Legislature(2005 - 2006)

2005-05-10 House Journal

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2005-05-10                     House Journal                      Page 1912
SB 153                                                                                            
The following, which was advanced to third reading from the May 9,                                  
2005, calendar (page 1837), was read the third time:                                                
                                                                                                    
     SENATE BILL NO. 153                                                                            
     "An Act relating to international airports revenue bonds; and                                  
     providing for an effective date."                                                              
                                                                                                    

2005-05-10                     House Journal                      Page 1913
Representative Berkowitz moved and asked unanimous consent that                                     
SB 153 be returned to second reading for the specific purpose of                                    
considering Amendment No. 1.  There being no objection, it was so                                   
ordered.                                                                                            
                                                                                                    
Amendment No. 1 was offered by Representatives Berkowitz and                                        
Gruenberg:                                                                                          
                                                                                                    
Page 1, line 1, following "bonds;" (title amendment):                                             
 Insert "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;"                                    
                                                                                                    
Page 2, line 2:                                                                                     
 Delete all material and insert:                                                                    
"* Sec. 2.  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. 5 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                                         

2005-05-10                     House Journal                      Page 1914
  intersection safety improvements                                                                  
 (12)  Nome:  city streets, phase 2     5,000,000                                                   
 (13)  Glacier Highway:  road extension   5,000,000                                                 
   * Sec. 3.  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                                  
state transportation projects described in sec. 2 of this Act.                                      
   * Sec. 4.  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. 3 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. 5.  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. 2 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. 2 of this Act.  The principal amount includes                            
the estimated cost of $97,900,000 for constructing, acquiring, and                                  
equipping the projects described in sec. 2 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.                                                                                       

2005-05-10                     House Journal                      Page 1915
 (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.                                                                
 (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. 2 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. 6.  The uncodified law of the State of Alaska is amended by                             
adding a new section to read:                                                                       
 NOTICE AND APPROVAL OF AGREEMENTS.  Section 5 of                                                   
this Act constitutes the notice and approval of lease-financing                                     
agreements to finance the transportation projects described in sec. 2 of                            
this Act that is required by AS 36.30.085.                                                          
   * Sec. 7.  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. 2 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                                       

2005-05-10                     House Journal                      Page 1916
improvement program and fund the project to completion.                                             
   * Sec. 8.  Sections 2 - 7 of this Act take effect July 1, 2005.                                
   * Sec. 9.  Section 1 of this Act takes effect immediately under                                
AS 01.10.070(c)."                                                                                   
                                                                                                    
Representative Berkowitz moved and asked unanimous consent that                                     
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative Meyer objected.                                                                      
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
SB 153                                                                                              
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  18   NAYS:  19   EXCUSED:  0   ABSENT:  3                                                  
                                                                                                    
Yeas:  Anderson, Berkowitz, Cissna, Crawford, Croft, Dahlstrom,                                     
Gara, Gardner, Gruenberg, Guttenberg, Hawker, Joule, Kapsner,                                       
Kerttula, Kott, Moses, Salmon, Weyhrauch                                                            
                                                                                                    
Nays:  Chenault, Coghill, Elkins, Foster, Gatto, Harris, Holm, Kelly,                               
LeDoux, Lynn, Meyer, Neuman, Olson, Ramras, Rokeberg, Samuels,                                      
Seaton, Stoltze, Wilson                                                                             
                                                                                                    
Absent:  Kohring, McGuire, Thomas                                                                   
                                                                                                    
And so, Amendment No. 1 was not adopted.                                                            
                                                                                                    
Representative Samuels moved and asked unanimous consent that he                                    
be allowed to abstain from voting because of a conflict of interest.                                
Objection was heard, and Representative Samuels was required to                                     
vote.                                                                                               
                                                                                                    
The question being:  "Shall SB 153 pass the House?"  The roll was                                   
taken with the following result:                                                                    
                                                                                                    
SB 153                                                                                              
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  34   NAYS:  4   EXCUSED:  0   ABSENT:  2                                                   
                                                                                                    

2005-05-10                     House Journal                      Page 1917
Yeas:  Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford,                                    
Croft, Dahlstrom, Elkins, Foster, Gara, Gardner, Gatto, Gruenberg,                                  
Guttenberg, Harris, Hawker, Holm, Joule, Kapsner, Kelly, Kerttula,                                  
Kott, LeDoux, Lynn, Meyer, Moses, Neuman, Ramras, Rokeberg,                                         
Salmon, Seaton, Thomas, Wilson                                                                      
                                                                                                    
Nays:  Olson, Samuels, Stoltze, Weyhrauch                                                           
                                                                                                    
Absent:  Kohring, McGuire                                                                           
                                                                                                    
Olson changed from "Yea" to "Nay".                                                                  
                                                                                                    
And so, SB 153 passed the House.                                                                    
                                                                                                    
                                                                                                    
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.                                
                                                                                                    
SB 153 was signed by the Speaker and Chief Clerk and returned to the                                
Senate.