Enrolled HB 119: Relating to the procurement of supplies, services, professional services, and construction for the Alaska Industrial Development and Export Authority; relating to the definition of "own" for the economic development account; relating to the definitions of "development project," "plant," "facility," and "project" for the Alaska Industrial Development and Export Authority; relating to the Alaska Industrial Development and Export Authority creating subsidiaries regarding projects financed under AS 44.88.172; authorizing the Alaska Development and Export Authority to issue bonds to finance the expansion, modification, and upgrading of the Skagway Ore Terminal; relating to the operation and management of public housing projects and housing for low-income households by the Alaska Housing Finance Corporation; relating to subsidiary corporations of the Alaska Housing Finance Corporation; relating to harbor facility grants; and providing for an effective date.
00Enrolled HB 119 01 Relating to the procurement of supplies, services, professional services, and construction for 02 the Alaska Industrial Development and Export Authority; relating to the definition of "own" 03 for the economic development account; relating to the definitions of "development project," 04 "plant," "facility," and "project" for the Alaska Industrial Development and Export Authority; 05 relating to the Alaska Industrial Development and Export Authority creating subsidiaries 06 regarding projects financed under AS 44.88.172; authorizing the Alaska Development and 07 Export Authority to issue bonds to finance the expansion, modification, and upgrading of the 08 Skagway Ore Terminal; relating to the operation and management of public housing projects 09 and housing for low-income households by the Alaska Housing Finance Corporation; relating 10 to subsidiary corporations of the Alaska Housing Finance Corporation; relating to harbor 11 facility grants; and providing for an effective date.
01 _______________ 02 * Section 1. AS 18.55.010 is amended to read: 03 Sec. 18.55.010. Purpose of AS 18.55.100 - 18.55.290. The purpose of 04 AS 18.55.100 - 18.55.290 is to remedy the acute housing shortage that exists in certain 05 localities of the state by undertaking slum clearance, housing for low-income 06 households [LOW-COST HOUSING PROJECTS], housing for persons and their 07 families engaged in national defense activities in the state, and housing projects and 08 housing for veterans and other citizens of the state and to remedy the short supply of 09 necessary public buildings by providing for the financing, construction, and 10 acquisition of public buildings for lease to the state. 11 * Sec. 2. AS 18.55.120 is repealed and reenacted to read: 12 Sec. 18.55.120. Housing for low-income households. For purposes of 13 AS 18.55.100 - 18.55.290, the corporation shall manage and operate housing for low- 14 income households with rentals fixed at the lowest rates consistent with decent, safe, 15 and sanitary dwellings. 16 * Sec. 3. AS 18.55.130(a) is amended to read: 17 (a) In the operation or management of housing for low-income households 18 [LOW-COST HOUSING PROJECTS], the corporation shall, from time to time, 19 establish rents and requirements for admission of tenants to its housing [LOW-COST 20 HOUSING PROJECTS] in each municipality in which the housing [LOW-COST 21 HOUSING PROJECTS] of the corporation is [ARE] located. [THE RENTS AND 22 REQUIREMENTS FOR ADMISSION ARE SUBJECT TO THE APPROVAL OF 23 THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN 24 DEVELOPMENT.] 25 * Sec. 4. AS 18.55.130(b) is amended to read: 26 (b) Except in the case of leased housing as provided in 42 U.S.C. 1437f, the 27 corporation shall fix the income limits for occupancy in [OF] its housing for low- 28 income households [LOW-COST HOUSING PROJECTS AND RENTS THAT ARE 29 APPROVED BY THE UNITED STATES DEPARTMENT OF HOUSING AND 30 URBAN DEVELOPMENT] after taking into consideration 31 (1) the family size, composition, age, physical disabilities, and other
01 factors that might affect the rent-paying ability of the family; and 02 (2) the economic factors that affect the financial stability and solvency 03 of the project. 04 * Sec. 5. AS 18.56.086 is amended to read: 05 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 06 subsidiary corporations for the purpose of financing or facilitating the financing of 07 school construction, facilities for the University of Alaska, facilities for ports and 08 harbors, the acquisition, development, management, or operation of affordable 09 housing, prepayment of all or a portion of a governmental employer's share of 10 unfunded accrued actuarial liability of retirement systems, or other capital projects. A 11 subsidiary corporation may also be created for the purpose of planning, constructing, 12 and financing in-state natural gas pipeline projects or for the purpose of aiding in the 13 planning, construction, and financing of in-state natural gas pipeline projects. A 14 subsidiary corporation created under this section may be incorporated under 15 AS 10.20.146 - 10.20.166. The corporation may transfer assets of the corporation to a 16 subsidiary created under this section. A subsidiary created under this section may 17 borrow money and issue bonds as evidence of that borrowing, and has all the powers 18 of the corporation that the corporation grants to it. However, a subsidiary created for 19 the purpose of financing or facilitating the financing of prepayment of a governmental 20 employer's share of unfunded accrued actuarial liability of retirement systems may 21 borrow money and issue bonds only if the state bond rating is the equivalent of AA- or 22 better and subject to AS 37.15.903. A subsidiary corporation created for the purpose 23 of planning, constructing, and financing in-state natural gas pipeline projects or for the 24 purpose of aiding in the planning, construction, or financing of in-state natural gas 25 pipeline projects is exempt from AS 36.30, including AS 36.30.015(d) and (f). Unless 26 otherwise provided by the corporation, the debts, liabilities, and obligations of a 27 subsidiary corporation created under this section are not the debts, liabilities, or 28 obligations of the corporation. 29 * Sec. 6. AS 29.60.810 is amended to read: 30 Sec. 29.60.810. Grant applications. A municipality or regional housing 31 authority that owns a harbor facility may submit to the Department of Transportation
01 and Public Facilities an application for a [MUNICIPAL] harbor facility grant to be 02 used for construction, expansion, major repair, or major maintenance of a harbor 03 facility. The application must include information about the project requested by the 04 department. For a proposed project to be eligible for a grant, the municipality or 05 regional housing authority must provide evidence acceptable to the department that 06 the 07 (1) proposed project is a capital improvement project and not part of a 08 preventive maintenance program or regular custodial care program; 09 (2) municipality or regional housing authority will provide 50 10 percent of the total project cost as matching funds for the state grant and that money 11 received by the municipality or regional housing authority from the state will not be 12 used for the matching funds except money received under 13 (A) AS 29.60.850 - 29.60.879 (community revenue sharing 14 program); [AND] 15 (B) AS 29.60.450, AS 43.75.130, and 43.75.137 (shared 16 fisheries business taxes); 17 (C) AS 43.52.200 - 43.52.295 (excise tax on overnight 18 accommodations on commercial passenger vessels); and 19 (D) a transfer agreement between the state and a 20 municipality pursuant to a sale under AS 35.10.120; 21 (3) municipality or regional housing authority has secured and will 22 maintain adequate property loss insurance for the replacement cost of the harbor 23 facility or has an adequate program of insurance; 24 (4) municipality or regional housing authority has a preventive 25 maintenance plan for the harbor facility and will be adequately adhering to the 26 preventive maintenance plan after completion of the proposed project. 27 * Sec. 7. AS 29.60.820 is amended to read: 28 Sec. 29.60.820. Award of grants. (a) The Department of Transportation and 29 Public Facilities may award a [MUNICIPAL] harbor facility grant during a fiscal year 30 only for a proposed project eligible under AS 29.60.810 based on a grant application 31 filed during the immediately preceding fiscal year before February 1. The total amount
01 of grant money made available to a municipality or regional housing authority 02 during a fiscal year may not exceed $5,000,000. 03 (b) The Department of Transportation and Public Facilities shall award a grant 04 for every proposed project eligible under AS 29.60.810 that is for repair and major 05 maintenance of a harbor facility that was transferred by the state to a municipality or 06 regional housing authority before grants may be made for other proposed harbor 07 facility projects during a fiscal year. However, after the department makes a grant for 08 the repair and major maintenance of a harbor facility under this subsection, no other 09 grants for the repair and major maintenance of that facility may be made during the 10 same or any other fiscal year. 11 (c) The Department of Transportation and Public Facilities shall establish 12 priorities for the award of grants for proposed [MUNICIPAL] harbor facility projects 13 under (b) of this section and priorities for the award of grants for other proposed 14 harbor facility projects, with new construction projects having the lowest priority. The 15 department shall award grants in the order of priority established. In establishing 16 priorities, the department shall include at least the following, in the order listed: 17 (1) the extent to which the municipality or regional housing 18 authority can demonstrate that it will have sufficient revenue to operate and maintain 19 the harbor facility in the future without state aid; 20 (2) public safety and emergency factors; 21 (3) the amount spent by the municipality or regional housing 22 authority on maintenance of the harbor facility; 23 (4) other options that would reduce or eliminate the need for the 24 proposed project; and 25 (5) whether alternative harbor projects would better serve the public 26 interest. 27 (d) The Department of Transportation and Public Facilities may suggest 28 modifications to a project request to achieve cost savings or to better serve the public 29 interest and, if the municipality or regional housing authority agrees, award the 30 [MUNICIPAL] harbor facility grant for the proposed project as modified. 31 * Sec. 8. AS 29.60 is amended by adding a new section to article 7 to read:
01 Sec. 29.60.830. Definitions. In AS 29.60.800 - 29.60.830, "regional housing 02 authority" means a regional housing authority established under AS 18.55.996. 03 * Sec. 9. AS 36.30.015(f) is amended to read: 04 (f) The board of directors of the Alaska Housing Finance Corporation, 05 notwithstanding AS 18.56.088, the membership of the Alaska Industrial 06 Development and Export Authority, notwithstanding AS 44.88.085, and the board 07 of directors of the Knik Arm Bridge and Toll Authority under AS 19.75.111, shall 08 adopt regulations under AS 44.62 (Administrative Procedure Act), and the board of 09 trustees of the Alaska Retirement Management Board shall adopt regulations under 10 AS 37.10.240, to govern the procurement of supplies, services, professional services, 11 and construction for the respective public corporation and board. The regulations must 12 reflect competitive bidding principles and provide vendors reasonable and equitable 13 opportunities to participate in the procurement process and must include procurement 14 methods to meet emergency and extraordinary circumstances. Notwithstanding the 15 other provisions of this subsection, the Alaska Housing Finance Corporation, the 16 Alaska Industrial Development and Export Authority, the Knik Arm Bridge and 17 Toll Authority, and the Alaska Retirement Management Board shall comply with 18 AS 36.30.170(b). 19 * Sec. 10. AS 36.30.990(1) is amended to read: 20 (1) "agency" 21 (A) means a department, institution, board, commission, 22 division, authority, public corporation, the Alaska Pioneers' Home, the Alaska 23 Veterans' Home, or other administrative unit of the executive branch of state 24 government; 25 (B) does not include 26 (i) the University of Alaska; 27 (ii) the Alaska Railroad Corporation; 28 (iii) the Alaska Housing Finance Corporation; 29 (iv) a regional Native housing authority created under 30 AS 18.55.996 or a regional electrical authority created under 31 AS 18.57.020;
01 (v) the Department of Transportation and Public 02 Facilities, in regard to the repair, maintenance, and reconstruction of 03 vessels, docking facilities, and passenger and vehicle transfer facilities 04 of the Alaska marine highway system; 05 (vi) the Alaska Aerospace Corporation; 06 (vii) the Alaska Retirement Management Board; 07 (viii) the Alaska Seafood Marketing Institute; 08 (ix) the Alaska children's trust and the Alaska 09 Children's Trust Board; 10 (x) the Alaska Industrial Development and Export 11 Authority; 12 * Sec. 11. AS 44.88.172(a) is amended to read: 13 (a) The economic development account is established in the revolving fund. 14 The economic development account consists of money or assets appropriated, loaned, 15 or transferred to the authority for deposit in the account and other money or assets 16 deposited in the account by the authority. While money is on deposit in the economic 17 development account, the money may be used only to finance, acquire, manage, and 18 operate development projects that the authority intends to own and operate. In this 19 subsection, 20 (1) "operate" includes operation directly by the authority, by an agent 21 of the authority, or by a person as determined under an agreement between the 22 authority and other owners of the development project; 23 (2) "own" includes ownership by the authority of all or a percentage of 24 a development project or all or a percentage of the shares of a corporation or 25 membership in a limited liability company for which the development project is 26 the sole asset of the corporation or limited liability company. 27 * Sec. 12. AS 44.88 is amended by adding a new section to read: 28 Sec. 44.88.178. Creation of subsidiaries. The authority may create one or 29 more subsidiary corporations for the purpose of acquiring, constructing, owning, 30 operating, or financing a project financed under AS 44.88.172. A subsidiary 31 corporation created under this section may be incorporated under AS 10.20.146 -
01 10.20.166. The authority may transfer assets of the authority to a subsidiary created 02 under this section. A subsidiary created under this section may borrow money and 03 issue bonds as evidence of that borrowing, and has all the powers of the authority that 04 the authority grants to it. Unless otherwise provided by the authority, the debts, 05 liabilities, and obligations of a subsidiary corporation created under this section are not 06 the debts, liabilities, or obligations of the authority. 07 * Sec. 13. AS 44.88.900(3) is amended to read: 08 (3) "development project" has the meaning given to "project" in (9)(A) 09 and (D) - (H) [(9)(A) AND (D) - (F)] of this section; 10 * Sec. 14. AS 44.88.900(8) is amended to read: 11 (8) "plant" or "facility" means real property, whether above or below 12 mean high water, or an interest in it, and the buildings, improvements, and structures 13 constructed or to be constructed on or in it, and may include roads, fixtures, 14 machinery, and equipment on it or in it, and tangible personal property, regardless of 15 whether the tangible personal property is attached to or connected with real property, 16 if the owner has agreed not to remove the tangible personal property permanently from 17 the state for the period the authority sets; "plant" or "facility" does not include work in 18 process or stock in trade; 19 * Sec. 15. AS 44.88.900(9) is amended to read: 20 (9) "project" means 21 (A) a plant or facility used or intended for use in connection 22 with making, processing, preparing, transporting, or producing in any manner, 23 goods, products, or substances of any kind or nature or in connection with 24 developing or utilizing a natural resource, or extracting, smelting, transporting, 25 converting, assembling, or producing in any manner, minerals, raw materials, 26 chemicals, compounds, alloys, fibers, commodities and materials, products, or 27 substances of any kind or nature; 28 (B) a plant or facility used or intended for use in connection 29 with a business enterprise; 30 (C) commercial activity by a business enterprise; 31 (D) a plant or facility demonstrating technological advances of
01 new methods and procedures and prototype commercial applications for the 02 exploration, development, production, transportation, conversion, and use of 03 energy resources; 04 (E) infrastructure for a new tourism destination facility or for 05 the expansion of a tourism destination facility; in this subparagraph, "tourism 06 destination facility" does not include a hotel or other overnight lodging facility; 07 (F) a plant or facility, other than a plant or facility described in 08 (D) of this paragraph, for the generation, transmission, development, 09 transportation, conversion, or use of energy resources; 10 (G) a plant or facility that enhances, provides for, or 11 promotes economic development with respect to transportation, 12 communications, community public purposes, technical innovations, 13 prototype commercial applications of intellectual property, or research; 14 (H) a plant or facility used or intended for use as a federal 15 facility, including a United States military, national guard, or coast guard 16 facility; 17 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 LEGISLATIVE APPROVAL; SKAGWAY ORE TERMINAL. (a) The Alaska 20 Industrial Development and Export Authority may issue bonds to finance the expansion, 21 modification, improvement, and upgrading of the Skagway Ore Terminal. The Skagway Ore 22 Terminal shall be owned by the authority and financed under AS 44.88.172 - 44.88.177. The 23 principal amount of the bonds provided by the authority for the Skagway Ore Terminal may 24 not exceed $65,000,000 and may include the costs of funding reserves and other costs of 25 issuing bonds deemed reasonable and appropriate by the Alaska Industrial Development and 26 Export Authority. 27 (b) This section constitutes legislative approval required by AS 44.88.095(g). 28 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 RETROACTIVITY. AS 29.60.810(2)(D), added by sec. 6 of this Act, is retroactive to 31 January 1, 1993.
01 * Sec. 18. AS 18.55.130(c) and 18.55.130(d) are repealed. 02 * Sec. 19. This Act takes effect immediately under AS 01.10.070(c).