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

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