(a) There is established the Knik Arm Bridge and Toll Authority. The authority is a public corporation and an instrumentality of the state within the Department of Transportation and Public Facilities, but the authority has a separate and independent legal existence from the state. The exercise by the authority of the powers in this chapter is considered an essential governmental function of the state.
(b) The authority may not be terminated as long as it has notes or other obligations outstanding, including obligations under an agreement with the state as provided in AS 37.15.225. Upon termination of the authority, its rights and property pass to the state.