2001-02-16                     House Journal                      Page 0344
HB 130                                                                                            
HOUSE BILL NO. 130 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the issuance of certificates of participation to                           
     finance demolition of all or part of the existing facility known as                            
     the Alaska Psychiatric Institute and construction of a new facility                            
     to be known as the Alaska Psychiatric Institute; giving notice of                              
     and approving the entry into, and the issuance of certificates of                              
     participation in, a lease-purchase agreement for demolition of all                             

2001-02-16                     House Journal                      Page 0345
     or part of the existing facility known as the Alaska Psychiatric                               
     Institute and construction of a new facility to be known as the                                
     Alaska Psychiatric Institute; and providing for an effective date."                            
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated February 15, 2001, appears                                  
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
The Alaska Psychiatric Institute (API) is Alaska's only public                                      
psychiatric hospital.  API provides services for persons who cannot be                              
safely served in either community-based mental health centers or                                    
community hospitals.  The current API facility dates from the early                                 
60's, is permeated with asbestos, and must be replaced.  I am                                       
transmitting this bill to finance capital construction for a replacement                            
facility for the API.                                                                               
                                                                                                    
The majority of patients at API have been involuntarily committed to                                
treatment and come from all regions of the state.  API is the ultimate                              
"safety net" for persons who are mentally ill or otherwise suffer from                              
mental disorders.  In addition, API treats patients arrested and                                    
subsequently court-ordered to the facility for a variety of needs,                                  
including evaluations for competency to stand trial, treatment                                      
following a finding of incompetency, and persons previously found                                   
not guilty by reason of insanity.                                                                   
                                                                                                    
The bill identifies funding sources for the $58,750,000 necessary for                               
the construction of the replacement facility.  There is presently                                   
$19,200,000 available from prior appropriations for this purpose that                               
can be used for the project.  In addition, the Legislature appropriated                             
$3,000,000 in Mental Health Trust Authority Authorized Receipts for                                 
the project.  A lease-purchase agreement would be security for the                                  
remaining $36,550,000, which the state would raise through the state                                

2001-02-16                     House Journal                      Page 0346
bond committee's issuance of certificates of participation.  The                                    
significant contribution of state money up front in the project will have                           
the practical effect of lowering the lease payments because there will                              
be additional security provided to the purchasers of the certificates of                            
participation.                                                                                      
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                            Sincerely,                                                              
                            /s/                                                                     
                              Tony Knowles                                                         
                            Governor"