2001-02-16                     Senate Journal                      Page 0405
SB 96                                                                                             
SENATE BILL NO. 96 BY THE SENATE RULES COMMITTEE                                                    
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
         "An Act relating to the issuance of certificates of                                        
         participation to finance demolition of all or part of                                      
         the existing facility known as the Alaska Psychiatric                                      
         Institute and construction of a new facility to be                                         

2001-02-16                     Senate Journal                      Page 0406
            known as the Alaska Psychiatric Institute; giving                                      
             notice of and approving the entry into, and the                                       
          issuance of certificates of participation in, a lease-                                   
         purchase agreement for demolition of all or part of                                        
         the existing facility known as the Alaska Psychiatric                                      
         Institute and construction of a new facility to be                                         
         known as the Alaska Psychiatric Institute; and                                             
         providing for an effective date."                                                          
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Revenue                                                           
                                                                                                    
Governor's transmittal letter dated February 15:                                                    
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
The Alaska Psychiatric Institute (API) is Alaska's only public                                      
psychiatric hospital. API provides services for persons who cannot be                               
safely served in either community-based mental health centers or                                    
community hospitals. The current API facility dates from the early                                  
60's, is permeated with asbestos, and must be replaced. I am                                        
transmitting this bill to finance capital construction for a replacement                            
facility for the API.                                                                               
                                                                                                    
The majority of patients at API have been involuntarily committed to                                
treatment and come from all regions of the state. API is the ultimate                               
"safety net" for persons who are mentally ill or otherwise suffer from                              
mental disorders. In addition, API treats patients arrested and                                     
subsequently court-ordered to the facility for a variety of needs,                                  
including evaluations for competency to stand trial, treatment                                      
following a finding of incompetency, and persons previously found                                   
not guilty by reason of insanity.                                                                   
                                                                                                    
The bill identifies funding sources for the $58,750,000 necessary for                               
the construction of the replacement facility. There is presently                                    
$19,200,000 available from prior appropriations for this purpose that                               
can be used for the project. In addition, the Legislature appropriated                              

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$3,000,000 in Mental Health Trust Authority Authorized Receipts for                                 
the project. A lease-purchase agreement would be security for the                                   
remaining $36,550,000, which the state would raise through the state                                
bond committee's issuance of certificates of participation. The                                     
significant contribution of state money up front in the project will have                           
the practical effect of lowering the lease payments because there will                              
be additional security provided to the purchasers of the certificates of                            
participation.                                                                                      
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
       Sincerely,                                                                                   
       /s/                                                                                          
       Tony Knowles                                                                                 
       Governor