00                       CS FOR HOUSE BILL NO. 92(FIN)                                                                    
01 "An Act relating to borrowing in anticipation of revenues; relating to revenue                                          
02 anticipation notes; relating to short-term borrowing; and providing for an effective                                    
03 date."                                                                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 43.08.010 is amended to read:                                                                      
06 Sec. 43.08.010. Borrowing in anticipation of revenues permitted. The                                                  
07 commissioner is hereby authorized to borrow money on behalf of the state, when in                                       
08 the judgment of the commissioner it becomes necessary in order to meet                                                  
09 appropriations for any fiscal year in anticipation of the collection of the revenues for                                
10       that year. Money borrowed shall be used only for the purposes and within the amounts                              
11       of appropriations authorized. The authorization to borrow money includes entering                             
12       into revenue anticipation notes and other forms of short-term borrowing.                                      
13    * Sec. 2. AS 43.08.020 is amended to read:                                                                         
14            Sec. 43.08.020. Agreements to borrow money; payment [ISSUANCE AND                                        

01 PAYMENT OF NOTES]. Money borrowed under this chapter [THE                                                           
02 COMMISSIONER SHALL ISSUE NOTES FOR THE AMOUNTS BORROWED IN                                                              
03 ANTICIPATION OF THE COLLECTION OF REVENUES, DIRECT OR                                                                   
04 INDIRECT, FOR THAT YEAR. THE NOTES ISSUED BY THE COMMISSIONER                                                           
05 UNDER THIS CHAPTER MAY BE RENEWED FROM TIME TO TIME BUT ALL                                                             
06 SUCH NOTES AND RENEWALS THEREOF] and the interest thereon shall be paid                                                 
07 from revenues by the end of the fiscal year next succeeding the year in which the                                       
08       money was borrowed [NOTES WERE ISSUED].                                                                       
09    * Sec. 3. AS 43.08.030 is amended to read:                                                                         
10 Sec. 43.08.030. Security and payment. Money borrowed [NOTES ISSUED]                                                 
11 under this chapter shall, with interest thereon, be paid from revenues in anticipation of                               
12 the collection of which the money was borrowed [SAME WERE ISSUED] and the                                           
13 full faith, credit, resources, and taxing power of the state are hereby pledged to the                                  
14 payment. To further secure the repayment of the money borrowed, [PAYMENT OF                                         
15 THE NOTES] the commissioner may pledge on behalf of the state such collateral as in                                     
16 the discretion of the commissioner may be necessary to effect such borrowing most                                       
17       advantageous to the state.                                                                                        
18    * Sec. 4. AS 43.08.035(a) is amended to read:                                                                      
19 (a)  There is appropriated each fiscal year from the general fund the amount                                            
20 necessary for the payment of interest on money borrowed [REVENUE                                                    
21 ANTICIPATION NOTES ISSUED] under this chapter when the term of the                                                  
22 borrowing agreement [THOSE NOTES] measured from the date the money is                                           
23 borrowed [OF ISSUANCE] to the date of first maturity does not exceed nine months.                                   
24    * Sec. 5. AS 43.08.040 is amended to read:                                                                         
25 Sec. 43.08.040. Terms for agreements to borrow money [SALE OF                                                       
26 NOTES]. An agreement to borrow money [NOTES] authorized [TO BE ISSUED]                                              
27 under this chapter shall be entered into [SOLD] by the commissioner on terms the                                
28 commissioner determines are in the best financial interests of the state [IN THE                                    
29 MANNER AND AT THE PRICE OR PRICES AS THE COMMISSIONER SHALL                                                             
30 DETERMINE, AT EITHER PUBLIC OR PRIVATE SALE; HOWEVER, A NOTE                                                            
31       MAY NOT BE SOLD AT LESS THAN PAR AND ACCRUED INTEREST].                                                           

01    * Sec. 6. AS 43.08.050 is amended to read:                                                                         
02 Sec. 43.08.050. Execution of agreements to borrow money [NOTES]. An                                               
03 agreement to borrow [NOTES FOR] money authorized under this chapter                                             
04 [BORROWED] in anticipation of revenues shall be signed by the governor and                                              
05 countersigned by the lieutenant governor. The governor's signature may be a facsimile                                   
06       signature.                                                                                                        
07    * Sec. 7. AS 43.08.050 is amended by adding a new subsection to read:                                              
08            (b)  Within 30 days after an agreement to borrow money is executed under this                                
09       chapter, the commissioner shall notify the Legislative Budget and Audit Committee                                 
10       that an agreement has been entered into and include                                                               
11                 (1)  the financial terms of the agreement; and                                                          
12                 (2)  an explanation for the determination that the agreement was in the                                 
13       best financial interests of the state.                                                                            
14    * Sec. 8. AS 43.08.060 is repealed.                                                                              
15    * Sec. 9. This Act takes effect July 1, 2021.