CCS SB 248: "An Act relating to the financing authority, payment in lieu of tax agreements, and tax exemption for assets and projects of the Alaska Industrial Development and Export Authority; relating to renaming and contingently repealing the rural development initiative fund within the Department of Community and Economic Development, and establishing the rural development initiative fund within the Alaska Industrial Development and Export Authority; and providing for an effective date."
00CONFERENCE CS FOR SENATE BILL NO. 248 01 "An Act relating to the financing authority, payment in lieu of tax agreements, 02 and tax exemption for assets and projects of the Alaska Industrial Development 03 and Export Authority; relating to renaming and contingently repealing the rural 04 development initiative fund within the Department of Community and Economic 05 Development, and establishing the rural development initiative fund within the 06 Alaska Industrial Development and Export Authority; and providing for an 07 effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 10 section to read: 11 INTENT. (a) The amendment to AS 29.45.030(a), made in sec. 3 of this Act, is not 12 intended to require that an interest created by a nonexclusive use agreement between the 13 Alaska Industrial Development and Export Authority and a user of an integrated transportation 14 and port facility owned by the authority be taxable if the interest would not otherwise be
01 taxable in accordance with law. 02 (b) Sections 1 and 2 of this Act are not intended to express the legislature's intent with 03 respect to the issues under appeal in Fairbanks North Star Borough Assessor's Office v. 04 Golden Heart Utilities, Inc., Case No. S-09120; 4 FA-981848 Civil. 05 * Sec. 2. AS 29.45.030(a) is amended to read: 06 (a) The following property is exempt from general taxation: 07 (1) municipal property, including property held by a public corporation 08 of a municipality, or state property, or land that is in the trust established by the 09 Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, except that 10 (A) a private leasehold, contract, or other interest in the 11 property is taxable to the extent of the interest; however, an interest created 12 by a nonexclusive use agreement between the Alaska Industrial 13 Development and Export Authority and a user of an integrated 14 transportation and port facility owned by the authority and initially placed 15 in service before January 1, 1999, is taxable only to the extent of, and for 16 the value associated with, those specific improvements used for lodging 17 purposes; 18 (B) notwithstanding any other provision of law, property 19 acquired by an agency, corporation, or other entity of the state through 20 foreclosure or deed in lieu of foreclosure and retained as an investment of a 21 state entity is taxable; this subparagraph does not apply to federal land granted 22 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 23 granted to the university by the state to replace land that had been granted 24 under AS 14.40.380 or 14.40.390; 25 (C) an ownership interest of a municipality in real property 26 located outside the municipality acquired after December 31, 1990, is taxable 27 by another municipality; however, a borough may not tax an interest in real 28 property located in the borough and owned by a city in that borough; 29 (2) household furniture and personal effects of members of a 30 household; 31 (3) property used exclusively for nonprofit religious, charitable,
01 cemetery, hospital, or educational purposes; 02 (4) property of a nonbusiness organization composed entirely of persons 03 with 90 days or more of active service in the armed forces of the United States whose 04 conditions of service and separation were other than dishonorable, or the property of 05 an auxiliary of that organization; 06 (5) money on deposit; 07 (6) the real property of certain residents of the state to the extent and 08 subject to the conditions provided in (e) of this section; 09 (7) real property or an interest in real property that is exempt from 10 taxation under 43 U.S.C. 1620(d), as amended; 11 (8) property of a political subdivision, agency, corporation, or other 12 entity of the United States to the extent required by federal law; except that a private 13 leasehold, contract, or other interest in the property is taxable to the extent of that 14 interest; 15 (9) natural resources in place including coal, ore bodies, mineral 16 deposits, and other proven and unproven deposits of valuable materials laid down by 17 natural processes, unharvested aquatic plants and animals, and timber. 18 * Sec. 3. AS 29.45.030(a) is amended to read: 19 (a) The following property is exempt from general taxation: 20 (1) municipal property, including property held by a public corporation 21 of a municipality, or state property, or land that is in the trust established by the 22 Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, except that 23 (A) a private leasehold, contract, or other interest in the 24 property is taxable to the extent of the interest; [HOWEVER, AN INTEREST 25 CREATED BY A NONEXCLUSIVE USE AGREEMENT BETWEEN THE 26 ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 27 AND A USER OF AN INTEGRATED TRANSPORTATION AND PORT 28 FACILITY OWNED BY THE AUTHORITY AND INITIALLY PLACED IN 29 SERVICE BEFORE JANUARY 1, 1999, IS TAXABLE ONLY TO THE 30 EXTENT OF, AND FOR THE VALUE ASSOCIATED WITH, THOSE 31 SPECIFIC IMPROVEMENTS USED FOR LODGING PURPOSES;]
01 (B) notwithstanding any other provision of law, property 02 acquired by an agency, corporation, or other entity of the state through 03 foreclosure or deed in lieu of foreclosure and retained as an investment of a 04 state entity is taxable; this subparagraph does not apply to federal land granted 05 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 06 granted to the university by the state to replace land that had been granted 07 under AS 14.40.380 or 14.40.390; 08 (C) an ownership interest of a municipality in real property 09 located outside the municipality acquired after December 31, 1990, is taxable 10 by another municipality; however, a borough may not tax an interest in real 11 property located in the borough and owned by a city in that borough; 12 (2) household furniture and personal effects of members of a 13 household; 14 (3) property used exclusively for nonprofit religious, charitable, 15 cemetery, hospital, or educational purposes; 16 (4) property of a nonbusiness organization composed entirely of persons 17 with 90 days or more of active service in the armed forces of the United States whose 18 conditions of service and separation were other than dishonorable, or the property of 19 an auxiliary of that organization; 20 (5) money on deposit; 21 (6) the real property of certain residents of the state to the extent and 22 subject to the conditions provided in (e) of this section; 23 (7) real property or an interest in real property that is exempt from 24 taxation under 43 U.S.C. 1620(d), as amended; 25 (8) property of a political subdivision, agency, corporation, or other 26 entity of the United States to the extent required by federal law; except that a private 27 leasehold, contract, or other interest in the property is taxable to the extent of that 28 interest; 29 (9) natural resources in place including coal, ore bodies, mineral 30 deposits, and other proven and unproven deposits of valuable materials laid down by 31 natural processes, unharvested aquatic plants and animals, and timber.
01 * Sec. 4. AS 29.45.050 is amended by adding a new subsection to read: 02 (p) A municipality may by ordinance partially or totally exempt from taxation 03 a private leasehold, contract, or other interest held by or through an applicant or 04 proposed applicant in any property, assets, project, or development project owned by 05 the Alaska Industrial Development and Export Authority under AS 44.88. Nothing in 06 this subsection prohibits a municipality from entering into an agreement and receiving 07 payments in lieu of taxes authorized under AS 44.88.140(b). 08 * Sec. 5. AS 44.33.765(a) is amended to read: 09 (a) The rural economic development initiative fund is created in the 10 department. Unless provided otherwise in the appropriation act, an appropriation to the 11 fund is retained in the fund for use under AS 44.33.765 - 44.33.775 and does not lapse 12 at the end of a fiscal year. Each year the commissioner shall request an appropriation 13 to the fund of interest and other income earned on loans or investments of the fund. 14 Money in the fund may be appropriated for costs of administering AS 44.33.765 - 15 44.33.775. 16 * Sec. 6. AS 44.33.770(a) is amended to read: 17 (a) The department may use money from the rural economic development 18 initiative fund to make a loan of up to $100,000 to a person, or a loan of up to 19 $200,000 to two or more persons, to be used for working capital, equipment, 20 construction, or other commercial purposes by a business located in a community with 21 a population of 5,000 or less. A person who has received a loan under this subsection 22 may not be granted another loan until after the original loan is entirely repaid. 23 * Sec. 7. AS 44.33.775 is amended to read: 24 Sec. 44.33.775. Disposal of property acquired by default or foreclosure. 25 The department shall dispose of property acquired through default or foreclosure of a 26 loan made from the rural economic development initiative fund. Disposal shall be 27 made in a competitive manner that serves the best interests of the state, and may 28 include the amortization of payments over a period of years. The commissioner shall 29 request an appropriation to the fund of proceeds from disposal of property under this 30 section. 31 * Sec. 8. AS 44.88.095(g) is amended to read:
01 (g) Before July 1, 2003 [JULY 1, 2000], the authority may issue bonds in an 02 amount greater than $10,000,000 to assist in the financing of a development project 03 under AS 44.88.172 - 44.88.177 only with legislative approval. Beginning July 1, 04 2003 [JULY 1, 2000], and thereafter, without prior legislative approval, the authority 05 may not issue bonds, except refunding and conduit revenue bonds. 06 * Sec. 9. AS 44.88.140(b) is amended to read: 07 (b) An [THE AUTHORITY MAY ENTER INTO AGREEMENTS WITH AN] 08 applicant or proposed applicant under this chapter and the local political subdivision 09 may enter into agreements providing for payments in lieu of taxes , computed on a 10 formula basis or otherwise [IN LIEU OF TAXES, WHICH THE AUTHORITY MAY 11 CONSIDER APPROPRIATE]. The agreement may provide that the payments be 12 made to the local political subdivision [OF THE STATE IN WHICH A PROJECT OR 13 DEVELOPMENT PROJECT IS OR IS TO BE LOCATED] or to any other taxing unit 14 of the state including, without limitation, a borough, city, municipality, school district 15 or public utility district, the area of which is coterminous in whole or in part with that 16 of the local political subdivision. 17 * Sec. 10. AS 44.88.140 is amended by adding a new subsection to read: 18 (d) In this section, "local political subdivision" means the political subdivision 19 of the state in which a project or development project financed under AS 44.88.155 - 20 44.88.159 or 44.88.172 - 44.88.177 is or is to be located. 21 * Sec. 11. AS 44.88 is amended by adding new sections to read: 22 Article 6A. Rural Development Initiative Fund. 23 Sec. 44.88.600. Rural development initiative fund. The rural development 24 initiative fund is created in the authority outside of the revolving fund. The rural 25 development initiative fund is a fund for the uses and purposes of AS 44.88.600 - 26 44.88.620. The rural development initiative fund consists of money or assets 27 appropriated or transferred to the authority for the purposes of this section, and of loan 28 repayments, interest, or other income earned on loans or investments of the fund. In 29 addition, the authority may deposit other assets into the fund if the total value of those 30 deposits does not exceed $2,000,000. The authority, in its discretion, may transfer 31 money or other assets from the rural development initiative fund to the revolving
01 fund. 02 Sec. 44.88.610. Rural development loans. (a) The authority may use money 03 from the rural development initiative fund to make a loan of up to $100,000 to a 04 person, or a loan of up to $200,000 to two or more persons, to be used for working 05 capital, equipment, construction, or other commercial purposes by a business located 06 in a community with a population of 5,000 or less. A person who has received a loan 07 under this subsection may not be granted another loan until after the original loan is 08 entirely repaid. 09 (b) The authority shall require collateral for each loan made under this section 10 and shall require that a reasonable amount of money from other nonstate sources be 11 committed for use on any project or enterprise for which money from a loan will be 12 used. The authority by regulation may establish other conditions for loans. The 13 authority shall by regulation establish rates of interest that are not less than six percent 14 a year and terms of repayment for loans made under this section. 15 Sec. 44.88.620. Disposal of property acquired by default or foreclosure. 16 The authority shall dispose of property acquired through default or foreclosure of a 17 loan made from the rural development initiative fund. Disposal shall be made in a 18 competitive manner that serves the best interests of the state, and may include the 19 amortization of payments over a period of years. Proceeds from the disposal of 20 property under this section shall be deposited into the fund. 21 * Sec. 12. AS 44.33.765, 44.33.770, and 44.33.775 are repealed. 22 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section 23 to read: 24 TRANSITIONAL PROVISIONS. (a) Notwithstanding the repeal of AS 44.33.765, 25 44.33.770, and 44.33.775 by sec. 12 of this Act, regulations in effect immediately before the 26 effective date of sec. 12 of this Act that were issued or adopted under authority of 27 AS 44.33.765, 44.33.770, or 44.33.775 remain in effect and may be implemented and 28 enforced by the Alaska Industrial Development and Export Authority to implement the 29 provisions of AS 44.88.600 - 44.88.620, enacted by sec. 11 of this Act, until the Alaska 30 Industrial Development and Export Authority adopts regulations to implement AS 44.88.600 - 31 44.88.620.
01 (b) Wherever in AS 44.88.600 - 44.88.620 there is a reference to regulations adopted 02 under a section of law and there are no regulations adopted under that section because 03 previous regulations adopted under AS 44.33.765 - 44.33.775 are being enforced under (a) of 04 this section, the reference shall be construed to refer to the previously adopted regulations 05 until the Alaska Industrial Development and Export Authority adopts regulations to implement 06 AS 44.88.600 - 44.88.620. 07 (c) Contracts, rights, liabilities and obligations created by or under AS 44.33.765, 08 44.33.770, or 44.33.775, repealed by sec. 12 of this Act, and in effect on the day before the 09 effective date of sec. 12 of this Act, remain in effect notwithstanding this Act's taking effect. 10 (d) Amounts retained in the rural economic development initiative fund for use under 11 AS 44.33.765 - 44.33.775 lapse into the general fund on the effective date of sec. 12 of this 12 Act. 13 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section 14 to read: 15 RETROACTIVITY OF SECTION 2. Section 2 of this Act is retroactive to January 1, 16 1999. 17 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section 18 to read: 19 CONDITIONAL EFFECT OF SECTIONS 12 AND 13. Sections 12 and 13 of this Act 20 take effect only if the Alaska Industrial Development and Export Authority purchases loans 21 and other assets of the rural economic development initiative fund (AS 44.33.765) as an 22 investment for the Alaska Industrial Development and Export Authority. 23 * Sec. 16. Section 8 of this Act takes effect June 30, 2000. 24 * Sec. 17. If secs. 12 and 13 of this Act take effect under sec. 15 of this Act, secs. 12 and 25 13 of this Act take effect on the day after the effective date of the purchase of the rural 26 economic development initiative fund loans and other assets by the Alaska Industrial 27 Development and Export Authority. The executive director of the Alaska Industrial 28 Development and Export Authority shall certify the effective date of the purchase to the 29 lieutenant governor and the revisor of statutes. 30 * Sec. 18. Sections 1, 2, and 14 of this Act take effect immediately under AS 01.10.070(c). 31 * Sec. 19. Section 3 of this Act takes effect July 1, 2004.
01 * Sec. 20. Except as provided in secs. 16 - 19 of this Act, this Act takes effect July 1, 02 2000.