SCS 2d CSHB 23(FIN) am S: "An Act relating to the Knik Arm Bridge and Toll Authority; relating to the bonding authority of the Knik Arm Bridge and Toll Authority; requiring certain products used in construction contracts for the Knik Arm bridge to be made in the United States; 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) am S 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; requiring certain products used 03 in construction contracts for the Knik Arm bridge to be made in the United States; 04 relating to toll bridge revenue bonds; creating the toll bridge revenue fund, the toll 05 bridge revenue bond redemption fund, and the bond reserve fund; relating to powers 06 and duties of the state bond committee; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 19.75.021(b) is amended to read: 09 (b) The authority may not be terminated as long as it has bonds, notes, or other 10 obligations outstanding, including obligations under an agreement with the state as 11 provided in AS 37.15.225. Upon termination of the authority, its rights and property 12 pass to the state. 13 * Sec. 2. AS 19.75.111(a) is amended to read:
01 (a) Except as otherwise explicitly made applicable to the authority, the 02 performance of the authority's duties and the exercise of its powers, including its 03 powers to issue bonds and otherwise incur debt, shall be governed exclusively by this 04 chapter. In furtherance of its purposes, the authority may 05 (1) own, acquire, construct, develop, create, reconstruct, equip, 06 operate, maintain, extend, and improve the Knik Arm bridge and its appurtenant 07 facilities; 08 (2) sue and be sued; 09 (3) adopt a seal; 10 (4) adopt, amend, and repeal regulations under AS 44.62 and establish 11 bylaws; 12 (5) make and execute agreements, contracts, and all other instruments 13 with any public or private person, the state or another governmental unit or agency, 14 corporation, or other business entity lawfully conducting business in the United States 15 for the exercise of its powers and functions under this chapter and for the financing, 16 design, construction, maintenance, improvement, or operation of facilities, properties, 17 or projects of the authority, including making and executing contracts with any person, 18 firm, corporation, the state or another governmental agency, or other entity for the 19 purpose of 20 (A) incurring indebtedness, obtaining financing for the 21 authority's projects, obtaining investments in the authority's projects, 22 acquiring or granting lump sum payments for services in advance or in arrears, 23 grants, and other financing; and 24 (B) entering into public-private partnerships or service 25 contracts in any form; 26 (6) in its own name acquire, lease, rent, sell, or convey real and 27 personal property; 28 (7) issue and refund bonds in accordance with this chapter, in order to 29 pay the cost of the Knik Arm bridge and its appurtenant facilities; the authority may 30 also secure payment of the bonds as provided in this chapter; 31 (8) incur other indebtedness, including lines of credit and indebtedness
01 to the Federal Highway Administration, United States Department of Transportation, 02 under 23 U.S.C. 601 - 610 (Transportation Infrastructure Finance and Innovation Act 03 of 1998), as amended, and secure that indebtedness as provided in this chapter; 04 (9) apply for and accept gifts, grants, or loans from a federal agency or 05 the state or an agency or instrumentality of the state, or from a municipality, private 06 organization, or other source, including obtaining title to state, local government, or 07 privately owned land, directly or through a department of the state having jurisdiction 08 of the land; 09 (10) fix and collect fees, rents, tolls, rates, or other charges for the use 10 of the Knik Arm bridge and appurtenant facilities, or for a service developed, 11 operated, or provided by the authority; notwithstanding AS 37.10.050(a), fees, rents, 12 tolls, rates, and other charges fixed and collected under this paragraph may exceed the 13 actual operating cost of the use of the bridge, facility, or service; 14 (11) bring civil actions, refer criminal actions to the appropriate 15 authority, and take other actions or enter into agreements with law enforcement and 16 collection agencies to enforce the collection of its fees, rents, tolls, rates, other 17 charges, penalties, and other obligations; 18 (12) pledge, encumber, transfer, or otherwise obligate revenue derived 19 by the authority from the ownership, use, or operation of toll facilities, including fees, 20 rents, tolls, rates, charges, or other revenue of the authority or money that the 21 legislature may appropriate, except a state tax or license, as security for bonds or other 22 indebtedness or agreements of the authority or for bonds or other indebtedness or 23 agreements of the state on a senior, parity, or subordinate lien basis; 24 (13) deposit or invest its funds, subject to agreements with 25 bondholders; 26 (14) procure insurance against any loss in connection with its 27 operation; 28 (15) contract for and engage the services of consultants, experts, and 29 financial and technical advisors that the authority considers necessary for the exercise 30 of its powers and functions under this chapter; 31 (16) apply for, obtain, hold, and use permits, licenses, or approvals
01 from appropriate agencies of the state, the United States, a foreign country, and any 02 other proper agency in the same manner as any other person; 03 (17) perform reconnaissance studies and engineering, survey, and 04 design studies with respect to the Knik Arm bridge and its appurtenant facilities; 05 (18) exercise powers of eminent domain or file a declaration of taking 06 as necessary for the Knik Arm bridge and appurtenant facilities under AS 09.55.240 - 07 09.55.460 to acquire land or an interest in land only if the Federal Highway 08 Administration, United States Department of Transportation, has approved a 09 loan to the authority for construction of the Knik Arm Crossing under 23 U.S.C. 10 601 - 609 (Transportation Infrastructure Finance and Innovation Act of 1998); 11 the authority's exercise of powers under this paragraph may not exceed the permissible 12 exercise of those powers by the state; 13 (19) confer with municipal and other governments, metropolitan 14 planning organizations, and the department, concerning the Knik Arm bridge; 15 (20) do all acts and things necessary to carry out the powers expressly 16 granted or necessarily implied in this chapter; nothing in this chapter limits the powers 17 of the authority that are expressly granted or necessarily implied. 18 * Sec. 3. AS 19.75 is amended by adding a new section to read: 19 Sec. 19.75.112. Property of the authority. Notwithstanding 20 AS 19.75.111(a)(6), the authority may not dispose of or destroy properties acquired 21 through the power of eminent domain or a declaration of taking under AS 09.55.240 22 until the Federal Highway Administration, United States Department of 23 Transportation, has approved a loan to the authority for construction of the Knik Arm 24 Crossing under 23 U.S.C. 601 - 609 (Transportation Infrastructure Finance and 25 Innovation Act of 1998). 26 * Sec. 4. AS 19.75.211(a) is amended to read: 27 (a) Subject to AS 19.75.211(c) [NOTWITHSTANDING ANY OTHER 28 PROVISION OF LAW], the authority may borrow money and issue and refund bonds 29 on which the principal and interest are paid out of and secured by the gross revenue 30 derived by the authority from the ownership, use, and operation of its toll facilities, 31 including money derived from the fees, rents, tolls, rates, charges, and other revenue
01 of the authority under this chapter and any other revenue or money that the legislature 02 may appropriate, except a state tax or license. Before issuing bonds for the Knik Arm 03 bridge, the authority shall submit to the state bond committee a description of the bond 04 issue and a preliminary prospectus, offering circular, or official statement relating to 05 the bond issue. Bonds may not be issued unless the state bond committee finds, based 06 upon the information submitted by the authority under this section and other 07 information that is reasonably available to the committee, that the Knik Arm bridge 08 revenue and other revenue available to the authority can be reasonably expected to be 09 adequate for payment of the principal of and interest on the bonds to be issued by the 10 authority and payments by the authority under an agreement under 11 AS 37.15.255 for bonds issued by the state and that issuance of the bonds by the 12 authority would not be expected to adversely affect the ability of the state or its 13 political subdivisions to market bonds. 14 * Sec. 5. AS 19.75.211(c) is amended to read: 15 (c) The authority may not issue bonds under this chapter without prior 16 approval from the legislature. If the [THE] authority receives legislative approval, 17 the authority may issue bonds in an aggregate amount not to exceed $500,000,000, 18 plus the cost of issuance. 19 * Sec. 6. AS 19.75.221(b) is amended to read: 20 (b) Notwithstanding any other provisions of this chapter, the trust agreement 21 must contain an agreement by the authority that the authority will at all times maintain 22 fees, rents, tolls, rates, or other charges sufficient to 23 (1) pay the costs of operation and maintenance of the Knik Arm bridge 24 and its appurtenant facilities and the principal of and interest on bonds issued under 25 the trust agreement as the bonds severally become due and payable; 26 (2) provide for debt service coverage as considered necessary by the 27 authority for the marketing of its bonds; [AND] 28 (3) provide for renewals, replacements, and improvements of the Knik 29 Arm bridge, and to maintain reserves required by the terms of the trust agreement; 30 and 31 (4) make payments to the state under an agreement under
01 AS 37.15.255 for bonds issued by the state. 02 * Sec. 7. AS 19.75.231 is amended to read: 03 Sec. 19.75.231. Validity of pledge. It is the intention of the legislature that a 04 pledge made in respect of bonds of the authority or bonds of the state shall be 05 perfected and shall be valid and binding from the time the pledge is made, that the 06 money or property so pledged and after that received by the authority shall 07 immediately be subject to the lien of the pledge without physical delivery or further 08 act, and that the lien of the pledge shall be valid and binding against all parties having 09 claims of any kind in tort, contract, or otherwise against the authority irrespective of 10 whether the parties have notice. Neither the resolution, trust agreement, nor any other 11 instrument by which a pledge is created need be recorded or filed under the provisions 12 of the Uniform Commercial Code in order to be perfected or to be valid, binding, or 13 effective against the parties. This section does not affect title to or conveyances of real 14 property, and does not limit the applicability of AS 40.17.080(b). 15 * Sec. 8. AS 19.75 is amended by adding a new section to article 3 to read: 16 Sec. 19.75.900. Use of materials manufactured in the United States. (a) 17 Notwithstanding any other provision of law, the authority shall include in a 18 construction contract for the Knik Arm bridge entered into by the authority a provision 19 under which the contractor agrees that steel, iron, and manufactured products with a 20 total value greater than $5,000 used or supplied by the contractor and any 21 subcontractors in the performance of the contract, including any subcontract, will be 22 made in the United States. 23 (b) A product shall be considered to be made in the United States under this 24 section if 25 (1) the components of the product are made primarily of iron or steel, 26 and all manufacturing of the product takes place in the United States, except 27 metallurgical processes involving the refinement of steel; or 28 (2) the product is not made primarily of iron or steel, and all of 29 (A) the manufacturing processes of the product take place in 30 the United States; and 31 (B) the components of the product are made in the United
01 States, even if the subcomponents originate in another country. 02 (c) Except as provided by (f) of this section, the authority may, on request of a 03 contractor, request the commissioner of transportation and public facilities to waive 04 the requirement in (a) of this section for a construction contract. The commissioner 05 may grant the request if the commissioner determines that 06 (1) the requirement is not consistent with the public interest; 07 (2) the materials are not made in the United States in a sufficient 08 quantity that is reasonably available and of a satisfactory quality; or 09 (3) inclusion of materials made in the United States will increase the 10 cost of the contract by more than 25 percent. 11 (d) Before the commissioner of transportation and public facilities grants a 12 waiver under (c) of this section, the commissioner shall 13 (1) place on the Alaska Online Public Notice System (AS 44.62.175) a 14 notice that gives a detailed written justification why the waiver satisfies the 15 requirements of (c) of this section and that allows persons to provide comments to the 16 authority for a reasonable period of time; and 17 (2) consider all comments received under (1) of this subsection. 18 (e) A person is not eligible to receive a construction contract under (a) of this 19 section or to receive a subcontract from the contractor if a court, state agency, or a 20 federal agency, after notice and an opportunity to be heard, determines the person 21 intentionally 22 (1) placed a label stating "made in America," or other wording with the 23 same meaning, on a product used in a construction contract to which this section 24 applies, and the product was not made in the United States; or 25 (2) falsely represented to the authority that a product used in the 26 construction contract for the Knik Arm bridge was made in the United States. 27 (f) The authority may not waive the requirements of (a) of this section for a 28 construction contract if the commissioner of transportation and public facilities, after 29 consulting with the United States Trade Representative, determines that the product is 30 made in a foreign country and that the foreign country 31 (1) is a party to an agreement with the United States, and, under that
01 agreement, the head of a federal agency of the United States has waived the 02 requirements of this section; and 03 (2) has violated the terms of the agreement identified in (1) of this 04 subsection by discriminating against construction products that are made in the United 05 States and that are covered by the agreement. 06 (g) In this section, 07 (1) "construction" means the process of building, altering, repairing, 08 maintaining, improving, demolishing, planning, or designing the Knik Arm bridge and 09 its appurtenant facilities; 10 (2) "contractor" means a person who enters into a construction contract 11 with the authority; 12 (3) "intentionally" has the meaning given in AS 11.81.900; 13 (4) "United States" means the United States of America, the District of 14 Columbia, the Commonwealth of Puerto Rico, and the territorial possessions of the 15 United States of America. 16 * Sec. 9. AS 37.15 is amended by adding new sections to read: 17 Article 1A. Toll Bridge Revenue Bonds. 18 Sec. 37.15.225. Bond authorization. (a) For purposes of financing a portion 19 of the costs of the Knik Arm Crossing and appurtenant facilities or other toll bridges 20 as the legislature may designate, including the costs of bond issuance, the issuance and 21 sale of bonds of the state by the committee is authorized as provided in AS 37.15.225 - 22 37.15.285. The net proceeds of the sale of the bonds remaining after payment of costs 23 of issuance, capitalized interest, if any, and making deposits to the bond reserve fund 24 under AS 37.15.255, shall be transferred to the Knik Arm Bridge and Toll Authority 25 for the Knik Arm Crossing project facilities or another authority as the legislature may 26 designate for other projects approved by the legislature, or may be held by a trustee to 27 be disbursed to pay the costs of a toll bridge under the terms and conditions set out in 28 a trust agreement. Accrued interest paid on the bonds shall be paid into the bond 29 redemption fund. 30 (b) Prior to the issuance of bonds authorized under (a) of this section, the 31 committee shall send notice of the issuance to the legislature.
01 (c) The total unpaid principal amount of bonds, including refunding bonds, but 02 excluding refunded bonds, is limited as provided in AS 37.15.230. The bonds do not 03 constitute a general obligation of the state. Authorization by the voters of the state or 04 the legislature is not required. 05 (d) The committee may enter into agreements with other state agencies as 06 necessary or convenient to implement AS 37.15.225 - 37.15.285. 07 (e) The committee may contract for the services of underwriters, paying 08 agents, trustees, bond printers, rating agencies, bond insurance, credit enhancement 09 providers, accountants, financial advisors, and bond counsel, and other services as are 10 necessary to accomplish the bond issuance and sale. 11 (f) The state may not issue bonds under (a) of this section for financing the 12 Knik Arm Crossing until the Knik Arm Bridge and Toll Authority has been approved 13 for a loan for construction of the Knik Arm Crossing from the Federal Highway 14 Administration, United States Department of Transportation, under 23 U.S.C. 601 - 15 609 (Transportation Infrastructure Finance and Innovation Act of 1998). 16 Sec. 37.15.230. Toll bridge revenue bond limit. The total unpaid principal 17 amount of revenue bonds issued under AS 37.15.225 - 37.15.285, including refunding 18 bonds but excluding refunded bonds, may not exceed $300,000,000. 19 Sec. 37.15.235. Toll bridge revenue fund. (a) The toll bridge revenue fund is 20 established as a separate fund of the state. The revenue fund consists of all revenue, 21 fees, charges, and rentals received by the state, by contract with the authority or 22 otherwise, from the ownership or operation of toll bridges and facilities and 23 improvements used in connection with the toll bridges and facilities. Contracts or 24 other agreements with the authority may establish priorities for the payment of 25 operations and maintenance costs of the authority and for the payment of other 26 obligations, including debt obligations of the authority, senior to the payments to be 27 made by the authority to the state for deposit to the revenue fund. The money in the 28 revenue fund may be used only 29 (1) to pay or secure payment of the principal of and interest on bonds; 30 (2) to redeem bonds before their fixed maturities; and 31 (3) subject to appropriation by the legislature, for any other purpose for
01 which federal funds may be obligated by the state under 23 U.S.C. 129(a). 02 (b) The investment of money in the revenue fund may be made in the manner 03 that the committee or the committee's delegated representative may determine. The 04 interest earned on or any profits derived from the sale of this investment shall be 05 deposited in and become a part of the revenue fund. 06 (c) All references to the toll bridge revenue fund in this section include special 07 accounts within the toll bridge revenue fund that may be created by resolution or trust 08 agreement to secure the payment of particular bonds. 09 Sec. 37.15.240. Toll bridge revenue bond redemption fund. (a) The toll 10 bridge revenue bond redemption fund is established as a special fund of the state. The 11 bond redemption fund is a trust fund for paying and securing the payment of the 12 principal of and interest and redemption premium, if any, on the bonds and shall be at 13 all times completely segregated and set apart from all other funds of the state. The 14 bond redemption fund shall be drawn on only for the purpose of paying the principal 15 of and interest and redemption premium, if any, on the bonds, together with related 16 trustee fees, if any. 17 (b) Money in the bond redemption fund may be invested in the same manner 18 and on the same conditions as permitted for investment of money belonging to the 19 state or held in the treasury under AS 37.10.070; however, the committee may agree 20 with the bondholders to further limit these investments. Earnings on investments must 21 be retained in the bond redemption fund or a designated account in the bond 22 redemption fund. 23 (c) All references to the bond redemption fund in this section include special 24 accounts in the bond redemption fund that may be created by resolution or first 25 agreement to secure the payment of particular bonds. 26 Sec. 37.15.245. Bond terms. (a) The bonds may be issued and sold at public 27 or negotiated sale in the manner, in the amounts or series, and at the time or times that 28 the committee or the committee's delegated representative determines. The bonds, or 29 each series of them, shall be sold at the price and on the terms, conditions, and 30 covenants set by the committee or the committee's delegated representative after 31 considering market conditions. Interest rates may be fixed or variable.
01 (b) The bonds mature at the time or times fixed by the committee or the 02 committee's delegated representative. The bonds may be subject to redemption before 03 their fixed maturities, as determined by the committee or the committee's delegated 04 representative, with or without a premium or premiums. The bonds may be in 05 denominations determined by the committee or the committee's delegated 06 representative; may be issued in fully or partially registered form; must be payable as 07 to principal and interest at the place or places determined by the committee; must be 08 signed on behalf of the state in the manner provided by the committee; and must be 09 issued under and subject to the terms, conditions, covenants, and protective features 10 safeguarding payment of the bonds and relating to the funding of projects as found 11 necessary by the committee or the committee's delegated representative. 12 (c) If the committee or the committee's delegated representative finds it 13 reasonably necessary, the committee or the committee's delegated representative may 14 select a trustee or trustees for the holders of the bonds, or any series of them, for the 15 safeguarding and disbursement of any of the money in the bond redemption fund, or 16 for duties with respect to the enforcement, authentication, delivery, payment, and 17 registration of the bonds as the committee may determine. The committee or the 18 committee's delegated representative shall fix the rights, duties, powers, and 19 obligations of the trustee or trustees. 20 (d) In its determination of all matters and questions relating to the issuance 21 and sale of the bonds and the fixing of their maturities, terms, conditions, and 22 covenants as provided in (a) - (c) of this section, the decisions of the committee shall 23 be reasonably necessary for the best interests of the state and accomplish the most 24 advantageous sale of the bonds. Decisions of the committee, as expressed in a bond 25 resolution, are final and conclusively considered to comply with the requirements of 26 AS 37.15.225 - 37.15.285. 27 Sec. 37.15.250. Bond resolution. The committee shall authorize the issuance 28 of bonds by adopting a resolution and shall prepare all other documents and 29 proceedings necessary for the issuance, sale, and delivery of the bonds or any part or 30 series of them. The bond resolution may fix or the committee's delegated 31 representative, subject to parameters set by the committee, may fix the principal
01 amount, denominations, date, maturities, manner of sale, place or places of payment, 02 rights of redemption, if any, terms, form, conditions, and covenants of the bonds or 03 each series of bonds. 04 Sec. 37.15.255. Bond reserve fund. (a) The resolution authorizing the 05 issuance of the bonds under AS 37.15.225 - 37.15.285 may provide for the 06 establishment and maintenance of a special fund called the toll bridge revenue bond 07 reserve fund in which there shall be deposited or transferred 08 (1) all money appropriated by the legislature for the purpose of the 09 fund including appropriations in accordance with (g) of this section; and 10 (2) all proceeds of bonds required to be deposited in the fund by terms 11 of the bond resolution or a trust agreement with respect to the proceeds of bonds. 12 (b) Subject to (h) of this section, money in the reserve fund shall be held and 13 applied solely to the payment of the interest on and principal of bonds authorized 14 under AS 37.15.225 - 37.15.285 as the interest and principal become due and payable 15 to the retirement of bonds. Money may not be withdrawn if a withdrawal would 16 reduce the amount in the reserve fund to an amount less than the required debt service 17 reserve except for payment of interest then due and payable on bonds and the principal 18 of bonds then maturing and payable and for the retirement of bonds in accordance 19 with the terms of the bond resolution or trust agreement and for which payment is not 20 then available. 21 (c) Money in the reserve fund in excess of the required debt service reserve as 22 defined in (b) of this section, whether because of investment or otherwise, may be 23 withdrawn at any time or may be transferred to the bond redemption fund subject to 24 (h) of this section. 25 (d) Money in the reserve fund may be invested in the same manner and on the 26 same conditions as permitted for investment of funds belonging to the state or held in 27 the treasury under AS 37.10.070; however, the committee or the committee's 28 delegated representative may agree with the bondholders to further limit these 29 investments. 30 (e) For purposes of valuation, investments in the reserve fund shall be valued 31 at par or, if purchased at less than par, at cost, unless otherwise provided by resolution
01 of the committee. Valuation on a particular date shall include the amount of interest 02 then earned or accrued to that date on the money or investments in the reserve fund. 03 (f) Notwithstanding any other provision of this Act, bonds may not be issued 04 under a trust agreement, indenture, or bond resolution unless there is in the reserve 05 fund the required debt service reserve for all bonds then issued under a trust 06 agreement, indenture, or bond resolution and outstanding and for the bonds to be 07 issued; however, the committee may satisfy this requirement by depositing as much of 08 the proceeds of the bonds to be issued, on their issuance, as is needed to meet the 09 required debt service reserve. The committee may at any time issue bonds or notes for 10 the purpose of increasing the amount in the reserve fund to the required debt service 11 reserve, or to meet whatever higher or additional reserve that may be fixed by a bond 12 resolution or trust agreement with respect to the fund. 13 (g) To ensure the required debt service reserve is maintained in the reserve 14 fund, the legislature may appropriate annually for deposit in the fund the sum, certified 15 by the commissioner of revenue to the governor and to the legislature, that is 16 necessary to restore the fund to an amount equal to the required debt service reserve. 17 The commissioner of revenue annually, before January 30, shall make and deliver to 18 the governor and to the legislature a certificate stating the sum required to restore the 19 fund to that amount, and the certified sum may be appropriated during the then current 20 state fiscal year. Nothing in this subsection creates a debt or liability of the state. 21 (h) All amounts received because of money appropriated to the reserve fund 22 shall be held and applied in accordance with (b) of this section. 23 (i) All references to the reserve fund in this section include special accounts 24 within the reserve fund that may be created by resolution or trust agreement to secure 25 the payment of particular bonds. 26 (j) The commissioner of revenue may, subject to appropriation, lend surplus 27 money in the general fund for deposit to an account in the reserve fund in an amount 28 equal to the required debt service reserve. The loans shall be made on the terms and 29 conditions that may be agreed on by the commissioner of revenue and the trustee, 30 including, without limitation, terms and conditions providing that the loans need not 31 be repaid until the obligations of the state secured and to be secured by the account in
01 the reserve fund are no longer outstanding. 02 (k) In this section, "required debt service reserve" means, on the date of 03 computation, the amount required to be on deposit in the reserve fund as provided by 04 resolution of the committee. 05 Sec. 37.15.260. Enforcement by bond owner. The holder of any bonds or the 06 trustee for the holders of the bonds or any series of them, may, by appropriate 07 proceedings in the superior court, compel the transfer, setting aside, and payment of 08 money and the enforcement of all of the terms, conditions, and covenants as required 09 and provided for in AS 37.15.225 - 37.15.285 and in the bond resolution or trust 10 agreement. 11 Sec. 37.15.265. Amounts required for payments. The committee shall, 12 before June 30 of each year or from time to time within the year, as appropriate, 13 commencing with the year in which the bonds are issued, certify to the commissioners 14 of revenue and administration the amounts required in the current fiscal year and the 15 next ensuing fiscal year by the bond resolution or resolutions or trust agreements to be 16 paid out of toll bridge revenue or capitalized amounts into the bond redemption fund 17 and to be paid into and maintained in any reserve fund or account or other fund or 18 account created by the bond resolution or resolutions. The committee shall also certify 19 to the commissioners the last date or dates on which payments may be made. 20 Sec. 37.15.270. Refunding. (a) The committee may refund the bonds or any 21 part of the bonds at or before their maturity or redemption dates by issuing refunding 22 revenue bonds of the state if the committee determines the refunding to be 23 advantageous to and in the best interest of the state. 24 (b) The issuance of refunding bonds need not be authorized by the voters of 25 the state or by an act of the legislature. The committee shall adopt the resolution or 26 resolutions and prepare all other documents and proceedings necessary for the 27 issuance, exchange or sale, and delivery of the refunding bonds. All provisions of 28 AS 37.15.225 - 37.15.285 applicable to revenue bonds are applicable to the refunding 29 bonds and to the issuance, sale, or exchange of the refunding bonds, except as 30 otherwise provided in this section. 31 (c) The committee may issue refunding bonds in a principal amount sufficient
01 to provide money for the advance or current refunding of all bonds to be refunded and 02 interest on the refunded bonds and to pay the costs of issuance and administration of 03 the refunding bonds. These expenses also include the difference in amount between 04 the par value of the refunding bonds and any amount less than par for which the 05 refunding bonds are sold; the premium, if any, necessary to be paid in order to call or 06 retire the outstanding bonds and the interest accruing on them to date of the call or 07 retirement; and other costs. The committee is authorized to incur the expenses. 08 (d) The committee or the committee's delegated representative may contract 09 with a refunding trustee to hold the proceeds of refunding bonds in trust until the 10 proceeds, together with earnings on the proceeds, are applied to pay the principal of, 11 premium, if any, and interest on the bonds to be refunded. Until the refunding bond 12 proceeds are applied, the proceeds may be invested in direct obligations of, or 13 obligations guaranteed by, the United States or an agency or corporation of the United 14 States whose obligations constitute direct obligations of, or obligations guaranteed by, 15 the United States. 16 Sec. 37.15.275. Bonds as legal investments. The bonds are legal investments 17 for all banks, trust companies, savings banks, savings and loan associations, and other 18 persons carrying on a banking business, all insurance companies and other persons 19 carrying on an insurance business, and all executors, administrators, trustees, and other 20 fiduciaries. The bonds may be accepted as security for deposits of all money of the 21 state and its political subdivisions. 22 Sec. 37.15.280. Statutory construction. AS 37.15.225 - 37.15.285 shall be 23 liberally construed in order to carry out the purposes for which they were enacted. 24 Sec. 37.15.285. Definitions. In AS 37.15.225 - 37.15.285, 25 (1) "authority" means 26 (A) the Knik Arm Bridge and Toll Authority established in 27 AS 19.75.021 with respect to the Knik Arm Bridge and its appurtenant 28 facilities; or 29 (B) an authority established by the legislature for any other toll 30 bridge project; 31 (2) "bond redemption fund" means the toll bridge revenue bond
01 redemption fund established in AS 37.15.240; 02 (3) "bond resolution" means a resolution adopted by the committee 03 under AS 37.15.250 to authorize the issuance of bonds; 04 (4) "bonds" means the toll bridge revenue bonds authorized in 05 AS 37.15.225 - 37.15.285; 06 (5) "committee" means the state bond committee created in 07 AS 37.15.110, or any other committee, body, department, or officer of the state that 08 succeeds to the rights, powers, duties, and obligations of the state bond committee by 09 law; 10 (6) "costs of issuance and administration" means all costs associated 11 with issuance and administration of toll bridge revenue bonds and refunding bonds, 12 including costs of bond printing, official statements, financial advisors, travel costs, 13 rating agencies, bond insurance, letters and lines of credit for credit enhancement, 14 underwriters, legal services, paying agents, bond registrars, bond and escrow trustees, 15 arbitrage rebate, and all other costs, including administrative costs, both direct and 16 indirect; 17 (7) "reserve fund" means the toll bridge revenue bond reserve fund 18 authorized in AS 37.15.255; 19 (8) "revenue fund" means the toll bridge revenue fund established in 20 AS 37.15.235. 21 * Sec. 10. This Act takes effect July 1, 2014.