CSHB 466(FIN) AM: "An Act establishing the Adak Reuse Authority."

00 CS FOR HOUSE BILL NO. 466(FIN) am                                                                                       
01 "An Act establishing the Adak Reuse Authority."                                                                         
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 30 is amended by adding a new chapter to read:                                                      
04 CHAPTER 17.  ADAK REUSE AUTHORITY.                                                                                      
05 ARTICLE 1.  ESTABLISHMENT.                                                                                              
06  Sec. 30.17.010.  CREATION OF AUTHORITY.  There is created the Adak                                                    
07 Reuse Authority.  The authority is a public corporation of the state and a body corporate                               
08 and is an instrumentality of the Department of Community and Regional Affairs, but                                      
09 with separate and independent legal existence.                                                                          
10  Sec. 30.17.020. MEMBERSHIP OF AUTHORITY.  (a)  The membership of the                                                  
11 authority consists of                                                                                                   
12   (1)  the commissioner of  community and regional affairs;                                                            
13   (2)  two other persons selected by the governor who serve as the heads                                               
14 of  principal departments of the executive branch of state government; and                                              
01   (3)  four public members appointed by the governor, two of whom must                                                 
02 be residents of the area that is within the boundaries of the Aleut Corporation, a Native                               
03 regional corporation established under 43 U.S.C. 1606 (Alaska Native Claims Settlement                                  
04 Act).                                                                                                                   
05  (b)  If a member described in (a)(1) or (2) of this section is unable to attend a                                     
06 meeting of the authority, the member may, by an instrument in writing filed with the                                    
07 authority, designate a deputy or assistant to act in the member's place as a member at                                  
08 the meeting.  For purposes of this chapter, the designee is a member of the authority at                                
09 the meeting.                                                                                                            
10  (c)  Members of the authority described in (a)(2) and (3) of this section serve                                       
11 two-year terms but serve at the pleasure of the governor.                                                               
12  (d)  If a vacancy occurs in the membership of the authority, the governor shall                                       
13 immediately appoint a member for the unexpired portion of the term.                                                     
14  Sec. 30.17.030.  CHAIR AND VICE-CHAIR.  The members of the authority                                                  
15 shall elect a chair from among themselves.  A vice-chair may be elected by the authority                                
16 from among its other members.  The vice-chair presides over all meetings in the absence                                 
17 of the chair and has other duties that the authority may prescribe.                                                     
18  Sec. 30.17.040.  MEETINGS, COMPENSATION, OFFICERS, AND                                                                
19 EMPLOYEES.  (a)  A majority of the members of the authority constitutes a quorum for                                    
20 the transaction of business or the exercise of a power or function at a meeting of the                                  
21 authority.  In case of a tie vote on a motion or resolution pending before the authority,                               
22 the motion or resolution shall be presented to the governor and, if approved by the                                     
23 governor, is considered adopted by the authority.  The authority may meet and transact                                  
24 business by electronic media if (1) public notice of the time and locations where the                                   
25 meeting will be held by electronic media has been given in the same manner as if the                                    
26 meeting were held in a single location; (2) participants and members of the public in                                   
27 attendance can hear and have the same right to participate in the meeting as if the                                     
28 meeting were conducted in person; and (3) copies of pertinent reference materials,                                      
29 statutes, regulations, and audio-visual materials are reasonably available to participants                              
30 and to the public.  A meeting by electronic media as provided in this subsection has the                                
31 same legal effect as a meeting in person.                                                                               
01  (b)  The public members of the authority are entitled to $100 compensation for                                        
02 each day spent on official business of the authority and may be reimbursed by the                                       
03 authority for actual and necessary expenses at the same rate paid to members of state                                   
04 boards under AS 39.20.180.                                                                                              
05  (c)  The authority may appoint persons as officers it considers advisable,                                            
06 including an executive director, and may employ professional advisors, legal counsel,                                   
07 technical experts, agents, and other employees it considers advisable.  The executive                                   
08 director and employees of the authority are in the exempt service under AS 39.25.                                       
09  (d)  The authority shall keep minutes of each meeting and send a certified copy                                       
10 to the governor and to the Legislative Budget and Audit Committee.                                                      
11 ARTICLE 2.  PURPOSE AND GENERAL POWERS.                                                                                 
12  Sec. 30.17.100.   PURPOSE OF THE AUTHORITY.  The purpose of the                                                       
13 authority is to develop and implement a comprehensive reuse and redevelopment plan                                      
14 for the territory encompassed by the Adak Naval Air Facility in a manner that will attract                              
15 business, create jobs, and advance the general prosperity and economic welfare of the                                   
16 people of the state by                                                                                                  
17   (1)  administering in a manner consistent with the purpose of the authority                                          
18 the assets transferred to the authority by the federal government, including facilities and                             
19 other real or personal property, located at the Adak Naval Air Facility;                                                
20   (2)  entering into necessary agreements with the federal government for                                              
21 operation of the facilities comprising the Adak Naval Air Facility;                                                     
22   (3)  operating or contracting with others to operate enterprises and other                                           
23 facilities located at the Adak Naval Air Facility; and                                                                  
24   (4)  cooperating and acting in conjunction with other organizations, public                                          
25 and private, the objects of which are the promotion and advancement of economic use                                     
26 of the facilities located at the Adak Naval Air Facility.                                                               
27  Sec. 30.17.110.  POWERS OF THE AUTHORITY.  In furtherance of its                                                      
28 corporate purposes, the authority may, in addition to other powers that it may have by                                  
29 law,                                                                                                                    
30   (1)  sue and be sued;                                                                                                
31   (2)  have a seal and alter the seal at its pleasure;                                                                 
01   (3)  adopt and amend bylaws for its organization and internal                                                        
02 management;                                                                                                             
03   (4)  adopt regulations governing the exercise of its corporate powers;                                               
04   (5)  subject to AS 30.17.130(c), accept title to, or other interest in, assets                                       
05 transferred to the authority by the federal government, including facilities and other real                             
06 or personal property, located at the Adak Naval Air Facility;                                                           
07   (6)  lease to others a project acquired by it for the rentals and upon the                                           
08 terms and conditions the authority may consider advisable, including, without limitation,                               
09 provisions for options to purchase or renew;                                                                            
10   (7)  issue and secure the payment of bonds, including revenue bonds;                                                 
11 provide for the rights of holders of the bonds; and purchase, hold, and dispose of bonds;                               
12   (8)  sell, by installment sale or otherwise, exchange, donate, convey, or                                            
13 encumber in any manner by mortgage or by creation of any other security interest, real                                  
14 or personal property owned by it, or in which it has an interest, including a project,                                  
15 when, in the judgment of the authority, the action is in furtherance of its corporate                                   
16 purposes;                                                                                                               
17   (9)  accept gifts, grants, or loans from, and enter into contracts or other                                          
18 transactions regarding them with, a federal agency or an agency or instrumentality of the                               
19 state, a municipality, a private organization, or other source;                                                         
20   (10)  deposit or invest its funds, subject to agreements with bondholders;                                           
21   (11)  acquire, manage, and operate projects as the authority considers                                               
22 necessary or appropriate to serve a public purpose;                                                                     
23   (12)  enter into contracts or other transactions with a federal agency, with                                         
24 an agency or instrumentality of the state or of a municipality, or with a private                                       
25 organization or other entity consistent with the exercise of any power under this chapter;                              
26   (13)  charge fees or other forms of remuneration for the use or possession                                           
27 of the projects described in (11) of this section in accordance with the agreements                                     
28 described in (12) of this section, other agreements pertaining to the projects, covenants,                              
29 or representations made in bond documents pertaining to the projects, or regulations of                                 
30 the authority pertaining to the projects.                                                                               
31  Sec. 30.17.120.  ADMINISTRATIVE PROCEDURE.  The provisions of the                                                     
01 Administrative Procedure Act regarding the adoption of regulations under AS 44.62.040 -                                 
02 44.62.320 apply to the authority.                                                                                       
03  Sec. 30.17.130.  LIMITATION ON POWERS.  (a)  The authority has only the                                               
04 powers expressly granted in this chapter, reasonably implied from this chapter, or                                      
05 reasonably necessary or convenient to carry out its corporate purposes and to exercise                                  
06 the powers expressly granted in or reasonably implied from this chapter.                                                
07  (b)  The authority does not have powers of                                                                            
08  (1)  eminent domain;                                                                                                 
09  (2)  taxation;                                                                                                       
10  (3)  land use planning;                                                                                              
11  (4)   zoning;                                                                                                        
12  (5)  permitting; or                                                                                                  
13  (6)  other similar governmental powers.                                                                              
14  (c)  The authority may not accept transfer by the federal government of title to,                                     
15 an interest in, control over, or responsibility for a facility or other real or personal                                
16 property located at the Adak Naval Air Facility unless sufficient federal or other money                                
17 is available to the authority to manage the property or operate the facility at a minimal                               
18 level for two years after the date of the transfer.  The director of the office of                                      
19 management and budget shall determine whether sufficient money is available to the                                      
20 authority with respect to each proposed transfer subject to this subsection, and approve                                
21 or disapprove the proposed transfer.                                                                                    
22 ARTICLE 3.  PROJECTS; BONDS.                                                                                            
23  Sec. 30.17.200.  CONSIDERATION OF PROJECTS TO BE FINANCED.  (a)                                                       
24 Before issuing bonds for a project under this chapter, the authority must find, on the                                  
25 basis of all information reasonably available to it, that the                                                           
26   (1)  project and its development under this chapter will be economically                                             
27 advantageous to the state and the general public welfare and will contribute to the                                     
28 economic growth of the state;                                                                                           
29   (2)  project is financially sound and can be expected to produce revenue                                             
30 adequate to repay the bonds with which it is financed; and                                                              
31   (3)  scope of the project is sufficient to provide a reasonable expectation                                          
01 of a benefit to the region and the economy of the state.                                                                
02  (b)  The authority shall give fair and reasonable consideration to a project                                          
03 presented to it for financing.  When the authority determines whether to finance or assist                              
04 in the financing of a project, the authority shall state the reasons for its determination in                           
05 a written resolution upon request by a person who presented the project to the authority                                
06 or a person who presented opposition to the project.  The authority shall base its reasons                              
07 on the information presented to it concerning the project and on other information                                      
08 considered appropriate by the authority.                                                                                
09  (c)  The authority may not issue bonds to finance or assist in financing a project                                    
10 unless the authority has received legislative approval to do so for a specified project.                                
11  Sec. 30.17.210.  BONDS OF THE AUTHORITY.  (a)  Subject to the provisions                                              
12 of AS 30.17.200, the authority may borrow money and may issue revenue bonds,                                            
13 including bonds on which the principal and interest are payable                                                         
14   (1)  exclusively from the income and receipts or other money derived                                                 
15 from the project financed with the proceeds of the bonds;                                                               
16   (2)  exclusively from the income and receipts or other money derived                                                 
17 from designated projects whether or not they are financed in whole or in part with the                                  
18 proceeds of the bonds; or                                                                                               
19   (3)  from the income and receipts or assets generally, or a designated part                                          
20 or parts of them, of the authority or of any other person.                                                              
21  (b)  Bonds issued under this chapter shall be authorized by resolution of the                                         
22 authority, and shall be dated and shall mature as the resolution may provide, except that                               
23 a bond may not mature more than 40 years from the date of its issuance.  The bonds                                      
24 shall bear interest at the rate or rates, be in the denominations, be in the form, either                               
25 coupon or registered, carry the registration privileges, be executed in the manner, be                                  
26 payable in the medium of payment, at the place or places, and be subject to the terms                                   
27 of redemption that the resolution or a subsequent resolution may provide.                                               
28  (c)  Bonds issued under this chapter, regardless of form or character, shall be                                       
29 negotiable instruments for the purposes of the Uniform Commercial Code.                                                 
30  (d)  Bonds issued under this chapter may be sold at public or private sale in the                                     
31 manner, for the price or prices, and at the time or times that the authority may determine.                             
01  (e)  The superior court shall have jurisdiction to hear and determine suits, actions,                                 
02 or proceedings relating to the authority, including suits, actions, or proceedings brought                              
03 to foreclose or otherwise enforce a mortgage, pledge, assignment, or security interest or                               
04 brought by or for the benefit or security of a holder of its bonds or by a trustee for or                               
05 other representative of the holders.                                                                                    
06  (f)  Before issuing bonds for a project under this chapter, the authority shall                                       
07 submit to the state bond committee a description of the bond issue and an independent                                   
08 economic feasibility analysis of the project and expected revenue.  This information may                                
09 be contained in a preliminary prospectus, offering circular, or official statement relating                             
10 to the bond issue.  Bonds may not be issued under this chapter unless the state bond                                    
11 committee finds, based upon the information submitted by the authority under this                                       
12 subsection and other information that is reasonably available to the committee, that the                                
13 project revenue can be reasonably expected to be adequate for payment of the principal                                  
14 and interest on the bonds to be issued if the bonds are to be secured by project revenue                                
15 alone, and in any event that issuance of the bonds by the authority would not be                                        
16 expected to adversely affect the ability of the state or its political subdivisions to market                           
17 bonds.                                                                                                                  
18  Sec. 30.17.220.  TRUST INDENTURES AND TRUST AGREEMENTS.  In the                                                       
19 discretion of the authority, an issue of bonds may be secured by a trust indenture or trust                             
20 agreement between the authority and a corporate trustee, which may be a trust company,                                  
21 bank, or national banking association, with corporate trust powers, located inside or                                   
22 outside the state, or by a secured loan agreement or other instrument or under a                                        
23 resolution giving powers to a corporate trustee, after this in this section referred to as                              
24 "trust agreement," by means of which the authority may                                                                  
25   (1)  make and enter into the covenants and agreements with the trustee                                               
26 or the holders of the bonds that the authority determines necessary or desirable,                                       
27 including, without limitation, covenants, provisions, limitations, and agreements as to                                 
28   (A)  the application, investment, deposit, use, and disposition of                                                  
29 the proceeds of the bonds of the authority or of money or other property of the                                         
30 authority or in which it has an interest;                                                                               
31   (B)  the fixing and collection of rents or other consideration for,                                                 
01 and the other terms to be incorporated in, an agreement with respect to a project;                                      
02   (C)  the assignment by the authority of its rights in a mortgage or                                                 
03 other security interest created with respect to a project to a trustee for benefit of                                   
04 bondholders;                                                                                                            
05   (D)  the terms and conditions upon which additional bonds of the                                                    
06 authority may be issued;                                                                                                
07   (E)  the vesting in a trustee of rights, powers, duties, funds, or                                                  
08 property in trust for the benefit of bondholders, including, without limitation, the                                    
09 right to enforce payment, performance, and all other rights of the authority or of                                      
10 the bondholders under a lease, contract of sale, mortgage, security agreement, or                                       
11 trust agreement with respect to a project by appropriate judicial  proceeding or                                        
12 by taking possession of by agent or otherwise and operating a project and                                               
13 collecting rents or other consideration and applying the same in accordance with                                        
14 the trust agreement;                                                                                                    
15   (2)  pledge, mortgage, or assign money, leases, agreements, property, or                                             
16 other assets of the authority either presently in hand or to be received in the future, or                              
17 both; and                                                                                                               
18   (3)  provide for other matters that affect the security or protection of the                                         
19 bonds.                                                                                                                  
20  Sec. 30.17.230.  VALIDITY OF PLEDGE.  (a)  It is the intent of the legislature                                        
21 that a pledge made in respect of bonds issued under this chapter is perfected, valid, and                               
22 binding from the time the pledge is made; that the money or property so pledged and                                     
23 thereafter received by the authority is immediately subject to the lien of the pledge                                   
24 without physical delivery or further act; and that the lien of the pledge is valid and                                  
25 binding against all parties having claims of any kind in tort, contract, or otherwise                                   
26 against the authority whether or not the parties have notice.  Neither the resolution, trust                            
27 agreement, nor any other instrument by which a pledge is created need be recorded or                                    
28 filed under the provisions of the Uniform Commercial Code to be perfected or to be                                      
29 valid, binding, or effective against the parties.                                                                       
30  (b)  This section does not affect title to or conveyances of real property, and does                                  
31 not limit the applicability of AS 40.17.080.                                                                            
01  Sec. 30.17.240.  NONLIABILITY ON BONDS.  (a)  Neither the members of the                                              
02 authority nor a person executing the bonds are liable personally on the bonds issued by                                 
03 the authority or are subject to personal liability or accountability by reason of the                                   
04 issuance of the bonds.                                                                                                  
05  (b)  The bonds issued by the authority do not constitute an indebtedness or other                                     
06 liability of the state or of a political subdivision of the state, but shall be payable solely                          
07 from the income and receipts or other funds or property of the authority.  The authority                                
08 may not pledge the faith or credit of the state or of a political subdivision of the state,                             
09 except the authority, to the payment of a bond, and the issuance of a bond by the                                       
10 authority does not directly, indirectly, or contingently obligate the state or a political                              
11 subdivision of the state to apply money from, levy, or pledge any form of taxation to the                               
12 payment of the bond.                                                                                                    
13  (c)  The authority shall print the language of (b) of this section in substantial                                     
14 form on the face of all bonds issued and in any offering circular, or statement issued in                               
15 connection with the bonds.                                                                                              
16  Sec. 30.17.250.  PLEDGE OF THE STATE.  The state pledges to and agrees                                                
17 with the holders of bonds issued under this chapter and with the federal agency that                                    
18 loans or contributes funds in respect to a project, that the state will not limit or alter the                          
19 rights and powers vested in the authority by this chapter to fulfill the terms of a contract                            
20 made by the authority with the holders or federal agency, or in any way impair the rights                               
21 and remedies of the holders until the bonds, together with the interest on them with                                    
22 interest on unpaid installments of interest, and all costs and expenses in connection with                              
23 an action or proceeding by or on behalf of the holders, are fully met and discharged.                                   
24 The authority may include this pledge and agreement of the state, insofar as it refers to                               
25 holders of bonds of the authority, in a contract with the holders, and insofar as it relates                            
26 to a federal agency, in a contract with the federal agency.                                                             
27  Sec. 30.17.260.  EXEMPTION FROM TAXATION.  (a)  The real and personal                                                 
28 property of the authority and its assets, income, and receipts are declared to be the                                   
29 property of a political subdivision of the state and are exempt from taxes and special                                  
30 assessments of the state or a political subdivision of the state.  Bonds of the authority are                           
31 declared to be issued by a political subdivision of the state and for an essential public                               
01 and governmental purpose and to be a public instrumentality, and the bonds, the interest                                
02 on them, the income from them, and the transfer of the bonds, and all assets, income,                                   
03 and receipts pledged to pay or secure the payment of the bonds or interest on them shall                                
04 at all times be exempt from taxation by or under the authority of the state, except for                                 
05 inheritance and estate taxes and taxes on transfers by or in contemplation of death.                                    
06  (b)  This section does not affect or limit an exemption from license fees, property                                   
07 taxes, or excise, income, or other taxes, provided under any other law, nor does it create                              
08 a tax exemption with respect to the interest of any business enterprise or other person,                                
09 other than the authority, in any property, assets, income, receipts, project, or lease                                  
10 whether or not financed under this chapter.                                                                             
11  Sec. 30.17.270.  BONDS LEGAL INVESTMENTS FOR FIDUCIARIES.  The                                                        
12 bonds of the authority are securities in which public officers and bodies of the state;                                 
13 municipalities and municipal subdivisions; insurance companies and associations and                                     
14 other persons carrying on an insurance business; banks, bankers, trust companies, savings                               
15 banks, savings associations, including savings and loan associations and building and                                   
16 loan associations, investment companies, and other persons carrying on banking business;                                
17 administrators, guardians, executors, trustees, and other fiduciaries; and other persons                                
18 who are now or may afterward be authorized to invest in bonds or other obligations of                                   
19 the state, may properly and legally invest money, including capital in their control or                                 
20 belonging to them.  Notwithstanding any other provisions of law, the bonds of the                                       
21 authority are also securities that may be deposited with and may be received by public                                  
22 officers and bodies of the state and municipalities and municipal subdivisions for any                                  
23 purpose for which the deposit of bonds or other obligations of the state is now or may                                  
24 afterward be authorized.                                                                                                
25  Sec. 30.17.280.  ENTERPRISE DEVELOPMENT ACCOUNT.  (a)  The                                                            
26 enterprise development account is established in the authority.  The enterprise                                         
27 development account is a trust fund for the uses and purposes of this chapter.  The                                     
28 enterprise development account consists of money or assets appropriated or transferred                                  
29 to the authority and other money or assets deposited in it by the authority.                                            
30  (b)  The authority may establish in the enterprise development account the                                            
31 accounts it considers appropriate.                                                                                      
01  (c)  Money and other assets of the enterprise development account may be used                                         
02 to secure bonds of the authority issued to finance the purchase of loans for projects or                                
03 may be used to purchase participation in the loans for projects.                                                        
04  (d)  A loan participation purchased by the authority with assets of the enterprise                                    
05 development account or with proceeds of bonds secured by assets of the enterprise                                       
06 development account                                                                                                     
07   (1)  may not be purchased unless                                                                                     
08   (A)  the project applicant is not, or, if the applicant is not a single                                             
09 proprietorship, all members of the business enterprise or enterprises constituting                                      
10 the project applicant are not, in default on another loan made by the state or by                                       
11 a public corporation of the state;                                                                                      
12   (B)  the project applicant has, or, if the applicant is not a single                                                
13 proprietorship, all members of the business enterprise or enterprises constituting                                      
14 the project applicant have, paid all taxes due to the state, has satisfied financial                                    
15 requirements for state tax cases that are under appeal, and is current on all                                           
16 payment schedules relating to state taxes or settlement of tax disputes with the                                        
17 state; and                                                                                                              
18   (C)  at least 20 percent of the principal amount of the loan is                                                     
19 retained by the loan originator;                                                                                        
20   (2)  may not be purchased if the loan to be purchased exceeds the cost                                               
21 of the project or 75 percent of the appraised value of the project, whichever is less,                                  
22 unless the amount of the loan in excess of this limit is federally insured or guaranteed                                
23 or is insured by a qualified mortgage insurance company;                                                                
24   (3)  may not be purchased if the participation in the loan to be purchased                                           
25 is for a term longer than three-quarters of the authority's estimate of the life of the                                 
26 project or 25 years from the date the loan is made, whichever is earlier; however, in the                               
27 case of a loan participation for a power transmission intertie, the term may not be longer                              
28 than 50 years from the date the loan is made;                                                                           
29   (4)  may be made only if the participation in the loan to be purchased                                               
30 contains amortization provisions; the amortization provisions                                                           
31   (A)  must be complete and satisfactory to the authority and require                                                 
01 periodic payments by the borrower;                                                                                      
02   (B)  may allow the loan originator to amortize the portion of the                                                   
03 loan retained by the loan originator using a shorter amortization schedule than the                                     
04 amortization schedule for the portion of the loan held by the authority if                                              
05   (i)  in the authority's opinion, the project financed can                                                          
06 support the increased debt service; and                                                                                 
07   (ii)  the accelerated amortization schedule is required to                                                         
08 induce the originator to make the loan;                                                                                 
09   (5)  may be made only if the participation in the loan to be purchased is                                            
10 in the form and contains the terms and provisions with respect to insurance, repairs,                                   
11 alterations, payment of taxes and assessments, default reserves, delinquency charges,                                   
12 default remedies, acceleration of maturity, secondary liens, and other matters the                                      
13 authority prescribes; and                                                                                               
14   (6)  may be made only if the participation in the loan to be purchased is                                            
15 secured as to repayment by a mortgage or other security instrument in the manner the                                    
16 authority determines is feasible to assure timely repayment under a loan agreement                                      
17 entered into with the borrower.                                                                                         
18  (e)  The authority may adopt regulations for the administration of the enterprise                                     
19 development account including provisions for fees and agreements relating to application,                               
20 loan commitment, servicing, and origination of loans by other lenders.                                                  
21  (f)  The authority may enter into agreements as to the use of the money in the                                        
22 enterprise development account including trust or custody arrangements with banks or                                    
23 trust companies.  It may also pledge, assign, or grant the agreement, interests under an                                
24 agreement, or interests in the enterprise development account as may be necessary or                                    
25 appropriate to provide for payment and security for bonds of the authority issued to                                    
26 finance the purchase by the authority of loans for projects.                                                            
27  (g)  Notwithstanding any other provision of this section, the authority may waive                                     
28 or modify the requirements of this section as it considers appropriate and prudent in                                   
29 order to finance a project if the authority intends to own the project or in order to                                   
30 finance a power transmission intertie project.                                                                          
31  (h)  The provisions of this section apply only with respect to a loan participation                                   
01 purchased by the authority for projects under this chapter.                                                             
02 ARTICLE 4.  MISCELLANEOUS PROVISIONS.                                                                                   
03  Sec. 30.17.300.  AUDIT.  The legislative auditor shall audit or shall cause to                                        
04 have audited annually the financial records of the authority.  The legislative auditor may                              
05 prescribe the form and content of the financial records of the authority and shall have                                 
06 access to these records at reasonable times.                                                                            
07  Sec. 30.17.310.  EQUAL USE AND ACCESS.  If the authority owns, leases, or                                             
08 otherwise operates or controls, or participates in the financing of, a facility, the authority                          
09 shall, to the maximum extent possible, provide for equal rights of access to and use of                                 
10 the facility by members of the public and other persons or entities upon terms and                                      
11 conditions that are fair and reasonable.  However, this section does not prevent the                                    
12 authority from establishing fair and reasonable limitations on use of or access to a facility                           
13 to the extent the limitations are necessary in connection with the nature of the facility or                            
14 the demand for use of or access to the facility.  This section applies to the establishment                             
15 of rates and rate structures as well as all other factors, terms, and conditions relating to                            
16 the use of or access to the facility, including without limitation the design and location                              
17 of the facility.  The members of the authority shall make a written finding concerning                                  
18 compliance of the facility with this section.  A written finding signed by a majority of                                
19 the authority members complies with the provisions of this section and shall constitute                                 
20 a conclusive presumption of compliance.                                                                                 
21  Sec. 30.17.320.  SUCCESSION.  The authority is dissolved one year after the                                           
22 date of incorporation of a municipality, other than a second class city, that has an area                               
23 coterminous with or inclusive of the area formerly encompassed by the Adak Naval                                        
24 Air Facility.  Upon dissolution of the authority, the municipality succeeds to the assets                               
25 and liabilities of the authority and succeeds to the rights, powers, and duties of the                                  
26 authority under contracts to which the authority is a party on the date of dissolution.                                 
27 Except for this section, this chapter is not applicable to a municipality that succeeds                                 
28 the authority.                                                                                                          
29  Sec. 30.17.330.  PURCHASE OF PROJECT AND LEASES.  (a)  This chapter                                                   
30 does not prevent the inclusion in a lease or other agreement relating to a project of a                                 
31 provision granting the right to purchase the project, or to renew or extend the lease or                                
01 agreement, upon the terms and conditions that may be provided for in the lease or                                       
02 agreement.                                                                                                              
03  (b)  A lease with respect to a project may provide for two or more lessees with                                       
04 the legal relationship between themselves and the authority that the authority may                                      
05 approve, including provisions to the effect that the obligations of the lessees under the                               
06 lease for payment of rental or otherwise between themselves and the authority are                                       
07 several, joint, or joint and several and that the lessees lease the project as                                          
08 tenants-in-common, or otherwise.                                                                                        
09  Sec. 30.17.340.  CONFLICTS OF INTEREST.  (a)  A member of the authority                                               
10 may not vote on a matter relating to a lease or contract entered into or to be entered into                             
11 by the authority under this chapter if the member is a party to the lease or contract or                                
12 has a direct ownership or equity interest in a firm, partnership, corporation, or association                           
13 that may be a party to the contract or lease.  A matter relating to a lease or contract that                            
14 is approved by a majority of the members who are not barred from voting under this                                      
15 section is a valid action of the authority for all purposes.                                                            
16  (b)  Members of the authority are subject to AS 39.52 (Alaska Executive Branch                                        
17 Ethics Act).                                                                                                            
18  Sec. 30.17.350.  OPERATION OF CERTAIN STATUTES EXCEPTED.  (a) The                                                     
19 authority may not be considered to be or constitute (1) a political subdivision of the state                            
20 as the term is used in AS 37.10.085, (2) a municipal corporation or political subdivision                               
21 of the state as the terms are used in AS 29, or (3) except as provided in AS 30.17.360,                                 
22 a state agency as the term is used in AS 37, but for all other purposes the authority                                   
23 constitutes a political subdivision and an instrumentality of the state as provided in this                             
24 chapter.                                                                                                                
25  (b)  The funds, income, or receipts of the authority may not be considered to be                                      
26 or constitute money of the state, nor may real property in which the authority has an                                   
27 interest be considered land owned in fee by the state or to which the state may become                                  
28 entitled or in any way land belonging to the state, or state land referred to in art. VIII,                             
29 Constitution of the State of Alaska.                                                                                    
30  Sec. 30.17.360.  COMPLIANCE WITH EXECUTIVE BUDGET ACT;                                                                
31 AUTHORITY FINANCES.  (a)  The operating budget of the authority is subject to                                           
01 AS 37.07 (Executive Budget Act).                                                                                        
02  (b)  To further ensure effective budgetary decision making by the legislature, the                                    
03 authority shall                                                                                                         
04   (1)  annually review the authority's assets to determine whether assets of                                           
05 the authority exceed an amount required to fulfill the purposes of the authority as defined                             
06 in this chapter; in making its review, the members of the authority shall determine                                     
07 whether, and to what extent, assets in excess of the amount required to fulfill the                                     
08 purposes of the authority during at least the next fiscal year are available without                                    
09   (A)  breaching an agreement entered into by the authority;                                                          
10   (B)  materially impairing the operations or financial integrity of                                                  
11 the authority; or                                                                                                       
12   (C)  materially affecting the ability of the authority to fulfill the                                               
13 authority's purposes; and                                                                                               
14   (2)  present to the legislature by January 10 of each year a complete                                                
15 accounting of all assets of the authority and a report of the review and determination                                  
16 made under (1) of this subsection; the accounting shall be audited by the auditor who                                   
17 conducts the audit required by AS 30.17.300, including income earned on assets of the                                   
18 authority during that period.                                                                                           
19  Sec. 30.17.370.  REPORTS AND PUBLICATIONS.  By January 10 of each                                                     
20 year, the authority shall publish a report for distribution to the governor, legislature, and                           
21 the public.  The authority shall notify the legislature that the report is available.  The                              
22 report shall be written in easily understandable language.  The report must include a                                   
23 financial statement audited by an independent outside auditor, a statement of the                                       
24 authority's investments under this chapter, including an appraisal of the investments at                                
25 market value, a comparison of the authority's performance with the goals of the                                         
26 authority, and other information the members of the authority believe would be of                                       
27 interest to the governor, the legislature, and the public.  The annual income statement and                             
28 balance sheet of the authority shall be published in at least one newspaper circulating in                              
29 each judicial district.  The authority may also publish other reports it considers desirable                            
30 to carry out its purposes.                                                                                              
31 ARTICLE 5. GENERAL PROVISIONS.                                                                                          
01  Sec. 30.17.900. DEFINITIONS. In this chapter,                                                                         
02   (1)  "authority" means the Adak Reuse Authority created by this chapter;                                             
03   (2)  "bonds" means bonds or other obligations issued under this chapter;                                             
04   (3)  "business enterprise" means a single proprietorship, cooperative,                                               
05 corporation, firm, partnership, or other association of persons organized in any manner,                                
06 for any credit worthy business purpose;                                                                                 
07   (4)   "facility" means real property, whether above or below mean high                                               
08 water, or an interest in it, and the buildings, improvements, and structures constructed                                
09 or to be constructed on or in it, and may include fixtures, machinery, and equipment on                                 
10 it or in it, and tangible personal property, regardless of whether the tangible personal                                
11 property is attached to or connected with real property, if the owner has agreed not to                                 
12 remove the tangible personal property permanently from the state for the period the                                     
13 authority sets; "facility" does not include work in process or stock in trade;                                          
14   (5)  "federal agency" means the United States and any officer, department,                                           
15 agency or instrumentality of the United States;                                                                         
16   (6)  "lease" includes, when used as a noun, an interest in, or when used                                             
17 as a verb, the transfer of an interest in, property less than fee simple title, including,                              
18 when used as a noun, agreements to use or occupy property;                                                              
19   (7)  "person" includes a corporation, company, partnership, firm,                                                    
20 association, organization, business trust, society, state or agency or subdivision of the                               
21 state, municipality of the state, a resource development authority, as well as a natural                                
22 person;                                                                                                                 
23    (8)  "project" means                                                                                                 
24   (A)  a facility used or intended for use in connection with making,                                                 
25 processing, preparing, transporting, or producing goods, products, or substances                                        
26 of any kind or nature or in connection with developing or using a natural                                               
27 resource, or extracting, smelting, transporting, converting, assembling, or                                             
28 producing minerals, raw materials, chemicals, compounds, alloys, fibers,                                                
29 commodities and materials, products, or substances of any kind or nature;                                               
30   (B)  a facility used or intended for use in connection with a                                                       
31 business enterprise;                                                                                                    
01   (C)  commercial activity by a small enterprise;                                                                     
02   (D)  a facility demonstrating technological advances of new                                                         
03 methods and procedures and prototype commercial applications for the                                                    
04 exploration, development, production, transportation, conversion, and use of                                            
05 energy resources;                                                                                                       
06   (E)  infrastructure for a new tourism destination facility or for the                                               
07 expansion of a tourism destination facility;                                                                            
08   (F)  a facility, other than a facility described in (D) of this                                                     
09 paragraph, for the generation, transmission, development, transportation,                                               
10 conversion, or use of energy resources;                                                                                 
11   (9)  "project applicant" means a business enterprise or enterprises                                                  
12 proposing to                                                                                                            
13   (A)  use or occupy a project; or                                                                                    
14   (B)  agree to permit others to use or occupy a project;                                                             
15   (10)  "real property" means land and rights and interests in land, including                                         
16 interests less than full title such as easements, uses, leases, and licenses.                                           
17    * Sec. 2.  AS 39.25.110(11) is amended to read:                                                                      
18   (11)  the officers and employees of the following boards, commissions,                                               
19 and authorities:                                                                                                        
20   (A)  [REPEALED                                                                                                      
21   (B)]  Alaska Permanent Fund Corporation;                                                                            
22   (B) [(C)]  Alaska Industrial Development and Export Authority;                                                    
23   (C) [(D)]  Alaska Commercial Fisheries Entry Commission;                                                          
24   (D) [(E)]  Alaska Commission on Postsecondary Education;                                                          
25   (E) [(F)]  Alaska Aerospace Development Corporation;                                                              
26   (F)  Adak Reuse Authority;                                                                                        
27    * Sec. 3.  INITIAL TERMS.  Notwithstanding AS 30.17.020, enacted in sec. 1 of this Act,                              
28 the initial term of one member appointed under (a)(2) of that section, and the initial terms of two                     
29 members appointed under (a)(3) of that section, shall be one year.