00                      CS FOR HOUSE BILL NO. 74(L&C)                                                                     
01 "An Act relating to development project financing by the Alaska Industrial                                              
02 Development and Export Authority."                                                                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 44.88.010(a) is amended to read:                                                                   
05            (a)  The legislature finds, determines, and declares that                                                    
06                 (1)  there exist areas of the state in which seasonal and nonseasonal                                   
07       unemployment exists;                                                                                              
08                 (2)  this unemployment is a serious menace to the health, safety, and                                   
09       general welfare, not only to the people in those areas, but also to the people of the                             
10       entire state;                                                                                                     
11                 (3)  the state lacks the basic manufacturing, industrial, energy, export,                               
12       small business, and business enterprises and the other facilities referred to in this                             
13       subsection necessary to permit adequate development of its natural resources and the                              
14       balanced growth of its economy;                                                                                   

01                 (4)  the establishment and expansion of industrial, manufacturing,                                      
02       energy, export, small business, and business enterprises in the state and the other                               
03       facilities referred to in this subsection are essential to the development of the natural                         
04       resources and the long-term economic growth of the state, and will directly and                                   
05       indirectly alleviate unemployment in the state;                                                                   
06                 (5)  the expansion of export trade is vital to the health and growth of the                             
07       state's economy;                                                                                                  
08                 (6)  many state businesses could benefit from additional financial and                                  
09       technical assistance with respect to the exportation of their products and services;                              
10                 (7)  the Export-Import Bank of the United States has been mandated by                                   
11       the Export-Import Bank Act Amendments of 1983 to provide technical assistance and                                 
12       export financing support to small businesses in cooperation with state export finance                             
13       agencies;                                                                                                         
14                 (8)  Alaska-based exporters can be effectively assisted through the                                     
15       establishment, as part of the Alaska Industrial Development and Export Authority, of                              
16       an export financing program designed to work with the Export-Import Bank of the                                   
17       United States and other federal, state, and private institutions;                                                 
18                 (9)  the achievement of the goal of full employment [,] and of                                          
19       establishment and continuing operation and development of industrial, manufacturing,                              
20       energy, export, small business, and business enterprises in the state will be accelerated                         
21       and facilitated by the creation of an instrumentality of the state with powers to incur                           
22       debt, to own and operate facilities, and to make and insure loans to finance and to                           
23       assist private lenders to make loans to finance the establishment, operation, and                                 
24       development of industrial, manufacturing, energy, export, small business, and business                            
25       enterprises;                                                                                                      
26                 (10)  it is in the public interest to promote the prosperity and general                                
27       welfare of all citizens of the state by                                                                           
28                      (A)  stimulating commercial and industrial growth and                                              
29            expansion by encouraging an increase of private investment by banks,                                         
30            investment houses, insurance companies, and other financial institutions,                                    
31            including pension and retirement funds, to help satisfy the need for economic                                

01            expansion;                                                                                                   
02                      (B)  encouraging the production of raw materials and goods for                                     
03            export, the expansion of exports and raw materials and goods, and the                                        
04            rendering of services abroad by residents of the state through the establishment                             
05            of a program that provides financial assistance in cooperation with federal,                                 
06            state, and private institutions for these purposes in the form provided in this                              
07            chapter;                                                                                                     
08                      (C)  creating the Alaska Industrial Development and Export                                         
09            Authority with the powers necessary to accomplish the objectives stated in this                              
10            paragraph, including the power to issue taxable and tax-exempt bonds, [AND]                              
11            to acquire ownership interests in projects, and to provide development                                   
12            project financing as provided in this chapter;                                                           
13                 (11)  it is in the state's interest to import private capital to create new                             
14       economic activity that [WHICH] would not otherwise take place in the state.                                   
15    * Sec. 2. AS 44.88.070 is amended to read:                                                                         
16            Sec. 44.88.070. Purpose of the authority. The purpose of the authority is to                               
17       promote, develop, and advance the general prosperity and economic welfare of the                                  
18       people of the state [ALASKA], to relieve problems of unemployment, and to create                              
19       additional employment by                                                                                          
20                 (1)  providing various means of financing and means of facilitating the                                 
21       financing, in cooperation with federal, state, and private institutions, of industrial,                           
22       manufacturing, export, small business, and business enterprises and the other facilities                          
23       referred to in AS 44.88.010(a) in the state;                                                                      
24                 (2)  owning and operating or providing development project                                          
25       financing for the enterprises and other facilities described in AS 44.88.172;                                 
26                 (3)  fostering the expansion of exports of [ALASKA] goods, services,                                    
27       and raw materials of the state;                                                                               
28                 (4)  cooperating and acting in conjunction with other organizations,                                    
29       public and private, the objects of which are the promotion and advancement of export                              
30       trade activities in the state;                                                                                    
31                 (5)  establishing a source of funding credit guarantees and insurance,                                  

01       not otherwise available, to support export development;                                                           
02                 (6)  providing and cooperating or participating with federal, state, and                                
03       private institutions to provide actual and potential state [ALASKA] exporters,                                
04       particularly small- and medium-sized exporters, with financial assistance in support of                           
05       export transactions.                                                                                              
06    * Sec. 3. AS 44.88.080 is amended to read:                                                                         
07            Sec. 44.88.080. Powers of the authority. In furtherance of its corporate                                   
08       purposes, the authority has the following powers in addition to its other powers:                                 
09                 (1)  to sue and be sued;                                                                                
10                 (2)  to have a seal and alter it at pleasure;                                                           
11                 (3)  to make and alter bylaws for its organization and internal                                         
12       management;                                                                                                       
13                 (4)  to adopt regulations governing the exercise of its corporate powers;                               
14                 (5)  to acquire an interest in a project as necessary or appropriate to                                 
15       provide financing for the project, whether by purchase, gift, or lease;                                           
16                 (6)  to lease to others a project acquired by it for the rentals and upon                               
17       the terms and conditions the authority may consider advisable, including, without                                 
18       limitation, provisions for options to purchase or renew;                                                          
19                 (7)  to issue bonds and otherwise to incur indebtedness, in accordance                                  
20       with AS 44.88.090, in order to pay the cost of a project or development projects or in                            
21       order to provide money for the authority's purposes under this chapter; the authority                             
22       may also secure payment of the bonds or other indebtedness as provided in this                                    
23       chapter;                                                                                                          
24                 (8)  to sell, by installment sale or otherwise, exchange, donate, convey,                               
25       or encumber, in any manner by mortgage or by creation of any other security interest,                         
26       real or personal property owned by it, or in which it has an interest, including a                                
27       project, when, in the judgment of the authority, the action is in furtherance of its                              
28       corporate purposes;                                                                                               
29                 (9)  to accept gifts, grants, or loans from, and enter into contracts or                                
30       other transactions regarding them [,] with, a federal agency, [OR] an agency or                           
31       instrumentality of the state, a municipality, a private organization, or other source;                        

01                 (10)  to deposit or invest its funds, subject to agreements with                                        
02       bondholders;                                                                                                      
03                 (11)  to enter into contracts or agreements with respect to the exercise                                
04       of any of its powers, and do all things necessary or convenient to carry out its                                  
05       corporate purposes and exercise the powers granted in this chapter;                                               
06                 (12)  to purchase or insure loans to finance the costs of manufacturing,                                
07       industrial, and business enterprise projects;                                                                     
08                 (13)  to enter into loan agreements with respect to one or more projects                                
09       upon the terms and conditions the authority considers advisable;                                                  
10                 (14)  to acquire, manage, and operate projects as the authority considers                               
11       necessary or appropriate to serve a public purpose;                                                               
12                 (15)  to assist private lenders to make loans to finance the costs of                                   
13       projects through loan commitments, short-term financing, or otherwise;                                            
14                 (16)  to accept gifts, grants, or loans from a federal agency, from an                                  
15       agency or instrumentality of the state or of a municipality, or from any other source;                            
16                 (17)  to enter into contracts or other transactions with a federal agency,                              
17       with an agency or instrumentality of the state or of a municipality, or with a private                            
18       organization or other entity consistent with the exercise of any power under this                                 
19       chapter;                                                                                                          
20                 (18)  to facilitate the expansion of a secondary market for the resale of                               
21       federally or commercially insured loans made to finance the costs of projects in the                          
22       state [ALASKA] held by federal and state chartered financial institutions or by the                           
23       Alaska Commercial Fishing and Agriculture Bank;                                                                   
24                 (19)  to charge fees or other forms of remuneration for the use or                                      
25       possession of the projects described in (14) of this section in accordance with the                               
26       agreements described in (11) and (17) of this section, other agreements pertaining to                             
27       the projects, covenants, or representations made in bond documents pertaining to the                              
28       projects, or regulations of the authority pertaining to the projects;                                             
29                 (20)  to participate with government or private industry in programs for                                
30       technical assistance, loans, technology, transfer, or other programs related to the                               
31       exportation of [ALASKA] goods, services, or raw materials of the state with respect                           

01       to its financing activities;                                                                                      
02                 (21)  to provide export finance training for office staff and other                                     
03       individuals involved in export finance assistance, including the training sessions that                           
04       may be provided by the United States Export-Import Bank or other organizations;                                   
05                 (22)  to coordinate to the maximum extent possible its efforts to                                       
06       promote the export of [ALASKA] goods, services, and raw materials of the state with                           
07       programs and goals of the United States Export-Import Bank, the International Trade                               
08       Administration of the United States Department of Commerce, the Foreign Credit                                    
09       Insurance Association, and other private and public programs designed to provide                                  
10       export assistance and export-related financing;                                                                   
11                 (23)  to guarantee loans related to qualified export transactions under                                 
12       regulations adopted by the authority;                                                                             
13                 (24)  to provide financing assistance, in cooperation with federal, state,                              
14       and private institutions, as provided in this chapter for small business enterprises;                             
15                 (25)  to make cooperative agreements with the Department of                                             
16       Transportation and Public Facilities, acting on behalf of the international airports                              
17       revenue fund established under AS 37.15.430, to acquire, equip, operate, maintain,                                
18       construct, or install facilities that will enhance the competitiveness of the international                       
19       airports, including a cooperative agreement to lend amounts from the international                                
20       airports [AIRPORT] revenue fund to finance the development or improvement of                                  
21       utilities serving the airports;                                                                                   
22                 (26)  to screen potential applicants for a new business incentive grant                                 
23       and recommend the award of the grants under AS 45.81.020;                                                         
24                 (27)  to oversee the administration of outstanding grants awarded by the                                
25       Alaska Science and Technology Foundation under former AS 37.17.010 - 37.17.110;                                   
26                 (28)  to oversee the administration of outstanding BIDCO assistance                                     
27       grants and loans made by the Alaska Science and Technology Foundation under                                       
28       former AS 37.17.200 - 37.17.390;                                                                                  
29                 (29)  to guarantee loans made to the Alaska Insurance Guaranty                                          
30       Association (AS 21.80.040), with these guarantees limited to loans necessary to make                              
31       the association financially able to meet cash flow needs up to a maximum outstanding                              

01       principal balance at any time of $30,000,000;                                                                     
02                 (30)  with legislative approval and notwithstanding AS 44.88.060, to                                    
03       purchase from the Alaska Energy Authority as an investment of the revolving fund,                                 
04       loans of the power project fund established under AS 42.45.010;                                                   
05                 (31)  to consider, when exercising the powers listed in this section, the                               
06       interests of local governments affected [IMPACTED] by the authority's activities to                           
07       share in the benefits of these activities, with appropriate consideration of the                                  
08       authority's ability to meet debt obligations, issue new debt, and fulfill the authority's                         
09       purposes;                                                                                                     
10                 (32)  to provide development project financing for all or a portion                                 
11       of the cost of a development project as provided in AS 44.88.172.                                             
12    * Sec. 4. AS 44.88.172(a) is amended to read:                                                                      
13            (a)  The economic development account is established in the revolving fund.                                  
14       The economic development account consists of money or assets appropriated, loaned,                                
15       or transferred to the authority for deposit in the account and other money or assets                              
16       deposited in the account by the authority. While money is on deposit in the economic                              
17       development account, the money may be used [ONLY] to finance, acquire, manage,                                    
18       and operate development projects that the authority intends to own and operate or to                          
19       provide development project financing for development projects the authority                                  
20       does not intend to own and operate. In this subsection,                                                       
21                 (1)  "operate" includes operation directly by the authority, by an agent                                
22       of the authority, or by a person as determined under an agreement between the                                     
23       authority and other owners of the development project;                                                            
24                 (2)  "own" includes ownership by the authority of all or a percentage of                                
25       a development project or all or a percentage of the shares of a corporation or                                    
26       membership in a limited liability company for which the development project is the                                
27       sole asset of the corporation or limited liability company.                                                       
28    * Sec. 5. AS 44.88.172 is amended by adding a new subsection to read:                                              
29            (d)  The authority shall adopt regulations to implement this section. The                                    
30       regulations may include provisions for the application process, application fees,                                 
31       interest rates, other charges and fees, terms, conditions, security, and other                                    

01       requirements for development projects the authority undertakes or development                                     
02       project financing the authority provides.                                                                         
03    * Sec. 6. AS 44.88.900 is amended by adding a new paragraph to read:                                               
04                 (17)  "development project financing" means money loaned by the                                         
05       authority or a guarantee of a loan, note, debt, or other financial obligation issued by                           
06       the authority to fund or assist in funding a development project the authority does not                           
07       intend to own and operate.