Enrolled HB 127: Relating to the Alaska Municipal Bond Bank Authority; authorizing the Alaska Railroad Corporation to issue revenue bonds to finance the replacement of the Alaska Railroad Corporation's passenger dock and related terminal facility in Seward, Alaska; and providing for an effective date.
00Enrolled HB 127 01 Relating to the Alaska Municipal Bond Bank Authority; authorizing the Alaska Railroad 02 Corporation to issue revenue bonds to finance the replacement of the Alaska Railroad 03 Corporation's passenger dock and related terminal facility in Seward, Alaska; and providing 04 for an effective date. 05 _______________ 06 * Section 1. AS 44.85.010(a) is amended to read: 07 (a) It is the policy of the state to 08 (1) foster and promote by all reasonable means the provision of 09 adequate capital markets and facilities for borrowing money by municipalities in the 10 state to finance capital improvements or for other authorized purposes, to assist these 11 municipalities in fulfilling their capital needs and requirements by use of borrowed 12 money within statutory interest rate or cost of borrowing limitations, to the greatest 13 extent possible to reduce costs of borrowed money to taxpayers and residents of the 14 state, and equally to encourage continued investor interest in the purchase of bonds or
01 notes of municipalities as sound and preferred securities for investment; 02 (2) encourage municipalities to continue their independent 03 undertakings and financing of capital improvements and other authorized purposes 04 and to assist them by making capital funds available at reduced interest costs for 05 orderly financing of capital improvements and other purposes especially during 06 periods of restricted credit or money supply, particularly for those municipalities not 07 otherwise able to borrow for capital needs; 08 (3) assist municipalities to provide for adequate insurance coverage by 09 authorizing the Alaska Municipal Bond Bank Authority to issue negotiable or 10 nonnegotiable revenue bonds, notes, or certificates of participation either directly or 11 through an entity it may create for the purpose of providing a self-insurance program 12 for municipalities or municipal joint insurance arrangements organized under 13 AS 21.76; 14 (4) assist governmental employers to prepay all or a portion of their 15 share of unfunded accrued actuarial liabilities of retirement systems in an effort to 16 reduce their costs of satisfying their contractual obligations to provide retirement and 17 other benefits to public employees through the issuance of bonds, notes, commercial 18 paper, or other obligations by the bond bank authority or by a subsidiary corporation 19 created by the bond bank authority under AS 44.85.085, but only after submitting a 20 proposal to the Legislative Budget and Audit Committee and if the state bond rating is 21 the equivalent of AA- or better; this assistance is limited as provided in AS 37.15.903; 22 (5) assist the University of Alaska [TO PROVIDE HEATING OR 23 ENERGY PROJECTS] by providing capital funds through loans that minimize costs 24 and the effects on the debt capacity of the University of Alaska; 25 (6) assist regional health organizations to provide health care facilities 26 by providing capital funds through loans that minimize costs and the effects on the 27 debt capacity of regional health organizations when the commissioner of health and 28 social services anticipates a state financial benefit and an increase in regional quality 29 of care; 30 (7) assist joint action agencies in providing public utilities, including 31 hydroelectric power projects, through loans and bonds that minimize costs and the
01 effects on the debt capacity of public utilities and joint action agencies. 02 * Sec. 2. AS 44.85.090 is amended to read: 03 Sec. 44.85.090. Limitations. Under this chapter, the bond bank authority may 04 not 05 (1) make loans of money to a person, firm, or corporation except as 06 provided in this chapter; 07 (2) emit bills of credit, accept deposits of money for time or demand 08 deposit, administer trusts, or engage in any form or manner in, or in the conduct of, a 09 private or commercial banking business, or act as a savings bank or savings and loan 10 association; 11 (3) be or constitute a bank or trust company within the jurisdiction or 12 under the control of a regulatory or supervisory board or department of the state, [OR] 13 the Comptroller of the Currency of the United States, [OR] the United States 14 Department of the Treasury, or the Board of Governors for the Federal Reserve 15 System [BOARD OF THE UNITED STATES]; 16 (4) be or constitute a bank, banker, or dealer in securities within the 17 meaning of or subject to the provisions of securities, securities exchange, or securities 18 dealers law [,] of the United States or of this [STATE] or [OF] another state; or 19 (5) issue bonds or notes to a regional health organization unless 20 (A) [THE BOND BANK AUTHORITY FINANCES NOT 21 MORE THAN 49 PERCENT OF A PROJECT; 22 (B)] the remaining costs of a project are secured or delivered to 23 the bond bank authority before the bond bank authority provides financing 24 [UNDER (A) OF THIS PARAGRAPH]; and 25 (B) [(C)] the bonds or notes do not exceed $250,000,000 26 [$102,500,000] for a single project. 27 * Sec. 3. AS 44.85.180(e) is amended to read: 28 (e) Notwithstanding (a), (b), and (c) of this section, the bond bank authority 29 may issue its bonds or notes 30 (1) in principal amounts not to exceed $500,000,000 [$87,500,000] for 31 the purpose of making loans to the University of Alaska; and
01 (2) in principal amounts not to exceed $500,000,000 [$205,000,000] at 02 any one time for the purpose of making loans to a regional health organization; this 03 paragraph does not apply to bonds or notes issued to fund or refund bonds or notes. 04 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 LEGISLATIVE AUTHORIZATION AND APPROVAL. (a) The Alaska Railroad 07 Corporation is authorized to issue revenue bonds under AS 42.40.250 to finance the 08 replacement of the Alaska Railroad Corporation's passenger dock and related terminal facility 09 in Seward, Alaska, and associated costs, including, without limitation, reserves for debt 10 service and capitalized interest, if necessary or appropriate, and costs of issuance. The 11 maximum principal amount of bonds that the Alaska Railroad Corporation may issue under 12 this section is $60,000,000. The Alaska Railroad Corporation may issue the bonds in a single 13 issuance or in several issuances, without limitation as to number of issuances or timing, and as 14 the Alaska Railroad Corporation determines best furthers the purpose of financing the 15 replacement of the Alaska Railroad Corporation's passenger dock and related terminal facility 16 in Seward, Alaska, and associated costs. The bonds shall be repaid from dock revenue or 17 other funds available to the Alaska Railroad Corporation. The general credit of the Alaska 18 Railroad Corporation and the state may not be pledged for the repayment of the bonds. 19 (b) The authorization under (a) of this section extends to bonds issued to refund the 20 bonds authorized in this Act. The principal amount of the bonds authorized in this Act may be 21 increased in an issue of refunding bonds in an amount equal to the costs of refunding. 22 (c) This section constitutes the approval required by AS 42.40.285 for the issuance of 23 the bonds described in this section. 24 (d) The bonds authorized to be issued under this section are issued by a public 25 corporation and an instrumentality of the state for an essential public and governmental 26 purpose. 27 (e) In this section, "bonds" means bonds, bond anticipation notes, notes, refunding 28 bonds, or other obligations. 29 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c).