HB 268: "An Act relating to the Alaska Municipal Bond Bank Authority."
00 HOUSE BILL NO. 268 01 "An Act relating to the Alaska Municipal Bond Bank Authority." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 44.85.010(a) is amended to read: 04 (a) It is the policy of the state to 05 (1) foster and promote by all reasonable means the provision of 06 adequate capital markets and facilities for borrowing money by municipalities in the 07 state to finance capital improvements or for other authorized purposes, to assist these 08 municipalities in fulfilling their capital needs and requirements by use of borrowed 09 money within statutory interest rate or cost of borrowing limitations, to the greatest 10 extent possible to reduce costs of borrowed money to taxpayers and residents of the 11 state, and equally to encourage continued investor interest in the purchase of bonds or 12 notes of municipalities as sound and preferred securities for investment; 13 (2) encourage municipalities to continue their independent 14 undertakings and financing of capital improvements and other authorized purposes 15 and to assist them by making capital funds available at reduced interest costs for
01 orderly financing of capital improvements and other purposes especially during 02 periods of restricted credit or money supply, particularly for those municipalities not 03 otherwise able to borrow for capital needs; 04 (3) assist municipalities to provide for adequate insurance coverage by 05 authorizing the Alaska Municipal Bond Bank Authority to issue negotiable or 06 nonnegotiable revenue bonds, notes, or certificates of participation either directly or 07 through an entity it may create for the purpose of providing a self-insurance program 08 for municipalities or municipal joint insurance arrangements organized under 09 AS 21.76; 10 (4) assist governmental employers to prepay all or a portion of their 11 share of unfunded accrued actuarial liabilities of retirement systems in an effort to 12 reduce their costs of satisfying their contractual obligations to provide retirement and 13 other benefits to public employees through the issuance of bonds, notes, commercial 14 paper, or other obligations by the bond bank authority or by a subsidiary corporation 15 created by the bond bank authority under AS 44.85.085, but only after submitting a 16 proposal to the Legislative Budget and Audit Committee and if the state bond rating is 17 the equivalent of AA- or better; this assistance is limited as provided in AS 37.15.903; 18 (5) assist the University of Alaska [TO PROVIDE HEATING OR 19 ENERGY PROJECTS] by providing capital funds through loans that minimize costs 20 and the effects on the debt capacity of the University of Alaska; 21 (6) assist regional health organizations to provide health care facilities 22 by providing capital funds through loans that minimize costs and the effects on the 23 debt capacity of regional health organizations when the commissioner of health and 24 social services anticipates a state financial benefit and an increase in regional quality 25 of care; 26 (7) assist joint action agencies in providing public utilities, including 27 hydroelectric power projects, through loans and bonds that minimize costs and the 28 effects on the debt capacity of public utilities and joint action agencies. 29 * Sec. 2. AS 44.85.090 is amended to read: 30 Sec. 44.85.090. Limitations. Under this chapter, the bond bank authority may 31 not
01 (1) make loans of money to a person, firm, or corporation except as 02 provided in this chapter; 03 (2) emit bills of credit, accept deposits of money for time or demand 04 deposit, administer trusts, or engage in any form or manner in, or in the conduct of, a 05 private or commercial banking business, or act as a savings bank or savings and loan 06 association; 07 (3) be or constitute a bank or trust company within the jurisdiction or 08 under the control of a regulatory or supervisory board or department of the state, [OR] 09 the Comptroller of the Currency of the United States, [OR] the United States 10 Department of the Treasury, or the Board of Governors for the Federal Reserve 11 System [BOARD OF THE UNITED STATES]; 12 (4) be or constitute a bank, banker, or dealer in securities within the 13 meaning of or subject to the provisions of securities, securities exchange, or securities 14 dealers law [,] of the United States or of this [STATE] or [OF] another state; or 15 (5) issue bonds or notes to a regional health organization unless 16 [(A) THE BOND BANK AUTHORITY FINANCES NOT 17 MORE THAN 49 PERCENT OF A PROJECT; 18 (B)] the remaining costs of a project are secured or delivered to 19 the bond bank authority before the bond bank authority provides financing 20 [UNDER (A) OF THIS PARAGRAPH; AND 21 (C) THE BONDS OR NOTES DO NOT EXCEED 22 $102,500,000 FOR A SINGLE PROJECT]. 23 * Sec. 3. AS 44.85.180(e) is amended to read: 24 (e) Notwithstanding (a), (b), and (c) of this section, the bond bank authority 25 may issue its bonds or notes 26 (1) in principal amounts not to exceed $500,000,000 [$87,500,000] for 27 the purpose of making loans to the University of Alaska; and 28 (2) in principal amounts not to exceed $500,000,000 [$205,000,000] at 29 any one time for the purpose of making loans to a regional health organization; this 30 paragraph does not apply to bonds or notes issued to fund or refund bonds or notes.