txt

CSSB 306(JUD): "An Act relating to the financing of adult and juvenile correctional facilities; providing for the issuance of general obligation bonds in the amount of $121,650,000 for the purpose of paying the cost of design, construction, and other capital improvement of state correctional facilities; giving notice and approval for a lease of a replacement jail facility in Anchorage; and providing for an effective date."

00CS FOR SENATE BILL NO. 306(JUD) 01 "An Act relating to the financing of adult and juvenile correctional facilities; 02 providing for the issuance of general obligation bonds in the amount of 03 $121,650,000 for the purpose of paying the cost of design, construction, and 04 other capital improvement of state correctional facilities; giving notice and 05 approval for a lease of a replacement jail facility in Anchorage; and providing 06 for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. For the purpose of paying the cost of design, construction, and other capital 09 improvement of correctional facilities of the state, general obligation bonds of the state in the 10 principal amount of not more than $121,650,000 shall be issued and sold. The full faith, 11 credit, and resources of the state are pledged to the payment of the principal of and interest 12 and redemption premium, if any, on the bonds. The bonds shall be issued under the 13 provisions of AS 37.15 as those provisions read at the time of issuance. 14 * Sec. 2. If the issuance of the bonds is authorized by the qualified voters of the state, a

01 special fund of the state to be known as the "State Correctional Facility Construction Fund" 02 shall be established, to which shall be credited the proceeds of the sale of the bonds described 03 in sec.1 of this Act except for the accrued interest and premiums. 04 * Sec. 3. The amount of $121,650,000 is appropriated from the "State Correctional Facility 05 Construction Fund" to the Department of Transportation and Public Facilities to be allocated 06 among the following projects in the amounts listed, which include the cost of issuance of the 07 bonds, subject to reallocation between projects in accordance with AS 37.07.080(e): 08 (1) Palmer Correctional Center $13,050,000 09 (2) Hiland Mountain (Eagle River) Correctional Center 1,000,000 10 (3) Yukon-Kuskokwim (Bethel) Correctional Center 5,000,000 11 (4) Mat-Su Pretrial (Palmer) Correctional Center 6,000,000 12 (5) Fairbanks Correctional Facility 10,250,000 13 (6) North Slope Borough (Barrow) Correctional Facility 15,000,000 14 (7) Lemon Creek (Juneau) Correctional Center 9,000,000 15 (8) Wildwood (Kenai) Correctional Center 29,200,000 16 (9) McLaughlin Youth Center (Anchorage) 15,350,000 17 (10) Mat-Su Youth Facility 7,600,000 18 (11) Fairbanks Youth Facility 5,000,000 19 (12) Ketchikan Youth Facility 4,000,000 20 (13) Kotzebue Jail 1,200,000 21 * Sec. 4. The amount withdrawn from the public facility planning fund for the purpose of 22 advance planning for the improvements financed under this Act shall be reimbursed to the 23 fund from the proceeds of the sale of bonds authorized by this Act. 24 * Sec. 5. The unexpended and unobligated balance of the appropriation made in sec. 3 of 25 this Act lapses under AS 37.25.020 and is appropriated to the state bond committee to redeem 26 bonds sold under the Act or to pay rebatable arbitrage if necessary. The amounts expended 27 from the general fund to pay the principal, interest, and redemption premium on bonds issued 28 under this Act shall be reimbursed to the general fund from the appropriation made under this 29 section to the extent that the money is not needed to redeem the bonds. 30 * Sec. 6. The question whether the bonds authorized in this Act are to be issued shall be 31 submitted to the qualified voters of the state at the next general election and shall read

01 substantially as follows: 02 PROPOSITION 03 State General Obligation Correctional Facility 04 Construction Bonds $121,650,000 05 Shall the State of Alaska issue its general obligation bonds in the 06 principal amount of not more than $121,650,000 for the purpose of 07 paying the cost of design, construction, and other capital improvement 08 of adult and juvenile correctional facilities? The annual operating cost 09 of the facilities is estimated at $31,516,353. Between 1997 and 2013 10 the average annual debt service for bonds is estimated at $11,049,977. 11  Bonds Yes [ ] 12  Bonds No [ ] 13 * Sec. 7. NOTICE AND APPROVAL OF LEASE AGREEMENT. To provide for a 14 replacement jail facility in the Municipality of Anchorage in order to relieve overcrowding of 15 existing correctional facilities, the Department of Administration, on behalf of the Department 16 of Corrections, may enter into a lease agreement under AS 33.30.031 for a replacement jail 17 facility with the Municipality of Anchorage that will house persons who are committed to the 18 custody of the commissioner of corrections. The approval given by this subsection is subject 19 to the following limitations: 20 (1) the anticipated annual lease obligation for the initial term of the lease may 21 not exceed $6,010,000; and 22 (2) the total lease payments for the full term of the agreement may not exceed 23 $100,000,000. 24 * Sec. 8. Sections 1 - 6 of this Act take effect on the date that the municipal clerk of the 25 Municipality of Anchorage certifies to the revisor of statutes that an ordinance authorizing the 26 issuance of municipal revenue bonds to finance the design and construction of a replacement 27 jail facility has become law. 28 * Sec. 9. Section 7 of this Act takes effect on the date that the lieutenant governor certifies 29 to the revisor of statutes that a majority of the votes cast on a proposition appearing on the 30 1996 general election ballot favor the issuance of general obligation bonds for the design, 31 construction, and other capital improvement of state correctional facilities.