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

00SENATE 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.