txt

HB 23: "An Act relating to bonds of the Knik Arm Bridge and Toll Authority; relating to reserve funds of the authority; relating to taxes and assessments on a person that is a party to an agreement with the authority; and establishing the Knik Arm Crossing fund."

00                              HOUSE BILL NO. 23                                                                          
01 "An Act relating to bonds of the Knik Arm Bridge and Toll Authority; relating to                                        
02 reserve funds of the authority; relating to taxes and assessments on a person that is a                                 
03 party to an agreement with the authority; and establishing the Knik Arm Crossing                                        
04 fund."                                                                                                                  
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 19.75.211(a) is repealed and reenacted to read:                                                    
07            (a)  Notwithstanding any other provision of law, the authority may borrow                                    
08       money and issue and refund bonds on which the principal and interest are paid out of                              
09       and secured by                                                                                                    
10                 (1)  the gross revenue derived by the authority from the ownership, use,                                
11       and operation of its toll facilities, including money derived from the fees, rents, tolls,                        
12       rates, charges, and other revenue of the authority under this chapter;                                            
13                 (2)  revenue received by a private person or enterprise that has entered                                
14       into a public-private partnership agreement with the authority; or                                                
01                 (3)  any other revenue or money that the legislature has appropriated                                   
02       for that purpose, except a state tax or license.                                                                  
03    * Sec. 2. AS 19.75.211(c) is amended to read:                                                                      
04            (c)  The authority may issue bonds in an aggregate amount not to exceed                                      
05       $600,000,000 [$500,000,000], plus the cost of issuance.                                                       
06    * Sec. 3. AS 19.75.211 is amended by adding a new subsection to read:                                              
07            (e)  Before issuing bonds for the Knik Arm bridge under this section, the                                    
08       authority shall submit to the state bond committee a description of the bond issue, a                             
09       copy of the resolution of the board of directors of the authority supporting the bond                             
10       issue, a report setting out the sources and amounts of revenue that will be used for                              
11       payment of the principal of and interest on the bonds and the effect the issuance of the                          
12       bonds by the authority would have on the ability of the state or political subdivision of                         
13       the state to market bonds, and a preliminary prospectus, offering circular, or official                           
14       statement relating to the bond issue. Bonds may not be issued unless the state bond                               
15       committee finds, based on the information submitted by the authority under this                                   
16       section and other information that is reasonably available to or requested by the                                 
17       committee, that either the Knik Arm bridge revenue and other revenue available to the                             
18       authority or the revenue of the private person or enterprise under a public-private                               
19       partnership agreement entered into by the authority under AS 19.75.111(a) can be                                  
20       reasonably expected to be adequate for payment of the principal of and interest on the                            
21       bonds to be issued and that issuance of the bonds by the authority would not be                                   
22       expected adversely to affect the ability of the state or its political subdivisions to                            
23       market bonds.                                                                                                     
24    * Sec. 4. AS 19.75.221(h) is amended to read:                                                                      
25            (h)  Notwithstanding any other provision of law, the authority may establish                                 
26       other funds and reserves as the board of directors may determine reasonable and                                   
27       prudent for the issuance of bonds or for the conduct of the business and affairs of the                           
28       authority. The interest earned on or profit derived from these funds and reserves shall                           
29       be the property of the authority. Deposits made into a reserve fund established                               
30       under this section must include                                                                               
31                 (1)  revenue derived by the authority from the ownership, use, or                                   
01       operation of toll facilities, including fees, rents, tolls, rates, charges, or other                          
02       revenue of the authority;                                                                                     
03                 (2)  money that the legislature has appropriated for that purpose;                                  
04       and                                                                                                           
05                 (3)  other money that may be made available to the authority from                                   
06       other sources.                                                                                                
07    * Sec. 5. AS 19.75.221 is amended by adding new subsections to read:                                               
08            (i)  Money in a reserve fund established under (h) of this section                                           
09                 (1)  shall be used only for                                                                             
10                      (A)  the payment of monetary obligations, liabilities, and                                         
11            indebtedness of the authority, including termination payment obligations,                                    
12            under agreements for the financing, design, construction, maintenance,                                       
13            improvement, or operation of facilities, properties, or projects of the authority;                           
14                      (B)  the performance of the authority's statutory functions,                                       
15            including the authority's overhead and administrative costs and working                                      
16            capital; and                                                                                                 
17                      (C)  planning, permitting, design, acquisition, construction,                                      
18            maintenance, improvement, or operation of transportation-related projects,                                   
19            facilities, properties, systems, or equipment of the authority or other public                               
20            entities, including expansions, extensions, and capacity improvements, eligible                              
21            under applicable federal and state law to be funded from toll revenue;                                       
22                 (2)  may not be used for the purpose of planning, permitting, design,                                   
23       acquisition, construction, maintenance, improvement, or operation of projects,                                    
24       facilities, properties, systems, or equipment under (1)(C) of this subsection if the                              
25       withdrawal would reduce the amount in the reserve fund to less than the reserve fund                              
26       requirement.                                                                                                      
27            (j)  Income or interest earned by, or increment to, a reserve fund established                               
28       under (h) of this section, from the investment of all or part of the fund, may be                                 
29       transferred by the authority to other funds or accounts of the authority if the transfer                          
30       does not reduce the amount of a reserve fund below the reserve fund requirement.                                  
31            (k)  In computing the amount of a reserve fund established under (h) of this                                 
01       section, securities in which all or a portion of the fund is invested shall be valued by a                        
02       reasonable method established by the authority by resolution or established by the                                
03       terms of the agreement for which the fund serves as security. Valuation must include                              
04       the amount of interest earned or accrued as of the date of the valuation.                                         
05            (l)  The chair of the board shall annually, not later than December 1, certify in                            
06       writing to the governor and the legislature the amount, if any, required to restore a                             
07       reserve fund established under (h) of this section to the reserve fund requirement. The                           
08       legislature may appropriate to the authority the amount certified by the chair of the                             
09       board that is needed to restore a reserve fund to the reserve fund requirement.                                   
10            (m)  In this section, "reserve fund requirement" means the amount required to                                
11       be on deposit in a reserve fund established under (h) of this section as of the date of                           
12       computation, as determined by resolution of the authority or by the terms of the                                  
13       agreement for which the fund serves as security.                                                                  
14    * Sec. 6. AS 19.75.261 is amended to read:                                                                         
15            Sec. 19.75.261. Exemption from taxation. The real and personal property of                                 
16       the authority and its assets, income, and receipts are declared to be the property of a                           
17       political subdivision of the state and are exempt from all taxes and special assessments                          
18       of the state or a political subdivision of the state. Notwithstanding any law to the                          
19       contrary, rights and interests in real and personal property, assets, income, and                             
20       receipts, including concession, franchise, leasehold, or other real or personal                               
21       property rights and interests, held by a private person or enterprise under a                                 
22       public-private partnership agreement entered into under this chapter, except any                              
23       rights and interests of the private person in property serving a business,                                    
24       commercial, or other purpose not necessary to operate the facilities, properties,                             
25       or projects of the authority, shall be exempt from all ad valorem taxes on real or                            
26       personal property and special property tax assessments of the state or a political                            
27       subdivision of the state. All bonds of the authority are declared to be issued by a                           
28       political subdivision of the state and for an essential public and governmental purpose.                          
29       The bonds, the interest on the bonds, the income from the bonds and the transfer of the                           
30       bonds, and all assets, income, and receipts pledged to pay or secure the payment of the                           
31       bonds or interest on the bonds are, at all times, exempt from taxation by or under the                            
01       authority of the state, except for inheritance and estate taxes and taxes on transfers by                         
02       or in contemplation of death. Nothing in this section affects or limits an exemption                              
03       from license fees, property taxes, or excise, income, or other taxes provided under any                           
04       other law [, NOR DOES IT CREATE A TAX EXEMPTION WITH RESPECT TO                                                   
05       THE INTEREST OF ANY BUSINESS ENTERPRISE OR OTHER PERSON,                                                          
06       OTHER THAN THE AUTHORITY, IN ANY PROPERTY, ASSETS, INCOME,                                                        
07       RECEIPTS, PROJECT, OR LEASE, REGARDLESS OF WHETHER FINANCED                                                       
08       UNDER THIS CHAPTER].                                                                                              
09    * Sec. 7. AS 19.75 is amended by adding a new section to article 2 to read:                                        
10            Sec. 19.75.345. Knik Arm Crossing fund. (a) The Knik Arm Crossing fund is                                  
11       established as a separate fund in the general fund. The fund consists of                                          
12                 (1)  money appropriated to the fund by the legislature;                                                 
13                 (2)  gifts, bequests, contributions from other sources, and federal                                     
14       money appropriated to the fund;                                                                                   
15                 (3)  interest earned on the fund balance and appropriated to the fund;                                  
16       and                                                                                                               
17                 (4)  investments, to be managed by the Department of Revenue, which                                     
18       shall be the fiduciary of the fund under AS 37.10.071.                                                            
19            (b)  The fund is not a dedicated fund.                                                                       
20            (c)  Money in the fund may be transferred by the Department of Revenue to the                                
21       authority for the purposes listed in this section.                                                                
22            (d)  On a date determined by the authority, but not before the board of directors                            
23       of the authority executes a public-private partnership agreement under                                            
24       AS 19.75.111(a)(5)(B) for design, construction, and maintenance of the Knik Arm                                   
25       Crossing, the Department of Revenue shall transfer money from the fund to the                                     
26       authority in an amount necessary to meet the reserve fund requirement. The authority                              
27       shall deposit the money into the reserve fund established in AS 19.75.221(h).