28th Legislature(2013-2014)

Bill Text 28th Legislature


00                 FREE CONFERENCE CS FOR HOUSE BILL NO. 23                                                                
01 "An Act relating to the Department of Transportation and Public Facilities; relating to                                 
02 the Knik Arm Bridge and Toll Authority; relating to construction of the Knik Arm                                        
03 bridge and appurtenant facilities; relating to toll bridge revenue bonds; establishing the                              
04 Knik Arm construction fund, the toll bridge revenue fund, the toll bridge revenue bond                                  
05 redemption fund, and the toll bridge revenue bond reserve fund; relating to powers and                                  
06 duties of the state bond committee; and providing for an effective date."                                               
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 19.15.020 is amended by adding a new subsection to read:                                           
09            (b)  The department may incur a line of credit or indebtedness to the Federal                                
10       Highway Administration, United States Department of Transportation, under 23                                      
11       U.S.C. 601 - 609 (Transportation Infrastructure Finance and Innovation Act of 1998),                              
12       as amended, and may enter into a contract or agreement with any public or private                                 
13       person, governmental unit or agency, corporation, or other business entity to secure                              
01       the indebtedness.                                                                                                 
02    * Sec. 2. AS 19.75.011 is amended to read:                                                                         
03            Sec. 19.75.011. Purpose. The purpose of the authority created by this chapter                              
04       is to develop, stimulate, and advance the economic welfare of the state and further the                           
05       development of public transportation systems in the vicinity of the Upper Cook Inlet                              
06       with operation and management [CONSTRUCTION] of a bridge to span Knik Arm                                     
07       and connect the Municipality of Anchorage and the Matanuska-Susitna Borough.                                      
08    * Sec. 3. AS 19.75.021(b) is amended to read:                                                                      
09            (b)  The authority may not be terminated as long as it has [BONDS,] notes [,]                                
10       or other obligations outstanding, including obligations under an agreement with the                           
11       state as provided in AS 37.15.225. Upon termination of the authority, its rights and                          
12       property pass to the state.                                                                                       
13    * Sec. 4. AS 19.75 is amended by adding a new section to read:                                                     
14            Sec. 19.75.076. Application of the Executive Budget Act. The operating                                     
15       budget of the authority is subject to AS 37.07 (Executive Budget Act).                                            
16    * Sec. 5. AS 19.75.111(a) is amended to read:                                                                      
17            (a)  [EXCEPT AS OTHERWISE EXPLICITLY MADE APPLICABLE TO                                                      
18       THE AUTHORITY, THE PERFORMANCE OF THE AUTHORITY'S DUTIES                                                          
19       AND THE EXERCISE OF ITS POWERS, INCLUDING ITS POWERS TO ISSUE                                                     
20       BONDS AND OTHERWISE INCUR DEBT, SHALL BE GOVERNED                                                                 
21       EXCLUSIVELY BY THIS CHAPTER.] In furtherance of its purposes, the authority                                       
22       may                                                                                                               
23                 (1)  [OWN, ACQUIRE, CONSTRUCT, DEVELOP, CREATE,                                                         
24       RECONSTRUCT, EQUIP,] operate [, MAINTAIN, EXTEND, AND IMPROVE] the                                                
25       Knik Arm bridge and its appurtenant facilities;                                                                   
26                 (2)  sue and be sued;                                                                                   
27                 (3)  adopt a seal;                                                                                      
28                 (4)  adopt, amend, and repeal regulations under AS 44.62 and establish                                  
29       bylaws;                                                                                                           
30                 (5)  make and execute agreements, contracts, and all other instruments                                  
31       with any public or private person, the state or another governmental unit or agency,                          
01       corporation, or other business entity lawfully conducting business in the United States                           
02       for the exercise of its powers and functions under this chapter and for the                                       
03       [FINANCING, DESIGN, CONSTRUCTION, MAINTENANCE, IMPROVEMENT,                                                       
04       OR] operation of facilities, properties, or projects of the authority, including making                           
05       and executing contracts with any person, firm, corporation, the state or another                              
06       governmental agency, or other entity [FOR THE PURPOSE OF                                                          
07                      (A)  INCURRING INDEBTEDNESS, OBTAINING                                                             
08            INVESTMENTS IN THE AUTHORITY'S PROJECTS, ACQUIRING OR                                                        
09            GRANTING LUMP SUM PAYMENTS FOR SERVICES IN ADVANCE OR                                                        
10            IN ARREARS, GRANTS, AND OTHER FINANCING; AND                                                                 
11                      (B)  ENTERING INTO PUBLIC-PRIVATE PARTNERSHIPS                                                     
12            OR SERVICE CONTRACTS IN ANY FORM];                                                                           
13                 (6)  in its own name acquire, lease, rent, sell, or convey real and                                     
14       personal property;                                                                                                
15                 (7)  [ISSUE AND REFUND BONDS IN ACCORDANCE WITH                                                         
16       THIS CHAPTER, IN ORDER TO PAY THE COST OF THE KNIK ARM BRIDGE                                                     
17       AND ITS APPURTENANT FACILITIES; THE AUTHORITY MAY ALSO                                                            
18       SECURE PAYMENT OF THE BONDS AS PROVIDED IN THIS CHAPTER;                                                          
19                 (8)  INCUR OTHER INDEBTEDNESS, INCLUDING LINES OF                                                       
20       CREDIT AND INDEBTEDNESS TO THE FEDERAL HIGHWAY                                                                    
21       ADMINISTRATION, UNITED STATES DEPARTMENT OF TRANSPORTATION,                                                       
22       UNDER 23 U.S.C. 601 - 610 (TRANSPORTATION INFRASTRUCTURE                                                          
23       FINANCE AND INNOVATION ACT OF 1998), AS AMENDED, AND SECURE                                                       
24       THAT INDEBTEDNESS AS PROVIDED IN THIS CHAPTER;                                                                    
25                 (9)]  apply for and accept gifts, grants, or loans from a federal agency                                
26       or an agency or instrumentality of the state, or from a municipality, private                                     
27       organization, or other source, including obtaining title to state, local government, or                           
28       privately owned land, directly or through a department of the state having jurisdiction                           
29       of the land;                                                                                                      
30                 (8) [(10) FIX AND] collect fees, rents, tolls, rates, or other charges for                          
31       the use of the Knik Arm bridge and appurtenant facilities [, OR FOR A SERVICE                                     
01       DEVELOPED, OPERATED, OR PROVIDED BY THE AUTHORITY;                                                                
02       NOTWITHSTANDING AS 37.10.050(a), FEES, RENTS, TOLLS, RATES, AND                                                   
03       OTHER CHARGES FIXED AND COLLECTED UNDER THIS PARAGRAPH                                                            
04       MAY EXCEED THE ACTUAL OPERATING COST OF THE USE OF THE                                                            
05       BRIDGE, FACILITY, OR SERVICE];                                                                                    
06                 (9) [(11)]  bring civil actions, refer criminal actions to the appropriate                          
07       authority, and take other actions or enter into agreements with law enforcement and                               
08       collection agencies to enforce the collection of its fees, rents, tolls, rates, other                             
09       charges, penalties, and other obligations;                                                                        
10                 (10) [(12)]  pledge, encumber, transfer, or otherwise obligate revenue                              
11       derived by the authority from the ownership, use, or operation of toll facilities,                                
12       including fees, rents, tolls, rates, charges, or other revenue of the authority or money                          
13       that the legislature may appropriate, except a state tax or license, as security for                              
14       [BONDS OR OTHER] indebtedness or agreements of the authority or for bonds or                                  
15       other indebtedness or agreements of the state on a senior, parity, or subordinate                             
16       lien basis;                                                                                                   
17                 (11) [(13)]  deposit or invest its funds [, SUBJECT TO                                              
18       AGREEMENTS WITH BONDHOLDERS];                                                                                     
19                 (12) [(14)]  procure insurance against any loss in connection with its                              
20       operation;                                                                                                        
21                 (13) [(15)]  contract for and engage the services of consultants, experts,                          
22       and financial and technical advisors that the authority considers necessary for the                               
23       exercise of its powers and functions under this chapter;                                                          
24                 (14) [(16)  APPLY FOR, OBTAIN, HOLD, AND USE PERMITS,                                               
25       LICENSES, OR APPROVALS FROM APPROPRIATE AGENCIES OF THE                                                           
26       STATE, THE UNITED STATES, A FOREIGN COUNTRY, AND ANY OTHER                                                        
27       PROPER AGENCY IN THE SAME MANNER AS ANY OTHER PERSON;                                                             
28                 (17)  PERFORM RECONNAISSANCE STUDIES AND                                                                
29       ENGINEERING, SURVEY, AND DESIGN STUDIES WITH RESPECT TO THE                                                       
30       KNIK ARM BRIDGE AND ITS APPURTENANT FACILITIES;                                                                   
31                 (18)  EXERCISE POWERS OF EMINENT DOMAIN OR FILE A                                                       
01       DECLARATION OF TAKING AS NECESSARY FOR THE KNIK ARM BRIDGE                                                        
02       AND APPURTENANT FACILITIES UNDER AS 09.55.240 - 09.55.460 TO                                                      
03       ACQUIRE LAND OR AN INTEREST IN LAND; THE AUTHORITY'S EXERCISE                                                     
04       OF POWERS UNDER THIS PARAGRAPH MAY NOT EXCEED THE                                                                 
05       PERMISSIBLE EXERCISE OF THOSE POWERS BY THE STATE;                                                                
06                 (19)]  confer with municipal and other governments, metropolitan                                        
07       planning organizations, and the department, concerning the Knik Arm bridge;                                       
08                 (15) [(20)]  do all acts and things necessary to carry out the powers                               
09       expressly granted [OR NECESSARILY IMPLIED] in this chapter [; NOTHING IN                                          
10       THIS CHAPTER LIMITS THE POWERS OF THE AUTHORITY THAT ARE                                                          
11       EXPRESSLY GRANTED OR NECESSARILY IMPLIED].                                                                        
12    * Sec. 6. AS 19.75.111(b) is amended to read:                                                                      
13            (b)  The authority shall                                                                                     
14                 (1)  prepare an annual report of its operations to include a balance                                    
15       sheet, an income statement, a statement of changes in financial position, a                                       
16       reconciliation of changes in equity accounts, a summary of significant accounting                                 
17       principles, an auditor's report, comments regarding the year's business, and prospects                            
18       for the next year; the report shall be completed by the third day of each regular session                         
19       of the legislature, and the authority shall notify the governor, the commissioner of the                          
20       department, the presiding officers of each house of the legislature, and the Legislative                          
21       Budget and Audit Committee that the report is available;                                                          
22                 (2)  comply with the provisions of AS 37.07 (Executive Budget Act),                                     
23       except that AS 37.07 does not apply to the activities of the authority that relate to the                         
24       authority's borrowing of money as provided in this chapter [, INCLUDING THE                                       
25       ISSUING OF ITS OBLIGATIONS OR EVIDENCE OF THAT BORROWING AND                                                      
26       THE REPAYMENT OF THE DEBT OBLIGATION];                                                                            
27                 (3)  establish a personnel management system for hiring employees and                                   
28       setting employee-benefit packages;                                                                                
29                 (4)  establish procedures, rules, and rates governing per diem and travel                               
30       expenses of the employees of the authority in substantial conformity to statutes,                                 
31       procedures, rules, and rates applicable to state employees of similar state entities;                             
01                 (5)  coordinate the exercise of its power [POWERS] to [PLAN,                                        
02       DESIGN, CONSTRUCT,] operate [, AND MAINTAIN] the Knik Arm bridge with                                             
03       the department, and with the mayors of the Municipality of Anchorage and the                                      
04       Matanuska-Susitna Borough [;                                                                                      
05                 (6)  HAVE THE EXCLUSIVE AUTHORITY TO DETERMINE AND                                                      
06       FIX FEES, RENTS, TOLLS, RATES, AND OTHER CHARGES, INCLUDING THE                                                   
07       TOLLS FOR THE USE OF THE BRIDGE AND APPURTENANT FACILITIES                                                        
08       AND FOR THE USE OF ALL OTHER PROPERTIES UNDER THE CONTROL OF                                                      
09       OR OWNED OR MANAGED BY THE AUTHORITY].                                                                            
10    * Sec. 7. AS 19.75.261 is amended to read:                                                                         
11            Sec. 19.75.261. Exemption from taxation. The real and personal property of                                 
12       the authority and its assets, income, and receipts are declared to be the property of a                           
13       political subdivision of the state and are exempt from all taxes and special assessments                          
14       of the state or a political subdivision of the state. [ALL BONDS OF THE                                           
15       AUTHORITY ARE DECLARED TO BE ISSUED BY A POLITICAL                                                                
16       SUBDIVISION OF THE STATE AND FOR AN ESSENTIAL PUBLIC AND                                                          
17       GOVERNMENTAL PURPOSE. THE BONDS, THE INTEREST ON THE BONDS,                                                       
18       THE INCOME FROM THE BONDS AND THE TRANSFER OF THE BONDS,                                                          
19       AND ALL ASSETS, INCOME, AND RECEIPTS PLEDGED TO PAY OR SECURE                                                     
20       THE PAYMENT OF THE BONDS OR INTEREST ON THE BONDS ARE, AT                                                         
21       ALL TIMES, EXEMPT FROM TAXATION BY OR UNDER THE AUTHORITY                                                         
22       OF THE STATE, EXCEPT FOR INHERITANCE AND ESTATE TAXES AND                                                         
23       TAXES ON TRANSFERS BY OR IN CONTEMPLATION OF DEATH.] Nothing in                                                   
24       this section affects or limits an exemption from license fees, property taxes, or excise,                         
25       income, or other taxes provided under any other law, nor does it create a tax                                     
26       exemption with respect to the interest of any business enterprise or other person, other                          
27       than the authority, in any property, assets, income, receipts, project, or lease,                                 
28       regardless of whether financed under this chapter.                                                                
29    * Sec. 8. AS 19.75.291 is amended to read:                                                                         
30            Sec. 19.75.291. State appropriations for Knik Arm bridge and                                               
31       appurtenant facilities not affected. This chapter does not prevent the state from                               
01       making appropriations for or in aid of the [ACQUISITION, DESIGN,                                                  
02       CONSTRUCTION, OR] operation of the Knik Arm bridge and its appurtenant                                            
03       facilities.                                                                                                       
04    * Sec. 9. AS 19.75 is amended by adding a new section to article 2 to read:                                        
05            Sec. 19.75.360. Transfer of Knik Arm bridge. If the department constructs                                  
06       the Knik Arm bridge and appurtenant facilities, the department shall transfer control of                          
07       the bridge and appurtenant facilities to the authority, and the authority shall operate                           
08       and maintain the bridge and appurtenant facilities. After the transfer of control, the                            
09       department retains ownership of the bridge, appurtenant facilities, and real property,                            
10       and retains the power to reconstruct, equip, extend, maintain, or improve the bridge                              
11       and appurtenant facilities.                                                                                       
12    * Sec. 10. AS 19.75.915 is amended to read:                                                                        
13            Sec. 19.75.915. Liability for payment of tolls. The owner of a vehicle using a                             
14       bridge or facility [OWNED, CONTROLLED, OR] managed by the authority for                                       
15       which a toll, [OR] fee, rate, or other charge is imposed is liable for the payment of                     
16       the toll, [OR] fee, rate, or other charge solely because of the vehicle ownership,                        
17       unless the vehicle, except a rental vehicle, is used without the owner's knowledge and                            
18       incurs the toll, [OR] fee, rate, or other charge during operation.                                        
19    * Sec. 11. AS 37.10.050(a) is amended to read:                                                                     
20            (a)  A state agency may not charge a fee for the provision of state services                                 
21       unless the fee (1) is set or otherwise authorized by statute; and (2) where a regulation                          
22       is necessary, is set by or provided for in a regulation that meets the standards of                               
23       AS 44.62.020 and 44.62.030. Unless specifically exempted by statute, a state agency                               
24       authorized to collect or receive fees, licenses, taxes, or other money belonging to the                           
25       state shall account for and remit the receipts, less fees to which the collector is entitled                      
26       by statute or regulation, to the Department of Revenue at least once each month. The                              
27       commissioner of administration shall separately account under AS 37.05.142 for                                    
28       receipts deposited under this subsection. A fee or other charge that is set by regulation                         
29       may not exceed the estimated actual costs of the state agency in administering the                                
30       activity or providing the service unless otherwise provided by the statute under which                            
31       the regulation is adopted; however, this limitation does not apply to sale or lease of                            
01       property by a state agency, fees charged by a resource agency for a designated                                    
02       regulatory service as defined in AS 37.10.058, [OR] fees adopted by the Department                                
03       of Natural Resources under AS 44.37.025 or 44.37.027, or fees, rents, tolls, and                              
04       other charges established or levied by the Department of Transportation and                                   
05       Public Facilities for the use of the Knik Arm bridge and appurtenant facilities.                              
06    * Sec. 12. AS 37.15 is amended by adding new sections to read:                                                     
07                    Article 1A. Toll Bridge Revenue Bonds.                                                             
08            Sec. 37.15.225. Bond authorization. (a) For purposes of financing a portion                                
09       of the costs of the Knik Arm bridge and appurtenant facilities or other toll bridges as                           
10       the legislature may designate, including the costs of bond issuance, the issuance and                             
11       sale of bonds of the state by the committee is authorized as provided in AS 37.15.225 -                           
12       37.15.290. The net proceeds of the sale of the bonds remaining after payment of costs                             
13       of issuance, capitalized interest, if any, and making deposits to the bond reserve fund                           
14       under AS 37.15.260, shall be transferred to the Knik Arm construction fund                                        
15       established in AS 37.15.230 or may be held by a trustee to be disbursed to pay the                                
16       costs of a toll bridge under the terms and conditions set out in a trust agreement.                               
17       Accrued interest paid on the bonds shall be paid into the bond redemption fund.                                   
18            (b)  Prior to the issuance of bonds authorized under (a) of this section, the                                
19       committee shall send notice of the issuance to the legislature.                                                   
20            (c)  The total unpaid principal amount of bonds, including refunding bonds, but                              
21       excluding refunded bonds, is limited as provided in AS 37.15.235. The bonds do not                                
22       constitute a general obligation of the state. Authorization by the voters of the state or                         
23       the legislature is not required.                                                                                  
24            (d)  The committee may enter into agreements with other state agencies as                                    
25       necessary or convenient to implement AS 37.15.225 - 37.15.290.                                                    
26            (e)  The committee may contract for the services of underwriters, paying                                     
27       agents, trustees, bond printers, rating agencies, bond insurance, credit enhancement                              
28       providers, accountants, financial advisors, and bond counsel, and other services as are                           
29       necessary to accomplish the bond issuance and sale.                                                               
30            (f)  The state may not issue bonds under (a) of this section for financing the                               
31       Knik Arm bridge and appurtenant facilities until the Federal Highway Administration,                              
01       United States Department of Transportation, has approved a loan to the state of at least                          
02       30 percent of the total project cost for construction of the Knik Arm bridge and                                  
03       appurtenant facilities under 23 U.S.C. 601 - 609 (Transportation Infrastructure Finance                           
04       and Innovation Act of 1998).                                                                                      
05            Sec. 37.15.230. Knik Arm construction fund. (a) The Knik Arm construction                                  
06       fund is established in the general fund to receive the proceeds of the sale of bonds                              
07       issued under AS 37.15.225, and other state or federal money that is appropriated for                              
08       the same purpose for which the bonds are issued. The Department of Transportation                                 
09       and Public Facilities shall use money in the construction fund to pay the cost of                                 
10       acquiring, constructing, and equipping the Knik Arm bridge and appurtenant facilities.                            
11       To the extent allowed by the bond resolution, money in the construction fund may also                             
12       be used for the payment of interest on the bonds during the time of construction.                                 
13       Money in the construction fund may be transferred to the bond redemption fund, as                                 
14       permitted by the bond resolution.                                                                                 
15            (b)  The bond resolution may provide for the investment of money in the                                      
16       construction fund as the committee determines. The interest earned on the investment                              
17       of money in the fund shall be retained in the fund.                                                               
18            Sec. 37.15.235. Toll bridge revenue bond limit. The total unpaid principal                                 
19       amount of revenue bonds issued under AS 37.15.225 - 37.15.290, including refunding                                
20       bonds but excluding refunded bonds, may not exceed $300,000,000.                                                  
21            Sec. 37.15.240. Toll bridge revenue fund. (a) The toll bridge revenue fund is                              
22       established as a separate fund of the state. The revenue fund consists of all revenue,                            
23       fees, charges, and rentals received by the state, by contract with the authority or                               
24       otherwise, from the ownership or operation of toll bridges and facilities and                                     
25       improvements used in connection with the toll bridges and facilities. Contracts or                                
26       other agreements with the authority may establish priorities for the payment of                                   
27       operations and maintenance costs of the authority. The money in the revenue fund                                  
28       may be used only                                                                                                  
29                 (1)  to pay or secure payment of the principal of and interest on bonds;                                
30                 (2)  to redeem bonds before their fixed maturities;                                                     
31                 (3)  to pay indebtedness to the Federal Highway Administration, United                                  
01       States Department of Transportation; and                                                                          
02                 (4)  subject to appropriation by the legislature, for any other purpose for                             
03       which federal funds may be obligated by the state under 23 U.S.C. 129(a).                                         
04            (b)  The investment of money in the revenue fund may be made in the manner                                   
05       that the committee or the committee's delegated representative may determine. The                                 
06       interest earned on or any profits derived from the sale of this investment shall be                               
07       deposited in and become a part of the revenue fund.                                                               
08            (c)  All references to the toll bridge revenue fund in this section include special                          
09       accounts within the toll bridge revenue fund that may be created by resolution or trust                           
10       agreement to secure the payment of particular bonds.                                                              
11            Sec. 37.15.245. Toll bridge revenue bond redemption fund. (a) The toll                                     
12       bridge revenue bond redemption fund is established as a special fund of the state. The                            
13       bond redemption fund is a trust fund for paying and securing the payment of the                                   
14       principal of and interest and redemption premium, if any, on the bonds and shall be at                            
15       all times completely segregated and set apart from all other funds of the state. The                              
16       bond redemption fund shall be drawn on only for the purpose of paying the principal                               
17       of and interest and redemption premium, if any, on the bonds, together with related                               
18       trustee fees, if any.                                                                                             
19            (b)  Money in the bond redemption fund may be invested in the same manner                                    
20       and on the same conditions as permitted for investment of money belonging to the                                  
21       state or held in the treasury under AS 37.10.070; however, the committee may agree                                
22       with the bondholders to further limit these investments. Earnings on investments must                             
23       be retained in the bond redemption fund or a designated account in the bond                                       
24       redemption fund.                                                                                                  
25            (c)  All references to the bond redemption fund in this section include special                              
26       accounts in the bond redemption fund that may be created by resolution or first                                   
27       agreement to secure the payment of particular bonds.                                                              
28            Sec. 37.15.250. Bond terms. (a) The bonds may be issued and sold at public                                 
29       or negotiated sale in the manner, in the amounts or series, and at the time or times that                         
30       the committee or the committee's delegated representative determines. The bonds, or                               
31       each series of them, shall be sold at the price and on the terms, conditions, and                                 
01       covenants set by the committee or the committee's delegated representative after                                  
02       considering market conditions. Interest rates may be fixed or variable.                                           
03            (b)  The bonds mature at the time or times fixed by the committee or the                                     
04       committee's delegated representative. The bonds may be subject to redemption before                               
05       their fixed maturities, as determined by the committee or the committee's delegated                               
06       representative, with or without a premium or premiums. The bonds may be in                                        
07       denominations determined by the committee or the committee's delegated                                            
08       representative; may be issued in fully or partially registered form; must be payable as                           
09       to principal and interest at the place or places determined by the committee; must be                             
10       signed on behalf of the state in the manner provided by the committee; and must be                                
11       issued under and subject to the terms, conditions, covenants, and protective features                             
12       safeguarding payment of the bonds and relating to the funding of projects as found                                
13       necessary by the committee or the committee's delegated representative.                                           
14            (c)  If the committee or the committee's delegated representative finds it                                   
15       reasonably necessary, the committee or the committee's delegated representative may                               
16       select a trustee or trustees for the holders of the bonds, or any series of them, for the                         
17       safeguarding and disbursement of any of the money in the bond redemption fund, or                                 
18       for duties with respect to the enforcement, authentication, delivery, payment, and                                
19       registration of the bonds as the committee may determine. The committee or the                                    
20       committee's delegated representative shall fix the rights, duties, powers, and                                    
21       obligations of the trustee or trustees.                                                                           
22            (d)  In its determination of all matters and questions relating to the issuance                              
23       and sale of the bonds and the fixing of their maturities, terms, conditions, and                                  
24       covenants as provided in (a) - (c) of this section, the decisions of the committee shall                          
25       be reasonably necessary for the best interests of the state and accomplish the most                               
26       advantageous sale of the bonds. Decisions of the committee, as expressed in a bond                                
27       resolution, are final and conclusively considered to comply with the requirements of                              
28       AS 37.15.225 - 37.15.290.                                                                                         
29            Sec. 37.15.255. Bond resolution. The committee shall authorize the issuance                                
30       of bonds by adopting a resolution and shall prepare all other documents and                                       
31       proceedings necessary for the issuance, sale, and delivery of the bonds or any part or                            
01       series of them. The bond resolution may fix or the committee's delegated                                          
02       representative, subject to parameters set by the committee, may fix the principal                                 
03       amount, denominations, date, maturities, manner of sale, place or places of payment,                              
04       rights of redemption, if any, terms, form, conditions, and covenants of the bonds or                              
05       each series of bonds.                                                                                             
06            Sec. 37.15.260. Bond reserve fund. (a) The resolution authorizing the                                      
07       issuance of the bonds under AS 37.15.225 - 37.15.290 may provide for the                                          
08       establishment and maintenance of a special fund called the toll bridge revenue bond                               
09       reserve fund in which there shall be deposited or transferred                                                     
10                 (1)  all money appropriated by the legislature for the purpose of the                                   
11       fund including appropriations in accordance with (g) of this section; and                                         
12                 (2)  all proceeds of bonds required to be deposited in the fund by terms                                
13       of the bond resolution or a trust agreement with respect to the proceeds of bonds.                                
14            (b)  Subject to (h) of this section, money in the reserve fund shall be held and                             
15       applied solely to the payment of the interest on and principal of bonds authorized                                
16       under AS 37.15.225 - 37.15.290 as the interest and principal become due and payable                               
17       to the retirement of bonds. Money may not be withdrawn if a withdrawal would                                      
18       reduce the amount in the reserve fund to an amount less than the required debt service                            
19       reserve except for payment of interest then due and payable on bonds and the principal                            
20       of bonds then maturing and payable and for the retirement of bonds in accordance                                  
21       with the terms of the bond resolution or trust agreement and for which payment is not                             
22       then available.                                                                                                   
23            (c)  Money in the reserve fund in excess of the required debt service reserve as                             
24       defined in (b) of this section, whether because of investment or otherwise, may be                                
25       withdrawn at any time or may be transferred to the bond redemption fund subject to                                
26       (h) of this section.                                                                                              
27            (d)  Money in the reserve fund may be invested in the same manner and on the                                 
28       same conditions as permitted for investment of funds belonging to the state or held in                            
29       the treasury under AS 37.10.070; however, the committee or the committee's                                        
30       delegated representative may agree with the bondholders to further limit these                                    
31       investments.                                                                                                      
01            (e)  For purposes of valuation, investments in the reserve fund shall be valued                              
02       at par or, if purchased at less than par, at cost, unless otherwise provided by resolution                        
03       of the committee. Valuation on a particular date shall include the amount of interest                             
04       then earned or accrued to that date on the money or investments in the reserve fund.                              
05            (f)  Notwithstanding any other provision of this Act, bonds may not be issued                                
06       under a trust agreement, indenture, or bond resolution unless there is in the reserve                             
07       fund the required debt service reserve for all bonds then issued under a trust                                    
08       agreement, indenture, or bond resolution and outstanding and for the bonds to be                                  
09       issued; however, the committee may satisfy this requirement by depositing as much of                              
10       the proceeds of the bonds to be issued, on their issuance, as is needed to meet the                               
11       required debt service reserve. The committee may at any time issue bonds or notes for                             
12       the purpose of increasing the amount in the reserve fund to the required debt service                             
13       reserve, or to meet whatever higher or additional reserve that may be fixed by a bond                             
14       resolution or trust agreement with respect to the fund.                                                           
15            (g)  To ensure the required debt service reserve is maintained in the reserve                                
16       fund, the legislature may appropriate annually for deposit in the fund the sum, certified                         
17       by the commissioner of revenue to the governor and to the legislature, that is                                    
18       necessary to restore the fund to an amount equal to the required debt service reserve.                            
19       The commissioner of revenue annually, before January 30, shall make and deliver to                                
20       the governor and to the legislature a certificate stating the sum required to restore the                         
21       fund to that amount, and the certified sum may be appropriated during the then current                            
22       state fiscal year. Nothing in this subsection creates a debt or liability of the state.                           
23            (h)  All amounts received because of money appropriated to the reserve fund                                  
24       shall be held and applied in accordance with (b) of this section.                                                 
25            (i)  All references to the reserve fund in this section include special accounts                             
26       within the reserve fund that may be created by resolution or trust agreement to secure                            
27       the payment of particular bonds.                                                                                  
28            (j)  The commissioner of revenue may, subject to appropriation, lend surplus                                 
29       money in the general fund for deposit to an account in the reserve fund in an amount                              
30       equal to the required debt service reserve. The loans shall be made on the terms and                              
31       conditions that may be agreed on by the commissioner of revenue and the trustee,                                  
01       including, without limitation, terms and conditions providing that the loans need not                             
02       be repaid until the obligations of the state secured and to be secured by the account in                          
03       the reserve fund are no longer outstanding.                                                                       
04            (k)  In this section, "required debt service reserve" means, on the date of                                  
05       computation, the amount required to be on deposit in the reserve fund as provided by                              
06       resolution of the committee.                                                                                      
07            Sec. 37.15.265. Enforcement by bond owner. The holder of any bonds or the                                  
08       trustee for the holders of the bonds or any series of them, may, by appropriate                                   
09       proceedings in the superior court, compel the transfer, setting aside, and payment of                             
10       money and the enforcement of all of the terms, conditions, and covenants as required                              
11       and provided for in AS 37.15.225 - 37.15.290 and in the bond resolution or trust                                  
12       agreement.                                                                                                        
13            Sec. 37.15.270. Amounts required for payments. The committee shall,                                        
14       before June 30 of each year or from time to time within the year, as appropriate,                                 
15       commencing with the year in which the bonds are issued, certify to the commissioners                              
16       of revenue and administration the amounts required in the current fiscal year and the                             
17       next ensuing fiscal year by the bond resolution or resolutions or trust agreements to be                          
18       paid out of toll bridge revenue or capitalized amounts into the bond redemption fund                              
19       and to be paid into and maintained in any reserve fund or account or other fund or                                
20       account created by the bond resolution or resolutions. The committee shall also certify                           
21       to the commissioners the last date or dates on which payments may be made.                                        
22            Sec. 37.15.275. Refunding. (a) The committee may refund the bonds or any                                   
23       part of the bonds at or before their maturity or redemption dates by issuing refunding                            
24       revenue bonds of the state if the committee determines the refunding to be                                        
25       advantageous to and in the best interest of the state.                                                            
26            (b)  The issuance of refunding bonds need not be authorized by the voters of                                 
27       the state or by an act of the legislature. The committee shall adopt the resolution or                            
28       resolutions and prepare all other documents and proceedings necessary for the                                     
29       issuance, exchange or sale, and delivery of the refunding bonds. All provisions of                                
30       AS 37.15.225 - 37.15.290 applicable to revenue bonds are applicable to the refunding                              
31       bonds and to the issuance, sale, or exchange of the refunding bonds, except as                                    
01       otherwise provided in this section.                                                                               
02            (c)  The committee may issue refunding bonds in a principal amount sufficient                                
03       to provide money for the advance or current refunding of all bonds to be refunded and                             
04       interest on the refunded bonds and to pay the costs of issuance and administration of                             
05       the refunding bonds. These expenses also include the difference in amount between                                 
06       the par value of the refunding bonds and any amount less than par for which the                                   
07       refunding bonds are sold; the premium, if any, necessary to be paid in order to call or                           
08       retire the outstanding bonds and the interest accruing on them to date of the call or                             
09       retirement; and other costs. The committee is authorized to incur the expenses.                                   
10            (d)  The committee or the committee's delegated representative may contract                                  
11       with a refunding trustee to hold the proceeds of refunding bonds in trust until the                               
12       proceeds, together with earnings on the proceeds, are applied to pay the principal of,                            
13       premium, if any, and interest on the bonds to be refunded. Until the refunding bond                               
14       proceeds are applied, the proceeds may be invested in direct obligations of, or                                   
15       obligations guaranteed by, the United States or an agency or corporation of the United                            
16       States whose obligations constitute direct obligations of, or obligations guaranteed by,                          
17       the United States.                                                                                                
18            Sec. 37.15.280. Bonds as legal investments. The bonds are legal investments                                
19       for all banks, trust companies, savings banks, savings and loan associations, and other                           
20       persons carrying on a banking business, all insurance companies and other persons                                 
21       carrying on an insurance business, and all executors, administrators, trustees, and other                         
22       fiduciaries. The bonds may be accepted as security for deposits of all money of the                               
23       state and its political subdivisions.                                                                             
24            Sec. 37.15.285. Statutory construction. AS 37.15.225 - 37.15.290 shall be                                  
25       liberally construed in order to carry out the purposes for which they were enacted.                               
26            Sec. 37.15.290. Definitions. In AS 37.15.225 - 37.15.290,                                                  
27                 (1)  "authority" means                                                                                  
28                      (A)  the Knik Arm Bridge and Toll Authority established in                                         
29            AS 19.75.021 with respect to the Knik Arm bridge and its appurtenant                                         
30            facilities; or                                                                                               
31                      (B)  an authority established by the legislature for any other toll                                
01            bridge project;                                                                                              
02                 (2)  "bond redemption fund" means the toll bridge revenue bond                                          
03       redemption fund established in AS 37.15.245;                                                                      
04                 (3)  "bond resolution" means a resolution adopted by the committee                                      
05       under AS 37.15.255 to authorize the issuance of bonds;                                                            
06                 (4)  "bonds" means the toll bridge revenue bonds authorized in                                          
07       AS 37.15.225 - 37.15.290;                                                                                         
08                 (5)  "committee" means the state bond committee created in                                              
09       AS 37.15.110, or any other committee, body, department, or officer of the state that                              
10       succeeds to the rights, powers, duties, and obligations of the state bond committee by                            
11       law;                                                                                                              
12                 (6)  "costs of issuance and administration" means all costs associated                                  
13       with issuance and administration of toll bridge revenue bonds and refunding bonds,                                
14       including costs of bond printing, official statements, financial advisors, travel costs,                          
15       rating agencies, bond insurance, letters and lines of credit for credit enhancement,                              
16       underwriters, legal services, paying agents, bond registrars, bond and escrow trustees,                           
17       arbitrage rebate, and all other costs, including administrative costs, both direct and                            
18       indirect;                                                                                                         
19                 (7)  "reserve fund" means the toll bridge revenue bond reserve fund                                     
20       authorized in AS 37.15.260;                                                                                       
21                 (8)  "revenue fund" means the toll bridge revenue fund established in                                   
22       AS 37.15.240.                                                                                                     
23    * Sec. 13. AS 19.75.211, 19.75.221, 19.75.231, 19.75.241, 19.75.251, 19.75.271, 19.75.330,                         
24 19.75.332, 19.75.334, 19.75.336, 19.75.338, 19.75.340, and 19.75.920 are repealed.                                      
25    * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to                         
26 read:                                                                                                                   
27       TRANSITION. (a) The Knik Arm Bridge and Toll Authority shall transfer all rights,                                 
28 titles, interests, agreements, contracts, instruments, indebtedness, obligations, liabilities,                          
29 commitments, investments, leases, real property, rights-of-way, lines of credit, gifts, grants,                         
30 loans, fees, rents, tolls, civil actions, revenue, funds, insurance, permits, licenses, studies, and                    
31 intellectual property to the Department of Transportation and Public Facilities.                                        
01       (b)  All procurements of the Knik Arm Bridge and Toll Authority that have not                                     
02 resulted in the award of a contract as of the effective date of this Act may continue as                                
03 procurements of the Department of Transportation and Public Facilities.                                                 
04    * Sec. 15. This Act takes effect July 1, 2014.                                                                     
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