SB 396: "An Act relating to the establishment of the Interior Rivers Port Authority; and providing for an effective date."

00 SENATE BILL NO. 396 01 "An Act relating to the establishment of the Interior Rivers Port Authority; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS AND PURPOSE. (a) The Alaska State Legislature finds that 07 (1) certain communities and residents on the Yukon River, Kuskokwim River, 08 and Tanana River desire the establishment of a port authority to provide an organization for 09 economic development, transportation system infrastructure development, natural resource 10 marketing, and promotion of efficient energy development and distribution; 11 (2) since many of the communities in the region are not organized 12 municipalities, those communities cannot form a port authority under the Municipal Port 13 Authority Act (AS 29.35.600 - 29.35.730); 14 (3) it is in the best interest of the state to establish a state port authority for the

01 Interior Rivers region of the state to promote economic self-sufficiency in the region. 02 (b) The purpose of this Act is to establish the Interior Rivers Port Authority to provide 03 an organization that residents and communities in the region encompassing portions of the 04 Yukon, Kuskokwim, and Tanana Rivers may use to finance and manage transportation, 05 energy, and economic development infrastructure projects that will improve economic 06 conditions in the region and promote resource development and visitor industry opportunities 07 in the region. 08 * Sec. 2. AS 30 is amended by adding a new chapter to read: 09 Chapter 21. Interior Rivers Port Authority. 10 Article 1. Creation and Organization. 11 Sec. 30.21.010. Interior Rivers Port Authority. (a) The Interior Rivers Port 12 Authority is established as a public corporation of the state. The corporation is an 13 instrumentality of the state in the Department of Community and Economic 14 Development but has a legal existence independent of and separate from the state and 15 has continuing succession until its existence is terminated by law. 16 (b) The powers of the authority are vested in the board of directors of the 17 authority. 18 (c) The purpose of the authority is to improve, establish, and develop facilities 19 and operations to provide transportation, energy, regional waste disposal, and other 20 infrastructure services and economic development in the operating area of the 21 authority. 22 Sec. 30.21.020. Board of directors. (a) The board of directors of the 23 authority consists of nine voting members appointed by the governor. 24 (b) The governor shall appoint seven persons to serve on the board from 25 among the persons nominated by each of the following entities: The Kuskokwim 26 Corporation, Calista Corporation, Kuskokwim Native Association, Tanana Chiefs 27 Conference, MTNT Limited, Doyon, Limited, and Gana-A'Yoo, Limited. The 28 governor shall appoint one person to serve on the board from the list of persons 29 provided by each entity. The governor may request that an entity submit additional 30 names of persons nominated to serve on the board if the governor chooses not to 31 appoint a person from the list of persons previously provided by the entity.

01 (c) The governor shall appoint one person to serve on the board who is 02 employed by a private company that has a physical presence within the area of 03 operation of the authority and one public member to serve on the board. 04 (d) The commissioner of community and economic development and the 05 commissioner of transportation and public facilities are nonvoting, ex officio members 06 of the board. Each commissioner may designate a person to serve on the board in the 07 commissioner's absence. 08 (e) The appointed members of the board serve for staggered terms of three 09 years. The terms of the appointed members begin on January 1. 10 Sec. 30.21.030. Removal and replacement of members. The members of 11 the board serve at the pleasure of the governor. A person appointed to fill a vacancy 12 on the board shall serve for the balance of the unexpired term. 13 Sec. 30.21.040. Compensation and expenses. A member of the board may 14 receive, as authorized by the board, compensation for participation in the meetings of 15 the board and per diem and travel expenses. 16 Sec. 30.21.050. Meetings. (a) The board shall hold at least four regular 17 meetings each year. The board shall set the schedule and locations for meetings of the 18 board. 19 (b) The board may hold special meetings at the call of the chair or at the 20 request of three members of the board. 21 Sec. 30.21.060. Officers and quorum. (a) The board shall elect a chair and a 22 vice-chair from among its members. A member of the board may not serve as chair 23 for two consecutive terms. The position of the chair of the board shall rotate among 24 the appointed members of the board. The chair and vice-chair serve for terms of two 25 years. 26 (b) The board shall elect a secretary, who need not be a member of the board. 27 The secretary serves at the pleasure of the board. 28 (c) Five appointed members of the board constitute a quorum. Action may be 29 taken and motions and resolutions adopted by the board at a meeting by the 30 affirmative vote of at least five appointed members. Members may not vote by proxy. 31 A vacancy in the membership of the board does not impair the right of a quorum to

01 exercise all the powers and perform all the duties of the board. 02 (d) Members may participate in meetings of the board by electronic means. 03 Sec. 30.21.070. Staff. (a) The board shall employ officers and employees as 04 necessary for the efficient operation of the authority. 05 (b) The board may employ executive, administrative, fiscal, and legal officers 06 and employees as the board considers necessary for the efficient management of the 07 authority. 08 Sec. 30.21.080. Operating area of the authority. The authority is authorized 09 to operate within the contiguous area enclosed by a line that is at all points 10 miles 10 inland of the mean high water line of the shore that is generally the northern bank of 11 the main channel of the Yukon River from the municipality of Russian Mission to a 12 point 10 miles north of the E. L. Patton Bridge; a line from a point 10 miles north of 13 the E. L. Patton Bridge to a point 10 miles south of the E. L. Patton Bridge; a line 14 from a point 10 miles south of the E. L. Patton Bridge to the easternmost point of the 15 boundary of the municipality of Nenana that crosses the Tanana River; a line from the 16 easternmost point of the boundary of the municipality of Nenana that crosses the 17 Tanana River to the nearest point of the drainage of the North Fork of the Kuskokwim 18 River and then southerly and westerly along the boundary of the drainage of the North 19 Fork of the Kuskokwim River to a point 10 miles south of the mean high water line of 20 the southern bank of the main channel of the North Fork of the Kuskokwim River at 21 the community of Medfra; a line that is at all points 10 miles south of the mean high 22 water line of the southern bank of the main channel of the North Fork of the 23 Kuskokwim River and the main channel of the Kuskokwim River between the 24 community of Medfra and the municipality of Lower Kalskag; a line between a point 25 10 miles south of the mean high water line of the southern bank of the main channel of 26 the Kuskokwim River at the municipality of Lower Kalskag and a point 10 miles 27 inland of the mean high water line of the shore that is generally the southern bank of 28 the main channel of the Yukon River at the municipality of Russian Mission; a line 29 that is at all points 10 miles inland from the mean high water line of the shore that is 30 generally the southern bank of the main channel of the Yukon River between the 31 municipality of Russian Mission and the municipality of Marshall; a line from a point

01 10 miles inland from the mean high water line of the shore that is generally the 02 southern bank of the main channel of the Yukon River at the municipality of Marshall 03 and a point 10 miles inland of the mean high water line of the shore that is generally 04 the northern bank of the main channel of the Yukon River at the municipality of 05 Marshall; and a line that is at all points 10 miles inland from the mean high water line 06 of the shore that is generally the northern bank of the main channel of the Yukon 07 River between the municipality of Marshall and the municipality of Russian Mission. 08 Sec. 30.21.090. Regulations. The board may adopt regulations to carry out its 09 functions and the purposes of this chapter, including rules to safeguard property 10 owned by the authority and to protect employees and persons using the authority's 11 property or services. 12 Article 2. Powers and Duties. 13 Sec. 30.21.100. Powers and duties of authority. (a) In addition to other 14 powers granted in this chapter, the authority may 15 (1) sue and be sued; 16 (2) adopt and alter an official seal; 17 (3) maintain an office in the state; 18 (4) acquire, hold, use, and dispose of its money, subject to 19 appropriation by the legislature; 20 (5) acquire, hold, use, lease, rent, construct, and dispose of property for 21 its purposes; 22 (6) issue revenue bonds under AS 30.21.200 - 30.21.320; 23 (7) enter into agreements to provide transportation, energy, regional 24 waste disposal, marketing, facilities and services, and to provide coordinated training 25 in association with authority facilities and operations; 26 (8) enter into contracts or other transactions with any federal, state, 27 municipal, or other agency, or instrumentality, private organization, or person 28 consistent with the exercise of any powers of the authority under this chapter; 29 (9) charge and collect those rents, rates, fees, or other charges that are 30 necessary to pay for capital, maintenance, and operating costs of the services and 31 facilities and operations of the authority, for the establishment of reserves to secure

01 payment of bonds or notes or interest on bonds or notes, and for repairs, 02 improvements, storage, and care of personal property made or furnished by the 03 authority in connection with the facilities and operations of the authority; 04 (10) accept money, gifts, loans, or grants from any federal, state, 05 municipal, or other agency or instrumentality, private organization, or other person; 06 and 07 (11) do all acts necessary to carry out this chapter that are not 08 expressly prohibited by law. 09 (b) The authority shall 10 (1) operate, manage, plan, improve, market, construct, and maintain 11 the facilities and operations of the authority; and 12 (2) adopt and enforce 13 (A) bylaws of the authority; 14 (B) regulations for the conduct of its business and for the use of 15 its facilities, operations, and services; 16 (C) personnel rules necessary to establish a system of personnel 17 administration. 18 Sec. 30.21.110. Public nature of authority activities. The planning, 19 construction, improvement, maintenance, and operation of a facility or operation, 20 whether by the authority separately or jointly with a federal, state, or municipal agency 21 or a private entity, and the exercise of other powers granted to the authority are public 22 and governmental functions exercised for a public purpose and matters of public 23 necessity. Land and other property and privileges acquired and used by or on behalf 24 of the authority for the purposes enumerated in this chapter are acquired and used for 25 public and governmental purposes and as a matter of public necessity. 26 Sec. 30.21.120. Property of the authority. The authority may acquire, by 27 purchase, lease, or gift, upon terms that the authority considers proper, land, 28 structures, real or personal property rights, rights-of-way, franchises, easements, and 29 other interests in land the authority considers necessary or convenient to carry out this 30 chapter. 31 Sec. 30.21.130. Acquisition of land and easements. The authority, as part of

01 the cost of constructing, maintaining, or improving facilities or operations, may 02 acquire by purchase, gift, grant, exchange, or eminent domain land in fee simple or 03 easements, either temporary or permanent, that the authority considers necessary for 04 present or future public use. By the same means, the authority may obtain material, 05 including clay, gravel, sand, or rock, or the land necessary to obtain the material. The 06 authority may acquire the land or material notwithstanding the fact that title to the land 07 or material is vested in the state or a department, agency, commission, or institution of 08 the state. 09 Sec. 30.21.140. Acquisition of property for the purpose of exchange. 10 When the authority declares that it is in the best public interest of the state to do so, the 11 authority may acquire by purchase, gift, grant, exchange, or eminent domain privately 12 or publicly owned land or an interest in land for the purpose of exchanging the land or 13 interest in land for privately or publicly owned land or an interest in land that the 14 authority is authorized by law to acquire. 15 Sec. 30.21.150. Eminent domain. (a) The authority may exercise the power 16 of eminent domain under AS 09.55.240 - 09.55.460 to acquire land for facilities or 17 operations consistent with this chapter. Notwithstanding AS 09.55.250, the authority 18 may acquire a fee simple title whenever, in the judgment of the authority, ownership 19 of a fee simple title is necessary to carry out the purposes of this chapter. 20 (b) The authority may file a declaration of taking in the manner provided for 21 the state under AS 09.55.420. 22 Sec. 30.21.160. Indemnification. (a) If the person acted in good faith on 23 behalf of the authority and within the scope of the person's official duties or powers, 24 the authority may defend and indemnify a current or former member of the board, 25 employee, or agent of the authority against all costs, expenses, judgments, and 26 liabilities, including attorney fees, incurred by or imposed upon that person in 27 connection with a civil or criminal action in which the person is involved by affiliation 28 with the authority. 29 (b) The authority may purchase insurance to protect and hold personally 30 harmless its board members, employees, and agents from an action, claim, or 31 proceeding arising out of the performance, purported performance, or failure of

01 performance, in good faith, of duties for, or employment with, the authority and to 02 hold them harmless from expenses connected with the defense, settlement, or 03 monetary judgments from that action, claim, or proceeding. The purchase of 04 insurance is discretionary with the board, and insurance is not considered to be 05 compensation to the insured person. 06 Sec. 30.21.170. Insurance. Except as provided in AS 30.21.160(b), the 07 authority shall protect its assets, services, and employees by purchasing insurance or 08 providing for certain self-insurance retentions. The authority shall also maintain 09 casualty, property, and other insurance in amounts reasonably calculated to cover 10 potential claims against the authority or state for bodily injury, death, or disability and 11 property damage that may arise from or be related to authority operations and 12 activities. 13 Sec. 30.21.180. Fidelity bond. The authority shall obtain a fidelity bond in an 14 amount determined by the board for members of the board and for each executive 15 officer responsible for accounts and finances. A bond must be in effect during the 16 entire tenure in office of the bonded person. 17 Article 3. Revenue Bonds and Notes. 18 Sec. 30.21.200. Bonds and notes of the authority. (a) The authority, by 19 resolution, may issue revenue bonds and bond anticipation notes in order to provide 20 funds to carry out the purposes of this chapter. Before issuing bonds for a project 21 under this chapter, the authority must find, on the basis of all information reasonably 22 available to the authority, that 23 (1) the project and its development under this chapter will be 24 economically advantageous to the state and the region and the general public welfare 25 and will contribute to the economic growth of the state and the region within which 26 the authority operates; 27 (2) the project is financially sound and can be expected to produce 28 revenue adequate to repay the bonds with which it is financed; and 29 (3) the scope of the project is sufficient to provide a reasonable 30 expectation of a benefit to the region and the economy of the state. 31 (b) The principal and interest on the revenue bonds or bond anticipation notes

01 authorized and issued under (a) of this section are payable from authority funds. Bond 02 anticipation notes may be payable from the proceeds of the sale of bonds or from the 03 proceeds of the sale of other bond anticipation notes or, in the event bond or bond 04 anticipation note proceeds are not available, the notes may be paid from other funds or 05 assets of the authority. 06 (c) Bonds or bond anticipation notes may be additionally secured by a pledge 07 of a grant or contribution from the federal government, or a corporation, association, 08 institution, or person, or a pledge of money, income, or revenue of the authority from 09 any source. 10 (d) Bonds or bond anticipation notes of the authority may be issued in one or 11 more series and shall be dated, bear interest at the rate or rates a year or within the 12 maximum rate, be in the denomination, be in the form, either coupon or registered, 13 carry the conversion or registration provisions, have the rank or priority, be executed 14 in the manner and form, be payable at the times, from the sources, and in the medium 15 of payment and place or places within or outside the state, be subject to authentication 16 by a trustee or fiscal agent, and be subject to the terms of redemption with or without 17 premium, as the resolution of the authority may provide. Bond anticipation notes shall 18 mature at the time or times that are determined by the authority. Bonds shall mature at 19 a time not exceeding a number of years from their date that is determined by the 20 authority. Before the preparation of definitive bonds or bond anticipation notes, the 21 authority may issue interim receipts or temporary bonds or bond anticipation notes, 22 with or without coupons, exchangeable for bonds or bond anticipation notes when 23 these definitive bonds or bond anticipation notes have been executed and are available 24 for delivery. 25 (e) Bonds or bond anticipation notes may be sold in the manner and on the 26 terms the authority determines. 27 (f) If an officer whose signature or a facsimile of whose signature appears on a 28 bond, note, or coupon attached to them ceases to be an officer before the delivery of 29 the bond, note, or coupon, the signature or facsimile is valid to the same extent as if 30 the officer had remained in office until delivery. 31 Sec. 30.21.210. Covenants. In a resolution of the authority authorizing or

01 relating to the issuance of bonds or bond anticipation notes, the authority has power by 02 provisions in the resolution that will constitute covenants of the authority and 03 contracts with the holders of the bonds or bond anticipation notes to 04 (1) pledge to a payment or purpose all or a part of its revenue to which 05 its right then exists or may thereafter come into existence, and the money derived from 06 the revenue, and the proceeds of bonds or notes; 07 (2) covenant as to the use and disposition of payments of principal or 08 interest received by the authority on loans or other investments held by the authority; 09 (3) covenant as to establishment of reserves or sinking funds and the 10 making of provision for and the regulation and disposition of the reserves or sinking 11 funds; 12 (4) covenant with respect to or against limitations on a right to sell or 13 otherwise dispose of property of any kind; 14 (5) covenant as to bonds and notes to be issued, and their limitations, 15 terms, and conditions, and as to the custody, application, and disposition of the 16 proceeds of the bonds and notes; 17 (6) covenant as to the issuance of additional bonds or notes, or as to 18 limitations on the issuance of additional bonds or notes and the incurring of other 19 debts; 20 (7) covenant as to the payment of the principal of or interest on the 21 bonds or notes, as to the sources and methods of the payment, as to the rank or priority 22 of the bonds or notes with respect to a lien or security, or as to the acceleration of the 23 maturity of the bonds or notes; 24 (8) provide for the replacement of lost, stolen, destroyed, or mutilated 25 bonds or notes; 26 (9) covenant as to the redemption of bonds or notes and privileges of 27 their exchange for other bonds or notes of the authority; 28 (10) covenant to create or authorize the creation of special funds of 29 money to be held in pledge or otherwise for operating expenses, payment or 30 redemption of bonds or notes, reserves, or other purposes; 31 (11) establish the procedure, if any, by which the terms of a contract or

01 covenant with or for the benefit of the holders of bonds or notes may be amended or 02 abrogated, the amount of bonds or notes the holders of which must consent to 03 amendment or abrogation, and the manner in which the consent may be given; 04 (12) covenant as to the custody of property or investments, their 05 safekeeping and insurance, and the use and disposition of insurance money; 06 (13) agree with a corporate trustee that may be a trust company or 07 bank having the powers of a trust company within or outside the state as to the 08 pledging or assigning of revenue or funds to which or in which the authority has rights 09 or an interest; the agreement may further provide for other rights and remedies 10 exercisable by the trustee as may be proper for the protection of the holders of a bond 11 or note of the authority and not otherwise in violation of law and may provide for the 12 restriction of the rights of an individual holder of bonds or notes of the authority; 13 (14) appoint and provide for the duties and obligations of a paying 14 agent or paying agents or other fiduciaries as the resolution may provide within or 15 outside the state; 16 (15) limit the rights of the holders of a bond or note to enforce a pledge 17 or covenant securing the bonds or notes; 18 (16) make covenants other than and in addition to the covenants 19 expressly authorized in this section of like or different character, and to make 20 covenants to do or refrain from doing acts and things as may be necessary or 21 convenient and desirable in order to better secure bonds or notes or that, in the 22 absolute discretion of the authority, will tend to make bonds or notes more marketable, 23 notwithstanding that the covenants, acts, or things may not be enumerated in this 24 section. 25 Sec. 30.21.220. Limitations of issuance of bonds. (a) The authority may not 26 issue bonds in an amount that exceeds the amount of bonds authorized to be issued by 27 the legislature. 28 (b) This section does not apply to the issuance by the authority of refunding 29 bonds or to the issuance by the authority of bonds the proceeds of which are intended 30 to be used to refinance the loans held by the authority. 31 Sec. 30.21.230. Independent financial advisor. In negotiating the private

01 sale of bonds or bond anticipation notes to an underwriter, the authority may retain a 02 financial advisor. A financial advisor retained under this section must be independent 03 from the underwriter. 04 Sec. 30.21.240. Validity of pledge. (a) The pledge of assets or revenue of the 05 authority to the payment of the principal of or interest on an obligation of the authority 06 is valid and binding from the time the pledge is made, and the assets or revenue 07 become immediately subject to the lien of the pledge without physical delivery or 08 further act. The lien of a pledge is valid and binding against all parties having claims 09 in tort, contract, or otherwise against the authority, irrespective of whether those 10 parties have notice of the lien of the pledge. 11 (b) This section does not prohibit the authority from selling assets subject to a 12 pledge, except that a sale may be restricted by the trust agreement or resolution 13 providing for the issuance of the obligations. 14 Sec. 30.21.250. Capital reserve funds. (a) For the purpose of securing one 15 or more issues of its obligations, the authority may establish one or more special 16 funds, called "capital reserve funds," and shall pay into those capital reserve funds (1) 17 money appropriated and made available by the state for the purpose of those funds, (2) 18 proceeds of the sale of its obligations, to the extent provided in the resolution or 19 resolutions of the authority authorizing their issuance, and (3) other money that may 20 be made available to the authority for the purpose of those funds from another source. 21 All money held in a capital reserve fund, except as provided in this section, shall, 22 subject to appropriation, be used as required solely for the payment of the principal of 23 obligations or of the sinking fund payments with respect to those obligations, the 24 purchase or redemption of obligations, the payment of interest on obligations, or the 25 payment of a redemption premium required to be paid when those obligations are 26 redeemed before maturity. However, money in a fund may not be withdrawn from 27 that fund at any time in an amount that would reduce the amount of that fund to less 28 than the capital reserve requirement set out in (b) of this section, except for the 29 purpose of making, with respect to those obligations, payment, when due, of principal, 30 interest, redemption premiums, and the sinking fund payments for the payment of 31 which other money of the authority is not available. Income or interest earned by, or

01 increment to, a capital reserve fund due to the investment of the fund or other amounts 02 in it may be transferred by the authority to other funds or accounts of the authority to 03 the extent that the transfer does not reduce the amount of the capital reserve fund 04 below the capital reserve fund requirement. 05 (b) If the authority decides to issue obligations secured by a capital reserve 06 fund, the obligations may not be issued if the amount in the capital reserve fund is less 07 than a percent, not exceeding 10 percent, of the principal amount of all of those 08 obligations secured by that capital reserve fund then to be issued and then outstanding 09 in accordance with their terms, as may be established by resolution of the authority, 10 called the "capital reserve fund requirement," unless the authority, at the time of 11 issuance of the obligations, deposits in the capital reserve fund from the proceeds of 12 the obligations to be issued or from other sources an amount that, together with the 13 amount then in the fund, will not be less than the capital reserve fund requirement. 14 (c) In computing the amount of a capital reserve fund for the purpose of this 15 section, securities in which all or a portion of the funds are invested shall be valued at 16 par or, if purchased at less than par, at amortized costs as the term is defined by 17 resolution of the authority authorizing the issue of the obligations or by some other 18 reasonable method established by the authority by resolution. Valuation on a 19 particular date must include the amount of interest earned or accrued to that date. 20 (d) To assure the continued operation and solvency of the authority for the 21 carrying out of its corporate purposes, provision is made in (a) of this section for the 22 accumulation in capital reserve funds of an amount equal to their capital reserve fund 23 requirement. 24 (e) The chair of the authority shall annually, not later than January 2, make 25 and deliver to the governor and chairs of the house and senate finance committees a 26 certificate stating the sum, if any, required to restore a capital reserve fund to the 27 capital reserve fund requirement. The legislature may appropriate that sum, and all 28 sums appropriated during the current fiscal year by the legislature for the restoration 29 shall be deposited by the authority in the appropriate capital reserve fund. 30 (f) This section does not create a debt or liability of the state. 31 Sec. 30.21.260. Remedies. A holder of obligations or coupons attached to

01 them issued under the provisions of this chapter, and a trustee under a trust agreement 02 or resolution authorizing the issuance of the obligations, except as restricted by a trust 03 agreement or resolution, either at law or in equity, may enforce all rights granted 04 hereunder or under the trust agreement or resolution, or under another contract 05 executed by the authority under this chapter, and may enforce and compel the 06 performance of all duties required by this chapter or by the trust agreement or 07 resolution to be performed by the authority or by an officer of the authority. 08 Sec. 30.21.270. Negotiable instruments. All obligations and interest 09 coupons attached to them are negotiable instruments under the laws of this state, 10 subject only to applicable provisions for registration. 11 Sec. 30.21.280. Obligations eligible for investment. Obligations issued 12 under the provisions of this chapter are securities in which all public officers and 13 public bodies of the state and its political subdivisions, all insurance companies, trust 14 companies, banking associations, investment companies, executors, administrators, 15 trustees, and other fiduciaries may properly and legally invest funds, including capital 16 in their control or belonging to them. These obligations may be deposited with a state 17 or municipal officer of an agency or political subdivision of the state for a purpose for 18 which the deposit of bonds, notes, or obligations of the state is authorized by law. 19 Sec. 30.21.290. Refunding bonds. (a) The authority may provide for the 20 issuance of refunding bonds for the purpose of refunding an obligation then 21 outstanding that has been issued under the provisions of this chapter, including the 22 payment of redemption premium on them and interest accrued or to accrue to the date 23 of redemption of the obligations. The issuance of the bonds, the maturities and other 24 details of them, the rights of the holders of them, and the rights, duties, and obligations 25 of the authority in respect of them are governed by the provisions of this chapter that 26 relate to the issuance of obligations insofar as those provisions may be appropriate. 27 (b) Refunding bonds may be sold or exchanged for outstanding bonds issued 28 under this chapter, and, if sold, the proceeds may be applied, subject to appropriation 29 and in addition to another authorized purpose, to the purchase, redemption, or payment 30 of the outstanding obligations. Pending the application of the proceeds of refunding 31 bonds, with any other available funds, to the payment of the principal of, accrued

01 interest on, and redemption premium on the obligations being refunded, and, if so 02 provided or permitted in the resolution authorizing the issuance of the refunding bonds 03 or in the trust agreement securing them, to the payment of any interest on the 04 refunding bonds and expenses in connection with the refunding, the proceeds may be 05 invested in direct obligations of, or obligations the principal of and the interest on 06 which are unconditionally guaranteed by, the United States that mature or that will be 07 subject to redemption, at the option of the holders of them, not later than the respective 08 dates when the proceeds, together with the interest accruing on them, will be required 09 for the purposes intended. 10 Sec. 30.21.300. Credit of state not pledged. (a) Obligations issued under 11 the provisions of this chapter do not constitute a debt, liability, or obligation of the 12 state or of a political subdivision of the state or a pledge of the faith and credit of the 13 state or of a political subdivision of the state but are payable solely from the revenue 14 or assets of the authority. Each obligation issued under this chapter must contain on 15 its face a statement that the authority is not obligated to pay the obligation or the 16 interest on the obligation except from the revenue or assets of the authority and that 17 neither the faith and credit nor the taxing power of the state or of a political 18 subdivision of the state is pledged to the payment of the principal of or the interest on 19 the obligation. 20 (b) Expenses incurred by the authority in carrying out the provisions of this 21 chapter are payable from funds provided under this chapter, and liability may not be 22 incurred by the authority in excess of these funds. 23 Sec. 30.21.310. Officers not liable. A member or other officer of the 24 authority is not subject to personal liability or accountability by reason of having 25 executed or issued an obligation. 26 Sec. 30.21.320. Tax exemption. All obligations issued under this chapter are 27 declared to be issued by a body corporate and public of the state and for an essential 28 public and governmental purpose, and the obligations, and the interest and income on 29 and from the obligations, and all fees, charges, funds, revenue, income, and other 30 money pledged or available to pay or secure the payment of the obligations, or interest 31 on the obligations, are exempt from state taxation except for transfer, inheritance, and

01 estate taxes. 02 Article 4. Fiscal Procedures. 03 Sec. 30.21.350. Authority program and financial plan. (a) The authority 04 shall assure the development of a system of results-based operation designed to 05 increase efficiency and effectiveness of facilities, operations, programs, and services 06 of the authority. Toward that end, the authority shall, on an annual basis, identify 07 results-based measures that have been used to work toward achievement of the 08 mission statement and desired results issued by the legislature and of other goals of the 09 authority, and set out the results as measured. The authority shall also prepare a public 10 report that shall be published by January 2 of each year. The report must 11 (1) identify the mission of the authority; 12 (2) identify the goals and objectives the authority will use to achieve 13 the legislature's mission and desired results; 14 (3) include written, defined methods of measuring results that apply to 15 the responsibilities, products, and services of the authority; 16 (4) identify surveys or other methods of gathering user-group opinions 17 that have been used by the authority to identify ways to improve its programs; 18 (5) identify methods of measuring performance when the mission 19 statement and desired results of the authority involve cooperation with other public or 20 private agencies and make recommendations to eliminate duplication of government 21 functions and waste; 22 (6) include the budget requested to carry out the authority's proposed 23 plans in the succeeding fiscal year, including information reflecting the expenditures 24 during the last fiscal year, the expenditures authorized for the current fiscal year, the 25 expenditures proposed for the succeeding fiscal year, an explanation of the services to 26 be provided, the total number of positions for all persons employed or under contract 27 by the agency for personal services, including those rendered for capital improvement 28 projects, the need for the services, and the cost of the services; 29 (7) include a report of receipts of the authority during the last fiscal 30 year, an estimate of receipts during the current fiscal year, and an estimate of receipts 31 for the succeeding fiscal year;

01 (8) identify legislation required to implement the proposed programs 02 and financial plans; 03 (9) include an evaluation of the advantages and disadvantages of 04 specific alternatives to existing or proposed activities or administrative methods of the 05 authority. 06 (b) The report prepared under (a) of this section must describe the relationship 07 of the services provided by the authority to those services provided by other 08 government agencies and nongovernmental organizations. 09 (c) All goals and objectives, plans, programs, estimates, budgets, and other 10 documents forwarded to the governor by the authority under this section are public 11 information on and after the date they are forwarded. 12 Sec. 30.21.360. Program execution. The authority has power to administer 13 its programs and is responsible for the proper management of its facilities and 14 operations. 15 Sec. 30.21.370. Annual report. By January 2 of each year, the authority shall 16 prepare a concise report describing the operations, income, and expenditures for the 17 preceding fiscal year. The report must contain information substantially similar to that 18 required by the United States Securities and Exchange Commission Form 10-K. The 19 report must also include financial statements audited by an independent outside 20 auditor. 21 Sec. 30.21.380. Annual audit. The authority shall have a certified audit of its 22 financial records prepared annually by an independent certified public accountant. 23 Article 5. General Provisions. 24 Sec. 30.21.400. Authority employees. Employees of the authority are not 25 employees of the state. 26 Sec. 30.21.410. Application of existing laws. Unless specifically provided 27 otherwise in this chapter, the following laws do not apply to the operations of the 28 authority: 29 (1) AS 36.30, except as provided in that chapter; 30 (2) AS 39. 31 Sec. 30.21.490. Definitions. In this chapter, unless the context requires

01 otherwise, 02 (1) "authority" means the Interior Rivers Port Authority; 03 (2) "board" means the board of directors of the authority; 04 (3) "bonds" means the bonds issued by the authority under this 05 chapter; 06 (4) "capital improvement" means a project for the construction, 07 rehabilitation, rebuilding, enlarging, or improving of a facility or operation, as 08 determined by the authority to be necessary or desirable for efficient management of 09 the facility or operation by the authority and to best serve the public; 10 (5) "facility or operation" means a facility or operation necessary for 11 the authority to carry out its mission. 12 Sec. 30.21.495. Short title. This chapter may be cited as the Interior Rivers 13 Port Authority Act. 14 * Sec. 3. AS 30.15.010 is amended to read: 15 Sec. 30.15.010. State grants for port facilities construction. To the extent 16 funds are appropriated by the legislature, or from the proceeds from the sale of bonds, 17 the state may make grants to municipalities and regional port authorities to finance a 18 portion of the cost of constructing local, regional, or state port facilities. The state 19 shall participate only in those projects approved by the governor on recommendation 20 of the commissioner. 21 * Sec. 4. AS 30.15.020 is amended to read: 22 Sec. 30.15.020. Criteria for establishing eligibility. (a) Before a grant may 23 be awarded under this chapter, the commissioner shall determine that 24 (1) the grant is for a feasible project; 25 (2) the project is endorsed by resolution of the board of directors of 26 the regional port authority or of the governing body of the sponsoring municipality 27 on its own behalf, or on behalf of a service area in an organized borough if a service 28 area is established to finance and construct port facilities and operate and maintain 29 them once constructed; and 30 (3) the regional port authority or the municipality can clearly 31 demonstrate its ability to finance the local share of project costs.

01 (b) A grant may not be awarded under this chapter for a port facility 02 development project until a study of its feasibility is conducted and submitted with the 03 application for the grant. The project also must be justifiable on the basis of public 04 convenience and necessity. The study shall be conducted by consultants, engineers, or 05 other technical experts, who may be officers or employees of the regional port 06 authority or the municipality [IN] making application for a grant. 07 * Sec. 5. AS 30.15.030 is amended to read: 08 Sec. 30.15.030. Limitation on grants. Grants to municipalities for the 09 development of port facilities may not exceed 10 (1) 90 per cent of project costs for municipalities under 5,000 11 population; 12 (2) 80 per cent of project costs for municipalities 5,000 population and 13 over. 14 * Sec. 6. AS 30.15.070 is amended by adding a new paragraph to read: 15 (5) "regional port authority" includes the Interior Rivers Port Authority 16 authorized under AS 30.21. 17 * Sec. 7. AS 36.30.015(e) is amended to read: 18 (e) The board of directors of the Alaska Railroad Corporation, the board of 19 directors of the Interior Rivers Port Authority, and the board of directors of the 20 Alaska Aerospace Development Corporation shall adopt procedures to govern the 21 procurement of supplies, services, professional services, and construction. The 22 procedures must be substantially equivalent to the procedures prescribed in this 23 chapter and in regulations adopted under this chapter. Notwithstanding the other 24 provisions of this subsection, the Alaska Railroad Corporation, the Interior Rivers 25 Port Authority, and the Alaska Aerospace Development Corporation shall comply 26 with AS 36.30.170(b), and, when the Department of Transportation and Public 27 Facilities authorizes the Alaska Railroad Corporation to perform construction work 28 instead of the Department of Transportation and Public Facilities, the Alaska Railroad 29 Corporation shall use competitive sealed bidding or competitive sealed proposals 30 under AS 36.30.100 - 36.30.270 to procure the supplies, services, professional 31 services, and construction services necessary for the work and, to ensure the state

01 obtains the lowest cost for the project, may submit a bid or proposal for the work. 02 * Sec. 8. AS 36.30.050(c) is amended to read: 03 (c) The lists may be used by the chief procurement officer or an agency when 04 issuing invitations to bid or requests for proposals under this chapter. The lists may be 05 used by the legislative council, the court system, the Interior Rivers Port Authority, 06 and the Alaska Railroad Corporation. 07 * Sec. 9. AS 36.30.990(1) is amended to read: 08 (1) "agency" 09 (A) means a department, institution, board, commission, 10 division, authority, public corporation, the Alaska Pioneers' Home, or other 11 administrative unit of the executive branch of state government; 12 (B) does not include 13 (i) the University of Alaska; 14 (ii) the Alaska Railroad Corporation; 15 (iii) the Alaska Housing Finance Corporation; 16 (iv) a regional Native housing authority created under 17 AS 18.55.996 or a regional electrical authority created under 18 AS 18.57.020; 19 (v) the Department of Transportation and Public 20 Facilities, in regard to the repair, maintenance, and reconstruction of 21 vessels, docking facilities, and passenger and vehicle transfer facilities 22 of the Alaska marine highway system; 23 (vi) the Alaska Aerospace Development Corporation; 24 (vii) the Alaska State Pension Investment Board; 25 (viii) the Alaska Seafood Marketing Institute; 26 (ix) the Interior Rivers Port Authority; 27 * Sec. 10. AS 37.05 is amended by adding a new section to article 1 to read: 28 Sec. 37.05.055. Delegation to the Interior Rivers Port Authority. The 29 commissioner of administration may delegate the performance of the functions under 30 this chapter as they relate to the Interior Rivers Port Authority to the authority and set 31 the criteria and guidelines that shall be followed.

01 * Sec. 11. AS 39.50.200(b) is amended by adding a new paragraph to read: 02 (58) board of directors of the Interior Rivers Port Authority 03 (AS 30.21.020). 04 * Sec. 12. AS 39.52.960(2) is amended to read: 05 (2) "agency" means a department, the office of the governor, or an 06 entity in the executive branch, including but not limited to the University of Alaska, 07 public or quasi-public corporations, boards or commissions, [AND] the Alaska 08 Railroad Corporation, and the Interior Rivers Port Authority; 09 * Sec. 13. AS 39.52.960(4) is amended to read: 10 (4) "board or commission" means a board, commission, authority, or 11 board of directors of a public or quasi-public corporation, established by statute in the 12 executive branch, including the Alaska Railroad Corporation and the Interior 13 Rivers Port Authority, but excluding members of a negotiated regulation making 14 committee under AS 44.62.710 - 44.62.800; 15 * Sec. 14. AS 39.52.960(12) is amended to read: 16 (12) "instrumentality of the state" means a state agency or 17 administrative unit, whether in the legislative, judicial, or executive branch, including 18 such entities as the University of Alaska, the Alaska Railroad Corporation, the 19 Interior Rivers Port Authority, and any public or quasi-public corporations, boards, 20 or commissions; the term includes municipalities; 21 * Sec. 15. AS 44.42.020(a) is amended to read: 22 (a) The department shall 23 (1) plan, design, construct, and maintain all state modes of 24 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 25 and similar facilities; 26 (2) study existing transportation modes and facilities in the state to 27 determine how they might be improved or whether they should continue to be 28 maintained; 29 (3) study alternative means of improving transportation in the state 30 with regard to the economic costs of each alternative and its environmental and social 31 effects;

01 (4) develop a comprehensive, long-range intermodal transportation 02 plan for the state; 03 (5) study alternatives to existing modes of transportation in urban areas 04 and develop plans to improve urban transportation; 05 (6) cooperate and coordinate with and enter into agreements with 06 federal, state, and local government agencies and private organizations and persons in 07 exercising its powers and duties; 08 (7) manage, operate, and maintain state transportation facilities and all 09 docks, floats, breakwaters, and buildings, including all state highways, vessels, 10 railroads, pipelines, and airports [,] and aviation facilities other than ports and port 11 related transportation facilities and operations managed, operated, and 12 maintained by the Interior Rivers Port Authority under AS 30.21; 13 (8) study alternative means of transportation in the state, considering 14 the economic, social, and environmental effects of each alternative; 15 (9) coordinate and develop state and regional transportation systems, 16 considering deletions, additions, and the absence of alterations; 17 (10) develop facility program plans for transportation and state 18 buildings, docks, and breakwaters required to implement the duties set out in this 19 section, including but not limited to functional performance criteria and schedules for 20 completion; 21 (11) supervise and maintain all state automotive and mechanical 22 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of 23 Fish and Game or the Department of Public Safety; for state vehicles maintained by 24 the department, the department shall annually evaluate the cost, efficiency, and 25 commercial availability of natural gas for automotive purposes, and the purpose for 26 which the vehicles are intended to be used, and convert or purchase vehicles to utilize 27 natural gas whenever practicable; the department may participate in joint ventures 28 with public or private partners that will foster the availability of natural gas for all 29 automotive fuel consumers; 30 (12) supervise aeronautics inside the state, under AS 02.10; 31 (13) complete and maintain a current inventory of public facilities,

01 including a projection of the serviceability of the facilities and projections of 02 replacements and additions to facilities needed to provide the level of services 03 programmed by the various user agencies, for municipalities with populations of less 04 than 12,000 and for unincorporated communities, and perform those duties on a 05 cooperative basis with larger municipalities; 06 (14) adopt energy performance standards for public facilities of the 07 state, the construction of which begins after July 1, 1980; the standards shall be based 08 on thermal and lighting energy standards established by the American Society of 09 Heating, Refrigeration and Air Conditioning Engineers as adapted for application in 10 high latitude, cold climate environs; 11 (15) provide planning assistance, including but not limited to energy 12 audits and related technical services, to school districts and regional educational 13 attendance areas to develop and implement 14 (A) standards for the design, construction, and operation of 15 rural educational facilities; and 16 (B) energy conservation measures for rural educational 17 facilities; 18 (16) implement the safety and financial responsibility requirements for 19 air carriers under AS 02.40; 20 (17) inspect weights and measures. 21 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 REGIONAL DEVELOPMENT PLAN. Within one year from the first meeting of the 24 board of directors of the Interior Rivers Port Authority, the board shall prepare and publish a 25 development plan for promoting economic self-sufficiency in the region in which the 26 authority operates. The development plan must include a description of the transportation, 27 energy, water and wastewater management, and tourism infrastructure needs of the region that 28 are necessary to promote regional economic self-sufficiency. The plan must also identify 29 opportunities for private resource development in the region, training programs that are 30 necessary to take advantage of current and future economic opportunities in the region, 31 tourism marketing strategies for the region, and sources of funding for operations and projects

01 of the authority. 02 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 INITIAL APPOINTMENTS. Notwithstanding AS 30.21.020, as added by sec. 2 of 05 this Act, and AS 39.05.055, the governor shall appoint the initial voting members of the board 06 of directors of the Interior Rivers Port Authority to terms as follows: 07 (1) three members to terms of one year; 08 (2) three members to terms of two years; 09 (3) three members to terms of three years. 10 * Sec. 18. This Act takes effect July 1, 2004.