HB 541: "An Act providing for the issuance of general obligation bonds in the amount of $148,500,000 for the purpose of paying the cost of design and construction of state correctional facilities; and providing for an effective date."
00HOUSE BILL NO. 541 01 "An Act providing for the issuance of general obligation bonds in the amount 02 of $148,500,000 for the purpose of paying the cost of design and construction 03 of state correctional facilities; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. For the purpose of paying the cost of design and construction of correctional 06 facilities of the state, general obligation bonds of the state in the principal amount of not more 07 than $148,500,000 shall be issued and sold. The full faith, credit, and resources of the state 08 are pledged to the payment of the principal of and interest and redemption premium, if any, 09 on the bonds. The bonds shall be issued under the provisions of AS 37.15 as those provisions 10 read at the time of issuance. 11 * Sec. 2. If the issuance of the bonds is authorized by the qualified voters of the state, a 12 special fund of the state to be known as the "State Correctional Facility Construction Fund" 13 shall be established, to which shall be credited the proceeds of the sale of the bonds described 14 in sec.1 of this Act except for the accrued interest and premiums.
01 * Sec. 3. The amount of $148,500,000 is appropriated from the "State Correctional Facility 02 Construction Fund" to the Department of Transportation and Public Facilities to be allocated 03 among the following projects in the amounts listed, which include the cost of issuance of the 04 bonds, subject to reallocation between projects in accordance with AS 37.07.080(e): 05 (1) Palmer Correctional Center $ 13,050,000 06 (2) Hiland Mountain (Eagle River) Correctional Center 1,000,000 07 (3) Yukon-Kuskokwim (Bethel) Correctional Center 5,000,000 08 (4) Mat-Su Pretrial (Palmer) Correctional Center 6,000,000 09 (5) Fairbanks Correctional Facility 10,250,000 10 (6) Anchorage Criminal Justice Facility 60,000,000 11 (7) North Slope Borough (Barrow) Correctional Facility 15,000,000 12 (8) Lemon Creek (Juneau) Correctional Center 9,000,000 13 (9) Wildwood (Kenai) Correctional Center 29,200,000 14 * Sec. 4. If the issuance of the bonds is authorized by the qualified voters of the state, the 15 cost of issuance of the bonds, included in the amount appropriated by sec. 3 of this Act, may 16 be paid by means of a net transaction by which the trustee of the bonds shall retain a part of 17 the bond proceeds for this purpose. 18 * Sec. 5. The amount withdrawn from the public facility planning fund for the purpose of 19 advance planning for the improvements financed under this Act shall be reimbursed to the 20 fund from the proceeds of the sale of bonds authorized by this Act. 21 * Sec. 6. The unexpended and unobligated balance of the appropriation made in sec. 3 of 22 this Act lapses under AS 37.25.020 and is appropriated to the state bond committee to redeem 23 bonds sold under the Act or to pay rebatable arbitrage if necessary. The amounts expended 24 from the general fund to pay the principal, interest, and redemption premium on bonds issued 25 under this Act shall be reimbursed to the general fund from the appropriation made under this 26 section to the extent that the money is not needed to redeem the bonds. 27 * Sec. 7. The question whether the bonds authorized in this Act are to be issued shall be 28 submitted to the qualified voters of the state at the next general election and shall read 29 substantially as follows: 30 PROPOSITION 31 State General Obligation Correctional Facility
01 Design and Construction Bonds $148,500,000 02 Shall the State of Alaska issue its general obligation bonds in the 03 principal amount of not more than $148,500,000 for the purpose of 04 paying the cost of design and construction of state correctional 05 facilities? The annual operating cost of the facilities is estimated at 06 $28,783,600. Between 1997 and 2013 the average annual debt service 07 for bonds is estimated at $13,423,000. 08 Bonds Yes [ ] 09 Bonds No [ ] 10 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).