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SCS 2d CSHB 23(FIN): "An Act relating to the Knik Arm Bridge and Toll Authority; relating to the bonding authority of the Knik Arm Bridge and Toll Authority; relating to toll bridge revenue bonds; creating the toll bridge revenue fund, the toll bridge revenue bond redemption fund, and the bond reserve fund; relating to powers and duties of the state bond committee; and providing for an effective date."

00                SENATE CS FOR 2d CS FOR HOUSE BILL NO. 23(FIN)                                                           
01 "An Act relating to the Knik Arm Bridge and Toll Authority; relating to the bonding                                     
02 authority of the Knik Arm Bridge and Toll Authority; relating to toll bridge revenue                                    
03 bonds; creating the toll bridge revenue fund, the toll bridge revenue bond redemption                                   
04 fund, and the bond reserve fund; relating to powers and duties of the state bond                                        
05 committee; and providing for an effective date."                                                                        
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1. AS 19.75.021(b) is amended to read:                                                                   
08            (b)  The authority may not be terminated as long as it has bonds, notes, or other                            
09       obligations outstanding, including obligations under an agreement with the state as                           
10       provided in AS 37.15.225. Upon termination of the authority, its rights and property                          
11       pass to the state.                                                                                                
12    * Sec. 2. AS 19.75.111(a) is amended to read:                                                                      
13            (a)  Except as otherwise explicitly made applicable to the authority, the                                    
01       performance of the authority's duties and the exercise of its powers, including its                               
02       powers to issue bonds and otherwise incur debt, shall be governed exclusively by this                             
03       chapter. In furtherance of its purposes, the authority may                                                        
04                 (1)  own, acquire, construct, develop, create, reconstruct, equip,                                      
05       operate, maintain, extend, and improve the Knik Arm bridge and its appurtenant                                    
06       facilities;                                                                                                       
07                 (2)  sue and be sued;                                                                                   
08                 (3)  adopt a seal;                                                                                      
09                 (4)  adopt, amend, and repeal regulations under AS 44.62 and establish                                  
10       bylaws;                                                                                                           
11                 (5)  make and execute agreements, contracts, and all other instruments                                  
12       with any public or private person, the state or another governmental unit or agency,                          
13       corporation, or other business entity lawfully conducting business in the United States                           
14       for the exercise of its powers and functions under this chapter and for the financing,                            
15       design, construction, maintenance, improvement, or operation of facilities, properties,                           
16       or projects of the authority, including making and executing contracts with any person,                           
17       firm, corporation, the state or another governmental agency, or other entity for the                          
18       purpose of                                                                                                        
19                      (A)  incurring indebtedness, obtaining financing for the                                       
20            authority's projects, obtaining investments in the authority's projects,                                 
21            acquiring or granting lump sum payments for services in advance or in arrears,                               
22            grants, and other financing; and                                                                             
23                      (B)  entering into public-private partnerships or service                                          
24            contracts in any form;                                                                                       
25                 (6)  in its own name acquire, lease, rent, sell, or convey real and                                     
26       personal property;                                                                                                
27                 (7)  issue and refund bonds in accordance with this chapter, in order to                                
28       pay the cost of the Knik Arm bridge and its appurtenant facilities; the authority may                             
29       also secure payment of the bonds as provided in this chapter;                                                     
30                 (8)  incur other indebtedness, including lines of credit and indebtedness                               
31       to the Federal Highway Administration, United States Department of Transportation,                                
01       under 23 U.S.C. 601 - 610 (Transportation Infrastructure Finance and Innovation Act                               
02       of 1998), as amended, and secure that indebtedness as provided in this chapter;                                   
03                 (9)  apply for and accept gifts, grants, or loans from a federal agency or                              
04       the state or an agency or instrumentality of the state, or from a municipality, private                       
05       organization, or other source, including obtaining title to state, local government, or                           
06       privately owned land, directly or through a department of the state having jurisdiction                           
07       of the land;                                                                                                      
08                 (10)  fix and collect fees, rents, tolls, rates, or other charges for the use                           
09       of the Knik Arm bridge and appurtenant facilities, or for a service developed,                                    
10       operated, or provided by the authority; notwithstanding AS 37.10.050(a), fees, rents,                             
11       tolls, rates, and other charges fixed and collected under this paragraph may exceed the                           
12       actual operating cost of the use of the bridge, facility, or service;                                             
13                 (11)  bring civil actions, refer criminal actions to the appropriate                                    
14       authority, and take other actions or enter into agreements with law enforcement and                               
15       collection agencies to enforce the collection of its fees, rents, tolls, rates, other                             
16       charges, penalties, and other obligations;                                                                        
17                 (12)  pledge, encumber, transfer, or otherwise obligate revenue derived                                 
18       by the authority from the ownership, use, or operation of toll facilities, including fees,                        
19       rents, tolls, rates, charges, or other revenue of the authority or money that the                                 
20       legislature may appropriate, except a state tax or license, as security for bonds or other                        
21       indebtedness or agreements of the authority or for bonds or other indebtedness or                             
22       agreements of the state on a senior, parity, or subordinate lien basis;                                       
23                 (13)  deposit or invest its funds, subject to agreements with                                           
24       bondholders;                                                                                                      
25                 (14)  procure insurance against any loss in connection with its                                         
26       operation;                                                                                                        
27                 (15)  contract for and engage the services of consultants, experts, and                                 
28       financial and technical advisors that the authority considers necessary for the exercise                          
29       of its powers and functions under this chapter;                                                                   
30                 (16)  apply for, obtain, hold, and use permits, licenses, or approvals                                  
31       from appropriate agencies of the state, the United States, a foreign country, and any                             
01       other proper agency in the same manner as any other person;                                                       
02                 (17)  perform reconnaissance studies and engineering, survey, and                                       
03       design studies with respect to the Knik Arm bridge and its appurtenant facilities;                                
04                 (18)  exercise powers of eminent domain or file a declaration of taking                                 
05       as necessary for the Knik Arm bridge and appurtenant facilities under AS 09.55.240 -                              
06       09.55.460 to acquire land or an interest in land; the authority's exercise of powers                              
07       under this paragraph may not exceed the permissible exercise of those powers by the                               
08       state;                                                                                                            
09                 (19)  confer with municipal and other governments, metropolitan                                         
10       planning organizations, and the department, concerning the Knik Arm bridge;                                       
11                 (20)  do all acts and things necessary to carry out the powers expressly                                
12       granted or necessarily implied in this chapter; nothing in this chapter limits the powers                         
13       of the authority that are expressly granted or necessarily implied.                                               
14    * Sec. 3. AS 19.75.211(a) is amended to read:                                                                      
15            (a)  Subject to AS 19.75.211(c) [NOTWITHSTANDING ANY OTHER                                               
16       PROVISION OF LAW], the authority may borrow money and issue and refund bonds                                      
17       on which the principal and interest are paid out of and secured by the gross revenue                              
18       derived by the authority from the ownership, use, and operation of its toll facilities,                           
19       including money derived from the fees, rents, tolls, rates, charges, and other revenue                            
20       of the authority under this chapter and any other revenue or money that the legislature                           
21       may appropriate, except a state tax or license. Before issuing bonds for the Knik Arm                             
22       bridge, the authority shall submit to the state bond committee a description of the bond                          
23       issue and a preliminary prospectus, offering circular, or official statement relating to                          
24       the bond issue. Bonds may not be issued unless the state bond committee finds, based                              
25       upon the information submitted by the authority under this section and other                                      
26       information that is reasonably available to the committee, that the Knik Arm bridge                               
27       revenue and other revenue available to the authority can be reasonably expected to be                             
28       adequate for payment of the principal of and interest on the bonds to be issued by the                        
29       authority and payments by the authority under an agreement under                                              
30       AS 37.15.255 for bonds issued by the state and that issuance of the bonds by the                              
31       authority would not be expected to adversely affect the ability of the state or its                               
01       political subdivisions to market bonds.                                                                           
02    * Sec. 4. AS 19.75.211(c) is amended to read:                                                                      
03            (c)  The authority may not issue bonds under this chapter without prior                                  
04       approval from the legislature. If the [THE] authority receives legislative approval,                      
05       the authority may issue bonds in an aggregate amount not to exceed $500,000,000,                              
06       plus the cost of issuance.                                                                                        
07    * Sec. 5. AS 19.75.221(b) is amended to read:                                                                      
08            (b)  Notwithstanding any other provisions of this chapter, the trust agreement                               
09       must contain an agreement by the authority that the authority will at all times maintain                          
10       fees, rents, tolls, rates, or other charges sufficient to                                                         
11                 (1)  pay the costs of operation and maintenance of the Knik Arm bridge                                  
12       and its appurtenant facilities and the principal of and interest on bonds issued under                            
13       the trust agreement as the bonds severally become due and payable;                                                
14                 (2)  provide for debt service coverage as considered necessary by the                                   
15       authority for the marketing of its bonds; [AND]                                                                   
16                 (3)  provide for renewals, replacements, and improvements of the Knik                                   
17       Arm bridge, and to maintain reserves required by the terms of the trust agreement;                            
18       and                                                                                                           
19                 (4)  make payments to the state under an agreement under                                            
20       AS 37.15.255 for bonds issued by the state.                                                                   
21    * Sec. 6. AS 19.75.231 is amended to read:                                                                         
22            Sec. 19.75.231. Validity of pledge. It is the intention of the legislature that a                          
23       pledge made in respect of bonds of the authority or bonds of the state shall be                               
24       perfected and shall be valid and binding from the time the pledge is made, that the                               
25       money or property so pledged and after that received by the authority shall                                       
26       immediately be subject to the lien of the pledge without physical delivery or further                             
27       act, and that the lien of the pledge shall be valid and binding against all parties having                        
28       claims of any kind in tort, contract, or otherwise against the authority irrespective of                          
29       whether the parties have notice. Neither the resolution, trust agreement, nor any other                           
30       instrument by which a pledge is created need be recorded or filed under the provisions                            
31       of the Uniform Commercial Code in order to be perfected or to be valid, binding, or                               
01       effective against the parties. This section does not affect title to or conveyances of real                       
02       property, and does not limit the applicability of AS 40.17.080(b).                                                
03    * Sec. 7. AS 37.15 is amended by adding new sections to read:                                                      
04                    Article 1A. Toll Bridge Revenue Bonds.                                                             
05            Sec. 37.15.225. Bond authorization. (a) For purposes of financing a portion                                
06       of the costs of the Knik Arm Crossing and appurtenant facilities or other toll bridges                            
07       as the legislature may designate, including the costs of bond issuance, the issuance and                          
08       sale of bonds of the state by the committee is authorized as provided in AS 37.15.225 -                           
09       37.15.285. The net proceeds of the sale of the bonds remaining after payment of costs                             
10       of issuance, capitalized interest, if any, and making deposits to the bond reserve fund                           
11       under AS 37.15.255, shall be transferred to the Knik Arm Bridge and Toll Authority                                
12       for the Knik Arm Crossing project facilities or another authority as the legislature may                          
13       designate for other projects approved by the legislature, or may be held by a trustee to                          
14       be disbursed to pay the costs of a toll bridge under the terms and conditions set out in                          
15       a trust agreement. Accrued interest paid on the bonds shall be paid into the bond                                 
16       redemption fund.                                                                                                  
17            (b)  Prior to the issuance of bonds authorized under (a) of this section, the                                
18       committee shall send notice of the issuance to the legislature.                                                   
19            (c)  The total unpaid principal amount of bonds, including refunding bonds, but                              
20       excluding refunded bonds, is limited as provided in AS 37.15.230. The bonds do not                                
21       constitute a general obligation of the state. Authorization by the voters of the state or                         
22       the legislature is not required.                                                                                  
23            (d)  The committee may enter into agreements with other state agencies as                                    
24       necessary or convenient to implement AS 37.15.225 - 37.15.285.                                                    
25            (e)  The committee may contract for the services of underwriters, paying                                     
26       agents, trustees, bond printers, rating agencies, bond insurance, credit enhancement                              
27       providers, accountants, financial advisors, and bond counsel, and other services as are                           
28       necessary to accomplish the bond issuance and sale.                                                               
29            (f)  The state may not issue bonds under (a) of this section for financing the                               
30       Knik Arm Crossing until the Knik Arm Bridge and Toll Authority has been approved                                  
31       for a loan for construction of the Knik Arm Crossing from the Federal Highway                                     
01       Administration, United States Department of Transportation, under 23 U.S.C. 601 -                                 
02       609 (Transportation Infrastructure Finance and Innovation Act of 1998).                                           
03            Sec. 37.15.230. Toll bridge revenue bond limit. The total unpaid principal                                 
04       amount of revenue bonds issued under AS 37.15.225 - 37.15.285, including refunding                                
05       bonds but excluding refunded bonds, may not exceed $300,000,000.                                                  
06            Sec. 37.15.235. Toll bridge revenue fund. (a) The toll bridge revenue fund is                              
07       established as a separate fund of the state. The revenue fund consists of all revenue,                            
08       fees, charges, and rentals received by the state, by contract with the authority or                               
09       otherwise, from the ownership or operation of toll bridges and facilities and                                     
10       improvements used in connection with the toll bridges and facilities. Contracts or                                
11       other agreements with the authority may establish priorities for the payment of                                   
12       operations and maintenance costs of the authority and for the payment of other                                    
13       obligations, including debt obligations of the authority, senior to the payments to be                            
14       made by the authority to the state for deposit to the revenue fund. The money in the                              
15       revenue fund may be used only                                                                                     
16                 (1)  to pay or secure payment of the principal of and interest on bonds;                                
17                 (2)  to redeem bonds before their fixed maturities; and                                                 
18                 (3)  subject to appropriation by the legislature, for any other purpose for                             
19       which federal funds may be obligated by the state under 23 U.S.C. 129(a).                                         
20            (b)  The investment of money in the revenue fund may be made in the manner                                   
21       that the committee or the committee's delegated representative may determine. The                                 
22       interest earned on or any profits derived from the sale of this investment shall be                               
23       deposited in and become a part of the revenue fund.                                                               
24            (c)  All references to the toll bridge revenue fund in this section include special                          
25       accounts within the toll bridge revenue fund that may be created by resolution or trust                           
26       agreement to secure the payment of particular bonds.                                                              
27            Sec. 37.15.240. Toll bridge revenue bond redemption fund. (a) The toll                                     
28       bridge revenue bond redemption fund is established as a special fund of the state. The                            
29       bond redemption fund is a trust fund for paying and securing the payment of the                                   
30       principal of and interest and redemption premium, if any, on the bonds and shall be at                            
31       all times completely segregated and set apart from all other funds of the state. The                              
01       bond redemption fund shall be drawn on only for the purpose of paying the principal                               
02       of and interest and redemption premium, if any, on the bonds, together with related                               
03       trustee fees, if any.                                                                                             
04            (b)  Money in the bond redemption fund may be invested in the same manner                                    
05       and on the same conditions as permitted for investment of money belonging to the                                  
06       state or held in the treasury under AS 37.10.070; however, the committee may agree                                
07       with the bondholders to further limit these investments. Earnings on investments must                             
08       be retained in the bond redemption fund or a designated account in the bond                                       
09       redemption fund.                                                                                                  
10            (c)  All references to the bond redemption fund in this section include special                              
11       accounts in the bond redemption fund that may be created by resolution or first                                   
12       agreement to secure the payment of particular bonds.                                                              
13            Sec. 37.15.245. Bond terms. (a) The bonds may be issued and sold at public                                 
14       or negotiated sale in the manner, in the amounts or series, and at the time or times that                         
15       the committee or the committee's delegated representative determines. The bonds, or                               
16       each series of them, shall be sold at the price and on the terms, conditions, and                                 
17       covenants set by the committee or the committee's delegated representative after                                  
18       considering market conditions. Interest rates may be fixed or variable.                                           
19            (b)  The bonds mature at the time or times fixed by the committee or the                                     
20       committee's delegated representative. The bonds may be subject to redemption before                               
21       their fixed maturities, as determined by the committee or the committee's delegated                               
22       representative, with or without a premium or premiums. The bonds may be in                                        
23       denominations determined by the committee or the committee's delegated                                            
24       representative; may be issued in fully or partially registered form; must be payable as                           
25       to principal and interest at the place or places determined by the committee; must be                             
26       signed on behalf of the state in the manner provided by the committee; and must be                                
27       issued under and subject to the terms, conditions, covenants, and protective features                             
28       safeguarding payment of the bonds and relating to the funding of projects as found                                
29       necessary by the committee or the committee's delegated representative.                                           
30            (c)  If the committee or the committee's delegated representative finds it                                   
31       reasonably necessary, the committee or the committee's delegated representative may                               
01       select a trustee or trustees for the holders of the bonds, or any series of them, for the                         
02       safeguarding and disbursement of any of the money in the bond redemption fund, or                                 
03       for duties with respect to the enforcement, authentication, delivery, payment, and                                
04       registration of the bonds as the committee may determine. The committee or the                                    
05       committee's delegated representative shall fix the rights, duties, powers, and                                    
06       obligations of the trustee or trustees.                                                                           
07            (d)  In its determination of all matters and questions relating to the issuance                              
08       and sale of the bonds and the fixing of their maturities, terms, conditions, and                                  
09       covenants as provided in (a) - (c) of this section, the decisions of the committee shall                          
10       be reasonably necessary for the best interests of the state and accomplish the most                               
11       advantageous sale of the bonds. Decisions of the committee, as expressed in a bond                                
12       resolution, are final and conclusively considered to comply with the requirements of                              
13       AS 37.15.225 - 37.15.285.                                                                                         
14            Sec. 37.15.250. Bond resolution. The committee shall authorize the issuance                                
15       of bonds by adopting a resolution and shall prepare all other documents and                                       
16       proceedings necessary for the issuance, sale, and delivery of the bonds or any part or                            
17       series of them. The bond resolution may fix or the committee's delegated                                          
18       representative, subject to parameters set by the committee, may fix the principal                                 
19       amount, denominations, date, maturities, manner of sale, place or places of payment,                              
20       rights of redemption, if any, terms, form, conditions, and covenants of the bonds or                              
21       each series of bonds.                                                                                             
22            Sec. 37.15.255. Bond reserve fund. (a) The resolution authorizing the                                      
23       issuance of the bonds under AS 37.15.225 - 37.15.285 may provide for the                                          
24       establishment and maintenance of a special fund called the toll bridge revenue bond                               
25       reserve fund in which there shall be deposited or transferred                                                     
26                 (1)  all money appropriated by the legislature for the purpose of the                                   
27       fund including appropriations in accordance with (g) of this section; and                                         
28                 (2)  all proceeds of bonds required to be deposited in the fund by terms                                
29       of the bond resolution or a trust agreement with respect to the proceeds of bonds.                                
30            (b)  Subject to (h) of this section, money in the reserve fund shall be held and                             
31       applied solely to the payment of the interest on and principal of bonds authorized                                
01       under AS 37.15.225 - 37.15.285 as the interest and principal become due and payable                               
02       to the retirement of bonds. Money may not be withdrawn if a withdrawal would                                      
03       reduce the amount in the reserve fund to an amount less than the required debt service                            
04       reserve except for payment of interest then due and payable on bonds and the principal                            
05       of bonds then maturing and payable and for the retirement of bonds in accordance                                  
06       with the terms of the bond resolution or trust agreement and for which payment is not                             
07       then available.                                                                                                   
08            (c)  Money in the reserve fund in excess of the required debt service reserve as                             
09       defined in (b) of this section, whether because of investment or otherwise, may be                                
10       withdrawn at any time or may be transferred to the bond redemption fund subject to                                
11       (h) of this section.                                                                                              
12            (d)  Money in the reserve fund may be invested in the same manner and on the                                 
13       same conditions as permitted for investment of funds belonging to the state or held in                            
14       the treasury under AS 37.10.070; however, the committee or the committee's                                        
15       delegated representative may agree with the bondholders to further limit these                                    
16       investments.                                                                                                      
17            (e)  For purposes of valuation, investments in the reserve fund shall be valued                              
18       at par or, if purchased at less than par, at cost, unless otherwise provided by resolution                        
19       of the committee. Valuation on a particular date shall include the amount of interest                             
20       then earned or accrued to that date on the money or investments in the reserve fund.                              
21            (f)  Notwithstanding any other provision of this Act, bonds may not be issued                                
22       under a trust agreement, indenture, or bond resolution unless there is in the reserve                             
23       fund the required debt service reserve for all bonds then issued under a trust                                    
24       agreement, indenture, or bond resolution and outstanding and for the bonds to be                                  
25       issued; however, the committee may satisfy this requirement by depositing as much of                              
26       the proceeds of the bonds to be issued, on their issuance, as is needed to meet the                               
27       required debt service reserve. The committee may at any time issue bonds or notes for                             
28       the purpose of increasing the amount in the reserve fund to the required debt service                             
29       reserve, or to meet whatever higher or additional reserve that may be fixed by a bond                             
30       resolution or trust agreement with respect to the fund.                                                           
31            (g)  To ensure the required debt service reserve is maintained in the reserve                                
01       fund, the legislature may appropriate annually for deposit in the fund the sum, certified                         
02       by the commissioner of revenue to the governor and to the legislature, that is                                    
03       necessary to restore the fund to an amount equal to the required debt service reserve.                            
04       The commissioner of revenue annually, before January 30, shall make and deliver to                                
05       the governor and to the legislature a certificate stating the sum required to restore the                         
06       fund to that amount, and the certified sum may be appropriated during the then current                            
07       state fiscal year. Nothing in this subsection creates a debt or liability of the state.                           
08            (h)  All amounts received because of money appropriated to the reserve fund                                  
09       shall be held and applied in accordance with (b) of this section.                                                 
10            (i)  All references to the reserve fund in this section include special accounts                             
11       within the reserve fund that may be created by resolution or trust agreement to secure                            
12       the payment of particular bonds.                                                                                  
13            (j)  The commissioner of revenue may, subject to appropriation, lend surplus                                 
14       money in the general fund for deposit to an account in the reserve fund in an amount                              
15       equal to the required debt service reserve. The loans shall be made on the terms and                              
16       conditions that may be agreed on by the commissioner of revenue and the trustee,                                  
17       including, without limitation, terms and conditions providing that the loans need not                             
18       be repaid until the obligations of the state secured and to be secured by the account in                          
19       the reserve fund are no longer outstanding.                                                                       
20            (k)  In this section, "required debt service reserve" means, on the date of                                  
21       computation, the amount required to be on deposit in the reserve fund as provided by                              
22       resolution of the committee.                                                                                      
23            Sec. 37.15.260. Enforcement by bond owner. The holder of any bonds or the                                  
24       trustee for the holders of the bonds or any series of them, may, by appropriate                                   
25       proceedings in the superior court, compel the transfer, setting aside, and payment of                             
26       money and the enforcement of all of the terms, conditions, and covenants as required                              
27       and provided for in AS 37.15.225 - 37.15.285 and in the bond resolution or trust                                  
28       agreement.                                                                                                        
29            Sec. 37.15.265. Amounts required for payments. The committee shall,                                        
30       before June 30 of each year or from time to time within the year, as appropriate,                                 
31       commencing with the year in which the bonds are issued, certify to the commissioners                              
01       of revenue and administration the amounts required in the current fiscal year and the                             
02       next ensuing fiscal year by the bond resolution or resolutions or trust agreements to be                          
03       paid out of toll bridge revenue or capitalized amounts into the bond redemption fund                              
04       and to be paid into and maintained in any reserve fund or account or other fund or                                
05       account created by the bond resolution or resolutions. The committee shall also certify                           
06       to the commissioners the last date or dates on which payments may be made.                                        
07            Sec. 37.15.270. Refunding. (a) The committee may refund the bonds or any                                   
08       part of the bonds at or before their maturity or redemption dates by issuing refunding                            
09       revenue bonds of the state if the committee determines the refunding to be                                        
10       advantageous to and in the best interest of the state.                                                            
11            (b)  The issuance of refunding bonds need not be authorized by the voters of                                 
12       the state or by an act of the legislature. The committee shall adopt the resolution or                            
13       resolutions and prepare all other documents and proceedings necessary for the                                     
14       issuance, exchange or sale, and delivery of the refunding bonds. All provisions of                                
15       AS 37.15.225 - 37.15.285 applicable to revenue bonds are applicable to the refunding                              
16       bonds and to the issuance, sale, or exchange of the refunding bonds, except as                                    
17       otherwise provided in this section.                                                                               
18            (c)  The committee may issue refunding bonds in a principal amount sufficient                                
19       to provide money for the advance or current refunding of all bonds to be refunded and                             
20       interest on the refunded bonds and to pay the costs of issuance and administration of                             
21       the refunding bonds. These expenses also include the difference in amount between                                 
22       the par value of the refunding bonds and any amount less than par for which the                                   
23       refunding bonds are sold; the premium, if any, necessary to be paid in order to call or                           
24       retire the outstanding bonds and the interest accruing on them to date of the call or                             
25       retirement; and other costs. The committee is authorized to incur the expenses.                                   
26            (d)  The committee or the committee's delegated representative may contract                                  
27       with a refunding trustee to hold the proceeds of refunding bonds in trust until the                               
28       proceeds, together with earnings on the proceeds, are applied to pay the principal of,                            
29       premium, if any, and interest on the bonds to be refunded. Until the refunding bond                               
30       proceeds are applied, the proceeds may be invested in direct obligations of, or                                   
31       obligations guaranteed by, the United States or an agency or corporation of the United                            
01       States whose obligations constitute direct obligations of, or obligations guaranteed by,                          
02       the United States.                                                                                                
03            Sec. 37.15.275. Bonds as legal investments. The bonds are legal investments                                
04       for all banks, trust companies, savings banks, savings and loan associations, and other                           
05       persons carrying on a banking business, all insurance companies and other persons                                 
06       carrying on an insurance business, and all executors, administrators, trustees, and other                         
07       fiduciaries. The bonds may be accepted as security for deposits of all money of the                               
08       state and its political subdivisions.                                                                             
09            Sec. 37.15.280. Statutory construction. AS 37.15.225 - 37.15.285 shall be                                  
10       liberally construed in order to carry out the purposes for which they were enacted.                               
11            Sec. 37.15.285. Definitions. In AS 37.15.225 - 37.15.285,                                                  
12                 (1)  "authority" means                                                                                  
13                      (A)  the Knik Arm Bridge and Toll Authority established in                                         
14            AS 19.75.021 with respect to the Knik Arm Bridge and its appurtenant                                         
15            facilities; or                                                                                               
16                      (B)  an authority established by the legislature for any other toll                                
17            bridge project;                                                                                              
18                 (2)  "bond redemption fund" means the toll bridge revenue bond                                          
19       redemption fund established in AS 37.15.240;                                                                      
20                 (3)  "bond resolution" means a resolution adopted by the committee                                      
21       under AS 37.15.250 to authorize the issuance of bonds;                                                            
22                 (4)  "bonds" means the toll bridge revenue bonds authorized in                                          
23       AS 37.15.225 - 37.15.285;                                                                                         
24                 (5)  "committee" means the state bond committee created in                                              
25       AS 37.15.110, or any other committee, body, department, or officer of the state that                              
26       succeeds to the rights, powers, duties, and obligations of the state bond committee by                            
27       law;                                                                                                              
28                 (6)  "costs of issuance and administration" means all costs associated                                  
29       with issuance and administration of toll bridge revenue bonds and refunding bonds,                                
30       including costs of bond printing, official statements, financial advisors, travel costs,                          
31       rating agencies, bond insurance, letters and lines of credit for credit enhancement,                              
01       underwriters, legal services, paying agents, bond registrars, bond and escrow trustees,                           
02       arbitrage rebate, and all other costs, including administrative costs, both direct and                            
03       indirect;                                                                                                         
04                 (7)  "reserve fund" means the toll bridge revenue bond reserve fund                                     
05       authorized in AS 37.15.255;                                                                                       
06                 (8)  "revenue fund" means the toll bridge revenue fund established in                                   
07       AS 37.15.235.                                                                                                     
08    * Sec. 8. This Act takes effect July 1, 2014.