00 SENATE CS FOR CS FOR HOUSE BILL NO. 234(FIN) am S 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 INTENT. The legislature intends to provide for the required investment, and intends 04 transfer of ultimate ownership of and responsibility for the state-owned harbor facilities to 05 local municipalities. 06 * Sec. 2. AS 37.05 is amended by adding a new section to read: 07 Sec. 37.05.580. Tobacco use education and cessation fund. (a) There is 08 created as a special account in the general fund the tobacco use education and 09 cessation fund into which shall be deposited 20 percent annually of the revenue 10 derived from the settlement of State of Alaska v. Philip Morris, Incorporated, et al, 11 No. 1JU-97-915 CI (Alaska Super. 1997). The purpose of the tobacco use education 12 and cessation fund is to provide a source to finance the comprehensive smoking 13 education, tobacco use prevention, and tobacco control program authorized by AS 14 44.29.020(a)(15). 15 (b) The legislature may make appropriations from the tobacco use education 16 and cessation fund for the comprehensive smoking education, tobacco use prevention, 17 and tobacco control program established under AS 44.29.020(a)(15). 18 (c) Nothing in this section creates a dedicated fund. 19 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 22 commissioner of revenue is authorized to sell to the Northern Tobacco Securitization 23 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created 24 under AS 18.56.086, the right to receive 40 percent annually of the revenue derived from the 25 settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 CI (Alaska 26 Super. 1997). The sale of the right to receive revenue under this subsection is in addition to 27 the sale of the right to receive revenue under sec. 9, ch. 130, SLA 2000. 28 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 29 this section are anticipated to be at least $109,942,839. 30 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 31 read: 01 BOND AUTHORIZATION AND PROVISIONS. (a) The Northern Tobacco 02 Securitization Corporation is authorized to issue revenue bonds in principal amounts 03 sufficient to acquire the right to receive revenue described in sec. 3 of this Act from the 04 commissioner of revenue at a price agreed upon by the Northern Tobacco Securitization 05 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 06 of the Northern Tobacco Securitization Corporation secured solely by the right to receive 07 revenue sold to the Northern Tobacco Securitization Corporation under sec. 3 of this Act, and 08 the Northern Tobacco Securitization Corporation may include in agreements with the 09 bondholders a pledge of the right to receive that revenue and the promise of the state to honor 10 that pledge. A pledge made under this section is subject to the provisions of AS 18.56.120, 11 and bonds issued under this section are subject to the provisions of AS 18.56.170, in each case 12 as though "corporation" in those statutes were to mean the Northern Tobacco Securitization 13 Corporation. 14 (b) Subject to agreements with bondholders and appropriation, the Northern Tobacco 15 Securitization Corporation shall make the proceeds of the bonds issued under (a) of this 16 section available to the 17 (1) Department of Education and Early Development to pay for expenditures 18 described in (c)(1) of this section, including reimbursement to the Department of Education 19 and Early Development for the expenditures; 20 (2) University of Alaska to pay for expenditures described in (c)(2) of this 21 section, including reimbursement to the University of Alaska for the expenditures; and 22 (3) Department of Transportation and Public Facilities to pay for expenditures 23 described in (c)(3) of this section, including reimbursement to the Department of 24 Transportation and Public Facilities for the expenditures. 25 (c) The proceeds of bonds issued under (a) of this section shall be used by the 26 (1) Department of Education and Early Development to pay for construction, 27 renovation, and improvement of public schools as follows: 28 PROJECT 29 Southwest Region - Togiak School Replacement $29,182,163 30 Bering Strait - Golovin School Phase III 9,888,192 31 Bering Strait - Koyuk School K-12 Replacement 11,660,343 01 Yupiit - Tuluksak School Improvement - Planning 768,850 02 Petersburg City - Fascia/Soffit Repair and Replacement 116,236 03 Yukon-Koyukuk - Nulato Structural Repairs 314,387 04 Bering Strait - Shishmaref School Roof Replacement/ 8,342,525 05 Renovation, Phase III 06 Iditarod Area - Blackwell School Heating Renovation/ 173,754 07 Site Repair 08 Sitka City Borough - Blatchley Exterior Renovation/Repair 346,500 09 Chatham - Angoon Elementary School Major Maintenance 2,066,257 10 Skagway City - Skagway Major Maintenance 35,598 11 Pribilof Island - St. George School Remodel 4,513,164 12 Southwest Region - Clarks Point School Generator Building 35,989 13 Yupiit - Akiak School Repairs 177,571 14 Galena - Project Education Food Service Renovation 261,806 15 Southwest Region - Koliganek School Improvement 451,993 16 Southwest Region - Ekwok, Koliganek, Togiak Schools 122,256 17 Heating System Upgrade 18 Hoonah City - Hoonah Swimming Pool Sprinkler System 220,476 19 Galena - High School Remodel 167,846 20 Kenai Peninsula - McNeil Canyon Replace Septic System 171,500 21 Kake City - Kake High School Renovation, Phase II 175,065 22 Chatham - Angoon High School Major Maintenance 1,730,507 23 Tanana City - Tanana Kitchen Renovation 438,539 24 Wrangell City - Wrangell Elementary Schools Renovation 1,129,238 25 Lower Yukon - Emmonak Mechanical System Upgrade 574,885 26 Lower Yukon - Alakanuk Mechanical System Upgrade 899,740 27 Iditarod Area - Takotna Community School Water Project 192,374 28 Kenai Peninsula - Seward Middle School Gym Reroof 278,275 29 Iditarod Area - Innoko River School Bathroom, Shower and 46,746 30 Underfloor Damage Repairs 31 Iditarod Area - McGrath School Heating Design, Boiler 235,200 01 Replacement and Repairs 02 Kenai Peninsula - Kenai Central High School Reinsulate 385,610 03 Exterior Walls 04 Alaska Gateway - Tok Multipurpose Recreational Complex 961,612 05 Renovation Project 06 __________ 07 TOTAL $76,065,197 08 (2) University of Alaska to pay for construction and renovation of university 09 facilities as follows: 10 PROJECT 11 University of Alaska - Anchorage $10,200,000 12 Science/Biomedical Facilities Renovations/ 13 Classroom Renovation/Housing Safety Upgrades/ 14 Pool Replacement 15 Kodiak - Vocational/Technical Classroom 400,000 16 Rehabilitation and Completion 17 University of Alaska - Southeast 2,500,000 18 Egan Classroom 19 Ketchikan - Robertson/Hamilton Technical 1,500,000 20 Education Complex Remodel 21 Matanuska-Susitna Ortner Warehouse Replacement 654,000 22 University of Alaska - Fairbanks 4,000,000 23 Museum Expansion 24 Bristol Bay Campus Addition 1,000,000 25 __________ 26 TOTAL $20,254,000 27 (3) Department of Transportation and Public Facilities to pay for construction 28 and renovation of port and harbor facilities as follows: 29 PROJECT 30 Ketchikan - Bar Harbor South $ 3,938,000 31 Sitka - Thomsen Harbor, Crescent Harbor, Sealing 2,234,500 01 Cove Harbor 02 Anchorage - Intermodal Marine Facility - Harbor 6,000,000 03 Dock and Supporting Facilities Improvement 04 Pelican - Pelican Boat Harbor 1,451,142 05 ___________ 06 TOTAL $13,623,642 07 (d) In this section, "Northern Tobacco Securitization Corporation" means the 08 subsidiary corporation of the Alaska Housing Finance Corporation created under 09 AS 18.56.086. 10 * Sec. 5. Section 1(b), ch. 130, SLA 2000, is repealed. 11 * Sec. 6. This Act takes effect July 1, 2001.