Legislature(2005 - 2006)
2005-05-13 House Journal
Full Journal pdf2005-05-13 House Journal Page 1991 SB 73 The following, which was on the May 12, 2005, calendar (page 1979), was read the third time: CS FOR SENATE BILL NO. 73(FIN) am "An Act relating to a lease-purchase agreement for the construction, equipping, and financing of a state virology laboratory in Fairbanks to be operated by the Department of Health and Social Services; relating to the issuance of certificates of participation for the laboratory; relating to the use of certain investment income for certain construction and equipment costs for the laboratory; and providing for an effective date." 2005-05-13 House Journal Page 1992 Representative Gruenberg moved and asked unanimous consent that CSSB 73(FIN) am be returned to second reading for the specific purpose of considering Amendment No. 1 and Amendment No. 2. There being no objection, it was so ordered. Amendment No. 1 was offered by Representatives Gruenberg, Meyer, Anderson, Gardner, Cissna, Gatto, Berkowitz, Gara, and Lynn: Page 1, line 1, following "An Act" (title amendment): Insert "relating to reimbursement of municipal bonds for school construction;" Page 1, line 13: Delete "sec. 2" Insert "sec. 4" Page 2, line 2: Delete "sec. 2" Insert "sec. 4" Page 2, following line 2: Insert new bill sections to read: "* Sec. 2. AS 14.11.100(a) is amended to read: (a) During each fiscal year, the state shall allocate to a municipality that is a school district the following sums: (1) payments made by the municipality during the fiscal year two years earlier for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred before July 1, 1977, to pay costs of school construction; (2) 90 percent of (A) payments made by the municipality during the fiscal year two years earlier for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred after June 30, 1977, and before July 1, 1978, to pay costs of school construction; (B) cash payments made after June 30, 1976, and before July 1, 1978, by the municipality during the fiscal year two years earlier to pay costs of school construction; (3) 90 percent of (A) payments made by the municipality during the 2005-05-13 House Journal Page 1993 fiscal year two years earlier for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred after June 30, 1978, and before January 1, 1982, to pay costs of school construction projects approved under AS 14.07.020(a)(11); (B) cash payments made after June 30, 1978, and before July 1, 1982, by the municipality during the fiscal year two years earlier to pay costs of school construction projects approved under AS 14.07.020(a)(11); (4) subject to (h) and (i) of this section, up to 90 percent of (A) payments made by the municipality during the current fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred after December 31, 1981, and authorized by the qualified voters of the municipality before July 1, 1983, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); (B) cash payments made after June 30, 1982, and before July 1, 1983, by the municipality during the fiscal year two years earlier to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); and (C) payments made by the municipality during the current fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are submitted to the department for approval under AS 14.07.020(a)(11) before July 1, 1983, and approved by the qualified voters of the municipality before October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of average daily membership of the municipality is more than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily membership of the municipality is 12 percent or more; payments made by a municipality under this subparagraph on total project costs that exceed the amounts set out in (i) and (ii) of this subparagraph are subject to (5)(A) of this subsection; 2005-05-13 House Journal Page 1994 (5) subject to (h) - (j) of this section, 80 percent of (A) payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality (i) after June 30, 1983, but before March 31, 1990, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); or (ii) before July 1, 1989, and reauthorized before November 1, 1989, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); and (B) cash payments made after June 30, 1983, by the municipality during the fiscal year two years earlier to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved by the department before July 1, 1990, under AS 14.07.020(a)(11); (6) subject to (h) - (j) and (m) of this section, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(a)(11); (7) subject to (h) - (j) and (m) of this section, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality after March 31, 1990, but before April 30, 1993, to pay costs of school construction, additions to schools, and major rehabilitation projects; (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, 2005-05-13 House Journal Page 1995 notes, or other indebtedness authorized by the qualified voters of the municipality on or after July 1, 1995, but before July 1, 1998, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(a)(11); (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after July 1, 1998, but before July 1, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(a)(11); (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1998, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) of this section; (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on 2005-05-13 House Journal Page 1996 outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; (13) subject to (h), (i), and (j)(2) - (5) of this section, and after projects funded by the tax exempt bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before July 1, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; (14) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before July 1, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section. * Sec. 3. AS 14.11.100(j) is amended to read: (j) Except as provided in (l) of this section, the state may not allocate money to a municipality for a school construction project under (a)(5), (6), or (7) of this section unless the municipality complies with the requirements of (1) - (5) of this subsection, the project is approved by the commissioner before the local vote on the bond issue for the project or for bonds authorized after March 31, 1990, but on or before April 30, 1993, the bonds are approved by the commissioner before reimbursement by the state, and the local vote occurs before July 1, 1987, or after June 30, 2005-05-13 House Journal Page 1997 1988. In approving a project under this subsection, and to the extent required under (a)(8) - (14) [(a)(8) - (12)] of this section, the commissioner shall require (1) the municipality to include on the ballot for the bond issue, for bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated total cost of each project including estimated total interest, estimated annual operation and maintenance costs, the estimated amounts that will be paid by the state and by the municipality, and the approximate amount that would be due in annual taxes on $100,000 in assessed value to retire the debt; (2) that the bonds may not be refunded unless the annual debt service on the refunding issue is not greater than the annual debt service on the original issue; (3) that the bonds must be repaid in approximately equal annual principal payments or approximately equal debt service payments over a period of at least 10 years; (4) the municipality to demonstrate need for the project by establishing that the school district has (A) projected long-term student enrollment that indicates the district has inadequate facilities to meet present or projected enrollment; (B) facilities that require repair or replacement in order to meet health and safety laws or regulations or building codes; (C) demonstrated that the project will result in a reduction in annual operating costs that economically justifies the cost of the project; or (D) facilities that require modification or rehabilitation for the purpose of improving the instructional program; (5) evidence acceptable to the department that the district (A) has a preventive maintenance plan that (i) includes a computerized maintenance management program, cardex system, or other formal systematic means of tracking the timing and costs associated with planned and completed maintenance activities, including scheduled preventive maintenance; (ii) addresses energy management for buildings owned or operated by the district; 2005-05-13 House Journal Page 1998 (iii) includes a regular custodial care program for buildings owned or operated by the district; (iv) includes preventive maintenance training for facility managers and maintenance employees; and (v) includes renewal and replacement schedules for electrical, mechanical, structural, and other components of facilities owned or operated by the district; and (B) is adequately following the preventive maintenance plan." Renumber the following bill sections accordingly. Page 2, line 27: Delete "Section 2" Insert "Section 4" Representative Gruenberg moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Rokeberg objected and rose to a point of order regarding the germaneness of the amendment. The Speaker ruled that the amendment was in order. Representative Rokeberg withdrew the objection. There being no further objection, Amendment No. 1 was adopted and the new title follows: CS FOR SENATE BILL NO. 73(FIN) am H "An Act relating to reimbursement of municipal bonds for school construction; relating to a lease-purchase agreement for the construction, equipping, and financing of a state virology laboratory in Fairbanks to be operated by the Department of Health and Social Services; relating to the issuance of certificates of participation for the laboratory; relating to the use of certain investment income for certain construction and equipment costs for the laboratory; and providing for an effective date." 2005-05-13 House Journal Page 1999 Amendment No. 2 was offered by Representatives Berkowitz, Meyer, Gardner, Cissna, and Gruenberg: Page 1, line 5, following "laboratory;" (title amendment): Insert "authorizing financing for certain public transportation projects; giving notice of and approving the entry into, and the issuance of revenue obligations that provide participation in, lease-financing agreements for those transportation projects;" Page 2, line 29: Delete all material and insert: "* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSPORTATION PROJECT ALLOCATION. The Department of Transportation and Public Facilities shall allocate the net proceeds derived from the sale of revenue obligations authorized in sec. 7 of this Act for construction or acquisition of the following state transportation projects among those projects as follows, subject to reallocation among the projects under AS 37.07.080(e): PROJECT ALLOCATION (1) Anchorage: Glenn Highway congestion $ 37,500,000 (2) Anchorage: Lake Otis and Tudor 4,300,000 intersection improvements (3) Fairbanks: Gaffney Road upgrade 6,250,000 (4) Matanuska-Susitna Borough: 6,000,000 Upgrade Old Glenn Highway Plumley Road to City of Palmer (5) Matanuska-Susitna Borough: Palmer-Wasilla 6,000,000 Highway expansion (6) Richardson Highway passing lane additions 5,000,000 mileposts 265 - 341 (7) Glacier Highway: road extension 5,000,000 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to read: DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The Department of Transportation and Public Facilities is delegated the Department of Administration's authority under AS 36.30.085 to enter into lease-financing agreements in connection with the issuance of revenue obligations to finance the state transportation projects described in sec. 4 of this Act. 2005-05-13 House Journal Page 2000 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to read: LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease-financing agreements executed under sec. 5 of this Act are subject to annual appropriation by the legislature. (b) The legislature intends that federal money in the form of apportionments from the Federal Highway Administration for federal highway grants will provide revenue that may be appropriated for the lease payments; however, if that revenue source is insufficient, the payments may be appropriated from any other valid revenue source. * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to read: NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and Public Facilities is authorized to enter into lease-financing agreements for the issuance of revenue obligations for the state transportation projects described in sec. 4 of this Act. (b) The state bond committee is authorized to provide for the issuance of revenue obligations in one or more series in the aggregate principal amount of $71,175,000 for the costs of construction of the projects described in sec. 4 of this Act. The principal amount includes the estimated cost of $70,050,000 for constructing, acquiring, and equipping the projects described in sec. 4 of this Act; and an amount for the cost of issuing the revenue obligations of $1,125,000. The estimated annual amount of rental obligations under the lease- financing agreements is $6,130,000. The estimated total lease payments for the full term of the lease-financing agreements is $98,080,000. (c) The average annual debt service on revenue obligations to be issued under this Act may not exceed 25 percent of the most recent annual obligation authority received by the State of Alaska from the Federal Highway Administration for the state's federal highway program. As further protection for the holders of the revenue obligations, the resolution of the state bond committee authorizing the issuance of the revenue obligations authorized under this Act shall include the same percentage limitation on the average annual debt service for all outstanding revenue obligations payable from the State of Alaska's federal highway program. (d) The state bond committee may contract for credit 2005-05-13 House Journal Page 2001 enhancement, underwriting, credit ratings, bond counsel, financial advisor, printing, and trustee services that the committee considers necessary in financing the projects described in sec. 4 of this Act. (e) There is created the 2005 state transportation project fund. The proceeds of the revenue obligations issued under this Act shall be deposited into the 2005 state transportation project fund. (f) In this section, (1) "costs of construction" includes credit enhancement and underwriting expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee fees, and interest earnings used for lease payments; (2) "revenue obligation" means a certificate of participation in the right to receive a payment under a lease-financing agreement made to finance the costs of construction or acquisition of a state transportation project. * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to read: NOTICE AND APPROVAL OF AGREEMENTS. Section 7 of this Act constitutes the notice and approval of lease-financing agreements to finance the transportation projects described in sec. 4 of this Act that is required by AS 36.30.085. * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to read: STATE TRANSPORTATION PROJECTS IN METROPOLITAN PLANNING AREAS. If an amount allocated in sec. 2 of this Act for a state transportation project in a metropolitan planning area is not sufficient to complete the project, it is the intent of the legislature that the metropolitan planning organization for the metropolitan planning area include the project in the organization's transportation improvement program and fund the project to completion. * Sec. 10. Sections 4 - 9 of this Act take effect July 1, 2005. * Sec. 11. Sections 1 - 3 of this Act take effect immediately under AS 01.10.070(c)." Representative Berkowitz moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Rokeberg objected. 2005-05-13 House Journal Page 2002 The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 73(FIN) am H Second Reading Amendment No. 2 YEAS: 28 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Anderson, Berkowitz, Cissna, Coghill, Crawford, Croft, Dahlstrom, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Joule, Kapsner, Kerttula, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Salmon, Samuels, Seaton, Weyhrauch, Wilson Nays: Chenault, Elkins, Foster, Kelly, Kohring, Neuman, Olson, Ramras, Rokeberg, Stoltze, Thomas Excused: Holm And so, Amendment No. 2 was adopted, and the new title follows: CS FOR SENATE BILL NO. 73(FIN) am H "An Act relating to reimbursement of municipal bonds for school construction; relating to a lease-purchase agreement for the construction, equipping, and financing of a state virology laboratory in Fairbanks to be operated by the Department of Health and Social Services; relating to the issuance of certificates of participation for the laboratory; relating to the use of certain investment income for certain construction and equipment costs for the laboratory; authorizing financing for certain public transportation projects; giving notice of and approving the entry into, and the issuance of revenue obligations that provide participation in, lease-financing agreements for those transportation projects; and providing for an effective date." The question being: "Shall CSSB 73(FIN) am H pass the House?" The roll was taken with the following result: CSSB 73(FIN) am H Third Reading Final Passage YEAS: 37 NAYS: 2 EXCUSED: 1 ABSENT: 0 2005-05-13 House Journal Page 2003 Yeas: Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Joule, Kapsner, Kelly, Kerttula, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Ramras, Rokeberg, Salmon, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson Nays: Foster, Olson Excused: Holm And so, CSSB 73(FIN) am H passed the House. Representative Coghill moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. Representative Kelly later gave notice of reconsideration of the vote on CSSB 73(FIN) am H and it was taken up then.