic development bonds and recovery zone facility bonds under Division 07 B, Title I, Subtitle E, sec. 1401, P.L. 111-5 (26 U.S.C. 1400U-1 - 1400U-3); the purpose of 08 those bonds is to provide tax incentives for state and local governmental borrowing at lower 09 borrowing costs to promote job creation and economic recovery that is targeted to areas 10 particularly affected by employment declines; 11 (2) set a national volume limitation for recovery zone economic development 12 bonds of $10,000,000,000, and a national volume limitation for recovery zone facility bonds 13 of $15,000,000,000 under 26 U.S.C. 1400U-1(a)(4); 14 (3) authorized the United States Secretary of the Treasury to allocate the 15 national volume limitation for those bonds among the states under 26 U.S.C. 1400U-1(a); 16 (4) required each state to reallocate its volume among the counties and large 17 municipalities in the state in proportion to relative employment declines in 2008 under 26 18 U.S.C. 1400U-1(a)(3); because that requirement was nondiscretionary, the Internal Revenue 19 Service performed the reallocations within states and published them on its website under 20 I.R.B. 2009-26; 21 (5) permits a county or municipality to waive its allocation under 26 U.S.C. 22 1400U-1(a)(3); the Internal Revenue Service guidance relating to the allocation of recovery 23 zone economic development bonds and recovery zone facility bonds provides that a county or 24 large municipality may waive a portion of the volume cap allocation received for recovery 25 zone bonds; upon a waiver, the state in which the county or large municipality is located is 26 authorized to reallocate the waived volume cap in any reasonable manner as it shall determine 27 in good faith in its discretion under I.R.B. 2009-26; the guidance further provides that the 28 states have authority to consider a waiver; in this state, the Internal Revenue Service allocated 29 the bond volume to boroughs and census areas; and 30 (6) requires the bonds to be issued before January 1, 2011, under 26 U.S.C. 31 1400U-2(b)(1) and 26 U.S.C. 1400U-3(b)(1)(B).
01 (b) It is the intent of the legislature for secs. 5 and 6 of this Act to 02 (1) define when a borough or census area to which recovery zone economic 03 development bond volume cap and recovery zone facility bond volume cap have been 04 allocated is considered to have waived the volume cap; 05 (2) authorize the Alaska Municipal Bond Bank Authority to reallocate waived 06 recovery zone economic development bond volume cap; and 07 (3) authorize the Alaska Industrial Development and Export Authority to 08 reallocate waived recovery zone facility bond volume cap. 09 * Sec. 2. AS 37.15.800 is amended by adding a new subsection to read: 10 (f) The committee shall allocate tax credit limits and tax-exempt bond limits 11 for the state in accordance with requirements imposed by federal law in connection 12 with the tax credits and tax-exempt bonds. This subsection does not apply to low- 13 income housing tax credits, qualified veterans' mortgage bonds under applicable 14 provisions of 26 U.S.C. (Internal Revenue Code), or private activity bonds. 15 * Sec. 3. AS 44.85.180(c) is amended to read: 16 (c) Notwithstanding the provisions of (a) and (b) of this section, the total 17 amount of bond bank authority bonds and notes outstanding at any one time may not 18 exceed $1,000,000,000 [$750,000,000]. This subsection does not apply to 19 (1) bonds or notes issued to fund or refund bonds or notes; 20 (2) bonds, notes, commercial paper, and other obligations issued under 21 AS 44.85.086 or (a)(5) of this section. 22 * Sec. 4. AS 44.85.410(4) is amended to read: 23 (4) "municipal bond" means a bond or note or evidence of debt that 24 constitutes 25 (A) a general obligation bond that is a direct and general 26 obligation of a political subdivision of the state, all the taxable property within 27 which is subject to taxation to pay the bond, note, or evidence of debt, and the 28 interest without limitation, as to rate or amount generally to the extent 29 permitted by law or to avoid a default as provided for second class cities under 30 AS 29.45.590; 31 (B) a revenue bond [, EXCEPT A REVENUE BOND FOR
01 ELECTRICAL GENERATION PURPOSES OTHER THAN DIESEL- 02 POWERED GENERATION,] issued by a municipality, a solid waste 03 management authority, or a port authority that pledges the revenue of a 04 revenue-producing capital improvement and that is payable solely from the 05 revenue of the revenue-producing capital improvement; 06 (C) a general obligation bond or revenue bond combined or 07 additionally secured; 08 (D) a bond of a borough issued as a general obligation of a 09 service area under AS 29.47.440 or former AS 29.58.340; or 10 (E) an obligation of a municipality secured only by 11 (i) special assessments on benefited property; 12 (ii) tax increments and a letter of credit or equal 13 security; or 14 (iii) a lease [FOR EQUIPMENT OR BUILDING 15 IMPROVEMENTS IF THE STATE IS NOT A LESSEE]; 16 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 WAIVER AND REALLOCATION OF RECOVERY ZONE ECONOMIC 19 DEVELOPMENT BOND VOLUME CAP. (a) A borough in the state that has received an 20 allocation of recovery zone economic development bond volume cap under 26 U.S.C. 1400U- 21 1 and 1400U-2, as amended, may waive all or part of its allocation at any time. 22 (b) A borough in the state that has received an allocation of recovery zone economic 23 development bond volume cap under 26 U.S.C. 1400U-1 and 1400U-2, as amended, is 24 considered to have waived the unused portion of the borough's recovery zone economic 25 development bond volume cap as of the close of business June 30, 2010, unless the borough 26 has authorized the issuance of bonds and files a written notice with the Alaska Municipal 27 Bond Bank Authority before June 30, 2010, stating its intention to use the volume cap before 28 August 31, 2010. If the borough files the written notice, the borough is considered to have 29 waived the unused portion of its volume cap on the close of business, August 31, 2010. 30 (c) The recovery zone economic development bond volume cap for a census area in 31 the state that has received an allocation of recovery zone economic development bond volume
01 cap under 26 U.S.C. 1400U-1 and 1400U-2, as amended, is considered waived as of the close 02 of business June 30, 2010. 03 (d) The recovery zone economic development bond volume cap that has been waived 04 or considered waived under this section lapses to the Alaska Municipal Bond Bank Authority 05 (AS 44.85.020). The Alaska Municipal Bond Bank Authority is authorized to reallocate the 06 waived recovery zone economic development bond volume cap. 07 (e) An issuer of recovery zone economic development bonds authorized by 26 U.S.C. 08 1400U-1 and 1400U-2, as amended, shall at the time of issuance, notify the Alaska Municipal 09 Bond Bank Authority in writing of the principal amount of the recovery zone economic 10 development bonds being issued and the date of issuance. 11 (f) The Alaska Municipal Bond Bank Authority may designate any bonds it issues 12 under AS 44.85 as recovery zone economic development bonds authorized by 26 U.S.C. 13 1400U-1 and 1400U-2, as amended. In connection with issuing recovery zone economic 14 development bonds, the Alaska Municipal Bond Bank Authority may designate areas in the 15 state as recovery zones and may apply recovery zone economic development bond volume 16 cap the authority has received under this section to the bonds. The Alaska Municipal Bond 17 Bank Authority may reallocate recovery zone economic development bond volume cap to 18 other issuers of bonds in the state and may authorize those issuers to designate areas as 19 recovery zones for purposes of using the recovery zone economic development bond volume 20 cap the authority allocates to those issuers. 21 (g) The Alaska Municipal Bond Bank Authority may use or reallocate waived 22 recovery zone economic development bond volume cap under this section in the manner the 23 authority considers most likely to achieve the efficient use of all the waived recovery zone 24 economic development bond volume cap, taking into consideration job creation and economic 25 recovery in areas of the state particularly affected by employment declines. The Alaska 26 Municipal Bond Bank Authority shall give priority to projects in a borough or census area that 27 received an allocation of recovery zone economic development bond volume cap under 26 28 U.S.C. 1400U-1 and 1400U-2, as amended. If a borough that received the allocation 29 designates a project within the borough or designates a project outside of the borough that 30 benefits the borough or its residents, the Alaska Municipal Bond Bank Authority shall 31 reallocate the volume cap for that project in the amount designated and to the designated
01 eligible issuer of recovery zone economic development bonds. 02 (h) The Alaska Municipal Bond Bank Authority may reallocate recovery zone 03 economic development bond volume cap allocations from a census area to political 04 subdivisions located in the census area. Before making a reallocation, the Alaska Municipal 05 Bond Bank Authority shall consult with all political subdivisions in the census area having 06 legal authority to issue the bonds regarding the need for reallocation of volume cap. 07 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 WAIVER AND REALLOCATION OF RECOVERY ZONE FACILITY BOND 10 VOLUME CAP. (a) A borough in the state that has received an allocation of recovery zone 11 facility bond volume cap under 26 U.S.C. 1400U-1 and 1400U-3, as amended, may waive all 12 or part of its allocation at any time. 13 (b) A borough in the state that has received an allocation of recovery zone facility 14 bond volume cap under 26 U.S.C. 1400U-1 and 1400U-3, as amended, is considered to have 15 waived the unused portion of the borough's recovery zone facility bond volume cap as of the 16 close of business June 30, 2010, unless the borough has authorized the issuance of bonds and 17 files a written notice with the Alaska Industrial Development and Export Authority before 18 June 30, 2010, stating its intention to use the volume cap before August 31, 2010. If the 19 borough files the written notice, the borough is considered to have waived the unused portion 20 of its volume cap on the close of business, August 31, 2010. 21 (c) The recovery zone facility bond volume cap for a census area in the state that has 22 received an allocation of recovery zone facility bond volume cap under 26 U.S.C. 1400U-1 23 and 1400U-3, as amended, is considered waived as of the close of business June 30, 2010. 24 (d) The recovery zone facility bond volume cap that has been waived or considered 25 waived under this section lapses immediately to the Alaska Industrial Development and 26 Export Authority (AS 44.88). The Alaska Industrial Development and Export Authority is 27 authorized to reallocate the waived recovery zone facility bond volume cap. 28 (e) An issuer of recovery zone facility bonds authorized by 26 U.S.C. 1400U-1 and 29 1400U-3, as amended, shall at the time of issuance, notify the Alaska Industrial Development 30 and Export Authority in writing of the principal amount of the recovery zone facility bonds 31 being issued and the date of issuance.
01 (f) The Alaska Industrial Development and Export Authority may designate any 02 bonds it issues under AS 44.88 as recovery zone facility bonds authorized by 26 U.S.C. 03 1400U-1 and 1400U-3, as amended. In connection with issuing recovery zone facility bonds, 04 the Alaska Industrial Development and Export Authority may designate areas in the state as 05 recovery zones and may apply recovery zone facility bond volume cap the authority has 06 received under this section to the bonds. The Alaska Industrial Development and Export 07 Authority may reallocate recovery zone facility bond volume cap to other issuers of bonds in 08 the state and may authorize those issuers to designate areas as recovery zones for purposes of 09 using the recovery zone facility bond volume cap the authority allocates to those issuers. 10 (g) The Alaska Industrial Development and Export Authority may use or reallocate 11 waived recovery zone facility bond volume cap under this section in the manner the authority 12 considers most likely to achieve the efficient use of all the waived recovery zone facility bond 13 volume cap, taking into consideration job creation and economic recovery in areas of the state 14 particularly affected by employment declines. The Alaska Industrial Development and Export 15 Authority shall give priority to projects in a borough or census area that received an allocation 16 of recovery zone facility bond volume cap under 26 U.S.C. 1400U-1 and 1400U-3, as 17 amended. If a borough that received the allocation designates a project within the borough or 18 designates a project outside of the borough that benefits the borough or its residents, the 19 Alaska Industrial Development and Export Authority shall reallocate the volume cap for that 20 project in the amount designated and to the designated eligible issuer of recovery zone facility 21 bonds. 22 (h) The Alaska Industrial Development and Export Authority may use or reallocate 23 waived recovery zone facility bond volume cap according to regulations adopted by the 24 Alaska Industrial Development and Export Authority, which may include regulations 25 requiring the use of documents prepared by the Alaska Industrial Development and Export 26 Authority for that purpose and regulations establishing one or more deadlines for use of the 27 waived recovery zone facility bond volume cap by the applicant. The Alaska Industrial 28 Development and Export Authority may grant an application in whole or in part or may reject 29 an application entirely after taking into consideration the factors established in (g) of this 30 section. 31 (i) Before making a reallocation under this section, the Alaska Industrial
01 Development and Export Authority shall charge and collect a fee for reallocating waived 02 recovery zone facility bond volume cap. The fee must be an amount sufficient to reimburse 03 the Alaska Industrial Development and Export Authority for administrative and contract 04 expenses associated with the reallocation but may not exceed one percent of the amount of the 05 reallocation. 06 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 REVISOR'S INSTRUCTION. The revisor of statutes is instructed under AS 01.05.031 09 to change the heading of AS 37.15.800 from "Private activity bonds" to "Tax-exempt bonds 10 and tax credits." 11 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).