SB 223: "An Act authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation; establishing the Alaska energy efficiency revolving loan fund and relating to the fund; authorizing municipalities and the State of Alaska to borrow money from the Alaska Housing Finance Corporation for the purposes of the Alaska energy efficiency revolving loan fund; and providing for an effective date."
00 SENATE BILL NO. 223 01 "An Act authorizing and relating to the issuance of bonds by the Alaska Housing 02 Finance Corporation; establishing the Alaska energy efficiency revolving loan fund and 03 relating to the fund; authorizing municipalities and the State of Alaska to borrow money 04 from the Alaska Housing Finance Corporation for the purposes of the Alaska energy 05 efficiency revolving loan fund; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 18.56 is amended by adding new sections to read: 08 Sec. 18.56.855. Alaska energy efficiency revolving loan fund. (a) There is 09 established in the corporation the Alaska energy efficiency revolving loan fund to 10 carry out the purposes of AS 18.56.855 - 18.56.860. The revolving loan fund consists 11 of money or assets appropriated or transferred to the corporation for the revolving loan 12 fund, including money and assets deposited in the revolving loan fund by the 13 corporation and earnings on investments of money held in the revolving loan fund.
01 The corporation may establish separate accounts in the fund. The corporation shall 02 establish the interest rates, security provisions, and other terms of a loan made under 03 this section taking into consideration the corporation's cost of funds and other factors 04 the corporation considers appropriate. 05 (b) Money and other assets of the Alaska energy efficiency revolving loan 06 fund may be used to 07 (1) make loans to municipal governments, including subdivisions of 08 municipal governments, or to the state for the purpose of financing energy efficiency 09 improvements to buildings owned by the state or by municipalities in the state; 10 (2) secure bonds issued by the corporation to finance the loans 11 described in (1) of this subsection; 12 (3) pay costs of administering the revolving loan fund; and 13 (4) pay the costs of administering and enforcing the terms of loans 14 made by the corporation from the revolving loan fund. 15 (c) Before a municipal government, or a subdivision of a municipal 16 government, may borrow money from the corporation under this section, the 17 municipal government shall waive any sovereign immunity defense it may have 18 available to it with respect to enforcement of the terms of the loan. A municipal 19 government may waive sovereign immunity to comply with the requirement of this 20 subsection. The state waives any sovereign immunity defense against enforcement of 21 the terms of a loan made to the state under this section. A person or corporation having 22 a claim under this section shall bring an action in a state court in Alaska that has 23 jurisdiction over the claim. 24 (d) All municipal governments within the state are authorized to borrow from 25 the corporation under this section. At the discretion of the corporation, a borrowing by 26 a municipal government under this section may be effected by use of a loan agreement 27 or similar document evidencing and setting out the terms of the loan or by issuance of 28 a bond by the municipal government to the corporation. Notwithstanding a charter 29 provision requiring public sale by a municipality of its municipal bonds or other 30 indebtedness, a municipality may sell its bonds under this section to the corporation at 31 a negotiated, private sale. At the discretion of the corporation, the bonds or other
01 indebtedness of the municipality may be general obligations of the municipality or 02 may be secured by an identified revenue source or may be secured by a combination 03 of the full faith and credit of the municipality and an identified revenue source. 04 (e) Notwithstanding any other provision of law, to the extent that any 05 department or agency of the state is the custodian of money payable to a municipality, 06 at any time after written notice to the department or agency head from the corporation 07 that the municipality is in default on the payment of principal or interest on municipal 08 bonds or other indebtedness then held or owned by the corporation, or amounts due 09 under an agreement between the corporation and a municipality, the department or 10 agency shall withhold the payment of that money from that municipality and pay over 11 the money to the corporation for the purpose of paying principal of and interest on the 12 bonds or indebtedness. The notice must be given in each instance of default. If a notice 13 is given under this subsection and under AS 44.85.150 and the default is continuing 14 under this subsection and under AS 44.85.150, the department or agency shall make 15 payment to the corporation and to the Alaska municipal bond bank authority on a pro 16 rata basis taking into consideration the principal amount of the respective default 17 amounts. 18 (f) An authorized state officer may borrow from the corporation under this 19 section for buildings owned by the state. 20 (g) In addition to other security that may be given with respect to a loan made 21 under this section, the corporation may require a deed of trust on the building that is 22 the subject of the energy efficiency loan and the real estate on which the building is 23 located. A municipality may grant a deed of trust to the corporation as needed for this 24 purpose. The authorized state officer may grant a deed of trust to the corporation as 25 needed for this purpose. 26 (h) This section applies to home rule municipalities. 27 (i) In this section, "authorized state officer" means 28 (1) the commissioner of the department of the state for a building 29 owned by the state; 30 (2) the executive director of a public corporation for a building owned 31 by the public corporation;
01 (3) the legislative council for a building owned by the legislature; 02 (4) the administrative director of courts for a building owned by the 03 judicial system; 04 (5) any other person designated in writing by a person listed in (1) - (4) 05 of this subsection. 06 Sec. 18.56.860. Administration. The corporation shall administer the Alaska 07 energy efficiency revolving loan fund in accordance with regulations adopted by the 08 corporation. The corporation may adopt regulations under AS 18.56.088 to carry out 09 the purposes of AS 18.56.855 - 18.56.860. 10 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 BOND AUTHORIZATION AND PROVISIONS. (a) In addition to the powers in 13 AS 18.56.090, the Alaska Housing Finance Corporation may issue bonds in an amount not to 14 exceed $250,000,000 to make loans from the energy efficiency revolving loan fund 15 established by AS 18.56.855, enacted by sec. 1 of this Act, for energy efficiency 16 improvements to state and municipal buildings in the state and to finance the other purposes 17 permitted by AS 18.56.855, enacted by sec. 1 of this Act. AS 18.56.110 - 18.56.190 and 18 18.56.855 - 18.56.860, enacted by sec. 1 of this Act, apply to bonds issued under this section, 19 except that bonds issued under this section are not subject to, and may not be counted against, 20 the bond issuance limitation set out in AS 18.56.110(g). 21 (b) The Alaska Housing Finance Corporation shall deposit the proceeds of bonds 22 issued under (a) of this section in the Alaska energy efficiency revolving loan fund in 23 accordance with AS 18.56.855, enacted by sec. 1 of this Act. 24 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 27 heading of art. 6 of AS 18.56 from "Article 6. Energy Conservation" to "Article 6. Energy 28 Efficiency and Conservation Programs." 29 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).