00 SENATE BILL NO. 303 01 "An Act amending the Knik Arm Bridge and Toll Authority Act and the powers and 02 authority of the authority to finance construction and maintenance of the Knik Arm 03 Bridge, to set and collect tolls, and to carry out its duties, and making conforming 04 changes to statutes relating to issuance, renewal, or reinstatement of driver's licenses 05 and to levy on permanent fund dividends; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 19.75.111 is amended to read: 08 Sec. 19.75.111. Powers and duties of the authority. (a) Except as otherwise 09 explicitly made applicable to the authority, the performance of the authority's 10 duties and the exercise of its powers, including its powers to issue bonds and 11 otherwise incur debt, shall be governed exclusively by this chapter. In furtherance 12 of its purposes, the authority may 13 (1) own, acquire, construct, develop, create, reconstruct, equip, 01 operate, maintain, extend, and improve the Knik Arm bridge and its appurtenant 02 facilities; 03 (2) sue and be sued; 04 (3) adopt a seal; 05 (4) adopt, amend, and repeal regulations under AS 44.62 and establish 06 bylaws; 07 (5) make and execute agreements, contracts, and all other instruments 08 with any public or private person, governmental unit or agency, corporation, or 09 other business entity lawfully conducting business in the United States for the 10 exercise of its powers and functions under this chapter and for the financing, design, 11 construction, maintenance, improvement, or operation of facilities, properties, or 12 projects of the authority, including making and executing contracts with any 13 person, firm, corporation, governmental agency, or other entity for the purpose of 14 (A) incurring indebtedness, obtaining investments in the 15 authority's projects, acquiring or granting lump sum payments for 16 services in advance or in arrears, grants, and other financing; and 17 (B) entering into public-private partnerships or service 18 contracts in any form; 19 (6) in its own name acquire, lease, rent, sell, or convey real and 20 personal property; 21 (7) issue and refund bonds [AND OTHERWISE INCUR 22 INDEBTEDNESS,] in accordance with this chapter [AS 19.75.211], in order to pay 23 the cost of the Knik Arm bridge and its appurtenant facilities; the authority may also 24 secure payment of the bonds or other indebtedness as provided in this chapter 25 [AS 19.75.221]; 26 (8) incur other indebtedness, including lines of credit and 27 indebtedness to the Federal Highway Administration, United States Department 28 of Transportation, under 23 U.S.C. 101 - 164 (Transportation Infrastructure 29 Finance and Innovation Act of 1998), as amended; 30 (9) apply for and accept gifts, grants, or loans from a federal agency or 31 an agency or instrumentality of the state, or from a municipality, private organization, 01 or other source, including obtaining title to state, local government, or privately 02 owned land, directly or through a department of the state having jurisdiction of 03 the land; 04 (10) [(9)] fix and collect fees, rents, tolls, rates, or other charges for the 05 use of the Knik Arm bridge and appurtenant facilities, or for a service developed, 06 operated, or provided by the authority; notwithstanding AS 37.10.050(a), fees, rents, 07 tolls, rates, and other charges fixed and collected under this paragraph may exceed the 08 actual operating cost of the use of the bridge, facility, or service; 09 (11) bring civil actions, refer criminal actions to the appropriate 10 authority, and take other actions or enter into agreements with law enforcement 11 and collection agencies to enforce the collection of its fees, rents, tolls, rates, other 12 charges, penalties, and other obligations; 13 (12) [(10)] pledge, encumber, transfer, or otherwise obligate fees, 14 rents, tolls, rates, charges, or other revenue of the authority as security for bonds or 15 other indebtedness or agreements of the authority; 16 (13) [(11)] deposit or invest its funds, subject to agreements with 17 bondholders; 18 (14) [(12)] procure insurance against any loss in connection with its 19 operation; 20 (15) [(13)] contract for and engage the services of consultants, experts, 21 and financial and technical advisors that the authority considers necessary for the 22 exercise of its powers and functions under this chapter; 23 (16) [(14)] apply for, obtain, hold, and use permits, licenses, or 24 approvals from appropriate agencies of the state, the United States, a foreign country, 25 and any other proper agency in the same manner as any other person; 26 (17) [(15)] perform reconnaissance studies and engineering, survey, 27 and design studies with respect to the Knik Arm bridge and its appurtenant facilities; 28 (18) [(16)] exercise powers of eminent domain or file a declaration of 29 taking as necessary for the Knik Arm bridge and appurtenant facilities under 30 AS 09.55.240 - 09.55.460 to acquire land or an interest in land; 31 (19) [(17)] confer with municipal and other governments, metropolitan 01 planning organizations, and the department, concerning the Knik Arm bridge; 02 (20) [(18)] do all acts and things necessary to carry out the powers 03 expressly granted or necessarily implied in this chapter; nothing in this chapter 04 limits the powers of the authority that are expressly granted or necessarily 05 implied. 06 (b) The authority shall 07 (1) prepare an annual report of its operations to include a balance 08 sheet, an income statement, a statement of changes in financial position, a 09 reconciliation of changes in equity accounts, a summary of significant accounting 10 principles, an auditor's report, comments regarding the year's business, and prospects 11 for the next year; the report shall be completed by the third day of each regular session 12 of the legislature, and the authority shall notify the governor, the commissioner of the 13 department, the presiding officers of each house of the legislature, and the Legislative 14 Budget and Audit Committee that the report is available; 15 (2) comply with the provisions of AS 37.07 (Executive Budget Act), 16 except that AS 37.07 does not apply to the activities of the authority that relate to the 17 authority's borrowing of money as provided in this chapter, including the issuing of its 18 obligations or evidence of that borrowing and the repayment of the debt obligation; 19 (3) establish a personnel management system for hiring employees and 20 setting employee-benefit packages; 21 (4) establish procedures, rules, and rates governing per diem and travel 22 expenses of the employees of the authority in substantial conformity to statutes, 23 procedures, rules, and rates applicable to state employees of similar state entities; 24 (5) coordinate the exercise of its powers to plan, design, construct, 25 operate, and maintain the Knik Arm bridge with the department, and with the mayors 26 of the Municipality of Anchorage and the Matanuska-Susitna Borough; 27 (6) have the exclusive authority to determine and fix fees, rents, 28 tolls, rates, and other charges, including the tolls for the use of the bridge and 29 appurtenant facilities and for the use of all other properties under the control of 30 or owned or managed by the authority. 31 * Sec. 2. AS 19.75 is amended by adding a new section to read: 01 Sec. 19.75.113. Assets, funds, and revenue of the authority. (a) The 02 Department of Revenue shall separately account for all funds, assets, and revenue of 03 the authority. 04 (b) The deposit or investment of money in the authority's funds may be made 05 as the board determines. The interest earned on or profits derived from the deposit, 06 investment, or sale of an investment by the authority are funds of the authority. 07 * Sec. 3. AS 19.75.211 is amended to read: 08 Sec. 19.75.211. Bonds of the authority. Notwithstanding any other 09 provision of law, the [THE] authority may borrow money and issue and refund 10 bonds on which the principal and interest are paid out of and secured by the gross 11 revenue derived by the authority from the ownership, use, and operation of its 12 toll facilities, including [PAYABLE FROM] money derived from the fees, rents, 13 tolls, rates, charges, and other revenue of the authority under this chapter and any 14 other revenue or money that the legislature may appropriate, except a state tax 15 or license. Before issuing bonds for the Knik Arm bridge, the authority shall submit to 16 the state bond committee a description of the bond issue and a preliminary prospectus, 17 offering circular, or official statement relating to the bond issue. Bonds may not be 18 issued unless the state bond committee finds, based upon the information submitted by 19 the authority under this section and other information that is reasonably available to 20 the committee, that the Knik Arm bridge revenue and other revenue available to the 21 authority can be reasonably expected to be adequate for payment of the principal of 22 and interest on the bonds to be issued and that issuance of the bonds by the authority 23 would not be expected to adversely affect the ability of the state or its political 24 subdivisions to market bonds. [BONDS MAY NOT BE ISSUED UNLESS THE 25 PRINCIPAL AMOUNT OF THE BOND ISSUE IS AUTHORIZED BY LAW.] 26 * Sec. 4. AS 19.75.211 is amended by adding new subsections to read: 27 (b) The bonds of the authority may be sold in the amounts or series and at the 28 time determined by its board of directors. Bonds, or a series of bonds, may not be sold 29 if the effective interest rate over the life of the bonds exceeds 11 percent a year or a 30 rate of interest that is 125 percent of the rate of the Bond Buyer Index of 20 Municipal 31 Bond Average Yields for the week previous to the date of the sale of the bonds, 01 whichever is higher. 02 (c) The authority may issue bonds in an aggregate amount not to exceed 03 $500,000,000, plus the cost of issuance. 04 (d) The amount of refunding bonds that may be issued by the authority and 05 bond premiums may not be included in the aggregate amount, but may be in addition 06 to the amount authorized by (c) of this section. 07 * Sec. 5. AS 19.75.221 is amended by adding a new subsection to read: 08 (h) Notwithstanding any other provision of law, the authority may establish 09 other funds and reserves as the board of directors may determine reasonable and 10 prudent for the issuance of bonds or for the conduct of the business and affairs of the 11 authority. The interest earned on or profit derived from these funds and reserves shall 12 be the property of the authority. 13 * Sec. 6. AS 19.75.241(b) is amended to read: 14 (b) The bonds issued by the authority do not constitute an indebtedness or 15 other liability of the state or of a political subdivision of the state other than the 16 authority, but shall be payable solely from the income, receipts, or other money or 17 property of the authority. All documents prepared by and used in or for the 18 issuance of bonds by the authority must state that they are prepared by or for the 19 authority. 20 * Sec. 7. AS 19.75.241(c) is amended to read: 21 (c) The authority may not pledge the faith or credit of the state or of a political 22 subdivision of the state other than the authority, and the issuance of a bond by the 23 authority does not directly, indirectly, or contingently obligate the state or a political 24 subdivision of the state to apply money from, levy, or pledge any form of taxation to 25 the payment of the bond or to make payments due on the bonds from any source of 26 funds not pledged for repayment of the bonds. 27 * Sec. 8. AS 19.75 is amended by adding new sections to article 2 to read: 28 Sec. 19.75.330. Bond terms. (a) The bonds of the authority mature at the time 29 fixed by the board. The bonds may be subject to redemption before their fixed 30 maturities as determined by the board and with the premium fixed by the board, but a 31 bond may not be subject to redemption before its fixed maturity date unless the right 01 to redeem that bond is expressly mentioned on the face of the bond. The bonds 02 (1) may be in denominations determined by the board; 03 (2) may be issued in coupon form or in fully registered form, and may 04 be registrable as to principal or both principal and interest, all under regulations and 05 conditions the board provides; 06 (3) are payable as to principal and interest at the place determined by 07 the board; 08 (4) shall be signed on behalf of the authority as the board may direct; 09 the signatures may be facsimile signatures; each of the interest coupons attached to the 10 bonds shall be signed by the facsimile signatures of the officials as the board may 11 direct; 12 (5) shall have the seal of the authority impressed, printed, or 13 lithographed on them; and 14 (6) shall be issued under and subject to the terms, conditions, and 15 covenants, providing for the payment of the principal of and interest on the bonds and 16 the other terms, conditions, covenants, and protective features safeguarding this 17 payment and relating to the maintenance, operation, and improvement of the toll 18 facilities as found necessary by the board, which covenants may include a provision 19 requiring the setting aside and maintenance of certain reserves to secure the payment 20 of the principal and interest. 21 (b) The board may select a trustee or trustees for the holders of the bonds or 22 any series of the bonds, for the safeguarding and disbursement of any of the money in 23 any of the funds created under this chapter or for the duties of authentication, delivery, 24 and registration of the bonds as the board may determine. The board shall fix the 25 rights, duties, powers, and obligations of the trustee or trustees. 26 (c) In determining the matters and questions relating to the issuance and sale 27 of the bonds and the fixing of the maturities, terms, conditions, covenants, and other 28 subjects of the bonds as provided in (a) and (b) of this section, the decisions of the 29 board shall be those found to be reasonably necessary for the best interests of the 30 authority and the construction, operation, and maintenance of its facilities, and those 31 that will accomplish the most advantageous sale of the bonds, giving due regard to (1) 01 necessary or normal costs of maintenance and operation; (2) renewals and 02 replacements of and repairs to the toll facilities; (3) all improvements to toll facilities 03 and property of toll facilities owned, used, operated, or leased in connection with toll 04 facilities; (4) the future growth and expansion of all of the facilities; and (5) the 05 possibility of additional revenue bond financing for toll facilities purposes. A decision 06 of the board as expressed in any bond resolution, is final when any bonds have been 07 issued under the bond resolution. 08 (d) A bond resolution may provide that the bonds issued must contain a recital 09 that the bonds are issued under this chapter, and any bonds containing this recital are 10 conclusively considered to be valid and to have been issued in conformity with this 11 chapter. 12 (e) The validity of the authorization and issuance of bonds is not affected by 13 any proceeding for the acquisition or construction of the additions, improvements, or 14 facilities for which the bonds have been issued or by any contract in connection with 15 the acquisition or construction. 16 Sec. 19.75.332. Bond resolution. When issuing bonds of the authority, the 17 board shall adopt the bond resolution and prepare all other documents and proceedings 18 necessary for the issuance, sale, and delivery of the bonds or any part or series of 19 them. The bond resolution shall fix the principal amount, denomination, date, 20 maturities, place or places of payment, rights of redemption, if any, terms, form, 21 conditions, and covenants of the bonds or each series of them. The board shall also 22 determine and provide for the date and manner of sale of the bonds, and shall provide 23 where the notice of sale, if any, is to be published. 24 Sec. 19.75.334. Enforcement by holder. The holder of any bonds or the 25 trustee for the holders of the bonds or any series of them, may, by appropriate 26 proceedings in state court, compel the transfer, setting aside, and payment of money 27 and the enforcement of all of the terms, conditions, and covenants as required and 28 provided in AS 19.75.330 and 19.75.332 and in the bond resolution. 29 Sec. 19.75.336. Bond negotiability. The bonds and the coupons attached to 30 them are fully negotiable instruments under the laws of the state. 31 Sec. 19.75.338. Refunding. (a) The bonds or any part of them may be 01 refunded at or before their maturity by the issuance of refunding revenue bonds of the 02 authority if, in the opinion of the board, refunding is advantageous to and in the best 03 interest of the authority. 04 (b) The issuance of refunding bonds need not be authorized by an act of the 05 legislature. The board shall adopt the resolution authorizing refunding and prepare all 06 other documents and proceedings necessary for the issuance, exchange or sale, and 07 delivery of the bonds. All provisions of AS 19.75.211 - 19.75.271 and AS 19.75.330 - 08 19.75.340 applicable to revenue bonds are applicable to the refunding bonds and to the 09 issuance, sale, or exchange of the bonds, except as otherwise provided in this section. 10 (c) Refunding bonds may be issued in a principal amount sufficient to provide 11 money for the payment of all bonds to be refunded by them and, in addition, for the 12 payment of all expenses incident to the calling, retiring, or paying of the outstanding 13 bonds, and the issuance of the refunding bonds. These expenses include the difference 14 in amount between the par value of the refunding bonds and any amount less than par 15 for which the refunding bonds are sold, any amount necessary to be made available for 16 the payment of interest on the refunding bonds from the date of sale of them to the 17 date of payment of the bonds to be refunded or to the date on which the bonds to be 18 refunded will be paid under the call of the bonds or agreement with the holders of 19 them, and the premium, if any, necessary to be paid in order to call or retire the 20 outstanding bonds and the interest accruing on the outstanding bonds to the date of the 21 call or retirement. 22 Sec. 19.75.340. Bonds as legal investments. Bonds of the authority, including 23 toll facilities bonds, are legal investments for all banks, trust companies, savings 24 banks, savings and loan associations, and other persons carrying on a banking 25 business, all insurance companies and other persons carrying on an insurance business, 26 and all executors, administrators, trustees, and other fiduciaries. The bonds may be 27 accepted as security for deposits of all money of the state and its political subdivisions. 28 * Sec. 9. AS 19.75 is amended by adding new sections to read: 29 Sec. 19.75.915. Liability for payment of tolls. (a) The owner of a vehicle 30 using a facility owned, controlled, or managed by the authority for which a toll or fee 31 is imposed is liable for the payment of the toll or fee solely because of the vehicle 01 ownership, unless the vehicle, except a rental vehicle, is used without the owner's 02 knowledge and incurs the toll or fee during operation. 03 (b) Unpaid tolls or fees due the authority by a person entitled to receive an 04 Alaska permanent fund dividend shall be a lien on and entitled to payment from the 05 permanent fund dividend of the person from the date the authority notifies the 06 Department of Revenue of the amount due and owing 30 days after the due date. 07 (c) Upon agreement between the authority and the commissioner of 08 administration, a vehicle owner liable for an unpaid toll or fee due the authority may, 09 after 30 days after the due date, be barred from obtaining or renewing a driver's license 10 or a vehicle registration or license, regardless of whether the vehicle was used at the 11 authority's facilities or incurred the toll or fee, until the toll or fee is paid in full. 12 Sec. 19.75.920. Statutory construction. This chapter shall be liberally 13 construed in order to carry out the purposes for which it was enacted. All existing laws 14 in conflict with this chapter are superseded as necessary to accomplish the purposes of 15 this chapter. 16 * Sec. 10. AS 19.75.980 is amended to read: 17 Sec. 19.75.980. Definitions. In this chapter, except as otherwise provided 18 and unless the context requires otherwise, 19 (1) "authority" means the Knik Arm Bridge and Toll Authority; 20 (2) "board" means the board of directors of the authority; 21 (3) "department" means the Department of Transportation and Public 22 Facilities; 23 (4) "state bond committee" means the state bond committee 24 created by AS 37.15.110. 25 * Sec. 11. AS 28.15.031(b) is amended to read: 26 (b) The department may not issue an original or duplicate driver's license to, 27 nor renew or reinstate the driver's license of, a person 28 (1) whose license is suspended or revoked, except as otherwise 29 provided in this chapter; 30 (2) who fails to appear in court for the adjudication of a certain 31 vehicle, driver, or traffic offense when the person's appearance is required by statute, 01 regulation, or court rule; 02 (3) who is an habitual user of alcohol or another drug to such a degree 03 that the person is incapable of safely driving a motor vehicle; 04 (4) [REPEALED 05 (5)] when the department, based upon medical evidence, has 06 determined that because of the person's physical or mental disability the person is not 07 able to drive a motor vehicle safely; 08 (5) [(6)] who is unable to understand official traffic control devices as 09 displayed in this state or who does not have a fair knowledge of traffic laws and 10 regulations, as demonstrated by an examination; 11 (6) [(7)] who has knowingly made a false statement in the person's 12 application for a license or has committed fraud in connection with the person's 13 application for, or in obtaining or attempting to obtain, a license, or who has not 14 applied under oath on the form provided for the purpose of obtaining or attempting to 15 obtain a license or permit; [OR] 16 (7) [(8)] who is required under AS 28.20 to furnish proof of financial 17 responsibility and who has not done so; or 18 (8) who is liable for an unpaid toll or fee under AS 19.75.915(c). 19 * Sec. 12. AS 43.23.065(b) is amended to read: 20 (b) An exemption is not available under this section for permanent fund 21 dividends taken to satisfy 22 (1) child support obligations required by court order or decision of the 23 child support services agency under AS 25.27.140 - 25.27.220; 24 (2) court ordered restitution under AS 12.55.045 - 12.55.051, 25 12.55.100, or AS 47.12.120(b)(4); 26 (3) claims on defaulted education loans under AS 43.23.067; 27 (4) court ordered fines; 28 (5) writs of execution under AS 09.35 of a judgment that is entered 29 (A) against a minor in a civil action to recover damages and 30 court costs; 31 (B) under AS 34.50.020 against the parent, parents, or legal 01 guardian of an unemancipated minor; 02 (6) a debt owed by an eligible individual to an agency of the state, 03 including the University of Alaska, unless the debt is contested and an appeal is 04 pending, or the time limit for filing an appeal has not expired; 05 (7) a debt owed to a person for a program for the rehabilitation of 06 perpetrators of domestic violence required under AS 12.55.101, AS 18.66.100(c)(15), 07 AS 25.20.061(3), or AS 33.16.150(f)(2); 08 (8) an unpaid toll or fee under AS 19.75.915(b). 09 * Sec. 13. This Act takes effect immediately under AS 01.10.070(c).