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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 88                                                                                                          
01 Authorizing the state bond committee to issue certificates of participation to finance the                              
02 construction and equipping of residential housing to serve the Anchorage campus of the                                  
03 Alaska Native Medical Center; and authorizing the Department of Administration to enter                                 
04 into a lease-purchase agreement for the benefit of the Alaska Native Tribal Health                                      
05 Consortium.                                                                                                             
06                           _______________                                                                               
07    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
08 to read:                                                                                                                
09       INTENT. It is the intent of the legislature that the amount of money to be used for                               
10 construction and equipping of a residential housing facility and an elevated pedestrian bridge                          
11 to the hospital to serve the Anchorage campus of the Alaska Native Medical Center is                                    
12 $35,000,000 plus investment income. Of that amount, it is the intent of the legislature that                            
13            (1)  $35,000,000 come from the proceeds of the certificates of participation to                              
01 be issued by the state bond committee;                                                                                  
02            (2)  subject to appropriation, investment income earned on the proceeds of the                               
03 sale of the certificates of participation be applied to the project;                                                    
04            (3)  title to the project and the leasehold interest of the state remain with the                            
05 State of Alaska until the certificates of participation are repaid, at which time title will be                         
06 transferred to the Alaska Native Tribal Health Consortium for no additional consideration,                              
07 and the state's leasehold interest shall terminate;                                                                     
08            (4)  the design, construction, operations, and maintenance of the facility be the                            
09 responsibility of the Alaska Native Tribal Health Consortium; and                                                       
10            (5)  issuance of the certificates of participation be contingent on the signing of                           
11 a memorandum of agreement between the Alaska Native Tribal Health Consortium and the                                    
12 State of Alaska and payments on the certificates of participation be subject to appropriation.                          
13    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
14 read:                                                                                                                   
15       NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE-                                                       
16 PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of                                              
17 Administration is authorized to enter into a lease-purchase agreement for a residential housing                         
18 facility and related pedestrian bridge to be constructed and equipped under the lease-purchase                          
19 agreement and to be operated by the Alaska Native Tribal Health Consortium.                                             
20       (b)  The state bond committee is authorized to provide for the issuance of certificates                           
21 of participation in one or more series in the aggregate principal amount of $35,000,000 for the                         
22 construction of a residential housing facility and related pedestrian bridge to serve the                               
23 Anchorage campus of the Alaska Native Medical Center under the lease-purchase agreement                                 
24 authorized in (a) of this section. The remaining balance of the cost of construction and                                
25 equipping shall be paid from investment income earned on the proceeds from the sale of the                              
26 certificates of participation. The estimated annual amount of rental obligation under the lease-                        
27 purchase agreement is $2,800,000. The estimated total lease payment for the full term of the                            
28 lease-purchase agreement is $42,000,000. In this subsection, "cost of construction" includes                            
29 credit enhancement and underwriting expenses, rating agency fees, bond counsel fees,                                    
30 financial advisor fees, printing fees, advertising fees, capitalized interest, and interest earnings                    
31 used for lease payments.                                                                                                
01       (c)  The state bond committee may contract for credit enhancement, underwriting,                                  
02 credit ratings, bond counsel, financial advising, printing, advertising, and trustee services that                      
03 the committee considers necessary in financing the project described in this section.                                   
04    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
05 read:                                                                                                                   
06       APPROVAL OF AGREEMENT. Section 2 of this Act constitutes the approval                                             
07 required by AS 36.30.085 of the agreement described in sec. 2 of this Act.                                              
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