CSSB 73(FIN) am H: "An Act relating to reimbursement of municipal bonds for school construction; relating to a lease-purchase agreement for the construction, equipping, and financing of a state virology laboratory in Fairbanks to be operated by the Department of Health and Social Services; relating to the issuance of certificates of participation for the laboratory; relating to the use of certain investment income for certain construction and equipment costs for the laboratory; authorizing financing for certain public transportation projects; giving notice of and approving the entry into, and the issuance of revenue obligations that provide participation in, lease-financing agreements for those transportation projects; and providing for an effective date."
00 CS FOR SENATE BILL NO. 73(FIN) am H 01 "An Act relating to reimbursement of municipal bonds for school construction; relating 02 to a lease-purchase agreement for the construction, equipping, and financing of a state 03 virology laboratory in Fairbanks to be operated by the Department of Health and Social 04 Services; relating to the issuance of certificates of participation for the laboratory; 05 relating to the use of certain investment income for certain construction and equipment 06 costs for the laboratory; authorizing financing for certain public transportation 07 projects; giving notice of and approving the entry into, and the issuance of revenue 08 obligations that provide participation in, lease-financing agreements for those 09 transportation projects; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 12 to read:
01 INTENT. It is the intent of the legislature that the amount of money to be used for the 02 construction and equipping of a new state virology laboratory in Fairbanks is $24,200,000. 03 Of that amount, it is the intent of the legislature that 04 (1) $24,000,000 shall come from the proceeds of the certificates of 05 participation to be issued by the state bond committee under sec. 4 of this Act; and 06 (2) $200,000 shall come from the investment income earned on the proceeds 07 of the sale of the certificates of participation described in sec. 4 of this Act. 08 * Sec. 2. AS 14.11.100(a) is amended to read: 09 (a) During each fiscal year, the state shall allocate to a municipality that is a 10 school district the following sums: 11 (1) payments made by the municipality during the fiscal year two years 12 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 13 indebtedness incurred before July 1, 1977, to pay costs of school construction; 14 (2) 90 percent of 15 (A) payments made by the municipality during the fiscal year 16 two years earlier for the retirement of principal and interest on outstanding 17 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 18 July 1, 1978, to pay costs of school construction; 19 (B) cash payments made after June 30, 1976, and before July 1, 20 1978, by the municipality during the fiscal year two years earlier to pay costs 21 of school construction; 22 (3) 90 percent of 23 (A) payments made by the municipality during the fiscal year 24 two years earlier for the retirement of principal and interest on outstanding 25 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 26 January 1, 1982, to pay costs of school construction projects approved under 27 AS 14.07.020(a)(11); 28 (B) cash payments made after June 30, 1978, and before July 1, 29 1982, by the municipality during the fiscal year two years earlier to pay costs 30 of school construction projects approved under AS 14.07.020(a)(11); 31 (4) subject to (h) and (i) of this section, up to 90 percent of
01 (A) 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 incurred after December 31, 1981, and authorized 04 by the qualified voters of the municipality before July 1, 1983, to pay costs of 05 school construction, additions to schools, and major rehabilitation projects that 06 exceed $25,000 and are approved under AS 14.07.020(a)(11); 07 (B) cash payments made after June 30, 1982, and before July 1, 08 1983, by the municipality during the fiscal year two years earlier to pay costs 09 of school construction, additions to schools, and major rehabilitation projects 10 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 11 (C) payments made by the municipality during the current 12 fiscal year for the retirement of principal and interest on outstanding bonds, 13 notes, or other indebtedness to pay costs of school construction, additions to 14 schools, and major rehabilitation projects that exceed $25,000 and are 15 submitted to the department for approval under AS 14.07.020(a)(11) before 16 July 1, 1983, and approved by the qualified voters of the municipality before 17 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 18 annual growth rate of average daily membership of the municipality is more 19 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 20 growth rate of average daily membership of the municipality is 12 percent or 21 more; payments made by a municipality under this subparagraph on total 22 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 23 are subject to (5)(A) of this subsection; 24 (5) subject to (h) - (j) of this section, 80 percent of 25 (A) payments made by the municipality during the fiscal year 26 for the retirement of principal and interest on outstanding bonds, notes, or 27 other indebtedness authorized by the qualified voters of the municipality 28 (i) after June 30, 1983, but before March 31, 1990, to 29 pay costs of school construction, additions to schools, and major 30 rehabilitation projects that exceed $25,000 and are approved under 31 AS 14.07.020(a)(11); or
01 (ii) before July 1, 1989, and reauthorized before 02 November 1, 1989, to pay costs of school construction, additions to 03 schools, and major rehabilitation projects that exceed $25,000 and are 04 approved under AS 14.07.020(a)(11); and 05 (B) cash payments made after June 30, 1983, by the 06 municipality during the fiscal year two years earlier to pay costs of school 07 construction, additions to schools, and major rehabilitation projects that exceed 08 $25,000 and are approved by the department before July 1, 1990, under 09 AS 14.07.020(a)(11); 10 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 11 made by the municipality during the fiscal year for the retirement of principal and 12 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 13 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 14 costs of school construction, additions to schools, and major rehabilitation projects 15 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 16 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 17 made by the municipality during the fiscal year for the retirement of principal and 18 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 19 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 20 costs of school construction, additions to schools, and major rehabilitation projects; 21 (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 22 projects funded by the bonds, notes, or other indebtedness have been approved by the 23 commissioner, 70 percent of payments made by the municipality during the fiscal year 24 for the retirement of principal and interest on outstanding bonds, notes, or other 25 indebtedness authorized by the qualified voters of the municipality on or after July 1, 26 1995, but before July 1, 1998, to pay costs of school construction, additions to 27 schools, and major rehabilitation projects that exceed $200,000 and are approved 28 under AS 14.07.020(a)(11); 29 (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 30 projects funded by the bonds, notes, or other indebtedness have been approved by the 31 commissioner, 70 percent of payments made by the municipality during the fiscal year
01 for the retirement of principal and interest on outstanding bonds, notes, or other 02 indebtedness authorized by the qualified voters of the municipality on or after July 1, 03 1998, but before July 1, 2006, to pay costs of school construction, additions to 04 schools, and major rehabilitation projects that exceed $200,000 and are approved 05 under AS 14.07.020(a)(11); 06 (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after 07 projects funded by the bonds, notes, or other indebtedness have been approved by the 08 commissioner, 70 percent of payments made by the municipality during the fiscal year 09 for the retirement of principal and interest on outstanding bonds, notes, or other 10 indebtedness authorized by the qualified voters of the municipality on or after June 30, 11 1998, to pay costs of school construction, additions to schools, and major 12 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 13 and are not reimbursed under (n) of this section; 14 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 15 funded by the bonds, notes, or other indebtedness have been approved by the 16 commissioner, 70 percent of payments made by a municipality during the fiscal year 17 for the retirement of principal and interest on outstanding bonds, notes, or other 18 indebtedness authorized by the qualified voters of the municipality on or after June 30, 19 1999, but before January 1, 2005, to pay costs of school construction, additions to 20 schools, and major rehabilitation projects and education-related facilities that exceed 21 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 22 or (o) of this section; 23 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 24 of payments made by a municipality during the fiscal year for the retirement of 25 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 26 the qualified voters of the municipality on or after June 30, 1999, but before January 1, 27 2005, to pay costs of school construction, additions to schools, and major 28 rehabilitation projects and education-related facilities that exceed $200,000, are 29 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 30 section; 31 (13) subject to (h), (i), and (j)(2) - (5) of this section, and after
01 projects funded by the tax exempt bonds, notes, or other indebtedness have been 02 approved by the commissioner, 70 percent of payments made by a municipality 03 during the fiscal year for the retirement of principal and interest on outstanding 04 tax exempt bonds, notes, or other indebtedness authorized by the qualified voters 05 of the municipality on or after June 30, 1999, but before October 31, 2006, to pay 06 costs of school construction, additions to schools, and major rehabilitation 07 projects and education-related facilities that exceed $200,000, are approved 08 under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 09 section; 10 (14) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 11 percent of payments made by a municipality during the fiscal year for the 12 retirement of principal and interest on outstanding tax exempt bonds, notes, or 13 other indebtedness authorized by the qualified voters of the municipality on or 14 after June 30, 1999, but before October 31, 2006, to pay costs of school 15 construction, additions to schools, and major rehabilitation projects and 16 education-related facilities that exceed $200,000, are reviewed under 17 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section. 18 * Sec. 3. AS 14.11.100(j) is amended to read: 19 (j) Except as provided in (l) of this section, the state may not allocate money 20 to a municipality for a school construction project under (a)(5), (6), or (7) of this 21 section unless the municipality complies with the requirements of (1) - (5) of this 22 subsection, the project is approved by the commissioner before the local vote on the 23 bond issue for the project or for bonds authorized after March 31, 1990, but on or 24 before April 30, 1993, the bonds are approved by the commissioner before 25 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 26 June 30, 1988. In approving a project under this subsection, and to the extent required 27 under (a)(8) - (14) [(a)(8) - (12)] of this section, the commissioner shall require 28 (1) the municipality to include on the ballot for the bond issue, for 29 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 30 total cost of each project including estimated total interest, estimated annual operation 31 and maintenance costs, the estimated amounts that will be paid by the state and by the
01 municipality, and the approximate amount that would be due in annual taxes on 02 $100,000 in assessed value to retire the debt; 03 (2) that the bonds may not be refunded unless the annual debt service 04 on the refunding issue is not greater than the annual debt service on the original issue; 05 (3) that the bonds must be repaid in approximately equal annual 06 principal payments or approximately equal debt service payments over a period of at 07 least 10 years; 08 (4) the municipality to demonstrate need for the project by establishing 09 that the school district has 10 (A) projected long-term student enrollment that indicates the 11 district has inadequate facilities to meet present or projected enrollment; 12 (B) facilities that require repair or replacement in order to meet 13 health and safety laws or regulations or building codes; 14 (C) demonstrated that the project will result in a reduction in 15 annual operating costs that economically justifies the cost of the project; or 16 (D) facilities that require modification or rehabilitation for the 17 purpose of improving the instructional program; 18 (5) evidence acceptable to the department that the district 19 (A) has a preventive maintenance plan that 20 (i) includes a computerized maintenance management 21 program, cardex system, or other formal systematic means of tracking 22 the timing and costs associated with planned and completed 23 maintenance activities, including scheduled preventive maintenance; 24 (ii) addresses energy management for buildings owned 25 or operated by the district; 26 (iii) includes a regular custodial care program for 27 buildings owned or operated by the district; 28 (iv) includes preventive maintenance training for 29 facility managers and maintenance employees; and 30 (v) includes renewal and replacement schedules for 31 electrical, mechanical, structural, and other components of facilities
01 owned or operated by the district; and 02 (B) is adequately following the preventive maintenance plan. 03 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE- 06 PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of 07 Administration is authorized to enter into a lease-purchase agreement for a state virology 08 laboratory in Fairbanks to be constructed under the lease-purchase agreement and to be 09 operated by the Department of Health and Social Services. 10 (b) The state bond committee is authorized to provide for the issuance of certificates 11 of participation in one or more series in the aggregate principal amount of $24,000,000 for 12 the construction of a state virology laboratory in Fairbanks under the lease-purchase 13 agreement authorized in (a) of this section. The remaining balance of the construction and 14 equipping costs shall be paid from investment income of $200,000 earned on the proceeds of 15 the sale of the certificates of participation. The estimated total cost of construction, 16 acquisition, and other costs of the project is $24,200,000. The estimated annual amount of 17 rental obligations under the lease-purchase agreement is $2,375,000. The estimated total 18 lease payment for the full term of the lease-purchase agreement is $35,572,890. In this 19 subsection, "cost of construction" includes credit enhancement and underwriting expenses, 20 rating agency fees, bond counsel fees, financial advisor fees, printing fees, advertising fees, 21 capitalized interest, and interest earnings used for lease payments. 22 (c) The state bond committee may contract for credit enhancement, underwriting, 23 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that 24 the committee considers necessary in financing the project described in this section. 25 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 APPROVAL OF AGREEMENT. Section 4 of this Act constitutes the approval 28 required by AS 36.30.085. 29 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSPORTATION PROJECT ALLOCATION. The Department of Transportation
01 and Public Facilities shall allocate the net proceeds derived from the sale of revenue 02 obligations authorized in sec. 9 of this Act for construction or acquisition of the following 03 state transportation projects among those projects as follows, subject to reallocation among 04 the projects under AS 37.07.080(e): 05 PROJECT ALLOCATION 06 (1) Anchorage: Glenn Highway congestion $ 37,500,000 07 (2) Anchorage: Lake Otis and Tudor intersection improvements 4,300,000 08 (3) Fairbanks: Gaffney Road upgrade 6,250,000 09 (4) Matanuska-Susitna Borough: Upgrade Old Glenn Highway 6,000,000 10 Plumley Road to City of Palmer 11 (5) Matanuska-Susitna Borough: Palmer-Wasilla Highway 6,000,000 12 expansion 13 (6) Richardson Highway passing lane additions 5,000,000 14 mileposts 265 - 341 15 (7) Glacier Highway: road extension 5,000,000 16 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 19 Department of Transportation and Public Facilities is delegated the Department of 20 Administration's authority under AS 36.30.085 to enter into lease-financing agreements in 21 connection with the issuance of revenue obligations to finance the state transportation projects 22 described in sec. 6 of this Act. 23 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 26 financing agreements executed under sec. 7 of this Act are subject to annual appropriation by 27 the legislature. 28 (b) The legislature intends that federal money in the form of apportionments from the 29 Federal Highway Administration for federal highway grants will provide revenue that may be 30 appropriated for the lease payments; however, if that revenue source is insufficient, the 31 payments may be appropriated from any other valid revenue source.
01 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE 04 OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and 05 Public Facilities is authorized to enter into lease-financing agreements for the issuance of 06 revenue obligations for the state transportation projects described in sec. 6 of this Act. 07 (b) The state bond committee is authorized to provide for the issuance of revenue 08 obligations in one or more series in the aggregate principal amount of $71,175,000 for the 09 costs of construction of the projects described in sec. 6 of this Act. The principal amount 10 includes the estimated cost of $70,050,000 for constructing, acquiring, and equipping the 11 projects described in sec. 6 of this Act; and an amount for the cost of issuing the revenue 12 obligations of $1,125,000. The estimated annual amount of rental obligations under the lease- 13 financing agreements is $6,130,000. The estimated total lease payments for the full term of 14 the lease-financing agreements is $98,080,000. 15 (c) The average annual debt service on revenue obligations to be issued under this Act 16 may not exceed 25 percent of the most recent annual obligation authority received by the 17 State of Alaska from the Federal Highway Administration for the state's federal highway 18 program. As further protection for the holders of the revenue obligations, the resolution of the 19 state bond committee authorizing the issuance of the revenue obligations authorized under 20 this Act shall include the same percentage limitation on the average annual debt service for all 21 outstanding revenue obligations payable from the State of Alaska's federal highway program. 22 (d) The state bond committee may contract for credit enhancement, underwriting, 23 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 24 committee considers necessary in financing the projects described in sec. 6 of this Act. 25 (e) There is created the 2005 state transportation project fund. The proceeds of the 26 revenue obligations issued under this Act shall be deposited into the 2005 state transportation 27 project fund. 28 (f) In this section, 29 (1) "costs of construction" includes credit enhancement and underwriting 30 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee 31 fees, and interest earnings used for lease payments;
01 (2) "revenue obligation" means a certificate of participation in the right to 02 receive a payment under a lease-financing agreement made to finance the costs of 03 construction or acquisition of a state transportation project. 04 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 NOTICE AND APPROVAL OF AGREEMENTS. Section 9 of this Act constitutes 07 the notice and approval of lease-financing agreements to finance the transportation projects 08 described in sec. 6 of this Act that is required by AS 36.30.085. 09 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 STATE TRANSPORTATION PROJECTS IN METROPOLITAN PLANNING 12 AREAS. If an amount allocated in sec. 4 of this Act for a state transportation project in a 13 metropolitan planning area is not sufficient to complete the project, it is the intent of the 14 legislature that the metropolitan planning organization for the metropolitan planning area 15 include the project in the organization's transportation improvement program and fund the 16 project to completion. 17 * Sec. 12. Sections 6 - 11 of this Act take effect July 1, 2005. 18 * Sec. 13. Sections 1, 4 and 5 of this Act take effect immediately under AS 01.10.070(c).