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CSHB 105(ENE): "An Act relating to the programs and bonds of the Alaska Industrial Development and Export Authority; related to the financing authorization through the Alaska Industrial Development and Export Authority of a liquefied natural gas production plant and natural gas energy projects and distribution systems in the state; amending and repealing bond authorizations granted to the Alaska Industrial Development and Export Authority; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 105(ENE)                                                                    
01 "An Act relating to the programs and bonds of the Alaska Industrial Development and                                     
02 Export Authority; related to the financing authorization through the Alaska Industrial                                  
03 Development and Export Authority of a liquefied natural gas production plant and                                        
04 natural gas energy projects and distribution systems in the state; amending and                                         
05 repealing bond authorizations granted to the Alaska Industrial Development and Export                                   
06 Authority; and providing for an effective date."                                                                        
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 44.88.095(c) is amended to read:                                                                   
09            (c)  Before entering into a lease or other agreement under AS 44.88.090(e)                                   
10       regarding a project for which the authority agrees to issue bonds in an amount in                                 
11       excess of $10,000,000 [$6,000,000], there must be filed with the authority a certified                        
12       copy of a resolution of the governing body of the political subdivision of the state, if                          
13       any, in which the project is to be located, consenting to the location of the project. The                        
01       consent need only refer to the general nature of the project ultimately to be acquired or                     
02       financed, as set out in a request of the proposed project applicant. Before entering into                     
03       a lease or other agreement under AS 44.88.090(e) regarding a project, the authority                               
04       shall find, on the basis of all information reasonably available to it, that                                      
05                 (1)  the project and its development under this chapter will be                                         
06       economically advantageous to the state and the general public welfare and will                                    
07       contribute to the economic growth of the state;                                                                   
08                 (2)  the project applicant is financially responsible;                                                  
09                 (3)  provision to meet increased demand on [UPON] public facilities                                 
10       that might result from the project is reasonably assured; and                                                     
11                 (4)  the project will provide, or retain, employment reasonably related                                 
12       to the amount of the financing by the authority, considering the amount of investment                             
13       for each [PER] employee for comparable facilities and other relevant factors.                                 
14    * Sec. 2. AS 44.88.095(g) is amended to read:                                                                      
15            (g)  The authority may issue bonds in an amount greater than $25,000,000                                 
16       [$10,000,000] to assist in the financing of a development project under AS 44.88.172 -                            
17       44.88.177 only if approved by law, excluding refunding bonds. Refunding bonds may                                 
18       be issued without further approval by law in a principal amount sufficient to provide                             
19       funds for the payment of all bonds to be refunded by them and, in addition, for the                               
20       payment of all other amounts that the authority considers appropriate in connection                               
21       with the refunding, including expenses incident to the redeeming, calling, retiring, or                           
22       paying of the outstanding bonds, the funding of reserves, and the issuance of the                                 
23       refunding bonds.                                                                                                  
24    * Sec. 3. AS 44.88.155(d) is amended to read:                                                                      
25            (d)  A loan participation purchased by the authority with assets of the                                      
26       enterprise development account or with proceeds of bonds secured by assets of the                                 
27       enterprise development account                                                                                    
28                 (1)  may not exceed $25,000,000 [$20,000,000]; however, in the case                                 
29       of a loan participation for qualified energy development, the loan participation may                              
30       exceed $25,000,000 [$20,000,000] with legislative approval;                                                   
31                 (2)  may not be purchased unless                                                                        
01                      (A)  the project applicant is not, or, if the applicant is not a                                   
02            single proprietorship, all members of the business enterprise or enterprises                                 
03            constituting the project applicant are not, in default on another loan made by                               
04            the state or by a public corporation of the state; and                                                       
05                      (B)  at least 10 percent of the principal amount of the loan is                                    
06            retained by the loan originator, or the loan is for financing improvements in                                
07            energy efficiency;                                                                                           
08                 (3)  may not be purchased if the loan to be purchased exceeds 75                                        
09       percent of the appraised value of the collateral offered as security for the loan unless                          
10       the amount of the loan in excess of this limit is federally insured or guaranteed or is                           
11       insured by a qualified mortgage insurance company, except that the loan to be                                     
12       purchased under this paragraph may not exceed the total of loan proceeds used to                                  
13       refinance an existing debt plus the cost of new construction, expansion, or acquisition                           
14       unless the proceeds from the additional amounts of the loan to be purchased are                                   
15       restricted to uses approved by the authority to finance commercial activity in the state                          
16       by a business enterprise;                                                                                         
17                 (4)  may not be purchased if the participation in the loan to be                                        
18       purchased is for a term longer than the following, except that a loan under (A) or (C)                            
19       of this paragraph may not have a term longer than three-quarters of the authority's                               
20       estimate of the life of the collateral offered as security for the loan:                                          
21                      (A)  40 years from the date the loan is made in the case of a                                      
22            loan participation for a project described in AS 44.88.900(11)(E);                                           
23                      (B)  50 years from the date the loan is made in the case of a loan                                 
24            participation for qualified energy development;                                                              
25                      (C)  25 years from the date the loan is made in the case of a loan                                 
26            participation for other projects;                                                                            
27                 (5)  may be made only if the participation in the loan to be purchased                                  
28       contains amortization provisions; the amortization provisions                                                     
29                      (A)  must be complete and satisfactory to the authority and                                        
30            require periodic payments by the borrower;                                                                   
31                      (B)  may allow the loan originator to amortize the portion of the                                  
01            loan retained by the loan originator using a shorter amortization schedule than                              
02            the amortization schedule for the portion of the loan held by the authority if                               
03                           (i)  in the authority's opinion, the project financed can                                     
04                 support the increased debt service; and                                                                 
05                           (ii)  the accelerated amortization schedule is required to                                    
06                 induce the originator to make the loan;                                                                 
07                 (6)  may be made only if the participation in the loan to be purchased is                               
08       in the form and contains the terms and provisions with respect to insurance, repairs,                             
09       alterations, payment of taxes and assessments, default reserves, delinquency charges,                             
10       default remedies, acceleration of maturity, secondary liens, and other matters the                                
11       authority prescribes; and                                                                                         
12                 (7)  may be made only if the participation in the loan to be purchased is                               
13       secured as to repayment by a mortgage or other security instrument in the manner the                              
14       authority determines is feasible to assure timely repayment under the loan documents                              
15       entered into with the borrower.                                                                                   
16    * Sec. 4. Section 2(a), ch. 27, SLA 1993, as amended by sec. 19, ch. 111, SLA 1996, is                             
17 amended to read:                                                                                                        
18            (a)  The Alaska Industrial Development and Export Authority may issue bonds                                  
19       to finance the acquisition, design, and construction of a port facility and [RELATED                              
20       LOADING AND CONVEYOR] equipment related to the development and operation                                          
21       of a bulk commodity loading and shipping terminal, to be located at Point                                     
22       MacKenzie [. THE TERMINAL MAY BE LOCATED ANYWHERE WITHIN                                                      
23       COOK INLET]. The facility will be owned by the authority. The principal amount of                                 
24       the bonds may not exceed $50,000,000.                                                                             
25    * Sec. 5. The uncodified law of the State of Alaska enacted in sec. 11(a), ch. 26, SLA 2013,                       
26 is amended to read:                                                                                                     
27            (a)  The Alaska Industrial Development and Export Authority, through the                                     
28       Alaska Industrial Development and Export Authority sustainable energy transmission                                
29       and supply development fund (AS 44.88.660), may provide financing up to a principal                               
30       amount of $275,000,000 for the development, construction, and installation of, and the                            
31       start-up costs of operation and maintenance for, a liquefied natural gas production                               
01       plant and system and affiliated infrastructure in the state that will provide natural                         
02       gas to Interior Alaska [ON THE NORTH SLOPE] and [A] natural gas distribution                                  
03       systems [SYSTEM] and affiliated infrastructure that will provide natural gas to [IN]                      
04       Interior Alaska.                                                                                                  
05    * Sec. 6. The uncodified law of the State of Alaska enacted in sec. 25, ch. 123, SLA 1990,                         
06 as repealed and reenacted by sec. 1, ch. 3, FSSLA 1992, is amended to read:                                             
07            Sec. 25. The Alaska Industrial Development and Export Authority may issue                                    
08       bonds to finance the acquisition, design, and construction of aircraft maintenance air                            
09       cargo/air transport support facilities located at Anchorage International Airport, to be                          
10       owned by the Authority. The principal amount of the bonds may not exceed $28,000,000                          
11       [$85,000,000]. This section grants the legislative approval required by AS 44.88.095.                             
12    * Sec. 7. Section 3, ch. 27, SLA 1993; sec. 7, ch. 76, SLA 1995; sec. 24, ch. 111, SLA                             
13 1996; secs. 24(a) and 24(b), ch. 109, SLA 1998; sec. 24(d), ch. 109, SLA 1998, as amended                               
14 by sec. 1, ch. 93, SLA 2006; and sec. 1, ch. 37, SLA 2004, are repealed.                                                
15    * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).