04/09/2013 09:30 AM House RULES
| Audio | Topic |
|---|---|
| Start | |
| HB23 | |
| HB167 | |
| SB31 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 23 | TELECONFERENCED | |
| + | HB 167 | TELECONFERENCED | |
| + | SB 31 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RULES STANDING COMMITTEE
April 9, 2013
9:35 a.m.
MEMBERS PRESENT
Representative Craig Johnson, Chair
Representative Mike Chenault
Representative Mike Hawker
Representative Bob Herron
Representative Wes Keller
Representative Kurt Olson
Representative Max Gruenberg
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Shelley Hughes
COMMITTEE CALENDAR
HOUSE BILL NO. 23
"An Act relating to bonds of the Knik Arm Bridge and Toll
Authority; relating to reserve funds of the authority; relating
to taxes and assessments on a person that is a party to an
agreement with the authority; and establishing the Knik Arm
Crossing fund."
- HEARD & HELD
HOUSE BILL NO. 167
"An Act relating to the regulation of architects, engineers,
land surveyors, and landscape architects."
- MOVED CSHB 167(RLS) OUT OF COMMITTEE
SENATE BILL NO. 31
"An Act naming the runway at the state-owned airport in Akhiok
the Jim Andie and Robin Starrett Memorial Runway."
- MOVED HCS SB 31(RLS) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 23
SHORT TITLE: KNIK ARM CROSSING; AHFC
SPONSOR(s): REPRESENTATIVE(s) NEUMAN, HUGHES
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) TRA, FIN
02/28/13 (H) TRA AT 2:00 PM BARNES 124
02/28/13 (H) Heard & Held
02/28/13 (H) MINUTE(TRA)
03/12/13 (H) TRA AT 1:00 PM BARNES 124
03/12/13 (H) Heard & Held
03/12/13 (H) MINUTE(TRA)
03/21/13 (H) TRA AT 1:00 PM BARNES 124
03/21/13 (H) Moved Out of Committee
03/21/13 (H) MINUTE(TRA)
03/22/13 (H) TRA RPT 5DP 2AM
03/22/13 (H) DP: LYNN, JOHNSON, GATTIS, ISAACSON,
P.WILSON
03/22/13 (H) AM: FEIGE, KREISS-TOMKINS
03/28/13 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/28/13 (H) Heard & Held
03/28/13 (H) MINUTE(FIN)
04/02/13 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/02/13 (H) Moved CSHB 23(FIN) Out of Committee
04/02/13 (H) MINUTE(FIN)
04/03/13 (H) FIN RPT CS(FIN) 3DP 1NR 6AM
04/03/13 (H) DP: NEUMAN, T.WILSON, STOLTZE
04/03/13 (H) NR: THOMPSON
04/03/13 (H) AM: KAWASAKI, HOLMES, MUNOZ, EDGMON,
GARA, COSTELLO
04/08/13 (H) RETURNED TO RLS COMMITTEE
04/09/13 (H) RLS AT 9:30 AM CAPITOL 120
BILL: HB 167
SHORT TITLE: ARCHITECTS, ENGINEERS, SURVEYORS
SPONSOR(s): LABOR & COMMERCE
03/15/13 (H) READ THE FIRST TIME - REFERRALS
03/15/13 (H) L&C
03/29/13 (H) L&C AT 3:15 PM BARNES 124
03/29/13 (H) Moved Out of Committee
03/29/13 (H) MINUTE(L&C)
04/01/13 (H) L&C RPT 3DP 2NR
04/01/13 (H) DP: SADDLER, JOSEPHSON, OLSON
04/01/13 (H) NR: CHENAULT, REINBOLD
04/09/13 (H) RLS AT 9:30 AM CAPITOL 120
BILL: SB 31
SHORT TITLE: NAMING AKHIOK RUNWAY AND KODIAK AIRPORT
SPONSOR(s): STEVENS
01/22/13 (S) READ THE FIRST TIME - REFERRALS
01/22/13 (S) TRA
02/07/13 (S) TRA AT 1:30 PM BUTROVICH 205
02/07/13 (S) Moved SB 31 Out of Committee
02/07/13 (S) MINUTE(TRA)
02/08/13 (S) TRA RPT 5DP
02/08/13 (S) DP: EGAN, FAIRCLOUGH, DYSON, FRENCH,
BISHOP
02/20/13 (S) TRANSMITTED TO (H)
02/20/13 (S) VERSION: SB 31
02/22/13 (H) READ THE FIRST TIME - REFERRALS
02/22/13 (H) TRA
03/05/13 (H) TRA AT 1:00 PM BARNES 124
03/05/13 (H) Moved Out of Committee
03/05/13 (H) MINUTE(TRA)
03/07/13 (H) TRA RPT 6DP
03/07/13 (H) DP: LYNN, JOHNSON, ISAACSON, GATTIS,
KREISS-TOMKINS, P.WILSON
04/08/13 (H) RETURNED TO RLS COMMITTEE
04/09/13 (H) RLS AT 9:30 AM CAPITOL 120
WITNESS REGISTER
REPRESENTATIVE MIA COSTELLO
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During hearing of HB 23, presented
Amendment 1.
DAN FAUSKE, CEO/Executive Director
Alaska Housing Finance Corporation (AHFC)
Department of Revenue;
President, Alaska Gasline Development Corporation (AGDC)
POSITION STATEMENT: Provided testimony on proposed Amendment 1
to CSHB 23(FIN).
REPRESENTATIVE MARK NEUMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke as one of the joint prime sponsors of
HB 23.
MICHAEL FOSTER, Chair
Board of Directors
Knik Arm Bridge and Toll Authority (KABATA)
POSITION STATEMENT: Testified in opposition to Amendment 1 to
CSHB 23(FIN).
ANNA LATHIM, Staff
Representative Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented Amendment 1 to HB 167 on behalf
of the House Labor and Commerce Standing Committee of which
Representative Olson is the chair.
ASTRID ROSE, Staff
Representative Alan Austerman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented Amendment 1 to SB 31.
ACTION NARRATIVE
9:35:58 AM
CHAIR CRAIG JOHNSON called the House Rules Standing Committee
meeting to order at 9:35 a.m. Representatives Chenault, Hawker,
Herron, Keller, Olson, Gruenberg, and Johnson were present at
the call to order. Also in attendance was Representative
Hughes.
HB 23-KNIK ARM CROSSING; AHFC
9:36:18 AM
CHAIR JOHNSON announced that the first order of business would
be HOUSE BILL NO. 23, "An Act relating to bonds of the Knik Arm
Bridge and Toll Authority; relating to reserve funds of the
authority; relating to taxes and assessments on a person that is
a party to an agreement with the authority; and establishing the
Knik Arm Crossing fund." [Before the committee was CSHB
23(FIN).]
9:36:28 AM
REPRESENTATIVE KELLER moved that the committee adopt Amendment
1, labeled 28-LS0141\O.24, Martin, 4/8/13. [Text provided at the
end of the section of minutes pertaining to HB 23.]
CHAIR JOHNSON objected.
9:37:06 AM
REPRESENTATIVE MIA COSTELLO, Alaska State Legislature, explained
that Amendment 1 transfers the Knik Arm Bridge and Toll
Authority (KABATA) to the Alaska Housing Finance Corporation
(AHFC) as a subsidiary corporation. The AHFC Board would become
KABATA's board and AHFC would retain all the powers the current
KABATA Board has. Amendment 1 would name the subsidiary
corporation the Knik Crossing Development Corporation (KCDC).
Most of Amendment 1 is conforming changes to change references
from "authority" to "corporation". Amendment 1 preserves AS
19.75, which is the enabling statute for KABATA. Furthermore,
Amendment 1 provides for a smooth transition of the assets,
obligations, rights, titles, interest, agreements, contracts,
instruments, indebtedness, investments, leases, real and
personal property, lines of credit, gifts, grants, loans, fees,
rents, tolls, civil actions, revenue, funds, insurance,
licenses, permits, studies, and intellectual property to AHFC.
Amendment 1 would also automatically transfer KABATA's current
budget. Additionally, Amendment 1 allows for the current KABATA
Board to serve as an advisory board to the KCDC Board for one
year. Representative Costello told the committee that this
bridge has been discussed since before statehood and the purpose
of Amendment 1 is to bring the best team forward. She opined
that marrying the KABATA Board with AHFC's experience will
provide solid footing for this project moving forward. Under
the proposal in Amendment 1, there would be new energy as AHFC
reviews all of the activities, returns to the legislature with a
report, and works hand-in-hand with the individuals currently
working on this project. In conclusion, Representative Costello
encouraged the committee to seriously consider Amendment 1.
9:40:56 AM
REPRESENTATIVE GRUENBERG asked whether anyone will discuss the
legal changes of Amendment 1, including liability for debts and
anything else that may be created as a result of this amendment.
Representative Gruenberg expressed concern regarding whether
AHFC will be responsible for any of KABATA's existing or future
debts. He expressed further concern with the relationship
between KABATA and the proposed new entity, KCDC.
9:42:21 AM
CHAIR JOHNSON related his understanding from AHFC staff that
additional language may need to be included.
9:43:26 AM
DAN FAUSKE, CEO/Executive Director, Alaska Housing Finance
Corporation (AHFC), Department of Revenue; President, Alaska
Gasline Development Corporation (AGDC), responding to
Representative Gruenberg, began by noting that since [Amendment
1] occurred late in the day yesterday, he was not completely up
to speed on the matter. In discussions with counsel and others
today regarding [Amendment 1], the main goal is to take care
with what is brought into AHFC in terms of how it matches up
with the AA+ rating of AHFC and how rating analysts and others
view it in terms of AHFC's rating. Therefore, much care needs
to be taken with the language, which is under review now.
9:44:27 AM
REPRESENTATIVE GRUENBERG inquired as to the legal relationships
between [AHFC and KCDC] and between KCDC and KABATA. He then
expressed the need for there to be an understanding as to how
well the proposal in Amendment 1 fits with the mission of AHFC
and its bond rating. He then questioned whether the subsidiary
corporation type of entity is the best choice from the
perspective of protecting the state and AHFC.
MR. FAUSKE informed the committee that when the Northern Tobacco
Securitization Corporation was created a number of years ago, it
was created as a subsidiary corporation and issued bonds that
were solely the responsibility of the corporation of AHFC. He
noted that AGDC was treated much the same way. Therefore, there
are ways to accomplish this.
9:47:02 AM
REPRESENTATIVE GRUENBERG expressed another concern regarding
whether KCDC being under AHFC would create a potential conflict
of interest.
MR. FAUSKE, noting that he did so when AHFC took on AGDC,
assured the committee that the proposal in Amendment 1 wouldn't
result in anything suffering due to some additional work. He
related his view that this is a finance mechanism, and thus is a
solvable issue.
9:48:20 AM
REPRESENTATIVE GRUENBERG inquired as to whether AHFC's team
needs time to review Amendment 1.
MR. FAUSKE related his belief that in a few hours the committee
will see legislation that is very similar to House Bill 369 from
the 26th Alaska State Legislature, which enabled AGDC to come
into existence. Although AHFC is busy with HB 4 and HB 50, the
AHFC team is fine and can address [Amendment 1] in a fairly
quick timeframe.
9:49:47 AM
CHAIR JOHNSON acknowledged that this proposal had come before
AHFC very quickly, and therefore he asked whether AHFC can do it
and still provide the citizens of the state and the legislature
a certain level of confidence that this is moving forward in the
appropriate direction.
MR. FAUSKE answered absolutely, but highlighted the need to
study [the proposal in Amendment 1]. He mentioned that he knows
some of those involved with KABATA and he has a lot of faith in
their capabilities and thus will seek their guidance in putting
together an appropriate package.
9:50:38 AM
REPRESENTATIVE GRUENBERG inquired as to how AHFC will deal with
KABATA's less than stellar rating in its recent audit.
MR. FAUSKE answered that AHFC will analyze and discuss [the
audit] with those involved with KABATA to determine whether
there are issues that can be solved or whether there are
misunderstandings or overstatements in the audit.
9:51:47 AM
REPRESENTATIVE MARK NEUMAN, Alaska State Legislature, speaking
as one of the joint prime sponsors of HB 23, stated that HB 23
encompasses six years' worth of work that has been scrutinized
by various entities, including the administration, the
Department of Law (DOL), the Department of Revenue (DOR), and
the Department of Transportation & Public Facilities (DOT&PF) to
ensure that the state's interests are protected. He then
expressed concern that there seems to be a need to place
[KABATA] under AHFC because of a public perception. However,
there will always be folks, he opined, who oppose projects. In
fact, some have said that if this project went through the
military base, they wouldn't object to it at all. He expressed
further concern with the unknown impacts of last-minute changes
and noted that the governor is fully onboard with CSHB 23(FIN)
because of his faith in his staff. Representative Neuman then
related the need to ensure that the reserve fund is in place in
order for the Transportation Infrastructure Finance and
Innovation Act of 1998 (TIFIA) loan to proceed, which is
projected to be let in the next three months. At stake is a
TIFIA loan at a low interest rate in the amount of $350 million
to the private partner from the federal government to ensure
that the tariff rates are low, which is not dissimilar to the
efforts to ensure that the rates for in-state gas are low under
HB 4. Furthermore, [CSHB 23(FIN)] includes an increase from
$500 million to $600 million in federal funds for private
activity bonds that would go to the private partner. He
reiterated the need to ensure the state doesn't risk losing
those funds to build this road project and maintain the best
toll rate for Alaskans. He also expressed concern with the
message the [adoption of Amendment 1] would send to industry.
Representative Neuman opined that having only recently reviewed
Amendment 1, he doesn't know exactly what it does to HB 23.
However, for the last three years, the best people Alaska has
have scrutinized HB 23 and even reached out to CitiGroup Global
Markets Inc. ("CitiGroup"), one of the most recognized financial
institutions in the world, to be used as an advisor [to KABATA].
[The KABATA] has secured the financial advice of David
Livingstone, CitiGroup, who has put together 48 3P projects in
his career. Mr. Livingstone is the head 3P project developer
design for CitiGroup as a financial advisor. The financials for
KABATA, he stressed, are very complete and are [the product] of
some of the best in the world. He highlighted that Mr.
Livingstone, CitiGroup, and Mr. Stark, Department of Law, have
worked on HB 23 for five years. Representative Neuman then
stressed concern regarding the possibility of delay of the
project that would cause Alaska to lose this project because of
politics.
9:59:30 AM
REPRESENTATIVE NEUMAN then referred to the report written by
Kris Curtis, Legislative Auditor, Legislative Audit Division, in
which she states that "traffic projections are based on economic
assumptions and data that are unreasonably optimistic," which
sets a tone for the reader. The report, however, actually says,
"This also suggests that [Wilbur Smith and Associates] WSA's
projections may be somewhat optimistic." The report also says
to base it on the ISER toll revenues. The 2009 [ISER] traffic
projections for 2010 were 80,300 with a total for Anchorage and
the Mat-Su of 368,600. The actual census report was about
89,000 and thus ISER was about 9,000 under the actual count with
a total of 381,000. He then related that the KABATA projection
for 2035 was 191,000, while the 2009 ISER projection was
171,000. If one takes into account the 9,000 that ISER was
short from the 2010 census and correlates and corrects it to the
actual census, the KABATA and ISER difference is 103 people in
the year 2035. Those projections are fairly close, he remarked.
Representative Neuman stressed that there hasn't been a chance
to discuss the real numbers, which he opined is important.
REPRESENTATIVE NEUMAN stated that there have been supplied
estimates of total revenue starting in 2017 at $6,700, which he
characterized as fairly low. Furthermore, the projection on out
growth doesn't include any chance of a pipeline being built.
The Alaska Stand Alone Pipeline (ASAP) is projected to be
constructed at Point MacKenzie, which is where this bridge is
planned to cross and where there is 14 square miles of
industrial land. Due to the aforementioned, he suggested there
will likely be more expansion and growth than there is now.
Returning to Amendment 1, Representative Neuman reiterated his
concern regarding whether it will cause a "hiccup" in the
availability of approximately $950 million in federal low
interest loans to the private partner of this project. Such a
delay will kill this project, he opined. He pointed out that
HB 23 has a zero fiscal note and allows DOL, DOR, and DOT&PF to
put forth a request for proposals (RFP) that states a maximum
moral obligation of $1.14 billion. The aforementioned, he said,
is the absolute worst case scenario in terms of cost and Mr.
Stark testified in the House Finance Committee that the chance
of that is 5 percent. More likely, this project will come
online on time due to the professionals that work for the state,
he opined. Representative Neuman stated that he will support
Amendment 1 if the administration, Mr. Fauske, and Mr. Foster
find there is no problem with delaying the project and no
problem with the loss of [the TIFIA] funds. However, if it's
determined the project will be delayed, which will essentially
kill the project, then he can't support Amendment 1. As a
member of the Mat-Su delegation, Representative Neuman pointed
out that there are 13,000 people driving down the Glenn Highway
daily and their lives are put on the line.
10:07:34 AM
CHAIR JOHNSON requested that Representative Neuman speak to
Amendment 1 and offer his concluding remarks.
10:07:42 AM
REPRESENTATIVE NEUMAN reiterated that he can support Amendment 1
if it doesn't delay the project or place the federal funds at
risk.
10:08:21 AM
MICHAEL FOSTER, Chair, Board of Directors, KABATA, related
opposition to Amendment 1. He told the committee that he first
learned of Amendment 1 in a meeting Saturday in Senator Huggins'
office with Representatives Costello, Pruitt, and Holmes. In
discussions regarding the purpose of Amendment 1, he was told
that it's all about credibility and that KABATA's credibility is
lacking. Mr. Foster, noting that he is a volunteer not paid
staff, related his belief that the credibility of KABATA has
[improved] since he took over four to five years ago.
Furthermore, adding this project to AHFC at a point at which
it's close to reality is an added burden. Moreover, KABATA is
transportation and is different than dealing with pipelines or
housing, with which AHFC deals. Mr. Foster reiterated his
opposition to Amendment 1. If the sole purpose of Amendment 1
is to strengthen the credibility of KABATA, he passionately
requested that the committee not pass Amendment 1 but rather
pass the legislation as approved by the governor and allow the
project to move forward. Mr. Foster assured the committee that
the credibility of KABATA will be strengthened and the project
will be a success. Furthermore, he couldn't recall any time in
the past three years when KABATA's credibility had been called
into question, rather he recalled quite the opposite.
Therefore, he characterized Amendment 1 as throwing the baby out
with the bath water. If the desire is to strengthen KABATA's
credibility, he urged the committee to pass the legislation as
it will strengthen KABATA's credibility in the market and with
the federal government related to the TIFIA funds.
10:12:45 AM
REPRESENTATIVE HERRON inquired as to KABATA's response to the
auditor.
MR. FOSTER informed the committee that KABATA had three
opportunities to respond to the Legislative Budget and Audit
Committee through the pre-management letter, the management
letter, and the preliminary report. He then directed the
committee's attention to Appendix D on page 37 of the audit,
which is the Legislative Budget and Audit Committee's review of
their model versus KABATA's model. The Legislative Budget and
Audit Committee model is based on local micro economics. The
KABATA model is based on regional economics that is a
traditional job growth model linked to local conditions, and
thus is based on Anchorage, Wasilla, Fairbanks, and Knik. He
highlighted that the Legislative Budget and Audit Committee
model states that there are smaller amounts of residential in
the [Knik Goose Bay] KGB corridor. However, Mr. Foster
emphasized that the KGB corridor is one of the fastest growing
regions as exemplified by the increase in transportation from
12,000 to 18,000 in 10 years. Furthermore, the Fairview area
would be the fourth largest city in the state if it were to
incorporate. The KABATA model, on the other hand, is based on
a larger amount of residential of KGB with the effects of the
bridge. Mr. Foster said that he could go through [Appendix D]
point-by-point. The difference between the models is that the
Legislative Budget and Audit Committee used the Mat-Su Borough
School District model as its basis, which doesn't include the
impacts of the Knik Arm Crossing. He related that the reason
for the aforementioned is because at the time of the model, they
couldn't determine for certain when [the Knik Arm Crossing
impact] would occur. Therefore, the Legislative Budget and
Audit Committee model is based on no social, economic, or
demographic growth in the Knik Goose Bay Point MacKenzie area as
a result of the crossing. However, KABATA's model and analysis
does include the Knik Arm Crossing. Appendix D on page 37 sums
it up, he stressed. He agreed with Representative Neuman that
there is a large difference between "unreasonably optimistic,"
which is supposed to be an unbiased opinion by the Legislative
Budget and Audit Committee, and the "somewhat optimistic"
opinion of the consultant. He pointed out that later in the
report the consultant says that [KABATA's] regional model is
probably fairer than a local model. However, as a one-person
shop out of Arizona, the consultant has limited resources and
time. Furthermore, the consultant doesn't even know where the
project is located as illustrated by the cover photograph of
Turnagain Arm rather than Knik Arm.
10:16:04 AM
REPRESENTATIVE HERRON then inquired as to when the P3 agreement
will be final.
MR. FOSTER answered that the P3 agreement won't be final until
the legislation is known because it's part of the RFP process.
Once the legislation is known and can be offered to the private
developer, the RFP can be completed, which he estimated will
take 2-3 months to complete through DOL. At that point,
sometime in the summer it should be issued.
10:16:41 AM
REPRESENTATIVE HAWKER opined that if there is going to be such a
severe indictment of the state legislative auditor in public,
she should be given the chance to respond. The audit, he
stated, was conducted by and in accordance with professional
auditing standards.
CHAIR JOHNSON agreed to do so when the committee returns to this
issue.
10:17:30 AM
CHAIR JOHNSON announced that the committee would recess to the
call of chair.
[The adoption of Amendment 1 to HB 23 with an objection by Chair
Johnson was left pending. HB 23 was held over.]
Amendment 1 to CSHB 23(FIN)
Page 1, line 1:
Delete "relating to bonds of the Knik Arm Bridge
and Toll Authority"
Insert "creating the Knik Crossing Development
Corporation as a subsidiary of the Alaska Housing
Finance Corporation; relating to bonds of the Knik
Crossing Development Corporation"
Page 1, line 2:
Delete "authority"
Insert "corporation"
Page 1, line 3:
Delete "authority"
Insert "corporation"
Delete "Arm"
Page 1, following line 5:
Insert new bill sections to read:
"* Section 1. AS 18.56.086 is amended by adding a
new subsection to read:
(b) The corporation shall create the Knik
Crossing Development Corporation as a subsidiary
corporation. The board shall be the board of directors
of the Knik Crossing Development Corporation and is
authorized to exercise all the powers and duties set
out in AS 19.75.
* Sec. 2. AS 19.75.011 is amended to read:
Sec. 19.75.011. Purpose. The purpose of the
corporation [AUTHORITY] created by this chapter is to
develop, stimulate, and advance the economic welfare
of the state and further the development of public
transportation systems in the vicinity of the Upper
Cook Inlet with construction of a bridge to span Knik
Arm and connect the Municipality of Anchorage and the
Matanuska-Susitna Borough.
* Sec. 3. AS 19.75.021(a) is repealed and reenacted
to read:
(a) The Knik Crossing Development Corporation
shall be a subsidiary corporation created by the
Alaska Housing Finance Corporation under AS 18.56.086.
* Sec. 4. AS 19.75.021(b) is amended to read:
(b) The corporation [AUTHORITY] may not be
terminated as long as it has bonds, notes, or other
obligations outstanding. Upon termination of the
corporation [AUTHORITY], its rights and property pass
to the Alaska Housing Finance Corporation [STATE].
* Sec. 5. AS 19.75.031 is repealed and reenacted to
read:
Sec. 19.75.031. Board of directors of
corporation. The board of directors for the Alaska
Housing Finance Corporation shall be the board of
directors for the Knik Crossing Development
Corporation.
* Sec. 6. AS 19.75.041(a) is amended to read:
(a) The powers of the corporation [AUTHORITY]
are vested in the board.
* Sec. 7. AS 19.75.041(c) is amended to read:
(c) [THE GOVERNOR SHALL DESIGNATE ONE MEMBER OF
THE BOARD TO SERVE AS THE CHAIR OF THE BOARD.] The
[VOTING] members of the board shall elect a chair and
other officers they determine desirable.
* Sec. 8. AS 19.75.051 is amended to read:
Sec. 19.75.051. Executive director. The
corporation [AUTHORITY] shall employ an executive
director who may not be a member of the board. The
executive director shall serve at the pleasure of the
board. The board shall establish the duties and
compensation of the executive director.
* Sec. 9. AS 19.75.081 is amended to read:
Sec. 19.75.081. Legal advisor. The attorney
general is the legal counsel for the corporation
[AUTHORITY]. The attorney general shall advise the
corporation [AUTHORITY] in legal matters and represent
it in suits.
* Sec. 10. AS 19.75.111 is amended to read:
Sec. 19.75.111. Powers and duties of the
corporation [AUTHORITY]. (a) Except as otherwise
explicitly made applicable to the corporation
[AUTHORITY], the performance of the corporation's
[AUTHORITY'S] duties and the exercise of its powers,
including its powers to issue bonds and otherwise
incur debt, shall be governed exclusively by this
chapter. In furtherance of its purposes, the
corporation [AUTHORITY] may
(1) own, acquire, construct, develop,
create, reconstruct, equip, operate, maintain, extend,
and improve the Knik Arm bridge and its appurtenant
facilities;
(2) sue and be sued;
(3) adopt a seal;
(4) adopt, amend, and repeal regulations
under AS 44.62 and establish bylaws;
(5) make and execute agreements, contracts,
and all other instruments with any public or private
person, governmental unit or agency, corporation, or
other business entity lawfully conducting business in
the United States for the exercise of its powers and
functions under this chapter and for the financing,
design, construction, maintenance, improvement, or
operation of facilities, properties, or projects of
the corporation [AUTHORITY], including making and
executing contracts with any person, firm,
corporation, governmental agency, or other entity for
the purpose of
(A) incurring indebtedness, obtaining
investments in the corporation's [AUTHORITY'S]
projects, acquiring or granting lump sum payments for
services in advance or in arrears, grants, and other
financing; and
(B) entering into public-private
partnerships or service contracts in any form;
(6) in its own name acquire, lease, rent,
sell, or convey real and personal property;
(7) issue and refund bonds in accordance
with this chapter, in order to pay the cost of the
Knik Arm bridge and its appurtenant facilities; the
corporation [AUTHORITY] may also secure payment of the
bonds as provided in this chapter;
(8) incur other indebtedness, including
lines of credit and indebtedness to the Federal
Highway Administration, United States Department of
Transportation, under 23 U.S.C. 601 - 610
(Transportation Infrastructure Finance and Innovation
Act of 1998), as amended, and secure that indebtedness
as provided in this chapter;
(9) apply for and accept gifts, grants, or
loans from a federal agency or an agency or
instrumentality of the state, or from a municipality,
private organization, or other source, including
obtaining title to state, local government, or
privately owned land, directly or through a department
of the state having jurisdiction of the land;
(10) fix and collect fees, rents, tolls,
rates, or other charges for the use of the Knik Arm
bridge and appurtenant facilities, or for a service
developed, operated, or provided by the corporation
[AUTHORITY]; notwithstanding AS 37.10.050(a), fees,
rents, tolls, rates, and other charges fixed and
collected under this paragraph may exceed the actual
operating cost of the use of the bridge, facility, or
service;
(11) bring civil actions, refer criminal
actions to the appropriate authority, and take other
actions or enter into agreements with law enforcement
and collection agencies to enforce the collection of
its fees, rents, tolls, rates, other charges,
penalties, and other obligations;
(12) pledge, encumber, transfer, or
otherwise obligate revenue derived by the corporation
[AUTHORITY] from the ownership, use, or operation of
toll facilities, including fees, rents, tolls, rates,
charges, or other revenue of the corporation
[AUTHORITY] or money that the legislature may
appropriate, except a state tax or license, as
security for bonds or other indebtedness or agreements
of the corporation [AUTHORITY];
(13) deposit or invest its funds, subject
to agreements with bondholders;
(14) procure insurance against any loss in
connection with its operation;
(15) contract for and engage the services
of consultants, experts, and financial and technical
advisors that the corporation [AUTHORITY] considers
necessary for the exercise of its powers and functions
under this chapter;
(16) apply for, obtain, hold, and use
permits, licenses, or approvals from appropriate
agencies of the state, the United States, a foreign
country, and any other proper agency in the same
manner as any other person;
(17) perform reconnaissance studies and
engineering, survey, and design studies with respect
to the Knik Arm bridge and its appurtenant facilities;
(18) exercise powers of eminent domain or
file a declaration of taking as necessary for the Knik
Arm bridge and appurtenant facilities under
AS 09.55.240 - 09.55.460 to acquire land or an
interest in land; the corporation's [AUTHORITY'S]
exercise of powers under this paragraph may not exceed
the permissible exercise of those powers by the state;
(19) confer with municipal and other
governments, metropolitan planning organizations, and
the department, concerning the Knik Arm bridge;
(20) do all acts and things necessary to
carry out the powers expressly granted or necessarily
implied in this chapter; nothing in this chapter
limits the powers of the corporation [AUTHORITY] that
are expressly granted or necessarily implied.
(b) The corporation [AUTHORITY] shall
(1) prepare an annual report of its
operations to include a balance sheet, an income
statement, a statement of changes in financial
position, a reconciliation of changes in equity
accounts, a summary of significant accounting
principles, an auditor's report, comments regarding
the year's business, and prospects for the next year;
the report shall be completed by the third day of each
regular session of the legislature, and the
corporation [AUTHORITY] shall notify the governor, the
commissioner of the department, the presiding officers
of each house of the legislature, and the Legislative
Budget and Audit Committee that the report is
available;
(2) comply with the provisions of AS 37.07
(Executive Budget Act), except that AS 37.07 does not
apply to the activities of the corporation [AUTHORITY]
that relate to the corporation's [AUTHORITY'S]
borrowing of money as provided in this chapter,
including the issuing of its obligations or evidence
of that borrowing and the repayment of the debt
obligation;
(3) establish a personnel management system
for hiring employees and setting employee-benefit
packages;
(4) establish procedures, rules, and rates
governing per diem and travel expenses of the
employees of the corporation [AUTHORITY] in
substantial conformity to statutes, procedures, rules,
and rates applicable to state employees of similar
state entities;
(5) coordinate the exercise of its powers
to plan, design, construct, operate, and maintain the
Knik Arm bridge with the department, and with the
mayors of the Municipality of Anchorage and the
Matanuska-Susitna Borough;
(6) have the exclusive authority to
determine and fix fees, rents, tolls, rates, and other
charges, including the tolls for the use of the bridge
and appurtenant facilities and for the use of all
other properties under the control of or owned or
managed by the corporation [AUTHORITY].
* Sec. 11. AS 19.75.113 is amended to read:
Sec. 19.75.113. Assets, funds, and revenue of the
corporation [AUTHORITY]. (a) The Department of Revenue
shall separately account for all funds, assets, and
revenue of the corporation [AUTHORITY].
(b) The deposit or investment of money in the
corporation's [AUTHORITY'S] funds may be made as the
board determines. The interest earned on or profits
derived from the deposit, investment, or sale of an
investment by the corporation [AUTHORITY] are funds of
the corporation [AUTHORITY]."
Page 1, line 6:
Delete "Section 1"
Insert "Sec. 12"
Renumber the following bill sections accordingly.
Page 1, line 7:
Delete "authority"
Insert "corporation"
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Delete "authority"
Insert "corporation"
Page 1, line 12:
Delete "authority"
Insert "corporation"
Page 1, line 14:
Delete "authority"
Insert "corporation"
Page 2, following line 2:
Insert a new bill section to read:
"* Sec. 13. AS 19.75.211(b) is amended to read:
(b) The bonds of the corporation [AUTHORITY] may
be sold in the amounts or series and at the time
determined by its board of directors. Bonds, or a
series of bonds, may not be sold if the effective
interest rate over the life of the bonds exceeds 11
percent a year or a rate of interest that is 125
percent of the rate of the Bond Buyer Index of 20
Municipal Bond Average Yields for the week previous to
the date of the sale of the bonds, whichever is
higher."
Renumber the following bill sections accordingly.
Page 2, line 4:
Delete "authority"
Insert "corporation [AUTHORITY]"
Page 2, line 8:
Delete "authority"
Insert "corporation"
Page 2, line 9:
Delete "authority"
Insert "corporation"
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Delete "authority"
Insert "corporation"
Page 2, line 15:
Delete "authority"
Insert "corporation"
Page 2, line 18:
Delete "authority"
Insert "corporation"
Page 2, line 19:
Delete "authority"
Insert "corporation"
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Delete "authority"
Insert "corporation"
Page 2, following line 23:
Insert new bill sections to read:
"* Sec. 16. AS 19.75.221(a) is amended to read:
(a) In the discretion of the corporation
[AUTHORITY], an issue of bonds may be secured by a
trust indenture or trust agreement between the
corporation [AUTHORITY] and a corporate trustee, by a
secured loan agreement or other instrument, or by a
resolution giving powers to a corporate trustee, by
means of which the corporation [AUTHORITY] may
(1) make agreements with the trustee or the
holders of the bonds that the corporation [AUTHORITY]
determines to be necessary or desirable, including
agreements as to the
(A) application, investment, deposit, use,
and disposition of
(i) the proceeds of bonds of the
corporation [AUTHORITY];
(ii) money or other property of the
corporation [AUTHORITY]; or
(iii) money or other property in which the
corporation [AUTHORITY] has an interest;
(B) fixing and collecting of fees, rents,
tolls, rates, or other charges;
(C) assignment by the corporation
[AUTHORITY] of its rights in any contract with respect
to the Knik Arm bridge or in a mortgage or other
security interest created with respect to the Knik Arm
bridge to a trustee for the benefit of bondholders;
(D) terms and conditions under which the
corporation [AUTHORITY] may issue additional bonds;
(E) vesting in a trustee of rights, powers,
duties, money, or property in trust for the benefit of
bondholders, including the right to enforce payment,
performance, and all other rights of the corporation
[AUTHORITY] or of the bondholders, under a lease,
power of contract, contract of sale, mortgage,
security agreement, or trust by injunction or other
proceeding or by taking possession by agent or
otherwise, and operating the Knik Arm bridge and
collecting rents or other consideration and applying
the same in accordance with the trust agreement;
(2) pledge, mortgage, or assign money,
leases, agreements, property, or other rights or
assets of the corporation [AUTHORITY] either presently
in hand or to be received in the future, or both; and
(3) provide for any other matters that
affect the security or protection of the bonds.
* Sec. 17. AS 19.75.221(b) is amended to read:
(b) Notwithstanding any other provisions of this
chapter, the trust agreement must contain an agreement
by the corporation [AUTHORITY] that the corporation
[AUTHORITY] will at all times maintain fees, rents,
tolls, rates, or other charges sufficient to
(1) pay the costs of operation and
maintenance of the Knik Arm bridge and its appurtenant
facilities and the principal of and interest on bonds
issued under the trust agreement as the bonds
severally become due and payable;
(2) provide for debt service coverage as
considered necessary by the corporation [AUTHORITY]
for the marketing of its bonds; and
(3) provide for renewals, replacements, and
improvements of the Knik Arm bridge, and to maintain
reserves required by the terms of the trust agreement.
* Sec. 18. AS 19.75.221(c) is amended to read:
(c) For the purpose of securing one or more
issues of its bonds, the corporation [AUTHORITY] may
establish one or more special funds, called "capital
reserve funds," and shall pay into those capital
reserve funds the proceeds of the sale of its bonds
and any other money that is available to the
corporation [AUTHORITY] for the purposes of those
funds. The funds shall be established only if the
corporation [AUTHORITY] determines that the
establishment would enhance the marketability of the
bonds. All money held in a capital reserve fund,
except as provided in this section, shall be used as
required solely for (1) the payment of the principal
of and interest on bonds or of the sinking fund
payments with respect to those bonds, (2) the purchase
or redemption of bonds, or (3) the payment of a
redemption premium required to be paid when those
bonds are redeemed before maturity. However, money in
a fund may not be withdrawn from the fund at any time
in an amount that would reduce the amount of the fund
to less than the capital reserve requirement set out
in (d) of this section, except for the purpose of
making, with respect to those bonds, payment, when
due, of principal, interest, redemption premiums, and
the sinking fund payments for the payment of which
other money of the corporation [AUTHORITY] is not
available. Income or interest earned by or increment
to a capital reserve fund due to the investment of the
fund or any other amounts in the fund may be
transferred by the corporation [AUTHORITY] to other
funds or accounts of the corporation [AUTHORITY] to
the extent that the transfer does not reduce the
amount of the capital reserve fund below the capital
reserve fund requirement.
* Sec. 19. AS 19.75.221(d) is amended to read:
(d) If the corporation [AUTHORITY] decides to
issue bonds secured by a capital reserve fund, the
bonds may not be issued if the amount in the capital
reserve fund is less than the amount of the capital
reserve fund requirement, if any, established by
resolution of the corporation [AUTHORITY], unless the
corporation [AUTHORITY], at the time of issuance of
the obligations, deposits in the capital reserve fund
from the proceeds of the obligations to be issued or
from other sources an amount that, together with the
amount then in the fund, will not be less than the
capital reserve fund requirement.
* Sec. 20. AS 19.75.221(f) is amended to read:
(f) If the corporation [AUTHORITY] decides to
issue bonds secured by a capital reserve fund, the
bonds may not be issued until 30 days after the
corporation [AUTHORITY] has mailed notification to the
state bond committee and the Legislative Budget and
Audit Committee by certified mail of its intention to
establish a capital reserve fund to secure the bond
issue. The notification must include the amount of the
capital reserve fund to be established, the amount of
bonds proposed to be issued, and the total cost for
which the bonds are to be issued. The notification
shall be accompanied by an estimate by the corporation
[AUTHORITY] of the need to withdraw money from the
capital reserve fund during the term of the bond
issue, the amount that may be necessary to withdraw,
and the time at which withdrawals are estimated to be
needed. By January 30 of each year, the corporation
[AUTHORITY] shall prepare, and provide to the state
bond committee and the Legislative Budget and Audit
Committee, a revised estimate, considering the same
factors, and a statement of all withdrawals that have
occurred from the date of issuance of the bonds to the
end of the preceding calendar year."
Renumber the following bill sections accordingly.
Page 2, line 25:
Delete "authority"
Insert "corporation [AUTHORITY]"
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Delete "authority"
Insert "corporation [AUTHORITY]"
Page 2, line 29:
Delete "authority."
Insert "corporation."
Page 2, line 31:
Delete "authority"
Insert "corporation"
Page 3, line 2:
Delete "authority"
Insert "corporation"
Page 3, line 5:
Delete "authority"
Insert "corporation"
Page 3, line 6:
Delete "sources."
Insert "sources [AUTHORITY]."
Page 3, line 11:
Delete "authority"
Insert "corporation"
Page 3, line 13:
Delete "authority"
Insert "corporation"
Page 3, line 14:
Delete "authority's"
Insert "corporation's"
Page 3, line 15:
Delete "authority's"
Insert "corporation's"
Page 3, line 19:
Delete "authority"
Insert "corporation"
Page 3, line 29:
Delete "authority" in both places
Insert "corporation" in both places
Page 4, line 2:
Delete "authority"
Insert "corporation"
Page 4, line 8:
Delete "authority"
Insert "corporation"
Page 4, line 11:
Delete "authority"
Insert "corporation"
Page 4, line 15:
Delete "authority"
Insert "corporation"
Page 4, following line 16:
Insert new bill sections to read:
"* Sec. 23. AS 19.75.231 is amended to read:
Sec. 19.75.231. Validity of pledge. It is the
intention of the legislature that a pledge made in
respect of bonds shall be perfected and shall be valid
and binding from the time the pledge is made, that the
money or property so pledged and after that received
by the corporation [AUTHORITY] shall immediately be
subject to the lien of the pledge without physical
delivery or further act, and that the lien of the
pledge shall be valid and binding against all parties
having claims of any kind in tort, contract, or
otherwise against the corporation [AUTHORITY]
irrespective of whether the parties have notice.
Neither the resolution, trust agreement, nor any other
instrument by which a pledge is created need be
recorded or filed under the provisions of the Uniform
Commercial Code in order to be perfected or to be
valid, binding, or effective against the parties. This
section does not affect title to or conveyances of
real property, and does not limit the applicability of
AS 40.17.080(b).
* Sec. 24. AS 19.75.241 is amended to read:
Sec. 19.75.241. Nonliability on bonds. (a)
Neither the members of the board nor a person
executing the bonds of the corporation [AUTHORITY] is
liable personally on the bonds or is subject to
personal liability or accountability by reason of the
issuance of the bonds.
(b) The bonds issued by the corporation
[AUTHORITY] do not constitute an indebtedness or other
liability of the state or of a political subdivision
of the state other than the corporation [AUTHORITY],
but shall be payable solely from the income, receipts,
or other money or property of the corporation
[AUTHORITY]. All documents published by the
corporation [AUTHORITY] or to which the corporation
[AUTHORITY] is a signatory and used in or for the
issuance of bonds by the corporation [AUTHORITY] must
state that they are prepared by or for the corporation
[AUTHORITY].
(c) The corporation [AUTHORITY] may not pledge
the faith or credit of the state or of a political
subdivision of the state other than the corporation
[AUTHORITY], and the issuance of a bond by the
corporation [AUTHORITY] does not directly, indirectly,
or contingently obligate the state or a political
subdivision of the state to apply money from, levy, or
pledge any form of taxation to the payment of the bond
or to make payments due on the bonds from any source
of funds not pledged for repayment of the bonds.
(d) Each obligation issued under this chapter
other than a state guaranteed bond shall contain on
its face a statement that the corporation [AUTHORITY]
is not obligated to pay it nor the interest on it
except from the revenue or assets of the corporation
[AUTHORITY] and that neither the faith and credit nor
the taxing power of the state or of any political
subdivision of the state is pledged to the payment of
the principal of or the interest on the obligation.
* Sec. 25. AS 19.75.251 is amended to read:
Sec. 19.75.251. Pledge of the state. The state
pledges to and agrees with the holders of bonds issued
under this chapter and with a federal agency that
loans or contributes money in respect to the Knik Arm
bridge that the state will not limit or alter the
rights and powers vested in the corporation
[AUTHORITY] under this chapter to fulfill the terms of
a contract made by the corporation [AUTHORITY] with
the holders or federal agency or in any way impair the
rights and remedies of the holders until the bonds,
together with the interest on them, with interest on
unpaid installments of interest, and all costs and
expenses in connection with an action or proceeding by
or on behalf of the holders, are fully met and
discharged. The corporation [AUTHORITY] may include
this pledge and agreement of the state, insofar as it
refers to holders of bonds of the corporation
[AUTHORITY], in a contract with the holders and,
insofar as it relates to a federal agency, in a
contract with the federal agency."
Renumber the following bill sections accordingly.
Page 4, line 19:
Delete "authority"
Insert "corporation [AUTHORITY]"
Page 4, line 28:
Delete "authority"
Insert "corporation"
Page 4, line 30:
Delete "authority"
Insert "corporation [AUTHORITY]"
Page 5, following line 11:
Insert new bill sections to read:
"* Sec. 27. AS 19.75.271 is amended to read:
Sec. 19.75.271. Bonds legal investments for
fiduciaries. The bonds of the corporation [AUTHORITY]
are securities in which all public officers and bodies
of the state and all municipalities and municipal
subdivisions, all insurance companies and associations
and other persons carrying on an insurance business,
all banks, bankers, trust companies, savings banks,
savings associations, including savings and loan
associations and building and loan associations,
investment companies, and other persons carrying on
banking business, all administrators, guardians,
executors, trustees, and other fiduciaries, and other
persons who are now or may afterward be authorized to
invest in bonds or other obligations of the state may
properly and legally invest money, including capital
in their control or belonging to them. Notwithstanding
any other provision of law, the bonds of the
corporation [AUTHORITY] are also securities that may
be deposited with and may be received by all public
officers and bodies of the state and all
municipalities and municipal subdivisions for any
purpose for which the deposit of bonds or other
obligations of the state is now or may afterward be
authorized.
* Sec. 28. AS 19.75.281 is amended to read:
Sec. 19.75.281. Audit. The legislative auditor
annually shall audit, or cause to have audited, the
financial records of the corporation [AUTHORITY]. The
legislative auditor may prescribe the form and content
of the financial records of the corporation
[AUTHORITY] and shall have access to these records at
any reasonable time.
* Sec. 29. AS 19.75.301 is amended to read:
Sec. 19.75.301. Insurance. The corporation
[AUTHORITY] shall keep in force public liability
insurance in an amount reasonably calculated to cover
potential claims for bodily injury, death or
disability, and property damage that may arise from or
be related to its operation and activities, naming the
state as an additional insured.
* Sec. 30. AS 19.75.311 is amended to read:
Sec. 19.75.311. Safeguarding of money. The
corporation [AUTHORITY] shall maximize revenue from
and deposit all money in depositories acceptable to
the commissioner of revenue and otherwise safeguard
the money under instructions as the commissioner of
revenue may from time to time issue.
* Sec. 31. AS 19.75.321 is amended to read:
Sec. 19.75.321. Fidelity bond. The corporation
[AUTHORITY] shall obtain a fidelity bond in an amount
determined by the board, for the members of the board
and any official responsible for corporation
[AUTHORITY] accounts and finances. A bond must be in
effect for the tenure of the bonded person.
* Sec. 32. AS 19.75.330(a) is amended to read:
(a) The bonds of the corporation [AUTHORITY]
mature at the time fixed by the board. The bonds may
be subject to redemption before their fixed maturities
as determined by the board, or by the corporation's
[AUTHORITY'S] executive director when delegated that
responsibility under AS 19.75.332, and with the
premium fixed by the board, but a bond may not be
subject to redemption before its fixed maturity date
unless the right to redeem that bond is expressly
mentioned on the face of the bond. The bonds
(1) may be in denominations determined by
the board;
(2) may be issued in coupon form or in
fully registered form, and may be registrable as to
principal or both principal and interest, all under
regulations and conditions the board provides;
(3) are payable as to principal and
interest at the place determined by the board;
(4) shall be signed on behalf of the
corporation [AUTHORITY] as the board may direct; the
signatures may be facsimile signatures; each of the
interest coupons, if any, attached to the bonds shall
be signed by the facsimile signatures of the officials
as the board may direct;
(5) shall have the seal of the corporation
[AUTHORITY] impressed, printed, or lithographed on
them; and
(6) shall be issued under and subject to
the terms, conditions, and covenants, providing for
the payment of the principal of and interest on the
bonds and the other terms, conditions, covenants, and
protective features safeguarding this payment and
relating to the operations, maintenance, or capital
improvements as found necessary by the board, which
covenants may include a provision requiring the
setting aside and maintenance of certain reserves to
secure the payment of the principal and interest or
for operations, maintenance, or capital improvements.
* Sec. 33. AS 19.75.330(c) is amended to read:
(c) In determining the matters and questions
relating to the issuance and sale of the bonds and the
fixing of the maturities, terms, conditions,
covenants, and other subjects of the bonds as provided
in (a) and (b) of this section, the decisions of the
board shall be those found to be reasonably necessary
for the best interests of the corporation [AUTHORITY]
and the construction, operation, and maintenance of
its facilities, and those that will accomplish the
most advantageous sale of the bonds, giving due regard
to (1) necessary or normal costs of maintenance and
operation; (2) renewals and replacements of and
repairs to the toll facilities; (3) all improvements
to toll facilities and property of toll facilities
owned, used, operated, or leased in connection with
toll facilities; (4) the future growth and expansion
of all of the facilities; and (5) the possibility of
additional revenue bond financing for toll facilities
purposes. A decision of the board as expressed in any
bond resolution is final when any bonds have been
issued under the bond resolution.
* Sec. 34. AS 19.75.332 is amended to read:
Sec. 19.75.332. Bond resolution. (a) When
issuing bonds of the corporation [AUTHORITY], the
board shall adopt the bond resolution and approve all
other documents and proceedings necessary for the
issuance, sale, and delivery of the bonds or any part
or series of them. The bond resolution shall fix the
aggregate principal amount and denomination, date,
maturities, place or places of payment, rights of
redemption, if any, terms, form, conditions, and
covenants of the bonds or each series of them. The
board shall also determine and provide for the date
and manner of sale of the bonds, and shall provide
where the notice of sale, if any, is to be published.
(b) The board may delegate to the corporation's
[AUTHORITY'S] executive director the authority to
approve final principal maturities and dates, interest
rates, redemption rights, and interest payment dates
under the terms and conditions the board determines by
resolution.
* Sec. 35. AS 19.75.338(a) is amended to read:
(a) The bonds or any part of them may be
refunded at or before their maturity by the issuance
of refunding revenue bonds of the corporation
[AUTHORITY] if, in the opinion of the board, refunding
is advantageous to and in the best interest of the
corporation [AUTHORITY].
* Sec. 36. AS 19.75.340 is amended to read:
Sec. 19.75.340. Bonds as legal investments. Bonds
of the corporation [AUTHORITY], including toll
facilities bonds, are legal investments for all banks,
trust companies, savings banks, savings and loan
associations, and other persons carrying on a banking
business, all insurance companies and other persons
carrying on an insurance business, and all executors,
administrators, trustees, and other fiduciaries. The
bonds may be accepted as security for deposits of all
money of the state and its political subdivisions."
Renumber the following bill section accordingly.
Page 5, line 13:
Delete "Arm"
Delete "Arm"
Page 5, line 24:
Delete "authority"
Insert "corporation"
Page 5, line 25:
Delete "authority"
Insert "corporation"
Page 5, line 26:
Delete "authority"
Insert "corporation"
Page 5, line 27:
Delete "Arm"
Page 5, line 29:
Delete "authority" in both places
Insert "corporation" in both places
Page 5, following line 30:
Insert new bill sections to read:
"* Sec. 38. AS 19.75.911 is amended to read:
Sec. 19.75.911. Exemption from local regulation.
Notwithstanding any contrary provision of law, the
activities of the corporation [AUTHORITY] are exempt
from land use planning, zoning, permitting, or other
similar governmental powers of political subdivisions
of the state.
* Sec. 39. AS 19.75.915 is amended to read:
Sec. 19.75.915. Liability for payment of tolls.
The owner of a vehicle using a facility owned,
controlled, or managed by the corporation [AUTHORITY]
for which a toll or fee is imposed is liable for the
payment of the toll or fee solely because of the
vehicle ownership, unless the vehicle, except a rental
vehicle, is used without the owner's knowledge and
incurs the toll or fee during operation.
* Sec. 40. AS 19.75.980(2) is amended to read:
(2) "board" means the board of directors of
the corporation [AUTHORITY];
* Sec. 41. AS 19.75.980(3) is amended to read:
(3) "department" means the Department of
Revenue [TRANSPORTATION AND PUBLIC FACILITIES];
* Sec. 42. AS 19.75.980 is amended by adding a new
paragraph to read:
(5) "corporation" means the Knik Crossing
Development Corporation.
* Sec. 43. AS 36.30.015(f) is amended to read:
(f) The board of directors of the Alaska Housing
Finance Corporation, notwithstanding AS 18.56.088, the
membership of the Alaska Industrial Development and
Export Authority, notwithstanding AS 44.88.085, and
the board of directors of the Knik Crossing
Development Corporation [KNIK ARM BRIDGE AND TOLL
AUTHORITY] under AS 19.75.111, shall adopt regulations
under AS 44.62 (Administrative Procedure Act), and the
board of trustees of the Alaska Retirement Management
Board shall adopt regulations under AS 37.10.240, to
govern the procurement of supplies, services,
professional services, and construction for the
respective public corporation and board. The
regulations must reflect competitive bidding
principles and provide vendors reasonable and
equitable opportunities to participate in the
procurement process and must include procurement
methods to meet emergency and extraordinary
circumstances. Notwithstanding the other provisions of
this subsection, the Alaska Housing Finance
Corporation, the Alaska Industrial Development and
Export Authority, the Knik Crossing Development
Corporation [KNIK ARM BRIDGE AND TOLL AUTHORITY], and
the Alaska Retirement Management Board shall comply
with AS 36.30.170(b).
* Sec. 44. AS 39.25.110(39) is amended to read:
(39) the executive director and employees
of the Knik Crossing Development Corporation [KNIK ARM
BRIDGE AND TOLL AUTHORITY] under AS 19.75.051 and
19.75.061;
* Sec. 45. AS 39.50.200(b)(60) is amended to read:
(60) the board of directors of the Knik
Crossing Development Corporation [KNIK ARM BRIDGE AND
TOLL AUTHORITY] (AS 19.75.031 and 19.75.041);
* Sec. 46. The uncodified law of the State of
Alaska is amended by adding a new section to read:
TRANSITION. (a) All rights, titles, interests,
agreements, contracts, instruments, indebtedness,
investments, leases, real and personal property, lines
of credit, gifts, grants, loans, fees, rents, tolls,
civil actions, revenue, funds, insurance, permits,
licenses, studies, and intellectual property of the
Knik Arm Bridge and Toll Authority are transferred to
the Knik Crossing Development Corporation.
(b) For one year following the effective date of
this Act, the members of the board of directors for
the Knik Arm Bridge and Toll Authority on the day
before the effective date of this Act shall serve as a
nonvoting advisory board to the board of directors of
the Knik Crossing Development Corporation. While
serving as a nonvoting advisory board under this
subsection, the members of the board of directors of
the Knik Arm Bridge and Toll Authority shall serve
without compensation but are entitled to per diem and
travel expenses authorized for boards and commissions
under AS 39.20.180."
2:03:16 PM
CHAIR JOHNSON reconvened the House Rules Standing Committee
meeting at 2:03 p.m. Upon reconvening, Representatives
Chenault, Hawker, Herron, Olson, and Johnson were present at the
call to order. Representative Gruenberg arrived as the meeting
was in progress.
HB 167-ARCHITECTS, ENGINEERS, SURVEYORS
2:03:24 PM
CHAIR JOHNSON announced that the next order of business would be
HOUSE BILL NO. 167, "An Act relating to the regulation of
architects, engineers, land surveyors, and landscape
architects."
2:03:34 PM
REPRESENTATIVE OLSON moved to adopt Amendment 1 to HB 167, which
read [original punctuation provided]:
Page 3, line 14
Delete "three [FOUR]"
Insert "four"
CHAIR JOHNSON objected for purposes of discussion.
2:03:58 PM
ANNA LATHIM, Staff, Representative Olson, Alaska State
Legislature, explained that although HB 167 passed out of the
House Labor and Commerce Standing Committee without any
unfavorable public testimony or concerns, late in the process
some concerns arose. As HB 167 was originally written it
would've required an architect stamp on fourplex units. Upon
hearing concerns, Amendment 1 was drafted such that the language
would return to existing statute. In response to Representative
Chenault, Ms. Lathim specified that an architect stamp would be
required on structures larger than a fourplex.
2:05:38 PM
CHAIR JOHNSON, upon determining no one else wished to testify,
closed public testimony.
2:06:27 PM
CHAIR JOHNSON [withdrew] his objection and announced that upon
hearing no further objections, Amendment 1 was adopted.
2:06:38 PM
REPRESENTATIVE OLSON moved to report HB 167, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 167(RLS) was
reported from the House Rules Standing Committee.
SB 31-NAMING AKHIOK RUNWAY AND KODIAK AIRPORT
2:07:00 PM
CHAIR JOHNSON announced that the next order of business would be
SENATE BILL NO. 31, "An Act naming the runway at the state-owned
airport in Akhiok the Jim Andie and Robin Starrett Memorial
Runway."
2:07:13 PM
REPRESENTATIVE OLSON moved to adopt Amendment 1, which read:
Page 1, line 2, following "Runway":
Insert "; and naming the state-owned airport at
Kodiak the Benny Benson State Airport"
Page 1, line 4:
Delete "a new section"
Insert "new sections"
Page 1, following line 7:
Insert a new section to read:
"Sec. 35.40.360. Benny Benson State Airport. The
state-owned airport at Kodiak is named the Benny
Benson State Airport."
CHAIR JOHNSON objected for discussion purposes.
2:07:23 PM
ASTRID ROSE, Staff, Representative Alan Austerman, Alaska State
Legislature, began by noting that she worked with Senator
Stevens to develop Amendment 1. She explained that the original
legislation names the Akhiok runway after two pilots that
recently passed away. Amendment 1 aims to name the Kodiak state
airport after Benny Benson. Benny Benson, who designed the
Alaska State Flag, was born in Chignik on October 12, 1913, and
therefore this year marks the 100th year anniversary of his
birthday. Ms. Rose noted that Representative Austerman knew
Benny Benson personally from their time worked together at the
airport.
2:08:47 PM
REPRESENTATIVE HAWKER asked whether the state-owned airport at
Kodiak already has a name. He also asked whether there is any
opposition to this proposed name.
MS. ROSE answered that there is no opposition to the proposed
name. In fact, she noted receipt of resolutions from the city
and the borough in support of the name as well as letters of
support from community members. She stated that the Kodiak
airport doesn't currently have a name.
2:09:18 PM
REPRESENTATIVE GRUENBERG asked whether Chignik is on Kodiak
Island.
MS. ROSE replied no, adding that it's on the Alaska Peninsula,
although it's located in the Kodiak Island Borough.
2:09:44 PM
CHAIR JOHNSON, upon determining no one else wished to testify,
closed public testimony.
2:09:52 PM
CHAIR JOHNSON removed his objection to Amendment 1. There being
no further objection, Amendment 1 was adopted.
2:10:11 PM
REPRESENTATIVE OLSON moved to report SB 31, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, HCS SB 31(RLS) was
reported from the House Rules Standing Committee.
2:10:40 PM
ADJOURNMENT
CHAIR JOHNSON announced that the committee would stand in recess
to the call of the chair. [This meeting was reconvened on April
10, 2013.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB167 v.U.pdf |
HRLS 4/9/2013 9:30:00 AM SL&C 3/27/2014 1:30:00 PM |
HB 167 |
| HB167 Sponsor Statement.pdf |
HRLS 4/9/2013 9:30:00 AM SL&C 3/27/2014 1:30:00 PM |
HB 167 |
| HB167 Sectional Analysis.pdf |
HRLS 4/9/2013 9:30:00 AM SL&C 3/27/2014 1:30:00 PM |
HB 167 |
| HB167 Letters of Support.pdf |
HRLS 4/9/2013 9:30:00 AM SL&C 3/27/2014 1:30:00 PM |
HB 167 |
| HB167 Amendment #1.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 167 |
| CSHB 23 (FIN) v.O.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| CSHB 23 (FIN) Sponsor Statement.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| CSHB 23 (FIN) Summary of Changes.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| CSHB 23 (FIN) Sectional Summary.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| CSHB 23 (FIN) Fiscal Note - REV.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| CSHB 23 (FIN) Fiscal Note - DOT.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| SB 31 v.A.pdf |
HRLS 4/9/2013 9:30:00 AM |
SB 31 |
| SB 31 Sponsor Statement.pdf |
HRLS 4/9/2013 9:30:00 AM |
SB 31 |
| SB 31 Fiscal Note - DOT.pdf |
HRLS 4/9/2013 9:30:00 AM |
SB 31 |
| HB 23 Amendment 1.pdf |
HRLS 4/9/2013 9:30:00 AM |
HB 23 |
| SB 31 Amendment #1.pdf |
HRLS 4/9/2013 9:30:00 AM |
SB 31 |