CSHB 381(FIN): "An Act relating to the financing of construction, major maintenance, and renovation of certain capital projects; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco Securitization Corporation, and relating to that sale and the use of the revenue; authorizing the Northern Tobacco Securitization Corporation to issue bonds and use the proceeds to acquire the right to receive a portion of anticipated revenue from a tobacco litigation settlement and for other purposes, and relating to those bonds; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 381(FIN) 01 "An Act relating to the financing of construction, major maintenance, and renovation of 02 certain capital projects; authorizing the commissioner of revenue to sell the right to 03 receive a portion of the anticipated revenue from a tobacco litigation settlement to the 04 Northern Tobacco Securitization Corporation, and relating to that sale and the use of 05 the revenue; authorizing the Northern Tobacco Securitization Corporation to issue 06 bonds and use the proceeds to acquire the right to receive a portion of anticipated 07 revenue from a tobacco litigation settlement and for other purposes, and relating to 08 those bonds; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 AUTHORITY TO ISSUE BONDS. (a) The Northern Tobacco Securitization
01 Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created 02 under AS 18.56.086, is authorized to issue bonds and to use the proceeds of the bonds to 03 acquire the right to receive additional revenue described in (b) of this section. The proceeds of 04 the bonds may also be used to (1) defease, redeem, or otherwise pay principal and interest on 05 the bonds issued under sec. 10, ch. 130, SLA 2000, and sec. 4, ch. 96, SLA 2001; (2) pay the 06 costs of issuance of the bonds authorized by this section; and (3) fund any reserve funds the 07 Northern Tobacco Securitization Corporation considers necessary or desirable to secure the 08 bonds authorized by this section. The Northern Tobacco Securitization Corporation may 09 determine the principal amount, redemption provisions, maturity or maturities, interest rate or 10 rates that will apply to the bonds, whether to issue the bonds in one series or in more than one 11 series, and whether to issue all the bonds at the same time. In carrying out duties under this 12 subsection, the Northern Tobacco Securitization Corporation must make reasonable efforts to 13 maximize the principal amount of the bonds that it can issue, taking into consideration that the 14 sole security for payment of the bonds is that described in sec. 2 of this Act. 15 (b) The commissioner of revenue is authorized to enter into an agreement, or modify 16 the existing agreement or agreements, with the Northern Tobacco Securitization Corporation 17 for the sale to, or to the order of, the Northern Tobacco Securitization Corporation of the 18 revenue that otherwise would revert to the state when the bonds authorized by sec. 10, ch. 19 130, SLA 2000 and sec. 4, ch. 96, SLA 2001 are no longer considered to be outstanding under 20 the terms of the documents authorizing their issuance, and for the continuation, for as long as 21 any bonds authorized by (a) of this section are outstanding under the terms of the documents 22 authorizing their issuance, of the right of the Northern Tobacco Securitization Corporation to 23 receive revenue under the agreement or agreements between the state and the Northern 24 Tobacco Securitization Corporation securing payment of the bonds authorized by sec. 10, ch. 25 130, SLA 2000, and sec. 4, ch. 96, SLA 2001. The agreement or modification must provide 26 that (1) the Northern Tobacco Securitization Corporation, or its assignee, has the right to 27 receive all revenue under the agreement, or under the modification, authorized by this 28 subsection, for as long as any bonds authorized by (a) of this section are considered to be 29 outstanding under the terms of the documents authorizing their issuance; (2) the agreement or 30 modification is the legally binding agreement of the state enforceable against the state by the 31 holders of the bonds authorized by (a) of this section, or a trustee on their behalf, each of
01 whom shall be considered a third-party beneficiary of the agreement or modification; and (3) 02 the Northern Tobacco Securitization Corporation may include the statement contained in (2) 03 of this subsection in agreements with holders of the bonds authorized by (a) of this section. 04 The sale of the right to receive revenue under this subsection is of the revenue stream that 05 reverts to the state following the full repayment of the bonds authorized by sec. 10, ch. 130, 06 SLA 2000, and sec. 4, ch. 96, SLA 2001, which is 80 percent of the entire revenue stream the 07 state is entitled to receive under Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 08 CI (Alaska Super. 1997). 09 (c) The Department of Revenue shall contract with the Alaska Housing Finance 10 Corporation to hold, administer, and invest the proceeds of the sale authorized under (b) of 11 this subsection. The proceeds of the sale that are in excess of the amount required for the 12 purposes described in (a)(1) - (3) of this section are expected to be at least $139,487,500. The 13 Department of Revenue shall deposit these excess proceeds into a capital projects fund that 14 preserves the tax-exempt status of the interest on the bonds authorized by (a) of this section. 15 The Department of Revenue shall take all necessary measures to preserve the tax-exempt 16 status of the interest earned on the bonds. 17 (d) Subject to appropriation, $139,487,500 of the excess proceeds deposited into the 18 capital projects fund under (c) of this section shall be used for design, construction, major 19 maintenance, and renovation of capital projects, including reimbursement to the University of 20 Alaska for expenditures for projects, as follows: 21 PROJECT 22 University of Alaska - Systemwide 23 Critical Building Deficiencies $8,655,000 24 Required Renewal and Renovation 10,250,000 25 for Program Delivery 26 University of Alaska - Code and Compliance 27 Anchorage/Fairbanks/Southeast Campuses 13,050,000 28 Other Campuses 2,295,000 29 University of Alaska - Anchorage 30 Integrated Science Facility - Phase III 55,000,000 31 University of Alaska - Fairbanks
01 Museum Completion 1,000,000 02 Anchorage - Raspberry Road Extension 1,500,000 03 Glenn Bragaw Interchange, Phase II 8,500,000 04 Chugiak - Birchwood Eagle River, Rural Road Service 05 Area: Road and Drainage System Rehabilitation 2,000,000 06 Nome - Nome Joint Utilities, Nome Power Plant 4,000,000 07 Bethel - Yukon-Kuskokwim Health Corporation: Prematernal 08 Home Construction 2,000,000 09 Northwest Arctic Borough - Kivalina Shoreline Protection 1,650,000 10 Kenai - Kenai Peninsula Borough: Borough-wide Road Upgrades 1,800,000 11 Department of Transportation and Public Facilities: Wik 12 Road Improvements 2,000,000 13 Wrangell - Heritage Harbor Float System 2,200,000 14 Ketchikan - Alaska Industrial Development and Export 15 Authority: Ketchikan Shipyard Improvements 2,740,000 16 Juneau - Juneau Community Foundation: Recreation/Sports 17 Complex Design and Construction 4,000,000 18 Kodiak - City of Kodiak: Municipal Airport Improvements 700,000 19 Kodiak Island Borough: Ouzinkie Dock Replacement 570,000 20 Seward - City of Seward: Seward T Dock Expansion 1,200,000 21 Valdez - Small Boat Harbor Improvements 1,000,000 22 Southeast Islands - City of Craig: Ward Cove Cannery 23 Renovation and Upgrades 1,000,000 24 Hoonah: Marine Industrial Center, Phase II 1,000,000 25 Skagway: Dahl Memorial Clinic Construction 500,000 26 Matanuska-Susitna - Palmer: Sewer and Water Extension to 27 Matanuska Regional Hospital 2,000,000 28 Matanuska-Susitna Borough: Borough-wide Road 29 Upgrades 4,000,000 30 Fairbanks - City of Fairbanks: City-wide Road 31 Improvements and Upgrades 1,112,000
01 Fairbanks North Star Borough: Borough - wide 02 Road Improvements and Upgrades 3,765,500 03 TOTAL $139,487,500 04 (e) When the bonds authorized under (a) of this section are no longer considered to be 05 outstanding under the provisions of the documents under which they are issued, the residual 06 revenue stream derived from the settlement of State of Alaska v. Philip Morris, Incorporated, 07 et al, No. IJU-97-915 CI (Alaska Super. 1997) that secured repayment of those bonds reverts 08 to the state, and, at that time, the Northern Tobacco Securitization Corporation shall take the 09 actions that are necessary to complete this reversion. 10 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 SPECIFIC PROVISIONS RELATED TO BOND AUTHORIZATION. (a) The bonds 13 authorized under sec. 1(a) of this Act may be special, limited obligations of the Northern 14 Tobacco Securitization Corporation and may only be secured by (1) the revenues sold to the 15 Northern Tobacco Securitization Corporation under sec. 9, ch. 130, SLA 2000, sec. 3, ch. 96, 16 SLA 2001, and the agreement or modification authorized under sec. 1(b) of this Act; and by 17 (2) the right, title, and interest of the Northern Tobacco Securitization Corporation in and to 18 any agreements between the Northern Tobacco Securitization Corporation and the state 19 entered into under sec. 9, ch. 130, SLA 2000, sec. 3, ch. 96, SLA 2001, or sec. 1(b) of this 20 Act. 21 (b) The Northern Tobacco Securitization Corporation may include in agreements with 22 the bondholders a pledge of the right to receive revenues identified in (a)(1) of this section 23 and all rights of the Northern Tobacco Securitization Corporation under agreements identified 24 in (a)(2) of this section, and may also include the promise of the state to honor that pledge. A 25 pledge made under this subsection is subject to the provisions of AS 18.56.120, and bonds 26 issued under sec. 1(a) of this Act are subject to the provisions of AS 18.56.170, in each case 27 as though "corporation" in those statutes means the Northern Tobacco Securitization 28 Corporation. 29 (c) In this section, "Northern Tobacco Securitization Corporation" means the 30 subsidiary corporation of the Alaska Housing Finance Corporation created under 31 AS 18.56.086.