00                      CS FOR HOUSE BILL NO. 234(FIN) am                                                                  
01 "An Act relating to the tobacco use education and cessation fund and to smoking                                         
02 education and cessation programs; relating to funding the tobacco use education and                                     
03 cessation fund; relating to financing of construction and major maintenance of public                                   
04 school facilities, facilities for the University of Alaska, and facilities for ports and                                
05 harbors; authorizing the commissioner of revenue to sell the right to receive a portion of                              
06 the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco                                    
07 Securitization Corporation; relating to the deposit of certain anticipated revenue from a                               
08 tobacco litigation settlement; authorizing the issuance of bonds by the Northern                                        
09 Tobacco Securitization Corporation with proceeds to finance public school construction                                  
10 and major maintenance, facilities for the University of Alaska, and facilities for ports                                
11 and harbors; and providing for an effective date."                                                                      
12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
01    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
02 to read:                                                                                                                
03       FINDINGS; INTENT.  (a)  Except for the harbors and docks in Nome and Adak, the                                    
04 facilities described in sec. 4(c)(3) of this Act are currently owned by the state and are in need                       
05 of substantial investment in capital maintenance and upgrades.  The City of Nome is in need                             
06 of additional money for a capital project at the Nome harbor and dock.  The Adak harbor and                             
07 dock facilities are currently in federal ownership but will pass to Adak interests in the fall of                       
08 2001.                                                                                                                   
09       (b)  The legislature intends to provide for the required investment, and intends transfer                         
10 of ultimate ownership of and responsibility for the state-owned harbor facilities to local                              
11 municipalities.                                                                                                         
12       (c)  The legislature intends to provide public investment in the Adak harbor and dock                             
13 facilities under this Act if the ownership of the harbor and dock facilities is ultimately vested                       
14 in the City of Adak.                                                                                                    
15    * Sec. 2.  AS 37.05 is amended by adding a new section to read:                                                    
16            Sec. 37.05.580. Tobacco use education and cessation fund.  (a)  There is                                   
17       created as a special account in the general fund the tobacco use education and                                    
18       cessation fund into which shall be deposited 20 percent annually of the revenue                                   
19       derived from the settlement of State v. Philip Morris, Incorporated, et al, No. 1JU-97-                           
20       915 CI (Alaska Super. 1997).  The purpose of the tobacco use education and cessation                              
21       fund is to provide a source to finance the comprehensive smoking education, tobacco                               
22       use prevention, and tobacco control program authorized by AS 44.29.020(a)(15).                                    
23            (b)  The legislature may make appropriations from the tobacco use education                                  
24       and cessation fund for the comprehensive smoking education, tobacco use prevention,                               
25       and tobacco control program established under AS 44.29.020(a)(15).---------                                       
26            (c)  Nothing in this section creates a dedicated fund.                                                       
27    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                 
29       SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE.  (a)  The                                                   
30 commissioner of revenue is authorized to sell to the Northern Tobacco Securitization                                    
31 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created                                 
01 under AS 18.56.086, the right to receive 40 percent annually of the revenue derived from the                        
02 settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 CI (Alaska                          
03 Super. 1997).  The sale of the right to receive revenue under this subsection is in addition to                         
04 the sale of the right to receive revenue under sec. 9, ch. 130, SLA 2000.                                               
05       (b)  The proceeds to the state of the sale of the right to receive revenue under (a) of                           
06 this section are anticipated to be at least $127,529,127.                                                               
07    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                 
09       BOND AUTHORIZATION AND PROVISIONS.  (a)  The Northern Tobacco                                                     
10 Securitization Corporation is authorized to issue revenue bonds in principal amounts                                    
11 sufficient to acquire the right to receive revenue described in sec. 3 of this Act from the                           
12 commissioner of revenue at a price agreed upon by the Northern Tobacco Securitization                                   
13 Corporation and the commissioner of revenue.  The bonds may be special, limited obligations                             
14 of the Northern Tobacco Securitization Corporation secured solely by the right to receive                               
15 revenue sold to the Northern Tobacco Securitization Corporation under sec. 3 of this Act, and                           
16 the Northern Tobacco Securitization Corporation may include in agreements with the                                      
17 bondholders a pledge of the right to receive that revenue and the promise of the state to honor                         
18 that pledge.  A pledge made under this section is subject to the provisions of AS 18.56.120,                            
19 and bonds issued under this section are subject to the provisions of AS 18.56.170, in each case                         
20 as though "corporation" in those statutes were to mean the Northern Tobacco Securitization                              
21 Corporation.                                                                                                            
22       (b)  Subject to agreements with bondholders and appropriation, the Northern Tobacco                               
23 Securitization Corporation shall make the proceeds of the bonds issued under (a) of this                                
24 section available to the                                                                                                
25            (1)  Department of Education and Early Development to pay for expenditures                                   
26 described in (c)(1) of this section, including reimbursement to the Department of Education                             
27 and Early Development for the expenditures;                                                                             
28            (2)  University of Alaska to pay for expenditures described in (c)(2) of this                                
29 section, including reimbursement to the University of Alaska for the expenditures; and                                  
30            (3)  Department of Transportation and Public Facilities to pay for expenditures                              
31 described in (c)(3) of this section, including reimbursement to the Department of                                       
01 Transportation and Public Facilities for the expenditures.                                                              
02       (c)  The proceeds of bonds issued under (a) of this section shall be used by the                                  
03            (1)  Department of Education and Early Development to pay for construction,                                  
04 renovation, and improvement of public schools as follows:                                                               
05       PROJECT                                                                                                           
06       Southwest Region - Togiak School Replacement $29,182,163                                                          
07       Bering Strait - Golovin School Phase III    9,888,192                                                             
08       Petersburg City - Fascia/Soffit Repair and Replacement 116,236                                                    
09       Yukon-Koyukuk - Nulato Structural Repairs    314,387                                                              
10       Bering Strait - Shishmaref School Roof Replacement/ 8,342,525                                                     
11         Renovate, Phase III                                                                                             
12       Iditarod Area - Blackwell School Heating Renovation/ 173,754                                                      
13         Site Repair                                                                                                     
14       Sitka City Borough - Blatchley Exterior Renovation/Repair 346,500                                                 
15       Chatham - Angoon Elementary School Major Maintenance 2,066,257                                                    
16       Skagway City - Skagway Major Maintenance      35,598                                                              
17       Yupiit - Akiak School Repairs                177,571                                                              
18       Pribilof Island - St. George School Remodel 4,513,164                                                             
19       Galena - Project Education Food Service Renovation 261,806                                                        
20       Southwest Region - Clarks Point School Generator Building 35,989                                                  
21       Ketchikan - Schoenbar Renovation            4,891,992                                                             
22       Southwest Region - Koliganek School Improvement 451,993                                                           
23       Juneau City Borough - Juneau-Douglas High School 7,000,000                                                        
24         Renovation/ADA Upgrade                  __________                                                              
25            TOTAL                                $67,798,127                                                             
26            (2)  University of Alaska to pay for construction and renovation of university                               
27 facilities as follows:                                                                                                  
28       PROJECT                                                                                                           
29       University of Alaska - Southeast                                                                                  
30         Egan Classroom                          $  2,000,000                                                            
31         Robertson/Hamilton Technical Education Complex Remodel 1,500,000                                                
01       University of Alaska - Anchorage                                                                                  
02         Facility Acquisition and Renovation      13,000,000                                                             
03       University of Alaska - Fairbanks                                                                                  
04         Museum Expansion                          8,000,000                                                             
05                                                 __________                                                              
06            TOTAL                                $ 24,500,000                                                            
07            (3)  Department of Transportation and Public Facilities to pay for construction                              
08 and renovation of port and harbor facilities as follows:                                                                
09       PROJECT                                                                                                           
10       Whittier - Whittier Small Boat Harbor     $  2,449,000                                                            
11       Valdez - Valdez Small Boat Harbor           3,212,000                                                             
12       Seldovia - Seldovia Small Boat Harbor       2,628,000                                                             
13       Petersburg - North Harbor, Middle Harbor, South Harbor 3,729,000                                                  
14       Ketchikan - Thomas Basin, Ryus Float, Bar Harbor South, 7,876,000                                                 
15         Bar Harbor North, Hole-in-the-Wall Harbor, Knudson                                                              
16         Cove Harbor                                                                                                     
17       Sitka - Thomsen Harbor, Crescent Harbor, Sealing 4,469,000                                                        
18         Cove Harbor                                                                                                     
19       Cordova - Cordova Harbor                    4,876,000                                                             
20       Wrangell - Standard Harbor, Reliance Harbor, Inner 3,492,000                                                      
21         Harbor Fish and Game Dock, Shoemaker Harbor                                                                     
22       Nome - Nome Harbor and Dock                 2,000,000                                                             
23       Adak - Adak Boat Harbor                      500,000                                                              
24                                                 ___________                                                             
25            TOTAL                                $ 35,231,000                                                            
26       (d)  In this section, "Northern Tobacco Securitization Corporation" means the                                     
27 subsidiary corporation of the Alaska Housing Finance Corporation created under                                          
28 AS 18.56.086.                                                                                                           
29    * Sec. 5.  Section 1(b), ch. 130, SLA 2000, is repealed.                                                           
30    * Sec. 6.  This Act takes effect July 1, 2001.