(a) To perform its duties and statutory functions, the Department of Transportation and Public Facilities , the Board of Regents of the University of Alaska, the legislative council, or the supreme court may enter into lease-purchase agreements for real property. The Department of Transportation and Public Facilities , the Board of Regents, the legislative council, or the supreme court may enter into a lease-purchase agreement only if the Department of Transportation and Public Facilities , the Board of Regents, the legislative council, or the supreme court is the lessee under the agreement.
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Terms Used In Alaska Statutes 36.30.085

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • property: includes real and personal property. See Alaska Statutes 01.10.060
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b) When evaluating proposals to acquire or improve real property under a lease-purchase agreement, the Department of Transportation and Public Facilities , the Board of Regents, the legislative council, or the supreme court shall consider

(1) in addition to lease costs, the life cycle costs, function, indoor environment, public convenience, planning, design, appearance, and location of the real property proposed for acquisition or improvement; and
(2) whether acquisition or improvement of the real property by lease-purchase agreement is likely to be the least costly means to provide the space.
(c) A lease-purchase agreement

(1) may not provide for a period of occupancy under the full term of the lease-purchase agreement that is greater than 40 years;
(2) must provide that lease payments made by the Department of Transportation and Public Facilities , the Board of Regents, the legislative council, or the supreme court are subject to annual appropriation.
(d) If the Department of Transportation and Public Facilities , Board of Regents, legislative council, or supreme court intends to enter into or renew a lease-purchase agreement for real property, the Department of Transportation and Public Facilities , Board of Regents, legislative council, or supreme court shall provide notice to the legislature. The notice must include the

(1) anticipated total construction, acquisition, or other costs of the project;
(2) anticipated annual amount of the rental obligation; and
(3) total lease payments for the full term of the lease-purchase agreement.
(e) The Department of Transportation and Public Facilities , the Board of Regents, the legislative council, or the supreme court may not enter into a lease-purchase agreement to acquire or improve real property unless the agreement has been approved by the legislature by law.
(f) The provisions of (d) and (e) of this section do not apply to a lease-purchase agreement

(1) related to the refinancing of an outstanding balance owing on an existing lease-purchase agreement; or
(2) by the University of Alaska if the lease-purchase agreement is secured by student fees or university receipts as defined in Alaska Stat. § 14.40.491.
(g) In this section,

(1) “full term of the lease-purchase agreement” includes all renewal options that are defined within the lease-purchase agreement;
(2) “lease-purchase agreement” includes a lease-financing agreement.
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