SB 102: "An Act authorizing the state bond committee to issue certificates of participation to finance the construction and equipping of the Maniilaq Association Kotzebue Primary Care Clinic; and authorizing the Department of Administration to enter into a lease-purchase agreement for the benefit of the Maniilaq Association."
00 SENATE BILL NO. 102 01 "An Act authorizing the state bond committee to issue certificates of participation to 02 finance the construction and equipping of the Maniilaq Association Kotzebue Primary 03 Care Clinic; and authorizing the Department of Administration to enter into a lease- 04 purchase agreement for the benefit of the Maniilaq Association." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 INTENT. It is the intent of the legislature that the amount of money to be used for 09 construction and equipping of the Maniilaq Association Kotzebue Primary Care Clinic is 10 $9,700,000 plus investment income. It is the intent of the legislature that 11 (1) $9,700,000 come from the proceeds of the certificates of participation to 12 be issued by the state bond committee; 13 (2) subject to appropriation, investment income earned on the proceeds of the 14 sale of the certificates of participation be applied to the project;
01 (3) title to the project and the leasehold interest of the state remain with the 02 State of Alaska until the certificates of participation are repaid, at which time title will be 03 transferred to the Maniilaq Association for no additional consideration and the state's 04 leasehold interest shall terminate; 05 (4) the design, construction, operations, and maintenance of the facility be the 06 responsibility of the Maniilaq Association; and 07 (5) issuance of the certificates of participation be contingent on the signing of 08 a memorandum of agreement between the Maniilaq Association and the State of Alaska and 09 payments on the certificates of participation be subject to appropriation. 10 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE- 13 PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of 14 Administration is authorized to enter into a lease-purchase agreement for a primary care clinic 15 to be constructed and equipped under the lease-purchase agreement and to be operated by the 16 Maniilaq Association. 17 (b) The state bond committee is authorized to provide for the issuance of certificates 18 of participation in one or more series in the aggregate principal amount of $9,700,000 for the 19 construction and equipping of the primary care clinic under the lease-purchase agreement 20 authorized in (a) of this section. The remaining balance of the cost of construction and 21 equipping shall be paid from investment income earned on the proceeds from the sale of the 22 certificates of participation. In this subsection, "cost of construction" includes credit 23 enhancement and underwriting expenses, rating agency fees, bond counsel fees, financial 24 advisor fees, printing fees, advertising fees, capitalized interest, and interest earnings used for 25 lease payments. 26 (c) The state bond committee may contract for credit enhancement, underwriting, 27 credit ratings, bond counsel, financial advising, printing, advertising, and trustee services that 28 the committee considers necessary in financing the project described in this section. 29 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 APPROVAL OF AGREEMENT. Section 2 of this Act constitutes the approval
01 required by AS 36.30.085 of the agreement described in sec. 2 of this Act.