HB 508: "An Act relating to school construction grants and major maintenance grants to school districts; relating to reimbursement of school construction debt; providing a remedy to the constitutional violations found in Kasayulie et al. v. State of Alaska, Case No. 3AN-97-3782 CV; relating to the Education Facilities Financing Authority; and providing for an effective date."
00 HOUSE BILL NO. 508 01 "An Act relating to school construction grants and major maintenance grants to school 02 districts; relating to reimbursement of school construction debt; providing a remedy to 03 the constitutional violations found in Kasayulie et al. v. State of Alaska, Case No. 3AN- 04 97-3782 CV; relating to the Education Facilities Financing Authority; and providing for 05 an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 10 (1) art. VII, sec. 1, Constitution of the State of Alaska, provides that the 11 legislature shall establish and maintain a system of public schools open to all children of the 12 state; 13 (2) adequate public school facilities that provide a safe and effective
01 atmosphere for learning are integral to the success of the initiative for quality schools in the 02 state; 03 (3) every school-age child in the state deserves the opportunity to attend an 04 adequate public school facility; 05 (4) the current value of public school and school-related facilities statewide is 06 nearly $4,000,000,000; 07 (5) the state should protect its investment in our public school facilities by 08 recognizing where new public school facilities are needed and repairing and maintaining the 09 existing public school facilities that are deficient; 10 (6) the Department of Education and Early Development compiles a statewide 11 list of projects for which grant applications are submitted under AS 14.11.011 and ranks those 12 projects according to priority needs; 13 (7) the current statewide lists of public school construction, repair, and 14 maintenance needs include over 150 school projects with a total cost to the state of over 15 $350,000,000; 16 (8) the superior court of the Third Judicial District found in Kasayulie et al. v. 17 State of Alaska, Case No. 3AN-97-3782 CV, that the state had failed to provide 18 constitutionally adequate public school facilities to all children of the state; 19 (9) to correct the constitutional violations found in Kasayulie et al. v. State of 20 Alaska, it is necessary to eliminate future debt-reimbursement funding under AS 14.11.100 21 and to provide sufficient funding to allow every school-age child in this state to have the 22 opportunity to attend an adequate public school facility; 23 (10) the establishment of the Education Facilities Financing Authority as 24 provided in this Act will provide an effective means for financing public school facilities. 25 (b) It is the intent of the legislature that sufficient funding be appropriated for school 26 construction and major maintenance projects, as those terms are defined in AS 14.11.135, to 27 allow every school-age child in Alaska to have the opportunity to attend an adequate public 28 school facility. 29 * Sec. 2. AS 14.11.100(a) is amended to read: 30 (a) During each fiscal year, the state shall allocate to a municipality that is a 31 school district the following sums:
01 (1) payments made by the municipality during the fiscal year two years 02 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 03 indebtedness incurred before July 1, 1977, to pay costs of school construction; 04 (2) 90 percent of 05 (A) payments made by the municipality during the fiscal year 06 two years earlier for the retirement of principal and interest on outstanding 07 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 08 July 1, 1978, to pay costs of school construction; 09 (B) cash payments made after June 30, 1976, and before July 1, 10 1978, by the municipality during the fiscal year two years earlier to pay costs 11 of school construction; 12 (3) 90 percent of 13 (A) payments made by the municipality during the fiscal year 14 two years earlier for the retirement of principal and interest on outstanding 15 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 16 January 1, 1982, to pay costs of school construction projects approved under 17 AS 14.07.020(a)(11); 18 (B) cash payments made after June 30, 1978, and before July 1, 19 1982, by the municipality during the fiscal year two years earlier to pay costs 20 of school construction projects approved under AS 14.07.020(a)(11); 21 (4) subject to (h) and (i) of this section, up to 90 percent of 22 (A) payments made by the municipality during the current 23 fiscal year for the retirement of principal and interest on outstanding bonds, 24 notes, or other indebtedness incurred after December 31, 1981, and authorized 25 by the qualified voters of the municipality before July 1, 1983, to pay costs of 26 school construction, additions to schools, and major rehabilitation projects that 27 exceed $25,000 and are approved under AS 14.07.020(a)(11); 28 (B) cash payments made after June 30, 1982, and before July 1, 29 1983, by the municipality during the fiscal year two years earlier to pay costs 30 of school construction, additions to schools, and major rehabilitation projects 31 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and
01 (C) payments made by the municipality during the current 02 fiscal year for the retirement of principal and interest on outstanding bonds, 03 notes, or other indebtedness to pay costs of school construction, additions to 04 schools, and major rehabilitation projects that exceed $25,000 and are 05 submitted to the department for approval under AS 14.07.020(a)(11) before 06 July 1, 1983, and approved by the qualified voters of the municipality before 07 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 08 annual growth rate of average daily membership of the municipality is more 09 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 10 growth rate of average daily membership of the municipality is 12 percent or 11 more; payments made by a municipality under this subparagraph on total 12 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 13 are subject to (5)(A) of this subsection; 14 (5) subject to (h) - (j) of this section, 80 percent of 15 (A) payments made by the municipality during the fiscal year 16 for the retirement of principal and interest on outstanding bonds, notes, or 17 other indebtedness authorized by the qualified voters of the municipality 18 (i) after June 30, 1983, but before March 31, 1990, to 19 pay costs of school construction, additions to schools, and major 20 rehabilitation projects that exceed $25,000 and are approved under 21 AS 14.07.020(a)(11); or 22 (ii) before July 1, 1989, and reauthorized before 23 November 1, 1989, to pay costs of school construction, additions to 24 schools, and major rehabilitation projects that exceed $25,000 and are 25 approved under AS 14.07.020(a)(11); and 26 (B) cash payments made after June 30, 1983, by the 27 municipality during the fiscal year two years earlier to pay costs of school 28 construction, additions to schools, and major rehabilitation projects that exceed 29 $25,000 and are approved by the department before July 1, 1990, under 30 AS 14.07.020(a)(11); 31 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments
01 made by the municipality during the fiscal year for the retirement of principal and 02 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 03 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 04 costs of school construction, additions to schools, and major rehabilitation projects 05 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 06 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 07 made by the municipality during the fiscal year for the retirement of principal and 08 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 09 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 10 costs of school construction, additions to schools, and major rehabilitation projects; 11 (8) subject to (h), (i), (j)(2) - (5) [(h), (i), (i)(2) - (5)], and (n) of this 12 section and after projects funded by the bonds, notes, or other indebtedness have been 13 approved by the commissioner, 70 percent of payments made by the municipality 14 during the fiscal year for the retirement of principal and interest on outstanding bonds, 15 notes, or other indebtedness authorized by the qualified voters of the municipality on 16 or after July 1, 1995, but before July 1, 1998, to pay costs of school construction, 17 additions to schools, and major rehabilitation projects that exceed $200,000 and are 18 approved under AS 14.07.020(a)(11); 19 (9) subject to (h), (i), (j)(2) - (5) [(h), (i), (i)(2) - (5)], and (n) of this 20 section and after projects funded by the bonds, notes, or other indebtedness have been 21 approved by the commissioner, 70 percent of payments made by the municipality 22 during the fiscal year for the retirement of principal and interest on outstanding bonds, 23 notes, or other indebtedness authorized by the qualified voters of the municipality on 24 or after July 1, 1998, but before July 1, 2006, to pay costs of school construction, 25 additions to schools, and major rehabilitation projects that exceed $200,000 and are 26 approved under AS 14.07.020(a)(11); 27 (10) subject to (h), (i), (j)(2) - (5) [(h), (i), (i)(2) - (5)], and (o) of this 28 section, and after projects funded by the bonds, notes, or other indebtedness have been 29 approved by the commissioner, 70 percent of payments made by the municipality 30 during the fiscal year for the retirement of principal and interest on outstanding bonds, 31 notes, or other indebtedness authorized by the qualified voters of the municipality on
01 or after June 30, 1998, and before July 1, 2004, to pay costs of school construction, 02 additions to schools, and major rehabilitation projects that exceed $200,000, are 03 approved under AS 14.07.020(a)(11), and are not reimbursed under (n) of this section; 04 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 05 funded by the bonds, notes, or other indebtedness have been approved by the 06 commissioner, 70 percent of payments made by a municipality during the fiscal year 07 for the retirement of principal and interest on outstanding bonds, notes, or other 08 indebtedness authorized by the qualified voters of the municipality on or after June 30, 09 1999, but before January 1, 2005, to pay costs of school construction, additions to 10 schools, and major rehabilitation projects and education-related facilities that exceed 11 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 12 or (o) of this section; 13 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 14 of payments made by a municipality during the fiscal year for the retirement of 15 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 16 the qualified voters of the municipality on or after June 30, 1999, but before January 1, 17 2005, to pay costs of school construction, additions to schools, and major 18 rehabilitation projects and education-related facilities that exceed $200,000, are 19 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 20 section. 21 * Sec. 3. AS 14.11.100 is amended by adding a new subsection to read: 22 (q) Except for funds allocated to school districts under this section, the 23 legislature shall appropriate or allocate funds for the costs of school construction, 24 additions to schools, or major rehabilitation projects that are approved under 25 AS 14.11.015. 26 * Sec. 4. AS 36.30.850(b) is amended by adding a new paragraph to read: 27 (44) contracts of the Education Facilities Financing Authority 28 (AS 44.27.100). 29 * Sec. 5. AS 39.25.110 is amended by adding a new paragraph to read: 30 (40) the employees of the Education Facilities Financing Authority 31 established under AS 44.27.100.
01 * Sec. 6. AS 39.50.200(b) is amended by adding a new paragraph to read: 02 (58) Education Facilities Financing Authority (AS 44.27.100). 03 * Sec. 7. AS 44.27 is amended by adding new sections to read: 04 Article 3. Education Facilities Financing Authority. 05 Sec. 44.27.100. Education Facilities Financing Authority. There is created 06 the Education Facilities Financing Authority. The authority is created as a public 07 corporation of the state in the Department of Education and Early Development. The 08 authority is an instrumentality of the state but has a legal existence independent of and 09 separate from the state and has continuing succession until its existence is terminated 10 by law. The authority is subject to AS 37.07 (Executive Budget Act). 11 Sec. 44.27.110. Board of directors. The authority is governed by a board of 12 seven directors, consisting of the commissioner of revenue, the commissioner of 13 education and early development, the commissioner of transportation and public 14 facilities, two members elected by the Board of Education and Early Development 15 from among its membership, and two public members appointed by the governor. In 16 appointing the public members, the governor shall give preference to persons who 17 have experience and expertise in finance or education. At least one public member 18 shall be a resident of a rural area of the state. The two directors appointed by the 19 governor serve at the governor's pleasure for four-year terms and may be reappointed. 20 The directors are subject to AS 39.50 (public official financial disclosure). Before 21 entering upon the duties of office, a director shall take and subscribe to an oath to 22 perform the duties faithfully, impartially, and justly to the best of the director's ability. 23 A record of the oath shall be filed in the Office of the Governor. 24 Sec. 44.27.120. Officers, quorum, and meetings. (a) The directors shall 25 elect one of their number as chair. The directors shall elect a secretary and a treasurer 26 who need not be directors, and the same person may be elected to serve both as 27 secretary and treasurer. The powers of the authority are vested in the board of 28 directors, and four directors of the authority constitute a quorum. Action may be taken 29 and motions and resolutions adopted by the authority at any meeting at which a 30 quorum is present by the affirmative vote of a majority of those directors present. A 31 vacancy in the directorship of the authority does not impair the right of a quorum to
01 exercise all of the powers and perform all of the duties of the authority. 02 (b) The directors and officers of the authority may meet and transact business 03 by an electronic medium if (1) public notice of the time and locations where the 04 meeting will be held by an electronic medium has been given in the same manner as if 05 the meeting were held in a single location; (2) participants and members of the public 06 in attendance can hear and have the same right to participate in the meeting as if the 07 meeting were conducted in person; and (3) copies of pertinent reference materials, 08 statutes, regulations, and audio-visual materials are reasonably available to 09 participants and to the public. A meeting by an electronic medium as provided in this 10 subsection has the same legal effect as a meeting in person. 11 (c) The authority may appoint persons as employees it considers advisable and 12 may employ professional advisors, counsel, technical experts, agents, and others as 13 appropriate. The employees of the authority are in the exempt service under 14 AS 39.25.110. 15 Sec. 44.27.130. Powers of the authority. The authority may 16 (1) sue and be sued; 17 (2) adopt and alter an official seal; 18 (3) make and enforce bylaws and regulations for the conduct of its 19 business and for the use of its services and facilities; 20 (4) maintain an office at any place in the state; 21 (5) acquire, hold, use, and dispose of its income, revenue, funds, and 22 money; 23 (6) acquire, rent, lease, hold, use, and dispose of other personal 24 property for its purposes; 25 (7) subject to AS 44.27.160, issue its bonds or notes and provide for 26 and secure payment of the bonds or notes, provide for the rights of holders of the 27 bonds or notes, and purchase, hold, and dispose of any of its bonds or notes; 28 (8) fix and revise from time to time and charge and collect fees and 29 charges for the use of its services or facilities; 30 (9) accept gifts or grants from the United States, or from any 31 governmental unit or person, carry out the terms or provisions or make agreements
01 with respect to the gifts or grants, and do all things necessary, useful, desirable, or 02 convenient in connection with procuring, accepting, or disposing of the gifts or grants; 03 (10) do anything authorized by AS 44.27.100 - 44.27.250, through its 04 officers, agents, or employees, or by contracts with a person; 05 (11) make, enter into, and enforce all contracts necessary, convenient, 06 or desirable for the purpose of the authority or pertaining to a purchase or sale of 07 bonds, or other investments, or the performance of its duties and execution of any of 08 its powers under AS 44.27.100 - 44.27.250; 09 (12) purchase or hold bonds at prices and in a manner the authority 10 considers advisable; 11 (13) adopt and amend regulations by motion, by resolution, or in 12 another manner permitted under the bylaws of the authority; 13 (14) procure insurance against any losses in connection with its 14 property, operations, or assets in amounts and from insurers it considers desirable; 15 (15) to the extent permitted under its contracts with the holders of 16 bonds or notes of the authority, consent to modification of the rate of interest, time and 17 payment of installment of principal or interest, security, or any other term of a bond or 18 note, contract or agreement of any kind to which the authority is a party; and 19 (16) do all acts and things necessary, convenient, or desirable to carry 20 out the powers expressly granted or necessarily implied in AS 44.27.100 - 44.27.250. 21 Sec. 44.27.140. Issuance of bonds and pledges of assets. (a) Subject to 22 AS 44.27.160 and except as provided in (b) of this section, the authority may issue its 23 bonds or notes in principal amounts sufficient to provide funds for the construction of 24 schools or school facilities that are approved under AS 14.11.015(a) and authorized by 25 the legislature. 26 (b) Bonds or notes may be issued or agreements made for a project under (a) 27 of this section only after 28 (1) the legislature has authorized the facility and its construction cost; 29 and 30 (2) the commissioner of education and early development has certified 31 that
01 (A) the facility is designed in accordance with the energy 02 performance standards adopted under AS 44.42.020(a); or 03 (B) the designer and builder of the facility have certified that 04 the facility will be designed and constructed in accordance with the energy 05 performance standards and regulations adopted under AS 44.42.020(a). 06 (c) The authority may issue its bonds or notes in principal amounts that it 07 finds necessary to provide funds for the 08 (1) payment, funding, or refunding of the principal of, or interest or 09 redemption premiums on, bonds or notes issued by it, whether the bonds or notes or 10 interest to be funded or refunded have or have not become due; and 11 (2) establishment or increase of reserves to secure or to pay the 12 principal of or interest on bonds or notes and all other costs or expenses of the 13 authority incident to and necessary or convenient to carry out the purpose and powers 14 of the authority. 15 (d) Except as otherwise provided in AS 44.27.100 - 44.27.250 or by the 16 authority, every issue of bonds or notes shall be payable out of the revenue or funds of 17 the authority, subject only to agreements with the holders of particular bonds or notes 18 pledging particular revenue or funds. 19 (e) Bonds shall be authorized by resolution of the board and shall be dated and 20 mature as provided in the resolution, except that a bond may not mature more than 15 21 years from the date of its issue. Bonds shall bear interest at rates, be in the 22 denominations, be in the form, either coupon or registered, carry the registration 23 privileges, be executed in the manner, be payable in the medium or payment, at the 24 place or places, and be subject to the terms of redemption provided in the resolution or 25 a subsequent resolution. Bonds or notes may be sold at a public or private sale. 26 (f) The authority may disburse funds necessary to comply with the 27 construction provisions of (a) of this section. An agreement not to modify an 28 appropriation for construction after bonds or notes have been issued for the purpose is 29 valid. The authority shall exclude from the total school construction cost of the local 30 district all state and federal funds included in these costs except funds provided under 31 this section and AS 43.50.140.
01 Sec. 44.27.150. Trust indentures and trust agreements. (a) In the 02 discretion of the authority, an issue of bonds may be secured by a trust indenture or 03 trust agreement between the authority and a corporate trustee, including a trust 04 company, bank, or national banking association, with corporate trust powers, located 05 inside or outside the state, or by a secured loan agreement or other instrument or under 06 a resolution giving powers to a corporate trustee by means of which the authority may 07 (1) make and enter into any and all the covenants and agreements with 08 the trustee or the holders of the bonds that the authority may determine to be necessary 09 or desirable, including, without limitation, covenants, provisions, limitations, and 10 agreements as to 11 (A) the application, investment, deposit, use, and disposition of 12 the proceeds of bonds of the authority or of money or other property of the 13 authority in which it has an interest; 14 (B) the terms and conditions upon which additional bonds of 15 the authority may be issued; and 16 (C) the vesting in a trustee of rights, powers, duties, funds, or 17 property in trust for the benefit of bondholders, including the right to enforce 18 payment, performance, and all other rights of the authority or of the 19 bondholders, under any agreement of the authority; 20 (2) pledge, mortgage, or assign money, agreements, property, or other 21 rights or assets of the authority either presently in hand or to be received in the future, 22 or both; and 23 (3) provide for other matters of the like or different character that in 24 any way affect the security or protection of the bonds. 25 (b) For the purpose of securing one or more issues of its bonds, the board may 26 establish one or more special funds, called "capital reserve funds," and shall pay into 27 the capital reserve funds the proceeds of the sale of its bonds and other money that 28 may be made available to the authority for the purpose of those funds from another 29 source. The special funds shall be established only if the board determines that the 30 establishment of the funds would enhance the marketability of the bonds. Money held 31 in a capital reserve fund, except as provided in this section, shall be used as required
01 solely for (1) the payment of the principal of, and interest on, bonds or of the sinking 02 fund payments with respect to those bonds, (2) the purchase or redemption of bonds, 03 or (3) the payment of a redemption premium required to be paid when those bonds are 04 redeemed before maturity; however, money in a fund may not be withdrawn from it at 05 any time in an amount that would reduce the amount of that fund to less than the 06 capital reserve requirement set out in (c) of this section, except for the purpose of 07 making, with respect to those bonds, payment, when due, of principal, interest, 08 redemption premiums, and the sinking fund payments for the payment of which other 09 money of the authority is not available. Income or interest earned by, or increment to, 10 a capital reserve fund, from the investment of the fund or amounts in it, may be 11 transferred by the authority to other funds or accounts of the authority to the extent 12 that the transfer does not reduce the amount of the capital reserve fund below the 13 capital reserve fund requirement under (c) of this section. 14 (c) If the board decides to issue bonds secured by a capital reserve fund, the 15 bonds may not be issued if the amount in the capital reserve fund is less than an 16 amount that may be established by resolution of the board, called the "capital reserve 17 fund requirement," unless the authority, at the time of issuance of the obligations, 18 deposits in the capital reserve fund from the proceeds of the obligations to be issued or 19 from other sources, an amount that, together with the amount then in the fund, is not 20 less than the capital reserve fund requirement. 21 (d) In computing the amount of a capital reserve fund for the purpose of this 22 section, securities in which all or a portion of the funds are invested shall be valued by 23 a reasonable method established by the board by resolution. Valuation on a particular 24 date shall include the amount of any interest earned or accrued to that date. 25 (e) The chair of the board shall annually, not later than January 2, make and 26 deliver to the governor and the legislature a certificate stating the amount, if any, 27 required to restore a capital reserve fund to the capital reserve fund requirement. The 28 legislature may appropriate the amount described in this subsection, and all money 29 appropriated during the then current fiscal year by the legislature for the restoration 30 shall be deposited by the authority in the proper capital reserve fund. This section 31 does not create a debt or liability of the state.
01 (f) If the board decides to issue bonds secured by a capital reserve fund, the 02 bonds may not be issued until 10 days after the authority has mailed notification to the 03 state bond committee and the Legislative Budget and Audit Committee by certified 04 mail of its intention to establish a capital reserve fund to secure the bond issue. The 05 notification must include the amount of the capital reserve fund to be established and 06 the amount of bonds proposed to be issued. The notification must be accompanied by 07 the amount of bonds proposed to be issued, estimates of the need to withdraw money 08 from the capital reserve fund during the term of the bond issue, the amount that may 09 be withdrawn, and the dates on which withdrawals will be needed. The authority shall 10 annually prepare a revised estimate, considering the same factors, and a statement of 11 all withdrawals that have occurred from the date of issuance of the bonds to the end of 12 the calendar year. The revised estimate and statement shall be submitted to the state 13 bond committee and the Legislative Budget and Audit Committee by January 30 of the 14 year following preparation of the revised estimate. 15 Sec. 44.27.160. Bonding limitations. The authority may not issue bonds or 16 make agreements under AS 44.27.140 unless the money in the education facilities 17 fund established under AS 44.27.190 equals or exceeds $1,500,000,000. 18 Sec. 44.27.170. Nonliability on bonds. (a) Neither the members of the board 19 nor a person executing the bonds is personally liable on the bonds or is subject to 20 personal liability or accountability as a result of the issuance of the bonds. 21 (b) Bonds issued by the authority do not constitute an indebtedness or other 22 liability of the state or of a political subdivision of the state, except the authority. 23 Bonds shall be payable solely from the income and receipts or other funds or property 24 of the authority. The authority may not pledge the faith or credit of the state or of a 25 political subdivision of the state, except the authority, to the payment of a bond. 26 Sec. 44.27.180. Pledge and agreement of state. (a) The state pledges to and 27 agrees with the holders of bonds issued under AS 44.27.100 - 44.27.250 that the state 28 will not limit or alter the rights and powers vested in the authority under 29 AS 44.27.100 - 44.27.250 to fulfill the terms of a contract made by the authority with 30 the bondholders and that the state will not in any way impair the rights and remedies 31 of the bondholders until the bonds, together with the interest on them with interest on
01 unpaid installments of interest, and all costs and expenses in connection with an action 02 or proceeding by or on behalf of the bondholders are fully met and discharged. The 03 authority is authorized to use this pledge and agreement of the state in agreements 04 involving bondholders. 05 (b) The pledge of the state is limited to the express provisions of (a) of this 06 section and is not a guarantee, surety, promise, undertaking, or assurance of repayment 07 or performance of any obligation of the authority. 08 Sec. 44.27.190. Education facilities fund. (a) The education facilities fund 09 is established in the authority. The fund consists of appropriations made to the fund 10 by the legislature and, subject to appropriation, the income of the fund. The authority 11 may enter into agreements for financial covenants or pledge amounts in the fund that 12 exceed $1,500,000,000 to secure the payment of bonds of the authority and may make 13 expenditures from the fund for the purpose of the agreements. 14 (b) The education facilities fund and any other funds of the authority shall be 15 invested by the Alaska Permanent Fund Corporation as agent of the authority in the 16 manner provided for assets of the permanent fund under AS 37.13.120 unless 17 otherwise provided in a trust agreement securing bonds. 18 Sec. 44.27.200. Annual audit. The authority shall have its financial records 19 audited annually by a certified public accountant. The legislative auditor may 20 prescribe the form and content of the financial records of the authority and may have 21 access to the records at any time. 22 Sec. 44.27.210. Annual report. Before March 1 of each year, the authority 23 shall submit to the governor and the legislature a comprehensive report describing 24 operations, income, and expenditures for the preceding 12-month period. 25 Sec. 44.27.250. Definitions. In AS 44.27.100 - 44.27.250, unless the context 26 requires otherwise, 27 (1) "authority" means the Education Facilities Financing Authority 28 established under AS 44.27.100; 29 (2) "board" means the board of directors of the Education Facilities 30 Financing Authority; 31 (3) "bonds" means revenue bonds, notes, or other obligations of the
01 authority issued under AS 44.27.100 - 44.27.250; 02 (4) "fund" means the education facilities fund established under 03 AS 44.27.190. 04 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 AUTHORIZATION OF FACILITIES. The Education Facilities Financing Authority 07 established under AS 44.27.100, enacted by sec. 7 of this Act, is authorized under 08 AS 44.27.140(a), enacted by sec. 7 of this Act, to issue its bonds for construction for those 09 facilities that, after the effective date of this Act, are placed on the prioritized list of the 10 Department of Education and Early Development under AS 14.11.015. 11 * Sec. 9. This Act takes effect July 1, 2004.