00CS FOR SENATE BILL NO. 338(FIN)                                                                                         
01 "An Act relating to the issuance of revenue bonds for acquisition and                                                   
02 construction of the Northern Crossroads Discovery Center for the Ship Creek                                             
03 Landings Project; relating to a study of the feasibility and financial viability of                                     
04 the Northern Crossroads Discovery Center; relating to construction of the                                               
05 Northern Crossroads Discovery Center; and providing for an effective date."                                             
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1.  (a)  In furtherance of the state policy under sec. 1(a)(1)(B), ch. 153, SLA                            
08 1984 to foster the long-term economic growth and development of the state, the Alaska                                   
09 Railroad Corporation is authorized to issue revenue bonds in the principal amount of not more                           
10 than $55,000,000 for the construction and acquisition of the Northern Crossroads Discovery                              
11 Center for the Ship Creek Landings Project, if the board of directors of the Alaska Railroad                            
12 Corporation determines after completion of the study conducted under sec. 2 of this Act that                            
13 the Northern Crossroads Discovery Center is feasible and financially viable.  This section                              
14 constitutes legislative approval of the issuance of bonds by the Alaska Railroad Corporation,                           

01 as required by AS 42.40.285.                                                                                            
02  (b)  The Alaska Railroad Corporation may loan the proceeds from the sale of revenue                                    
03 bonds authorized by this section to a public or private entity that the Alaska Railroad                                 
04 Corporation considers appropriate to acquire, construct, and operate the Northern Crossroads                            
05 Discovery Center.  The Alaska Railroad Corporation may enter into agreements, including                                 
06 leases, with a public or private entity that the Alaska Railroad Corporation considers                                  
07 appropriate to provide for and secure payment of a loan made from the proceeds from the sale                            
08 of the revenue bonds.                                                                                                   
09  (c)  The issuance of revenue bonds authorized by this section is subject to                                            
10 AS 42.40.600 - 42.40.700, except that, notwithstanding AS 42.40.630, the bonds are special                              
11 nonrecourse obligations of the Alaska Railroad Corporation payable only from the revenues                               
12 and assets received by the corporation from the public or private entity that owns and operates                         
13 the Northern Crossroads Discovery Center.  Notwithstanding AS 42.40.630 and 42.40.640, the                              
14 Alaska Railroad Corporation may not pledge, mortgage, or assign money, leases, revenue,                                 
15 agreements, assets, or property of the corporation to the payment of the bonds, except as                               
16 expressly provided in this subsection.                                                                                  
17    * Sec. 2.  The Alaska Railroad Corporation shall conduct a study of the feasibility and                              
18 financial viability of the proposed Northern Crossroads Discovery Center for the Ship Creek                             
19 Landings Project, if a private party, including a potential developer or lessee of the Northern                         
20 Crossroads Discovery Center, enters into an agreement with the Alaska Railroad Corporation                              
21 to pay the cost of the study.  The Alaska Railroad Corporation shall select the person or firm                          
22 to conduct the study.  Upon receipt of the completed study, the board of directors of the                               
23 Alaska Railroad Corporation shall determine whether the Northern Crossroads Discovery                                   
24 Center is feasible and financially viable.                                                                              
25    * Sec. 3.  Before construction of the Northern Crossroads Discovery Center begins, the                               
26 Alaska Railroad Corporation shall require that the public or private entity authorized to design                        
27 and construct the Northern Crossroads Discovery Center post a payment and performance                                   
28 bond in favor of the Alaska Railroad Corporation to assure completion of the Northern                                   
29 Crossroads Discovery Center.                                                                                            
30    * Sec. 4.  Each bond issued under sec. 1 of this Act shall contain on its face a statement                           
31 that                                                                                                                    

01   (1)  the Alaska Railroad Corporation is not obligated to pay the bond or the                                          
02 interest on the bond except from the revenue or assets received by the corporation from the                             
03 public or private entity that owns and operates the Northern Crossroads Discovery Center that                           
04 are pledged for the bond;                                                                                               
05   (2)  neither the faith and credit nor the taxing power of the State of Alaska or                                      
06 of a political subdivision of the state is pledged to the payment of the bond; and                                      
07   (3)  the issuance of the bonds does not create a legal or moral debt of the State                                     
08 of Alaska and payment of the bond is not directly or indirectly dependent upon an                                       
09 appropriation by the Alaska State Legislature.                                                                          
10    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).