00 HOUSE BILL NO. 100 01 "An Act relating to a lease-purchase agreement for the construction, equipping, and 02 financing of a state virology laboratory in Fairbanks, on land provided by the University 03 of Alaska, Fairbanks, to be operated by the Department of Health and Social Services; 04 relating to the issuance of certificates of participation for the laboratory; relating to the 05 use of certain investment income for certain construction and equipment costs for the 06 laboratory; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 INTENT. It is the intent of the legislature that the amount of money to be used for the 11 construction and equipping of a new state virology laboratory in Fairbanks, on land provided 12 by the University of Alaska, Fairbanks, is $24,200,000. Of that amount, it is the intent of the 13 legislature that 01 (1) $24,000,000 shall come from the proceeds of the certificates of 02 participation to be issued by the state bond committee under sec. 2 of this Act; and 03 (2) $200,000 shall come from the investment income earned on the proceeds 04 of the sale of the certificates of participation described in sec. 2 of this Act. 05  * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE- 08 PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of 09 Administration is authorized to enter into a lease-purchase agreement for a state virology 10 laboratory in Fairbanks to be constructed under the lease-purchase agreement and to be 11 operated by the Department of Health and Social Services. 12 (b) The state bond committee is authorized to provide for the issuance of certificates 13 of participation in one or more series in the aggregate principal amount of $24,000,000 for 14 the construction of a state virology laboratory in Fairbanks under the lease-purchase 15 agreement authorized in (a) of this section. The remaining balance of the construction and 16 equipping costs shall be paid from investment income of $200,000 earned on the proceeds of 17 the sale of the certificates of participation. The estimated total cost of construction, 18 acquisition, and other costs of the project is $24,200,000. The estimated annual amount of 19 rental obligations under the lease-purchase agreement is $2,375,000. The estimated total 20 lease payment for the full term of the lease-purchase agreement is $35,572,890. In this 21 subsection, "cost of construction" includes credit enhancement and underwriting expenses, 22 rating agency fees, bond counsel fees, financial advisor fees, printing fees, advertising fees, 23 capitalized interest, and interest earnings used for lease payments. 24 (c) The state bond committee may contract for credit enhancement, underwriting, 25 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that 26 the committee considers necessary in financing the project described in this section. 27 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 APPROVAL OF AGREEMENT. Section 2 of this Act constitutes the approval 30 required by AS 36.30.085. 31 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).