00 CS FOR SENATE BILL NO. 247(FIN) 01 "An Act relating to state leases and to state lease-purchase and lease-financing 02 agreements, and repealing a legislative authorization previously given for acquisition 03 of a facility through a lease-purchase agreement; and providing for an effective 04 date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 14.40.040 is amended to read: 07 Sec. 14.40.040. GENERAL POWERS OF THE UNIVERSITY. There is 08 created and established a corporation to be called the University of Alaska. It may in 09 that name 10 (1) sue and be sued; 11 (2) receive and hold real and personal property; 12 (3) contract and be contracted with; a contract entered into by the 13 University of Alaska for the 14 (A) rent or lease of premises for use and occupancy by the 01 University of Alaska is subject to AS 36.30.080(c); 02 (B) acquisition of property by a lease-purchase or lease-financing agreement for the benefit of the 03 University of Alaska is subject 04 to AS 36.30.085; 05 (4) adopt, use, and alter a corporate seal; 06 (5) borrow money, issue debt, or enter into long-term obligations [,] for 07 the purchase of facilities, goods, or services; the obligations may secure, in whole or 08 in part, debt issued by another party; 09 (6) do and have done all matters necessary for the purpose of any 10 function set out in this chapter. 11 * Sec. 2. AS 22.05.025(a) is amended to read: 12 (a) The [SUBJECT TO AS 36.30.080, THE] supreme court has authority over 13 (1) all matters relating to the 14 (A) [PLANNING, DESIGN, CONSTRUCTION,] maintenance, 15 occupancy, [LEASING,] and operation of all court facilities; 16 (B) rent or lease of facilities for court system purposes, 17 subject to AS 36.30.080(c); and 18 (C) acquisition of facilities for court system purposes by 19 lease-purchase or lease-financing agreements, subject to AS 36.30.085; and 20 (2) the planning, design, and construction of court facilities but, in 21 the exercise of its authority under this subsection, the supreme court shall 22 cooperate and coordinate with the Department of Transportation and Public Facilities 23 so that court facility construction projects are carried out in accordance with the 24 statutes and regulations applicable to state public works projects. 25 * Sec. 3. AS 24.20.060 is amended to read: 26 Sec. 24.20.060. POWERS. The legislative council has the power 27 (1) to organize and adopt rules for the conduct of its business; 28 (2) to hold public hearings, administer oaths, issue subpoenas, compel 29 the attendance of witnesses and production of papers, books, accounts, documents, and 30 testimony, and to have the deposition of witnesses taken in a manner prescribed by 31 court rule or law for taking depositions in civil actions when consistent with the 01 powers and duties assigned to the council by AS 24.20.010 - 24.20.140; 02 (3) to call upon all state officials, agencies, and institutions to give full 03 cooperation to the council and its executive director by collecting and furnishing 04 information, conducting studies, and making recommendations; 05 (4) in addition to providing the administrative services required for the 06 operation of the legislative branch, 07 (A) to provide the technical staff assistance in research, 08 reporting, drafting, and counseling requested by standing, interim, and special 09 committees and spot research and drafting services for individual members in 10 conformity with law and legislative rules; 11 (B) to conduct a continuing program for the revision and 12 publication of the acts of the legislature; 13 (C) to execute a program for the oversight of the administration 14 and construction of laws by state agencies and the courts through regulations, 15 opinions, and rulings; 16 (D) to operate and maintain the state legislative reference 17 library; 18 (E) to do all things necessary to carry out legislative directives 19 and law, and the duties set out in the uniform rules of the legislature; 20 (F) to sue in the name of the legislature during the interim 21 between sessions if authorized by majority vote of the full membership of the 22 council; 23 (5) to exercise control and direction over all legislative space, supplies, 24 and equipment and permanent legislative help between legislative sessions; the 25 exercise of control over legislative space is subject to AS 36.30.080(c) if the 26 exercise involves the rent or lease of facilities, and to AS 36.30.085 if the exercise 27 involves the acquisition of facilities by lease-purchase or lease-financing 28 agreement; 29 (6) to produce, publish, distribute, and to contract for the printing of 30 reports, memoranda, and other materials it finds necessary to the accomplishment of 31 its work; 01 (7) to take appropriate action for the preconvening and post-session 02 work of each legislative session including the employment one week in advance of 03 each session of not more than 10 temporary legislative employees; the continuing 04 employment of the temporary legislative employees is subject to legislative approval 05 when the session convenes; 06 (8) to establish a legislative internship program on a cooperative basis 07 with the University of Alaska that will provide for the assignment of interns to 08 standing committees of each house of the legislature during regular sessions of the 09 legislature; [,] and 10 (9) to establish reasonable fees for services and materials provided by 11 the Legislative Affairs Agency to entities outside of the legislative branch of state 12 government and charges for collecting the fees; all fees and charges collected under 13 this paragraph shall be deposited into the general fund. 14 * Sec. 4. AS 36.30.020 is amended to read: 15 Sec. 36.30.020. LEGISLATURE. The Legislative Council shall adopt and 16 publish procedures to govern the procurement of supplies, services, professional 17 services, and construction by the legislative branch. The procedures must be based on 18 the competitive principles consistent with this chapter and must be adapted to the 19 special needs of the legislative branch as determined by the Legislative Council. The 20 procedures must be consistent with the provisions of AS 36.30.080(c) - (e) and 21 36.30.085 [AS 36.30.080(b) - (e)]. 22 * Sec. 5. AS 36.30.030 is amended to read: 23 Sec. 36.30.030. COURT SYSTEM. The administrative director of courts shall 24 adopt and publish procedures to govern the procurement of supplies, services, 25 professional services, and construction by the judicial branch. The procedures must 26 be based on the competitive principles consistent with this chapter and must be adapted 27 to the special needs of the judicial branch as determined by the administrative director 28 of courts. The procedures must be consistent with the provisions of AS 36.30.080(c) - 29 (e) and 36.30.085 [AS 36.30.080(b) - (c)]. 30 * Sec. 6. AS 36.30.080(c) is amended to read: 31 (c) If the department, the Board of Regents of the University of Alaska, the 01 legislative council [BRANCH], or the supreme court [JUDICIAL BRANCH] intends 02 to enter into or renew a lease of real property with an annual rent to the department, 03 University of Alaska, legislative council [BRANCH], or supreme court [JUDICIAL 04 BRANCH] that is anticipated to exceed $1,000,000, or with total lease payments that 05 exceed $10,000,000 for the full term of the lease, including any renewal options that 06 are defined in the lease, the department, the Board of Regents, the legislative 07 council [BRANCH], or supreme court [JUDICIAL BRANCH] shall provide notice 08 to the legislature. [IF THE DEPARTMENT, LEGISLATIVE BRANCH, OR 09 JUDICIAL BRANCH INTENDS TO ENTER INTO OR RENEW A 10 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT FOR REAL 11 PROPERTY, OTHER THAN (1) AN AGREEMENT RELATED TO THE 12 REFINANCING OF AN OUTSTANDING BALANCE OWING OR (2) A 13 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT BY THE 14 UNIVERSITY OF ALASKA THAT IS SECURED BY STUDENT FEES OR 15 UNIVERSITY RECEIPTS AS DEFINED IN AS 14.40.491, THAT HAS ANNUAL 16 LEASE PAYMENTS OF LESS THAN $1,000,000, AND FOR WHICH THE TOTAL 17 LEASE PAYMENTS FOR THE FULL TERM WILL NOT EXCEED $10,000,000, 18 THE DEPARTMENT, LEGISLATIVE BRANCH, OR JUDICIAL BRANCH SHALL 19 PROVIDE NOTICE TO THE LEGISLATURE.] The notice must include the 20 anticipated annual lease obligation amount [, THE ANTICIPATED TOTAL 21 CONSTRUCTION, ACQUISITION, OR OTHER COSTS OF THE PROJECT,] and 22 the total lease payments for the full term of the lease [, IF THE AGREEMENT IS A 23 LEASE-PURCHASE OR LEASE-FINANCING AGREEMENT, OR IF THE 24 AGREEMENT IS A LEASE OTHER THAN A LEASE-PURCHASE OR 25 LEASE-FINANCING AGREEMENT AND THE TOTAL LEASE PAYMENTS FOR 26 THE FULL TERM OF THE LEASE EXCEED $10,000,000]. The department, the 27 Board of Regents, the legislative council, and the supreme court may not enter into 28 or renew an agreement 29 (1) requiring notice under this subsection unless the proposed 30 agreement or renewal of an agreement [PROJECT] has been approved by the 31 legislature by law; an [. AN] appropriation for the rent payable during the initial 01 period of the lease or the initial period of lease renewal [PROJECT] constitutes 02 approval of the proposed agreement or renewal of an agreement [PROJECT] for 03 purposes of this paragraph [SUBSECTION]; 04 (2) [. THE DEPARTMENT MAY NOT ENTER INTO AN 05 AGREEMENT] under this subsection if the optional renewal period provided for 06 [ALLOWED] under the agreement exceeds two years. [IN THIS SUBSECTION, 07 "TERM" INCLUDES DEFINED RENEWAL OPTIONS.] 08 * Sec. 7. AS 36.30 is amended by adding a new section to read: 09 Sec. 36.30.085. LEASE-PURCHASE AGREEMENTS. (a) To perform its 10 duties and statutory functions, the department, the Board of Regents of the University 11 of Alaska, the legislative council, or the supreme court may enter into lease-purchase 12 agreements. The department, the Board of Regents, the legislative council, or the 13 supreme court may enter into a lease-purchase agreement only if the department, the 14 Board of Regents, the legislative council, or the supreme court is the lessee under the 15 agreement. 16 (b) When evaluating proposals to acquire real property under a lease-purchase 17 agreement, the department, the Board of Regents, the legislative council, or the 18 supreme court shall consider 19 (1) in addition to lease costs, the life cycle costs, function, indoor 20 environment, public convenience, planning, design, appearance, and location of the 21 property proposed for acquisition; and 22 (2) whether acquisition of the property by lease-purchase agreement is 23 likely to be the least costly means to provide the space. 24 (c) A lease-purchase agreement 25 (1) may not provide for a period of occupancy under the full term of 26 the lease-purchase agreement that is greater than 40 years; 27 (2) must provide that lease payments made by the department, the 28 Board of Regents, the legislative council, or the supreme court are subject to annual 29 appropriation. 30 (d) If the department, Board of Regents, legislative council, or supreme court 31 intends to enter into or renew a lease-purchase agreement for real property, the 01 department, Board of Regents, legislative council, or supreme court shall provide 02 notice to the legislature. The notice must include the 03 (1) anticipated total construction, acquisition, or other costs of the 04 project; 05 (2) anticipated annual amount of the rental obligation; and 06 (3) total lease payments for the full term of the lease-purchase 07 agreement. 08 (e) The department, the Board of Regents, the legislative council, or the 09 supreme court may not enter into a lease-purchase agreement to acquire real property 10 unless the project has been approved by the legislature by law. 11 (f) The provisions of (d) and (e) of this section do not apply to a lease-purchase agreement 12 (1) related to the refinancing of an outstanding balance owing on an 13 existing lease-purchase agreement; or 14 (2) by the University of Alaska if the lease-purchase agreement is 15 secured by student fees or university receipts as defined in AS 14.40.491. 16 (g) In this section, 17 (1) "full term of the lease-purchase agreement" includes all renewal 18 options that are defined within the lease-purchase agreement; 19 (2) "lease-purchase agreement" includes a lease-financing agreement. 20 * Sec. 8. AS 36.30.850(b)(5) is amended to read: 21 (5) acquisitions or disposals of real property or interest in real property, 22 except as provided in AS 36.30.080 and 36.30.085; 23 * Sec. 9. AS 36.30.850(c) is amended to read: 24 (c) Except for AS 36.30.085 and 36.30.700 - 36.30.790 [AS 36.30.700 - 25 36.30.790], this chapter does not apply to contracts between two or more agencies, the 26 state and its political subdivisions, or the state and other governments. 27 * Sec. 10. AS 38.05.030 is amended by adding a new subsection to read: 28 (g) This chapter does not authorize the commissioner or any employee of the 29 department to acquire title to real property through the use of lease-purchase 30 agreements or lease-financing agreements in which the department is the lessor. For 31 purposes of this section, "lease-purchase agreement" and "lease-financing agreement" 01 have the meanings given those terms in AS 36.30.990. 02 * Sec. 11. AS 36.30.080(b) and sec. 2, ch. 92, SLA 1986 are repealed. 03 * Sec. 12. This Act takes effect immediately under AS 01.10.070(c).