Legislature(2005 - 2006)
2005-05-05 House Journal
Full Journal pdf2005-05-05 House Journal Page 1612 HB 275 The following, which was held in third reading under reconsideration from the May 4, 2005, calendar (page 1539), was again before the House: CS FOR HOUSE BILL NO. 275(FIN) am "An Act authorizing financing for certain public transportation projects; giving notice of and approving the entry into, and the issuance of revenue obligations that provide participation in, lease-financing agreements for those transportation projects; and providing for an effective date." Representative Meyer moved and asked unanimous consent that CSHB 275(FIN) am be returned to second reading for the specific purpose of considering Amendment No. 6. There being no objection, it was so ordered. 2005-05-05 House Journal Page 1613 Amendment No. 6 was offered by Representative Meyer: Page 1, line 6, through the end of the bill: Delete all material. Insert new bill sections to read: "* Section 1. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSPORTATION PROJECT ALLOCATION. The Department of Transportation and Public Facilities shall allocate the net proceeds derived from the sale of revenue obligations authorized in sec. 4 of this Act for construction or acquisition of the following state transportation projects among those projects as follows, subject to reallocation among the projects under AS 37.07.080(e): PROJECT ALLOCATION (1) Anchorage: Glenn Highway congestion $ 37,500,000 (2) Anchorage: Lake Otis and Tudor 4,300,000 intersection improvements (3) Anchorage: Raspberry Road extension 2,400,000 (4) Fairbanks: Gaffney Road upgrade 6,250,000 (5) Fairbanks: Cartwright Road extension 3,650,000 (6) Kenai Peninsula Borough: Kalifornsky 10,000,000 Beach Road rehabilitation (7) Matanuska-Susitna Borough: Palmer-Wasilla 6,000,000 Highway expansion (8) Richardson Highway passing lane additions 5,000,000 mileposts 265 - 341 (9) Prince of Wales: Hollis to Klawock pavement 5,000,000 (10) Sitka: Rocky Gutierrez Airport access 3,500,000 improvements (11) Kodiak: Rezanof Drive rehabilitation and 4,300,000 intersection safety improvements (12) Nome: city streets, phase 2 5,000,000 (13) Glacier Highway: road extension 5,000,000 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to read: DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The Department of Transportation and Public Facilities is delegated the Department of Administration's authority under AS 36.30.085 to enter into lease-financing agreements in connection with the issuance of revenue obligations to finance the 2005-05-05 House Journal Page 1614 state transportation projects described in sec. 1 of this Act. * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to read: LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease-financing agreements executed under sec. 2 of this Act are subject to annual appropriation by the legislature. (b) The legislature intends that federal money in the form of apportionments from the Federal Highway Administration for federal highway grants will provide revenue that may be appropriated for the lease payments; however, if that revenue source is insufficient, the payments may be appropriated from any other valid revenue source. * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and Public Facilities is authorized to enter into lease-financing agreements for the issuance of revenue obligations for the state transportation projects described in sec. 1 of this Act. (b) The state bond committee is authorized to provide for the issuance of revenue obligations in one or more series in the aggregate principal amount of $99,400,000 for the costs of construction of the projects described in sec. 1 of this Act. The principal amount includes the estimated cost of $97,900,000 for constructing, acquiring, and equipping the projects described in sec. 1 of this Act; and an amount for the cost of issuing the revenue obligations of $1,500,000. The estimated annual amount of rental obligations under the lease- financing agreements is $8,561,000. The estimated total lease payments for the full term of the lease-financing agreements is $136,976,000. (c) The average annual debt service on revenue obligations to be issued under this Act may not exceed 25 percent of the most recent annual obligation authority received by the State of Alaska from the Federal Highway Administration for the state's federal highway program. As further protection for the holders of the revenue obligations, the resolution of the state bond committee authorizing the issuance of the revenue obligations authorized under this Act shall include the same percentage limitation on the average annual debt service for all outstanding revenue obligations payable from the State of Alaska's federal highway program. 2005-05-05 House Journal Page 1615 (d) The state bond committee may contract for credit enhancement, underwriting, credit ratings, bond counsel, financial advisor, printing, and trustee services that the committee considers necessary in financing the projects described in sec. 1 of this Act. (e) There is created the 2005 state transportation project fund. The proceeds of the revenue obligations issued under this Act shall be deposited into the 2005 state transportation project fund. (f) In this section, (1) "costs of construction" includes credit enhancement and underwriting expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee fees, and interest earnings used for lease payments; (2) "revenue obligation" means a certificate of participation in the right to receive a payment under a lease-financing agreement made to finance the costs of construction or acquisition of a state transportation project. * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to read: NOTICE AND APPROVAL OF AGREEMENTS. Section 4 of this Act constitutes the notice and approval of lease-financing agreements to finance the transportation projects described in sec. 1 of this Act that is required by AS 36.30.085. * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to read: STATE TRANSPORTATION PROJECTS IN METROPOLITAN PLANNING AREAS. If an amount allocated in sec. 1 of this Act for a state transportation project in a metropolitan planning area is not sufficient to complete the project, it is the intent of the legislature that the metropolitan planning organization for the metropolitan planning area include the project in the organization's transportation improvement program and fund the project to completion. * Sec. 7. This Act takes effect July 1, 2005." Representative Meyer moved and asked unanimous consent that Amendment No. 6 be adopted. There being no objection, it was so ordered. The question to be reconsidered: "Shall CSHB 275(FIN) am pass the House?" The roll was taken with the following result: 2005-05-05 House Journal Page 1616 CSHB 275(FIN) am--RECONSIDERATION Third Reading Final Passage YEAS: 31 NAYS: 4 EXCUSED: 2 ABSENT: 3 Yeas: Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Foster, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Joule, Kapsner, Kohring, Kott, LeDoux, Lynn, Meyer, Moses, Neuman, Rokeberg, Salmon, Samuels, Seaton, Wilson Nays: Holm, Olson, Ramras, Stoltze Excused: Kerttula, Thomas Absent: Kelly, McGuire, Weyhrauch And so, CSHB 275(FIN) am passed the House on reconsideration. Representative Coghill moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. CSHB 275(FIN) am was referred to the Chief Clerk for engrossment.