HB0122b -1- CSHB 122(TRA)
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33-LS0623\S
CS FOR HOUSE BILL NO. 122(TRA)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY THE HOUSE TRANSPORTATION COMMITTEE
Offered: 3/18/24
Referred: Finance
Sponsor(s): REPRESENTATIVES TOMASZEWSKI, McCabe
A BILL
FOR AN ACT ENTITLED
"An Act authorizing the Alaska Railroad Corporation to issue revenue bonds to finance 1
the replacement of the Alaska Railroad Corporation's passenger dock and related 2
terminal facility in Seward, Alaska; authorizing the Alaska Railroad Corporation to 3
issue revenue bonds to finance the completion of the Port MacKenzie Rail Extension in 4
Point MacKenzie, Alaska; authorizing the Alaska Industrial Development and Export 5
Authority to issue bonds to finance infrastructure that supports development of critical 6
mineral and rare earth element projects; and providing for an effective date." 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8
* Section 1. The uncodified law of the State of Alaska enacted in sec. 4(a), ch. 30, SLA 9
2022, is amended to read: 10
(a) The Alaska Railroad Corporation is authorized to issue revenue bonds 11
under AS 42.40.250 to finance the replacement of the Alaska Railroad Corporation's 12
passenger dock and related terminal facility in Seward, Alaska, and associated costs, 13 33-LS0623\S
CSHB 122(TRA) -2- HB0122b
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including, without limitation, reserves for debt service and capitalized interest, if 1
necessary or appropriate, and costs of issuance. The replacement dock and terminal 2
facility must accommodate Alaska marine highway system vessels with side 3
loading doors. The maximum principal amount of bonds that the Alaska Railroad 4
Corporation may issue under this section is $135,000,000 [$60,000,000]. The Alaska 5
Railroad Corporation may issue the bonds in a single issuance or in several issuances, 6
without limitation as to number of issuances or timing, and as the Alaska Railroad 7
Corporation determines best furthers the purpose of financing the replacement of the 8
Alaska Railroad Corporation's passenger dock and related terminal facility in Seward, 9
Alaska, and associated costs. The bonds shall be repaid from dock revenue or other 10
funds available to the Alaska Railroad Corporation. The general credit of the Alaska 11
Railroad Corporation and the state may not be pledged for the repayment of the bonds. 12
* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 13
read: 14
LEGISLATIVE AUTHORIZATION AND APPROVAL. (a) The Alaska Railroad 15
Corporation is authorized to issue revenue bonds under AS 42.40.250 to finance the 16
completion of the Port MacKenzie Rail Extension in Point MacKenzie, Alaska, and 17
associated costs, including, without limitation, reserves for debt service and capitalized 18
interest, if necessary or appropriate, and costs of issuance. The maximum principal amount of 19
bonds that the Alaska Railroad Corporation may issue under this section is $58,000,000. The 20
Alaska Railroad Corporation may issue the bonds in a single issuance or in several issuances, 21
without limitation as to number of issuances or timing, and as the Alaska Railroad 22
Corporation determines best furthers the purpose of financing the extension of the Alaska 23
Railroad Corporation's rail from Point MacKenzie, Alaska, to Houston, Alaska, and 24
associated costs. The bonds shall be repaid from revenue or other funds available to the 25
Alaska Railroad Corporation. The general credit of the Alaska Railroad Corporation and the 26
state may not be pledged for the repayment of the bonds. 27
(b) The authorization under (a) of this section extends to bonds issued to refund the 28
bonds authorized in this Act. The principal amount of the bonds authorized in this Act may be 29
increased in an issue of refunding bonds in an amount equal to the costs of refunding. 30
(c) This section constitutes the approval required by AS 42.40.285 for the issuance of 31 33-LS0623\S
HB0122b -3- CSHB 122(TRA)
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the bonds described in this section. 1
(d) The bonds authorized to be issued under this section are issued by a public 2
corporation and an instrumentality of the state for an essential public and governmental 3
purpose. 4
(e) In this section, "bonds" means bonds, bond anticipation notes, notes, refunding 5
bonds, or other obligations. 6
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 7
read: 8
LEGISLATIVE APPROVAL: STATEWIDE CRITICAL MINERAL AND RARE 9
EARTH ELEMENT INFRASTRUCTURE PROJECTS. (a) The Alaska Industria l 10
Development and Export Authority may issue bonds to finance infrastructure and construction 11
costs of infrastructure that support the development of critical mineral and rare earth element 12
projects located in the state. The critical mineral and rare earth element project infrastructure 13
shall be owned and operated by the authority or financed under AS 44.88.172, 44.88.650 - 14
44.88.690, or 44.88.800 - 44.88.840. The principal amount of the bonds provided by the 15
authority for critical mineral and rare earth element projects may not exceed $300,000,000 16
and may include the costs of issuing bonds considered reasonable and appropriate by the 17
authority. The bonds shall be repaid from revenues of the authority. 18
(b) The Alaska Industrial Development and Export Authority may issue the bonds 19
under this section in a single issuance or in several issuances, without limitation as to the 20
number of issuances or timing, and as the authority determines best furthers the purpose of 21
financing infrastructure that supports the development of critical mineral and rare earth 22
element projects in the state. 23
(c) The bonds authorized by this section may not be considered in calculating the 24
authority's bonding limitation for a 12-month period under AS 44.88.095(a). 25
(d) This section constitutes legislative approval required by AS 44.88.095(g). 26
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 27