SB 73: "An Act relating to borrowing in anticipation of revenues; relating to revenue anticipation notes; relating to line of credit agreements; and providing for an effective date."
00 SENATE BILL NO. 73 01 "An Act relating to borrowing in anticipation of revenues; relating to revenue 02 anticipation notes; relating to line of credit agreements; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.08.010 is amended to read: 06 Sec. 43.08.010. Borrowing in anticipation of revenues permitted. The 07 commissioner is hereby authorized to borrow money on behalf of the state, when in 08 the judgment of the commissioner it becomes necessary in order to meet 09 appropriations for any fiscal year in anticipation of the collection of the revenues for 10 that year. Money borrowed shall be used only for the purposes and within the amounts 11 of appropriations authorized. The authorization to borrow money includes entering 12 into revenue anticipation notes and line of credit agreements. 13 * Sec. 2. AS 43.08.020 is amended to read: 14 Sec. 43.08.020. Agreements to borrow money and payment. Money
01 borrowed under this chapter [THE COMMISSIONER SHALL ISSUE NOTES 02 FOR THE AMOUNTS BORROWED IN ANTICIPATION OF THE COLLECTION 03 OF REVENUES, DIRECT OR INDIRECT, FOR THAT YEAR. THE NOTES 04 ISSUED BY THE COMMISSIONER UNDER THIS CHAPTER MAY BE 05 RENEWED FROM TIME TO TIME BUT ALL SUCH NOTES AND RENEWALS 06 THEREOF] and the interest thereon shall be paid from revenues by the end of the 07 fiscal year next succeeding the year in which the money was borrowed [NOTES 08 WERE ISSUED]. 09 * Sec. 3. AS 43.08.030 is amended to read: 10 Sec. 43.08.030. Security and payment. Money borrowed [NOTES ISSUED] 11 under this chapter shall, with interest thereon, be paid from revenues in anticipation of 12 the collection of which the money was borrowed [SAME WERE ISSUED] and the 13 full faith, credit, resources, and taxing power of the state are hereby pledged to the 14 payment. To further secure the repayment of the money borrowed [PAYMENT OF 15 THE NOTES] the commissioner may pledge on behalf of the state such collateral as in 16 the discretion of the commissioner may be necessary to effect such borrowing most 17 advantageous to the state. 18 * Sec. 4. AS 43.08.035(a) is amended to read: 19 (a) There is appropriated each fiscal year from the general fund the amount 20 necessary for the payment of interest on money borrowed [REVENUE 21 ANTICIPATION NOTES ISSUED] under this chapter when the term of the 22 borrowing agreement [THOSE NOTES] measured from the date the money is 23 borrowed [OF ISSUANCE] to the date of first maturity does not exceed nine months. 24 * Sec. 5. AS 43.08.040 is amended to read: 25 Sec. 43.08.040. Terms for agreements to borrow money. An agreement to 26 borrow money [NOTES] authorized [TO BE ISSUED] under this chapter shall be 27 entered into [SOLD] by the commissioner on terms the commissioner determines 28 are in the best financial interests of the state [IN THE MANNER AND AT THE 29 PRICE OR PRICES AS THE COMMISSIONER SHALL DETERMINE, AT 30 EITHER PUBLIC OR PRIVATE SALE; HOWEVER, A NOTE MAY NOT BE 31 SOLD AT LESS THAN PAR AND ACCRUED INTEREST].
01 * Sec. 6. AS 43.08.050 is amended to read: 02 Sec. 43.08.050. Execution of agreements to borrow money. An agreement 03 to borrow [NOTES FOR] money authorized under this chapter [BORROWED] in 04 anticipation of revenues shall be signed by the governor and countersigned by the 05 lieutenant governor. The governor's signature may be a facsimile signature. 06 * Sec. 7. AS 43.08.060 is repealed. 07 * Sec. 8. This Act takes effect July 1, 2021.