SCS CSSSHB 76(FIN): "An Act providing for and relating to the issuance of certificates of participation to finance construction of a new facility to be known as the Alaska Psychiatric Institute; giving notice of and approving the entry into and the issuance of certificates of participation in a lease-purchase agreement for construction of a new facility to be known as the Alaska Psychiatric Institute; giving notice of the intent and approval to retain investment income from pertinent appropriations to be applied to the cost of construction of a new facility to be known as the Alaska Psychiatric Institute; relating to the construction of a facility to be known as the Alaska Psychiatric Institute; and providing for an effective date."
00 SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 76(FIN) 01 "An Act providing for and relating to the issuance of certificates of participation to 02 finance construction of a new facility to be known as the Alaska Psychiatric Institute; 03 giving notice of and approving the entry into and the issuance of certificates of 04 participation in a lease-purchase agreement for construction of a new facility to be 05 known as the Alaska Psychiatric Institute; giving notice of the intent and approval to 06 retain investment income from pertinent appropriations to be applied to the cost of 07 construction of a new facility to be known as the Alaska Psychiatric Institute; relating to 08 the construction of a facility to be known as the Alaska Psychiatric Institute; and 09 providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 12 to read:
01 FINDINGS AND INTENT. (a) The legislature previously appropriated money for 02 the construction or the purchase of facilities to replace the existing Alaska Psychiatric 03 Institute. Construction of a replacement within the appropriated amount proved impossible 04 when all bids received for the designed replacement were substantially higher than estimated 05 and exceeded the money available for the project. At present, $19,200,000 has been 06 appropriated and is available for the purpose of replacing the existing Alaska Psychiatric 07 Institute facility. It is the intent of the legislature that the money previously appropriated, 08 along with the proceeds of certificates of participation to be issued by the state bond 09 committee under sec. 5 of this Act, including any investment income earned on or after July 1, 10 2000, be used to construct a new facility to be known as the Alaska Psychiatric Institute. 11 (b) To assist in replacing the existing Alaska Psychiatric Institute facility, the Alaska 12 Mental Health Trust Authority has set aside money in the amount of $2,000,000, with an 13 additional $1,000,000 to be available July 1, 2002, that will be used for the construction of a 14 new facility to be known as the Alaska Psychiatric Institute. In addition, it is the intent of the 15 legislature, with the concurrence of the Alaska Mental Health Trust Authority, that the 16 investment income earned on the money set aside for construction of the new facility to be 17 known as the Alaska Psychiatric Institute will also be applied to the costs of constructing the 18 new facility. 19 (c) It is the intent of the legislature that the amount of money to be used for 20 construction of, acquisition of, and equipping a new facility to be known as the Alaska 21 Psychiatric Institute is $41,744,000. Of that amount, $22,200,000 would be from the sources 22 described in (a) and (b) of this section and $16,000,000 would be from the proceeds of 23 certificates of participation to be issued by the state bond committee under sec. 5 of this Act, 24 and $3,544,000 would be from the estimated investment income earned on the money 25 described in (a) and (b) of this section and on the proceeds of the sale of certificates of 26 participation described in sec. 5 of this Act. 27 (d) The legislature finds that the Shared Vision, which is memorialized in a 28 Memorandum of Understanding signed in April of 2001 by the Alaska Mental Health Trust 29 Authority, the Department of Health and Social Services, the University of Alaska, and 30 Providence Alaska Medical Center, provides the framework for land exchanges and other 31 commitments that will facilitate the replacement of the Alaska Psychiatric Institute. The
01 Memorandum of Understanding contemplates a road extension through the property presently 02 occupied by the Alaska Psychiatric Institute facility. The road construction will be addressed 03 separately, possibly through federal funding. 04 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 REPLACEMENT OF THE ALASKA PSYCHIATRIC INSTITUTE. The 07 commissioner of health and social services shall provide for the construction of a new facility 08 to be known as the Alaska Psychiatric Institute. The replacement facility must include a 09 forensic psychiatric unit. 10 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 DELEGATION OF AUTHORITY FOR LEASE-PURCHASE AGREEMENT. The 13 Department of Health and Social Services is delegated the Department of Administration's 14 authority under AS 36.30.085 to enter into a lease-purchase agreement for a new facility to be 15 known as the Alaska Psychiatric Institute. 16 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 LEASE-PURCHASE PAYMENTS. The lease payments owed under a lease-purchase 19 agreement executed under sec. 5 of this Act are subject to annual appropriation by the 20 legislature. 21 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 NOTICE OF ENTRY INTO AND FINANCING OF LEASE-PURCHASE 24 AGREEMENT. (a) Subject to annual appropriation, the Department of Health and Social 25 Services is authorized to enter into a lease-purchase agreement for a facility to be known as 26 the Alaska Psychiatric Institute. 27 (b) The state bond committee is authorized to provide for the issuance of certificates 28 of participation in one or more series in the aggregate principal amount of $16,000,000 for the 29 construction of a facility to be known as the Alaska Psychiatric Institute, with the remaining 30 balance of the construction costs, in the amount of $25,744,000, to be paid from the other 31 money sources described in sec. 1 of this Act, including $3,544,000 of investment income
01 earned on the other money sources described in sec. 1 of this Act and on the proceeds of the 02 sale of the certificates of participation. The estimated total cost of construction, acquisition, 03 and equipping the project is $41,744,000. The estimated annual amount of rental obligations 04 under the lease-purchase agreement is $1,640,000. The estimated total lease payments for the 05 full term of the lease-purchase agreement is $24,600,000. In this subsection, "cost of 06 construction" includes credit enhancement and underwriting expenses, rating agency fees, 07 bond counsel fees, financial advisor fees, printing fees, advertising fees, capitalized interest, 08 and interest earnings used for lease payments. 09 (c) Under terms approved by the Department of Health and Social Services, upon the 10 payment of all principal and interest payments under the certificates of participation, title to 11 the new facility known as Alaska Psychiatric Institute shall vest in the State of Alaska. 12 (d) The state bond committee may contract for credit enhancement, underwriting, 13 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that 14 the committee considers necessary in financing the project described in this section. 15 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPROVAL OF AGREEMENT. Section 5 of this Act constitutes the approval 18 required by AS 36.30.085. 19 * Sec. 7. This Act takes effect on the earlier of either 20 (1) the effective date of an appropriation passed by the United States Congress 21 and enacted into law for payment of at least $15,000,000 for the demolition of the current 22 facility known as the Alaska Psychiatric Institute and for reclamation of the site of the facility; 23 or 24 (2) the date of the awarding of a grant of federal funds for payment of at least 25 $15,000,000 for the demolition of the current facility known as the Alaska Psychiatric 26 Institute and for reclamation of the site of the facility.