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2d CSHB 23(RLS): "An Act creating the Knik Crossing Development Corporation as a subsidiary corporation of the Alaska Housing Finance Corporation and relating to bonds of the Knik Crossing Development Corporation."

00                      2d CS FOR HOUSE BILL NO. 23(RLS)                                                                   
01 "An Act creating the Knik Crossing Development Corporation as a subsidiary                                              
02 corporation of the Alaska Housing Finance Corporation and relating to bonds of the                                      
03 Knik Crossing Development Corporation."                                                                                 
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 18.56.086 is amended by adding a new subsection to read:                                           
06            (b)  The corporation shall create the Knik Crossing Development Corporation                                  
07       as a subsidiary corporation. The board of directors of the Knik Crossing Development                              
08       Corporation shall consist of the members of the board of the corporation.                                         
09    * Sec. 2. AS 18.56 is amended by adding new sections to read:                                                      
10              Article 2A.  Knik Crossing Development Corporation.                                                      
11            Sec. 18.56.605. Purpose. (a) The purpose of the Knik Crossing Development                                  
12       Corporation is to develop, stimulate, and advance the economic welfare of the state                               
13       and further the development of public transportation systems in the vicinity of the                               
14       Upper Cook Inlet with construction of a bridge to span Knik Arm and connect the                                   
01       Municipality of Anchorage and the Matanuska-Susitna Borough.                                                      
02            (b)  The Knik Crossing Development Corporation may not be terminated as                                      
03       long as it has bonds, notes, or other obligations outstanding. Upon termination of the                            
04       Knik Crossing Development Corporation, its rights and property pass to the state.                                 
05            Sec. 18.56.610. Powers and duties. (a) In addition to powers granted to the                                
06       Knik Crossing Development Corporation by the corporation under AS 18.56.086(a),                                   
07       the Knik Crossing Development Corporation may                                                                     
08                 (1)  fix and collect fees, rents, tolls, rates, or other charges for the use of                         
09       the Knik Arm bridge and appurtenant facilities, or for a service developed, operated,                             
10       or provided by the Knik Crossing Development Corporation; notwithstanding                                         
11       AS 37.10.050(a), fees, rents, tolls, rates, and other charges fixed and collected under                           
12       this paragraph may exceed the actual operating cost of the use of the bridge, facility,                           
13       or service;                                                                                                       
14                 (2)  pledge, encumber, transfer, or otherwise obligate revenue derived                                  
15       by the Knik Crossing Development Corporation from the ownership, use, or operation                                
16       of toll facilities, including fees, rents, tolls, rates, charges, or other revenue of the Knik                    
17       Crossing Development Corporation or money that the legislature may appropriate,                                   
18       except a state tax or license, as security for bonds or other indebtedness or agreements                          
19       of the Knik Crossing Development Corporation;                                                                     
20                 (3)  perform reconnaissance studies and engineering, survey, and                                        
21       design studies with respect to the Knik Arm bridge and its appurtenant facilities;                                
22                 (4)  exercise powers of eminent domain or file a declaration of taking                                  
23       as necessary for the Knik Arm bridge and appurtenant facilities under AS 09.55.240 -                              
24       09.55.460 to acquire land or an interest in land; the Knik Crossing Development                                   
25       Corporation's exercise of powers under this paragraph may not exceed the permissible                              
26       exercise of those powers by the state;                                                                            
27                 (5)  confer with municipal and other governments, metropolitan                                          
28       planning organizations, and the Department of Transportation and Public Facilities,                               
29       concerning the Knik Arm bridge.                                                                                   
30            (b)  The Knik Crossing Development Corporation shall coordinate the exercise                                 
31       of its powers to plan, design, construct, operate, and maintain the Knik Arm bridge                               
01       with the Department of Transportation and Public Facilities, and with the mayors of                               
02       the Municipality of Anchorage and the Matanuska-Susitna Borough.                                                  
03            Sec. 18.56.615. Bonds. (a) The Knik Crossing Development Corporation may                                   
04       issue bonds in an aggregate amount not to exceed $600,000,000, plus the cost of                                   
05       issuance, in accordance with this chapter in order to build the Knik Arm bridge and its                           
06       appurtenant facilities. The amount of refunding bonds that may be issued by the Knik                              
07       Crossing Development Corporation and bond premiums may not be included in the                                     
08       aggregate amount, but may be in addition to the amount authorized under this section.                             
09            (b)  In addition to the security that may be provided to bonds of the Knik                                   
10       Crossing Development Corporation under the powers granted to the Knik Crossing                                    
11       Development Corporation under AS 18.56.086(a), the Knik Crossing Development                                      
12       Corporation may pledge revenue derived by the Knik Crossing Development                                           
13       Corporation from the ownership, use, and operation of its toll facilities, including                              
14       money derived from the fees, rents, tolls, rates, charges, and other revenue of the Knik                          
15       Crossing Development Corporation.                                                                                 
16            (c)  The Knik Crossing Development Corporation may not issues bonds, or a                                    
17       series of bonds, if the effective interest rate over the life of the bonds exceeds 11                             
18       percent a year or a rate of interest that is 125 percent of the rate of the Bond Buyer                            
19       Index of 20 Municipal Bond Average Yields for the week previous to the date of the                                
20       sale of the bonds, whichever is higher.                                                                           
21            (d)  Notwithstanding any other provisions of this chapter, the trust agreement,                              
22       or other similar document under which the Knik Crossing Development Corporation                                   
23       issues bonds, must contain an agreement by the Knik Crossing Development                                          
24       Corporation that the Knik Crossing Development Corporation will at all times                                      
25       maintain fees, rents, tolls, rates, or other charges sufficient to                                                
26                 (1)  pay the costs of operation and maintenance of the Knik Arm bridge                                  
27       and its appurtenant facilities and the principal of and interest on bonds issued under                            
28       the trust agreement as the bonds severally become due and payable;                                                
29                 (2)  provide for debt service coverage as considered necessary by the                                   
30       Knik Crossing Development Corporation for the marketing of its bonds; and                                         
31                 (3)  provide for renewals, replacements, and improvements of the Knik                                   
01       Arm bridge, and to maintain reserves required by the terms of the trust agreement or                              
02       other similar document.                                                                                           
03            Sec. 18.56.620. Capital reserve fund. (a) For the purpose of securing one or                               
04       more issues of its bonds, the Knik Crossing Development Corporation may establish                                 
05       one or more special funds, called "capital reserve funds," and shall pay into those                               
06       capital reserve funds the proceeds of the sale of its bonds and any other money that is                           
07       available to the Knik Crossing Development Corporation for the purposes of those                                  
08       funds. The funds shall be established only if the Knik Crossing Development                                       
09       Corporation determines that the establishment would enhance the marketability of the                              
10       bonds. All money held in a capital reserve fund, except as provided in this section,                              
11       shall be used as required solely for the payment of the principal of and interest on                              
12       bonds or of the sinking fund payments with respect to those bonds, the purchase or                                
13       redemption of bonds, or the payment of a redemption premium required to be paid                                   
14       when those bonds are redeemed before maturity. However, money in a fund may not                                   
15       be withdrawn from the fund at any time in an amount that would reduce the amount of                               
16       the fund to less than the capital reserve requirement set out in (b) of this section,                             
17       except for the purpose of making, with respect to those bonds, payment, when due, of                              
18       principal, interest, redemption premiums, and the sinking fund payments for the                                   
19       payment of which other money of the Knik Crossing Development Corporation is not                                  
20       available. Income or interest earned by or increment to a capital reserve fund due to                             
21       the investment of the fund or any other amounts in the fund may be transferred by the                             
22       Knik Crossing Development Corporation to other funds or accounts of the Knik                                      
23       Crossing Development Corporation to the extent that the transfer does not reduce the                              
24       amount of the capital reserve fund below the capital reserve fund requirement.                                    
25            (b)  If the Knik Crossing Development Corporation decides to issue bonds                                     
26       secured by a capital reserve fund, the bonds may not be issued if the amount in the                               
27       capital reserve fund is less than the amount of the capital reserve fund requirement, if                          
28       any, established by resolution of the Knik Crossing Development Corporation, unless                               
29       the Knik Crossing Development Corporation, at the time of issuance of the                                         
30       obligations, deposits in the capital reserve fund from the proceeds of the obligations to                         
31       be issued or from other sources an amount that, together with the amount then in the                              
01       fund, will not be less than the capital reserve fund requirement.                                                 
02            (c)  In computing the amount of a capital reserve fund for the purpose of this                               
03       section, securities in which all or a portion of the fund is invested shall be valued by                          
04       some reasonable method established by the Knik Crossing Development Corporation                                   
05       by resolution. Valuation on a particular date shall include the amount of any interest                            
06       earned or accrued to that date.                                                                                   
07            (d)  Notwithstanding any other provision of law, the Knik Crossing                                           
08       Development Corporation may establish other funds and reserves as the board of                                    
09       directors may determine reasonable and prudent for the issuance of bonds or for the                               
10       conduct of the business and affairs of the Knik Crossing Development Corporation.                                 
11       The interest earned on or profit derived from these funds and reserves shall be                                   
12       accounted for separately and may be appropriated to the Knik Crossing Development                                 
13       Corporation. Deposits made into the reserve fund established under this section must                              
14       include                                                                                                           
15                 (1)  revenue derived by the Knik Crossing Development Corporation                                       
16       from the ownership, use, or operation of toll facilities, including fees, rents, tolls,                           
17       rates, charges, or other revenue of the Knik Crossing Development Corporation;                                    
18                 (2)  money that the legislature has appropriated for that purpose; and                                  
19                 (3)  other money that may be made available to the Knik Crossing                                        
20       Development Corporation from other sources.                                                                       
21            (e)  Money in a reserve fund established under (d) of this section                                           
22                 (1)  shall be used only for                                                                             
23                      (A)  the payment of monetary obligations, liabilities, and                                         
24            indebtedness of the Knik Crossing Development Corporation, including                                         
25            termination payment obligations, under agreements for the financing, design,                                 
26            construction, maintenance, improvement, or operation of facilities, properties,                              
27            or projects of the Knik Crossing Development Corporation; and                                                
28                      (B)  planning, permitting, design, acquisition, construction,                                      
29            maintenance, improvement, or operation of transportation-related projects,                                   
30            facilities, properties, systems, or equipment of the Knik Crossing Development                               
31            Corporation or other public entities, including expansions, extensions, and                                  
01            capacity improvements, eligible under applicable federal and state law to be                                 
02            funded from toll revenue;                                                                                    
03                 (2) may not be used for the purpose of planning, permitting, design,                                    
04       acquisition, construction, maintenance, improvement, or operation of projects,                                    
05       facilities, properties, systems, or equipment under (1)(B) of this subsection if the                              
06       withdrawal would reduce the amount in the reserve fund to less than the reserve fund                              
07       requirement.                                                                                                      
08            (f)  In computing the amount of a reserve fund established under (d) of this                                 
09       section, securities in which all or a portion of the fund is invested shall be valued by a                        
10       reasonable method established by the Knik Crossing Development Corporation by                                     
11       resolution or established by the terms of the agreement for which the fund serves as                              
12       security. Valuation must include the amount of interest earned or accrued as of the                               
13       date of the valuation.                                                                                            
14            (g)  The chair of the Knik Crossing Development Corporation shall annually,                                  
15       not later than January 30, certify in writing to the governor and the legislature the                             
16       amount, if any, required to restore the capital reserve fund established under (a) of this                        
17       section to the capital reserve fund requirement, or a reserve fund established under (d)                          
18       of this section to the reserve fund requirement. The duty of the chair of the board to                            
19       report annually to the governor and the legislature terminates upon the cumulative                                
20       appropriation to the Knik Crossing Development Corporation, after January 1, 2013,                                
21       of $1,140,000,000.                                                                                                
22            (h)  Nothing in this section creates a debt or liability of the state.                                       
23            (i)  In this section,                                                                                        
24                 (1)  "capital reserve fund requirement" means the amount required to be                                 
25       on deposit in a reserve fund established under (a) of this section as of the date of                              
26       computation, as determined by resolution of the Knik Crossing Development                                         
27       Corporation or by the terms of the agreement for which the fund serves as security;                               
28       and                                                                                                               
29                 (2)  "reserve fund requirement" means the amount required to be on                                      
30       deposit in a reserve fund established under (d) of this section on the date of the                                
31       computation, as determined by resolution of the Knik Crossing Development                                         
01       Corporation or by the terms of the agreement for which the fund serves as security.                               
02            Sec. 18.56.625. Exemption from taxation. The real and personal property of                                 
03       the Knik Crossing Development Corporation and its assets, income, and receipts are                                
04       declared to be the property of a political subdivision of the state and are exempt from                           
05       all taxes and special assessments of the state or a political subdivision of the state.                           
06       Notwithstanding any law to the contrary, rights and interests in real and personal                                
07       property, assets, income, and receipts, including concession, franchise, leasehold, or                            
08       other real or personal property rights and interests, held by a private person or                                 
09       enterprise under a public-private partnership agreement entered into under this                                   
10       chapter, except any rights and interests of the private person in property serving a                              
11       business, commercial, or other purpose not necessary to operate the facilities,                                   
12       properties, or projects of the Knik Crossing Development Corporation, shall be                                    
13       exempt from all ad valorem taxes on real or personal property and special property tax                            
14       assessments of the state or a political subdivision of the state. All bonds of the Knik                           
15       Crossing Development Corporation are declared to be issued by a political subdivision                             
16       of the state and for an essential public and governmental purpose. The bonds, the                                 
17       interest on the bonds, the income from the bonds and the transfer of the bonds, and all                           
18       assets, income, and receipts pledged to pay or secure the payment of the bonds or                                 
19       interest on the bonds are, at all times, exempt from taxation by or under the authority                           
20       of the state, except for inheritance and estate taxes and taxes on transfers by or in                             
21       contemplation of death. Nothing in this section affects or limits an exemption from                               
22       license fees, property taxes, or excise, income, or other taxes provided under any other                          
23       law.                                                                                                            
24            Sec. 18.56.630. Exemption from local regulation. Notwithstanding any                                       
25       contrary provision of law, the activities of the Knik Crossing Development                                        
26       Corporation are exempt from land use planning, zoning, permitting, or other similar                               
27       governmental powers of political subdivisions of the state.                                                       
28            Sec. 18.56.635. Liability for payment of tolls. The owner of a vehicle using a                             
29       facility owned, controlled, or managed by the Knik Crossing Development                                           
30       Corporation for which a toll or fee is imposed is liable for the payment of the toll or                           
31       fee solely because of the vehicle ownership, unless the vehicle, except a rental vehicle,                         
01       is used without the owner's knowledge and incurs the toll or fee during operation.                                
02    * Sec. 3. AS 36.30.015(f) is amended to read:                                                                      
03            (f)  The board of directors of the Alaska Housing Finance Corporation,                                       
04       notwithstanding AS 18.56.088, and the membership of the Alaska Industrial                                     
05       Development and Export Authority, notwithstanding AS 44.88.085, [AND THE                                          
06       BOARD OF DIRECTORS OF THE KNIK ARM BRIDGE AND TOLL                                                                
07       AUTHORITY UNDER AS 19.75.111,] shall adopt regulations under AS 44.62                                             
08       (Administrative Procedure Act), and the board of trustees of the Alaska Retirement                                
09       Management Board shall adopt regulations under AS 37.10.240, to govern the                                        
10       procurement of supplies, services, professional services, and construction for the                                
11       respective public corporation and board. The regulations must reflect competitive                                 
12       bidding principles and provide vendors reasonable and equitable opportunities to                                  
13       participate in the procurement process and must include procurement methods to meet                               
14       emergency and extraordinary circumstances. Notwithstanding the other provisions of                                
15       this subsection, the Alaska Housing Finance Corporation, the Alaska Industrial                                    
16       Development and Export Authority, [THE KNIK ARM BRIDGE AND TOLL                                                   
17       AUTHORITY,] and the Alaska Retirement Management Board shall comply with                                          
18       AS 36.30.170(b).                                                                                                  
19    * Sec. 4. AS 36.30.850(b)(45) is amended to read:                                                                  
20            (45)  a subsidiary of the Alaska Housing Finance Corporation created under                                   
21 AS 18.56.086 for the purpose of planning, financing, or constructing in-state natural gas                               
22 pipeline projects or for the purpose of aiding in the planning, financing, or constructing of in-                       
23 state natural gas pipeline projects; or a subsidiary of the Alaska Housing Finance                                  
24 Corporation created under AS 18.56.086 for the purpose of constructing a bridge to                                  
25 span Knik Arm.                                                                                                      
26    * Sec. 5. AS 19.75.011, 19.75.021, 19.75.031, 19.75.041, 19.75.051, 19.75.061, 19.75.071,                          
27 19.75.081, 19.75.111, 19.75.113, 19.75.211, 19.75.221, 19.75.231, 19.75.241, 19.75.251,                                 
28 19.75.261, 19.75.271, 19.75.281, 19.75.291, 19.75.301, 19.75.311, 19.75.321, 19.75.330,                                 
29 19.75.332, 19.75.334, 19.75.336, 19.75.338, 19.75.340, 19.75.911, 19.75.915, 19.75.920,                                 
30 19.75.980, 19.75.990; AS 39.25.110(39); and AS 39.50.200(b)(60) are repealed.                                           
31    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
01 read:                                                                                                                   
02       TRANSITION. (a) All rights, titles, interests, agreements, contracts, instruments,                                
03 indebtedness, obligations, liabilities, commitments, investments, leases, real and personal                             
04 property, lines of credit, gifts, grants, loans, fees, rents, tolls, civil actions, revenue, funds,                     
05 insurance, permits, licenses, studies, and intellectual property of the Knik Arm Bridge and                             
06 Toll Authority are transferred to and may be assumed by the Knik Crossing Development                                   
07 Corporation. Nothing in this section creates a liability or obligation of the Alaska Housing                            
08 Finance Corporation.                                                                                                    
09       (b)  All procurements of the Knik Arm Bridge and Toll Authority that have not                                     
10 resulted in the award of a contract as of the effective date of this Act may be adopted and may                         
11 continue as procurements of the Knik Crossing Development Corporation.                                                  
12       (c)  For one year following the effective date of this Act, the members of the board of                           
13 directors for the Knik Arm Bridge and Toll Authority on the day before the effective date of                            
14 this Act shall serve as a nonvoting advisory board to the board of directors of the Knik                                
15 Crossing Development Corporation. While serving as a nonvoting advisory board under this                                
16 subsection, the members of the board of directors of the Knik Arm Bridge and Toll Authority                             
17 shall serve without compensation but are entitled to per diem and travel expenses as provided                           
18 by the Alaska Housing Finance Corporation.