00 CS FOR HOUSE BILL NO. 309(FIN) 01 "An Act relating to the assets of the Alaska Housing Finance Corporation; 02 authorizing an agreement between the Alaska Housing Finance Corporation and 03 the commissioner of revenue relating to transfer of assets of the corporation, and 04 making certain pledges to obligees of the corporation regarding that agreement; 05 approving the University of Alaska's plans to enter into long-term obligations to 06 borrow money from the corporation for the acquisition of new student housing 07 facilities; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. UNIVERSITY OF ALASKA STUDENT HOUSING PROJECT APPROVAL. 10 (a) The Nineteenth Alaska State Legislature approves the plans of the Board of Regents of 11 the University of Alaska to enter into obligations to borrow money from the Alaska Housing 12 Finance Corporation at an interest rate of three percent for a period of 25 years for the 13 construction and acquisition of 14 (1) student housing facilities at the Anchorage campus in the amount of 01 $31,300,000; 02 (2) a student residence hall at the University of Alaska Southeast Juneau 03 campus in the amount of $4,200,000; and 04 (3) a student housing facility at the Ketchikan campus in the amount of 05 $1,000,000. 06 (b) Subsection (a) of this section provides the project approval required by 07 AS 14.40.253 for obligations of the University of Alaska having an annual payment by the 08 university anticipated to exceed $1,000,000. 09 * Sec. 2. TRANSFER AGREEMENT AUTHORIZED. The Alaska Housing Finance 10 Corporation and the commissioner of revenue may enter into a transfer agreement that 11 provides for annual transfer of certain assets of the corporation to the state general fund from 12 July 1, 1995, to June 30, 2000. The commissioner of revenue shall immediately notify the 13 governor and the legislature when the agreement has been signed. The agreement must 14 provide 15 (1) for the transfer from the corporation to the state of each of the following 16 amounts in each of the following state fiscal years: 17 FY 1996 $70,000,000 18 FY 1997 50,000,000 19 FY 1998 50,000,000 20 FY 1999 50,000,000 21 FY 2000 50,000,000; 22 (2) that the amounts to be transferred under (1) of this section will be 23  (A) available for transfer from the net liquid assets of the general 24 account of the revolving fund of the corporation; and 25  (B) reduced as the board of directors of the corporation determines may 26 be necessary to maintain compliance with existing financing agreements and to meet 27 the following payment conditions of the corporation that, when made by the board of 28 directors of the corporation before each transfer, are positive determinations that 29  (i) the corporation is not in default as to payments of any 30 required amounts; 31  (ii) the transfer to the state of the payment is not expected to 01 impair the corporation's ability to meet financial requirements, including debt 02 service and program costs associated with debt, and will not cause the 03 corporation to be in default under the terms of financial agreements or disable 04 the corporation from meeting any financial covenant; 05  (iii) the amount of the transfer does not exceed the corporation's 06 net income as reflected in its audited financial statements for the immediately 07 preceding fiscal year; and 08  (iv) the corporation's fund equity subsequent to the transfer will 09 remain at a level that the board of directors of the corporation reasonably 10 believes adequate to prevent existing debt ratings from being reduced, 11 withdrawn, or suspended; and 12 (3) that the conditions described in (2)(B) of this section must be met by the 13 corporation before payments are made in any state fiscal year set out in (1) of this section. 14 * Sec. 3. PLEDGE OF THE STATE. If, before the date of adjournment of the First 15 Regular Session of the Nineteenth Alaska State Legislature, an agreement between the Alaska 16 Housing Finance Corporation and the commissioner of revenue in a form substantially as 17 described in sec. 2 of this Act is executed by those parties, the state pledges to obligees of the 18 corporation that during the term of the transfer agreement 19 (1) the state will not alter the power of the corporation to fulfill the terms of 20 any other agreement with an obligee of the corporation; or 21 (2) the state will not cause assets of the corporation to be transferred from the 22 corporation in excess of the amount set out in the transfer agreement. 23 * Sec. 4. Section 3 of this Act takes effect only if the transfer agreement described in 24 sec. 2 of this Act is signed on or before the date of adjournment of the First Regular Session 25 of the Nineteenth Alaska State Legislature. The commissioner of revenue shall immediately 26 notify the governor, the legislature, and the revisor of statutes when the transfer agreement has 27 been signed. 28 * Sec. 5. If sec. 3 of this Act takes effect, it takes effect on the later of the date of 29 execution of the agreement described in sec. 2 of this Act, or the effective date of secs. 1 and 30 2 of this Act. 31 * Sec. 6. Sections 1 and 2 of this Act take effect immediately under AS 01.10.070(c).