00 SENATE BILL NO. 124 01 "An Act relating to the financing of construction and major maintenance of public 02 school facilities; authorizing the commissioner of revenue to sell the right to receive a 03 portion of the anticipated revenue from a certain tobacco litigation settlement to the 04 Northern Tobacco Securitization Corporation; relating to the deposit of certain 05 anticipated revenue from a certain tobacco litigation settlement; authorizing the 06 issuance of bonds by the Northern Tobacco Securitization Corporation with proceeds to 07 finance public school construction and major maintenance; and providing for an 08 effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. The uncodified law of the State of Alaska is amended by adding new sections 11 to read: 12 FINDINGS. The legislature finds that 01 (1) adequate public school facilities, providing a safe and effective atmosphere 02 for learning, are integral to the success of Alaska's initiative for quality schools; 03 (2) every school-age child in Alaska deserves the opportunity to attend an 04 adequate public school facility; 05 (3) the current value of public school and school-related facilities statewide is 06 nearly $4,000,000,000; 07 (4) the state must protect its investment in our public school facilities by 08 recognizing where new school facilities are needed and repairing and maintaining the school 09 facilities that are deficient; 10 (5) the Department of Education and Early Development compiles a statewide 11 list of projects for which grants are requested under AS 14.11.011 and ranks those projects 12 according to priority needs; for the first time in several years, all school districts with eligible 13 projects participated in the Department of Education and Early Development priority ranking 14 process; 15 (6) the current statewide lists of public school construction, repair, and 16 maintenance needs include over 150 school projects at a total state cost of over $547,000,000; 17 (7) the state began its first phase of addressing public school facility needs 18 with ch. 130, SLA 2000; 19 (8) the state must continue its efforts to build, repair, and maintain public 20 schools with a comprehensive plan covering six years, with the goal of completing all projects 21 on the major maintenance and construction lists of the Department of Education and Early 22 Development; 23 (9) the lists of major maintenance and construction needs for public schools in 24 the state that are in the comprehensive plan will be adjusted by the Department of Education 25 and Early Development, in accordance with state statutes and regulations, to accommodate 26 changes in priorities of need; 27 (10) this legislation is phase two of a comprehensive plan, with $127,270,151 28 for public school major maintenance and construction in fiscal year 2002; the Department of 29 Education and Early Development has the following projects on its lists: 30 DISTRICT PROJECT AMOUNT 31 CONSTRUCTION 01 Southwest Region Togiak School Replacement $29,182,163 02 Bering Strait Golovin School Phase III 9,888,192 03 Bering Strait Koyuk School K-12 Replacement 11,660,343 04 Yupiit Tuluksak School Improvement 18,393,931 05 Lower Yukon Hooper Bay Renovation/Addition 16,436,021 06 Yupiit Akiachak School Improvement 15,824,493 07 Lower Yukon Scammon Bay Renovation/Addition 14,771,322 08 Bering Strait Teller K-12 School Remodel/Addition 9,437,442 09 Yupiit Akiak School Improvement 13,805,216 10 Bering Strait White Mountain School Remodel/ 11 Addition 11,123,659 12 Southeast Island Naukati School Replacement 3,680,945 13 Yukon Flats Circle School Replacement 3,700,454 14 Lower Kuskokwim Chief Paul Memorial School 15 Addition 10,247,167 16 Southeast Island Howard Valentine School 17 Improvement 3,012,483 18 Copper River Glennallen Elementary School 19 Replacement 7,006,670 20 Lower Kuskokwim Dick R. Kiunya Memorial School 21 Addition 4,302,373 22 Northwest Arctic Kiana K-12 Improvement Project 13,348,757 23 Southwest Region New Stuyahok School Improvement 12,919,836 24 Yukon Flats Arctic Village School Addition/ 25 Renovation 4,265,386 26 Northwest Arctic Ambler K-12 Improvement Project 8,649,895 27 Lower Kuskokwim Chaptnguak School Addition 6,068,992 28 Lower Yukon Sheldon Point Renovation/Addition 6,907,483 29 Lower Kuskokwim Joann Alexie Memorial School Addition 2,972,513 30 Cordova Mount Eccles Elementary School 31 Renovation/Addition 3,404,309 01 Southeast Island Hollis School Improvement 2,220,918 02 Craig City Elementary School Addition/ 03 Renovation 5,147,025 04 Lower Kuskokwim Kwethluk School Addition 5,881,586 05 Southeast Island Covered Physical Education Areas 280,519 06 Bering Strait Savoonga K-12 Remodel/Addition 16,401,453 07 Lower Kuskokwim Kwigillingok School Addition 5,639,607 08 Bering Strait St. Michael K-12 Remodel/Addition 12,573,806 09 Iditarod Area Lime Village School Addition & New Well 564,725 10 Yukon-Koyukuk Minto Addition/Renovation 4,168,267 11 Kuspuk Upper Kalskag Joseph & Olinga 12 Gregory Elementary School 13 Replacement 4,392,418 14 Lower Kuskokwim Kuinerrarmuit Elitnautvait School 15 Addition 2,126,656 16 Lower Kuskokwim Nightmute School Addition 1,107,148 17 Haines Haines Kitchen Remodel & 18 Cafeteria Addition 439,049 19 Kuspuk Crooked Creek Johnnie John Sr. 20 School Addition 2,094,501 21 Aleutian Region Nikolski Multipurpose Room Addition 685,324 22 Lower Yukon Emmonak Renovation/Addition 10,911,395 23 Northwest Arctic Noatak K-12 Improvement Project 13,790,424 24 Juneau City Borough New Juneau Douglas High School 25 Design & Construction 30,569,671 26 Yukon-Koyukuk Nulato School Improvement 10,120,990 27 Alaska Gateway Northway School Kitchen Remodel 57,889 28 Yukon-Koyukuk Allakaket Renovation/Addition 3,497,141 29 Lower Kuskokwim Toksook Bay School Addition 5,350,536 30 Northwest Arctic Kobuk K-12 Improvement Project 2,951,371 31 Klawock City Klawock School Addition/Renovation 2,102,778 01 Northwest Arctic Kotzebue K-12 Improvement Project 17,676,002 02 Petersburg City Petersburg Kitchen/Cafeteria Renovation 470,021 03 Anchorage East High School Phase I Renovation 6,071,710 04 Anchorage Chugiak High School Phase II & III 12,098,123 05 Lower Kuskokwim Bethel Elementary School 10,757,706 06 Iditarod Area Takotna School Bathroom Installation 37,768 07 Anchorage Bartlett High School Phase I Renovation 3,500,000 08 Sitka City Borough Baranof Outdoor Covered Physical 09 Education Area 250,476 10 Galena Outdoor Multipurpose Area 1,736,987 11 Juneau City Borough Dzantik'i Heeni Site Development Project 1,301,017 12 Iditarod Area McGrath School Bus Storage Building 277,651 13 MAJOR MAINTENANCE 14 Petersburg City Facia/Soffit Repair/Replacement 15 Recovery of Funds 116,236 16 Yukon-Koyukuk Nulato Structural Repairs 314,387 17 Bering Strait Shishmaref School Roof Replacement 18 & Renovation Phase III 8,342,525 19 Iditarod Area Blackwell School Heating Renovation/Site 20 Repair 173,754 21 Sitka City Borough Blatchley Exterior Renovation/Repair 346,500 22 Chatham Angoon Elementary School Major 23 Maintenance 2,066,257 24 Skagway City Skagway Major Maintenance 35,598 25 Pribilof Island St. George School Remodel 4,513,164 26 Southwest Region Clark's Point School Generator Building 35,989 27 Ketchikan Schoenbar Renovation 4,891,992 28 Yupiit Akiak School Repairs 177,571 29 Galena Project Education Food Service Renovation 261,806 30 Southwest Region Koliganek School Improvement 451,993 31 Juneau City Borough Juneau Douglas High School 01 Renovation/ADA Upgrade 9,097,138 02 Southwest Region Ekwok, Koliganek, Togiak Schools 03 Heating System Upgrade 122,256 04 Hoonah City Hoonah Swimming Pool Sprinkler System 220,476 05 Galena High School Remodel 167,846 06 Kenai Peninsula McNeil Canyon Replace Septic System 171,500 07 Kake City Kake High School Renovation Phase II 175,065 08 Chatham Angoon High School Major Maintenance 1,730,507 09 North Slope Borough Tikigaq School Renovation 3,675,502 10 Tanana City Tanana Kitchen Renovation 438,539 11 Wrangell City Wrangell Elementary Schools Renovation 1,129,238 12 Lower Yukon Emmonak Mechanical System Upgrade 574,885 13 Lower Yukon Alakanuk Mechanical System Upgrade 899,740 14 Iditarod Area Takotna Community School Water Project 192,374 15 Anchorage Service High School Phase I Renovation 4,998,000 16 Kenai Peninsula Seward Middle School Gym Re-roof 278,275 17 Iditarod Area Innoko River School Bathroom, Shower 18 and Underfloor Damage Repair 46,746 19 Iditarod Area McGrath School Heating Design, Boiler 20 Replacement and Repairs 235,200 21 Kenai Peninsula Kenai Central High School Reinsulate 22 Exterior Walls 385,610 23 Alaska Gateway Tok Multipurpose Recreational Complex 24 Renovation Project 961,612 25 Delta/Greely Fort Greely Utility Conversion 2,054,852 26 Iditarod Area Holy Cross School Bathroom and Shower 27 Deterioration 47,530 28 Wrangell City Wrangell Middle School Renovation 164,522 29 Sitka City Borough Blatchley Domestic Water System Upgrade 667,356 30 Skagway City Skagway Roof Replacement 174,613 31 Mat-Su Borough Fire Alarm Systems, 5 Schools 638,647 01 Fairbanks District-wide Fire Protection System 02 Upgrades 1,193,832 03 Yakutat City Yakutat High School Gymnasium Structural 04 Repair 70,981 05 Yukon-Koyukuk Kaltag School Renovation 2,418,052 06 Mat-Su Borough Septic System Upgrade, Colony 07 High School 164,039 08 Wrangell City Wrangell Elementary School & 09 High School Roof & Exterior Repairs 101,216 10 Northwest Arctic Shungnak Improvements Phase II 2,740,522 11 Dillingham City Elementary School Weatherization 105,418 12 Kuspuk Chuathbaluk Crow Village Sam 13 School Sewage System Replacement 375,661 14 Delta/Greely Delta Junction School Renovation 7,373,372 15 Hoonah City Hoonah Schools Renovation 1,291,912 16 Kake City Kake Middle School Renovation 470,415 17 Denali Borough Cantwell School Sprinkler Installation 18 & Heating System Upgrade 683,663 19 Anchorage Districtwide Renewal & Replacement/ 20 ADA Code Requirements 3,748,500 21 Chugach Districtwide Fire Alarm Upgrade 68,485 22 Denali Borough Cantwell School Roof Replacement and 23 Code Upgrade 358,044 24 Kuspuk Kalskag George Morgan Sr. High School 25 Sewage System Replacement 445,788 26 Mat-Su Borough Fuel Tank Replacement Districtwide 129,923 27 Tanana City Tanana School Major Maintenance 3,062,689 28 Anchorage Districtwide Roof Replacement & Repairs 2,405,900 29 Haines High School Exterior Major Maintenance 128,569 30 Dillingham City Central Administration Roof 50,250 31 Southeast Island Hyder Sprinkler System 88,307 01 Mat-Su Borough Boiler & Water Heater Replacement, 02 4 Schools 227,462 03 Anchorage Electrical Upgrades in Support of 04 Technology 4,106,200 05 Northwest Arctic Deering Improvements Phase I 1,769,698 06 Alaska Gateway Northway School Structural Upgrade 939,721 07 Alaska Gateway Tetlin Sewer Line Project 81,396 08 Aleutians East False Pass School Upgrade Heating 09 System & Replace Rear Wall 10 & Windows 140,000 11 Iditarod Area Innoko River School Welding Shop/ 12 Structural Emergency 31,850 13 Chugach Chenega Bay Major Maintenance 85,480 14 Fairbanks Districtwide Traffic Safety Upgrades 1,084,112 15 Denali Borough Anderson School Heating & 16 Ventilation Upgrade 1,272,543 17 Galena High School Floor Renovation 154,841 18 Yukon-Koyukuk Districtwide Structural Repairs 465,778 19 Yakutat City Yakutat High School Interior Renovation 123,576 20 Yukon-Koyukuk Districtwide Fuel Tank Upgrades 4,977,340 21 Dillingham City High School Gym Roof 241,536 22 Copper River Glennallen High School Gym Floor 23 Renovation 188,199 24 Dillingham City High School Fire Panel Replacement 64,623 25 Lower Kuskokwim Districtwide Asbestos Abatement 5,186,625 26 Denali Borough Anderson School Septic Leach 27 Field Replacement 130,818 28 Iditarod Area David Louis Memorial School 29 Asbestos Abatement & Demolition 299,653 30 Lower Kuskokwim Kilbuck School Boiler Replacement 231,611 31 Yukon-Koyukuk Districtwide ADA Code Upgrades 963,690 01 Sitka City Borough Districtwide Major Maintenance 771,837 02 Kuspuk Crooked Creek Johnnie John Sr. 03 School Sewage System 04 Replacement 383,172 05 Yukon Flats Chalkyitsik Sewage Lagoon & Water 06 Tank Project 934,740 07 Lower Kuskokwim Districtwide ADA Upgrade 2,222,030 08 Dillingham City Elementary Gym Floor 51,562 09 Hoonah City Hoonah Pool Upgrades 166,474 10 Northwest Arctic Kivalina K-12 Improvement Project 759,150 11 Anchorage Girdwood K-8 Roof Replacement & 12 Miscellaneous Upgrades 1,050,000 13 Chugach Districtwide Fuel Upgrade 157,677 14 Chugach Tatitlek Generator Replacement 155,466 15 Iditarod Area Innoko River School Vocational 16 Education Code Upgrade 71,050 17 Yukon Flats Fort Yukon High School Gym Sprinklers 116,147 18 Anchorage Traffic Safety Upgrades 420,000 19 Southeast Island Thorne Bay House Access Ramp 113,171 20 Iditarod Area David Louis Memorial School Boiler 21 Replacement & Relocation 171,500 22 Dillingham City Oil Tank Removal/Replacement 121,214 23 INTENT. It is the intent of the legislature that the part of the revenue described in 24 sec. 2(a) of this Act that is not sold to the Northern Tobacco Securitization Corporation under 25 sec. 2 of this Act and that was not previously sold to the Alaska Housing Finance Corporation 26 under sec. 9(a), ch. 130, SLA 2000, be deposited into the general fund, and that at least 27 $3,000,000 of the amount deposited in the general fund, which includes the $1,400,000 28 referred to in sec. 1(b), ch. 130, SLA 2000, be used for smoking education and cessation 29 programs administered by the state. 30 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 31 read: 01 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 02 commissioner of revenue is authorized to sell to the Northern Tobacco Securitization 03 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created 04 under AS 18.56.086, the right to receive 40 percent annually of the revenue derived from the 05 settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 CI (Alaska 06 Super. 1997). The sale of the right to receive revenue under this subsection is in addition to 07 the sale of the right to receive revenue under sec. 9, ch. 130, SLA 2000. 08 (b) The proceeds to the state of the sale of the right to receive revenue under (a) of 09 this section are anticipated to be at least $127,270,151. 10 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 BOND AUTHORIZATION AND PROVISIONS. (a) The Northern Tobacco 13 Securitization Corporation is authorized to issue revenue bonds in principal amounts 14 sufficient to acquire the right to receive revenue described in sec. 2 of this Act from the 15 commissioner of revenue at a price agreed upon by the Northern Tobacco Securitization 16 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 17 of the Northern Tobacco Securitization Corporation secured solely by the right to receive 18 revenue sold to the Northern Tobacco Securitization Corporation under sec. 2 of this Act, and 19 the Northern Tobacco Securitization Corporation may include in agreements with the 20 bondholders a pledge of the right to receive that revenue and the promise of the state to honor 21 that pledge. A pledge made under this section is subject to the provisions of AS 18.56.120, 22 and bonds issued under this section are subject to the provisions of AS 18.56.170, in each case 23 as though "corporation" in those statutes meant the Northern Tobacco Securitization 24 Corporation. 25 (b) Subject to agreements with bondholders and appropriation as described in (c) of 26 this section, the Northern Tobacco Securitization Corporation shall make the proceeds of the 27 bonds issued under (a) of this section available to the Department of Education and Early 28 Development to pay or reimburse itself for expenditures described in (c) of this section. 29 (c) Subject to appropriation, the proceeds of bonds issued under (a) of this section 30 shall be used by the Department of Education and Early Development to finance state grants 31 under AS 14.11.005 - 14.11.020 in the total amount of $127,270,151 for the construction, 01 renovation, and improvement of public schools for the following projects, in the following 02 amounts: 03 DISTRICT PROJECT AMOUNT 04 CONSTRUCTION 05 (1) Southwest Region Togiak School Replacement $29,182,163 06 (2) Bering Strait Golovin School Phase III 9,888,192 07 (3) Bering Strait Koyuk School K-12 Replacement 11,660,343 08 (4) Yupiit Tuluksak School Improvement 18,393,931 09 MAJOR MAINTENANCE 10 (1) Petersburg City Facia/Soffit Repair/Replacement 11 Recovery of Funds 116,236 12 (2) Yukon-Koyukuk Nulato Structural Repairs 314,387 13 (3) Bering Strait Shishmaref School Roof Replacement 14 & Renovation Phase III 8,342,525 15 (4) Iditarod Area Blackwell School Heating Renovation/Site 16 Repair 173,754 17 (5) Sitka City Borough Blatchley Exterior Renovation/Repair 346,500 18 (6) Chatham Angoon Elementary School Major 19 Maintenance 2,066,257 20 (7) Skagway City Skagway Major Maintenance 35,598 21 (8) Pribilof Island St. George School Remodel 4,513,164 22 (9) Southwest Region Clark's Point School Generator Building 35,989 23 (10) Ketchikan Schoenbar Renovation 4,891,992 24 (11) Yupiit Akiak School Repairs 177,571 25 (12) Galena Project Education Food Service Renovation 261,806 26 (13) Southwest Region Koliganek School Improvement 451,993 27 (14) Juneau City Borough Juneau Douglas High School 28 Renovation/ADA Upgrade 9,097,138 29 (15) Southwest Region Ekwok, Koliganek, Togiak Schools 30 Heating System Upgrade 122,256 31 (16) Hoonah City Hoonah Swimming Pool Sprinkler System 220,476 01 (17) Galena High School Remodel 167,846 02 (18) Kenai Peninsula McNeil Canyon Replace Septic System 171,500 03 (19) Kake City Kake High School Renovation Phase II 175,065 04 (20) Chatham Angoon High School Major Maintenance 1,730,507 05 (21) North Slope Borough Tikigaq School Renovation 3,675,502 06 (22) Tanana City Tanana Kitchen Renovation 438,539 07 (23) Wrangell City Wrangell Elementary Schools Renovation 1,129,238 08 (24) Lower Yukon Emmonak Mechanical System Upgrade 574,885 09 (25) Lower Yukon Alakanuk Mechanical System Upgrade 899,740 10 (26) Iditarod Area Takotna Community School Water Project 192,374 11 (27) Anchorage Service High School Phase I Renovation 4,998,000 12 (28) Kenai Peninsula Seward Middle School Gym Re-roof 278,275 13 (29) Iditarod Area Innoko River School Bathroom, Shower 14 and Underfloor Damage Repair 46,746 15 (30) Iditarod Area McGrath School Heating Design, Boiler 16 Replacement and Repairs 235,200 17 (31) Kenai Peninsula Kenai Central High School Reinsulate 18 Exterior Walls 385,610 19 (32) Alaska Gateway Tok Multipurpose Recreational Complex 20 Renovation Project 961,612 21 (33) Delta/Greely Fort Greely Utility Conversion 2,054,852 22 (34) Iditarod Area Holy Cross School Bathroom and Shower 23 Deterioration 47,530 24 (35) Wrangell City Wrangell Middle School Renovation 164,522 25 (36) Sitka City Borough Blatchley Domestic Water System Upgrade 667,356 26 (37) Skagway City Skagway Roof Replacement 174,613 27 (38) Mat-Su Borough Fire Alarm Systems, 5 Schools 638,647 28 (39) Fairbanks District-wide Fire Protection System 29 Upgrades 1,193,832 30 (40) Yakutat City Yakutat High School Gymnasium Structural 31 Repair 70,981 01 (41) Yukon-Koyukuk Kaltag School Renovation 2,418,052 02 (42) Mat-Su Borough Septic System Upgrade, Colony 03 High School 164,039 04 (43) Wrangell City Wrangell Elementary School & 05 High School Roof & Exterior Repairs 101,216 06 (44) Northwest Arctic Shungnak Improvements Phase II 2,740,522 07 (45) Dillingham City Elementary School Weatherization 105,418 08 (46) Kuspuk Chuathbaluk Crow Village Sam 09 School Sewage System Replacement 375,661 10 Total $127,270,151 11 (d) In this section, "Northern Tobacco Securitization Corporation" means the 12 subsidiary corporation of the Alaska Housing Finance Corporation created under 13 AS 18.56.086. 14 * Sec. 4. This Act takes effect July 1, 2001.