00                            SENATE BILL NO. 73                                                                          
01 "An Act relating to a lease-purchase agreement for the construction, equipping, and                                     
02 financing of a state virology laboratory in Fairbanks, on land provided by the University                               
03 of Alaska, Fairbanks, to be operated by the Department of Health and Social Services;                                   
04 relating to the issuance of certificates of participation for the laboratory; relating to the                           
05 use of certain investment income for certain construction and equipment costs for the                                   
06 laboratory; and providing for an effective date."                                                                       
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
09 to read:                                                                                                                
10       INTENT.  It is the intent of the legislature that the amount of money to be used for the                          
11 construction and equipping of a new state virology laboratory in Fairbanks, on land provided                            
12 by the University of Alaska, Fairbanks, is $24,200,000.  Of that amount, it is the intent of the                        
13 legislature that                                                                                                        

01            (1)  $24,000,000 shall come from the proceeds of the certificates of                                         
02 participation to be issued by the state bond committee under sec. 2 of this Act; and                                    
03            (2)  $200,000 shall come from the investment income earned on the proceeds                                   
04 of the sale of the certificates of participation described in sec. 2 of this Act.                                       
05    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE-                                                       
08 PURCHASE AGREEMENT.  (a)  Subject to annual appropriation, the Department of                                            
09 Administration is authorized to enter into a lease-purchase agreement for a state virology                              
10 laboratory in Fairbanks to be constructed under the lease-purchase agreement and to be                                  
11 operated by the Department of Health and Social Services.                                                               
12       (b)  The state bond committee is authorized to provide for the issuance of certificates                           
13 of participation in one or more series in the aggregate principal amount of  $24,000,000 for                            
14 the construction of a state virology laboratory in Fairbanks under the lease-purchase                                   
15 agreement authorized in (a) of this section.  The remaining balance of the construction and                             
16 equipping costs shall be paid from investment income of $200,000 earned on the proceeds of                              
17 the sale of the certificates of participation.  The estimated total cost of construction,                               
18 acquisition, and other costs of the project is $24,200,000.  The estimated annual amount of                             
19 rental obligations under the lease-purchase agreement is $2,375,000.  The estimated total                               
20 lease payment for the full term of the lease-purchase agreement is $35,572,890.  In this                                
21 subsection, "cost of construction" includes credit enhancement and underwriting expenses,                               
22 rating agency fees, bond counsel fees, financial advisor fees, printing fees, advertising fees,                         
23 capitalized interest, and interest earnings used for lease payments.                                                    
24       (c)  The state bond committee may contract for credit enhancement, underwriting,                                  
25 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that                       
26 the committee considers necessary in financing the project described in this section.                                   
27    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                   
29       APPROVAL OF AGREEMENT.  Section 2 of this Act constitutes the approval                                            
30 required by AS 36.30.085.                                                                                               
31    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).