00 CS FOR HOUSE BILL NO. 346(L&C) 01 "An Act relating to corporations, including benefit corporations; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 10 is amended by adding a new chapter to read: 05 Chapter 60. Benefit Corporations.  06 Article 1. Establishment and Termination.  07 Sec. 10.60.010. Establishment of benefit corporation. A corporation that is 08 organized under AS 10.06 may become a benefit corporation by 09 (1) including, at the time of the corporation's organization under 10 AS 10.06, in the corporation's articles of incorporation a statement that the corporation 11 is a benefit corporation under this chapter; or  12 (2) amending its articles of incorporation to contain a statement that 13 the corporation is a benefit corporation under this chapter; the amendment shall be 14 adopted by at least the minimum vote required under AS 10.60.700 for a status 01 change. 02 Sec. 10.60.020. Approval where organic change. If an entity that was formed 03 under the laws of this state is not a benefit corporation but is a party to a merger, 04 consolidation, conversion, or interest or share exchange under AS 10.06 or AS 10.55, 05 and the surviving, new, or resulting entity in the merger, consolidation, conversion, or 06 interest or share exchange is a benefit corporation, the domestic entity shall approve, 07 by at least the minimum vote required under AS 10.60.700 for a status change, the 08 plan of merger, consolidation, conversion, or interest or share exchange. 09 Sec. 10.60.030. General public benefit purpose. (a) A benefit corporation 10 shall have a purpose of creating general public benefit from the business and 11 operations of the benefit corporation. That purpose is in addition to the benefit 12 corporation's purpose under AS 10.06.005. 13 (b) The achievement of the general public benefit purpose under (a) of this 14 section is determined after all of the effects of the business and operations of the 15 benefit corporation are considered. 16 (c) The creation of general public benefit under (a) of this section is in the best 17 interests of the benefit corporation. 18 Sec. 10.60.040. Specific public benefit purpose. (a) In addition to its general 19 public benefit purpose, a benefit corporation may identify in its articles of 20 incorporation one or more specific public benefit purposes. 21 (b) A benefit corporation may amend its articles of incorporation to add, 22 amend, or delete a specific public benefit purpose. The benefit corporation shall adopt 23 the amendment by at least the minimum vote required under AS 10.60.700 for a status 24 change. 25 (c) The identification of a specific public benefit purpose under (a) of this 26 section does not limit the benefit corporation's general public benefit purpose. 27 (d) A benefit corporation may further a specific public benefit by 28 (1) providing low-income or underserved individuals, families, or 29 communities with beneficial products, services, or educational opportunities; 30 (2) promoting economic opportunity for individuals or communities 31 beyond the creation of jobs in the normal course of business; 01 (3) improving human health; 02 (4) promoting the arts, sciences, or advancement of knowledge; 03 (5) increasing the flow of capital to entities with a purpose to benefit 04 the public; or 05 (6) conferring another type of benefit on people or their surroundings. 06 (e) Pursuing a specific public benefit identified under this section is in the best 07 interests of the benefit corporation. 08 Sec. 10.60.050. Professional corporations. A professional corporation under 09 AS 10.45 that is a benefit corporation does not violate AS 10.45 by having a general 10 public benefit purpose or a specific public benefit purpose. 11 Sec. 10.60.060. Termination of benefit corporation status. (a) A benefit 12 corporation may terminate its status as a benefit corporation and cease to be subject to 13 this chapter by amending its articles of incorporation to delete the statement required 14 by AS 10.60.010 to be in the articles of incorporation. The benefit corporation shall 15 adopt the amendment by at least the minimum vote required under AS 10.60.700 for a 16 status change. 17 (b) If a benefit corporation is a party to merger, consolidation, conversion, or 18 interest or share exchange that would have the effect of terminating the status of a 19 benefit corporation, the benefit corporation shall approve, by at least the minimum 20 vote required under AS 10.60.700 for a status change, the plan of merger, 21 consolidation, conversion, or interest or share exchange. 22 Sec. 10.60.070. Disposition of assets. If a benefit corporation transacts a sale, 23 lease, exchange, or other disposition of all or substantially all of the assets of the 24 benefit corporation, unless the transaction is in the usual and regular course of 25 business, the benefit corporation shall approve the sale, lease, exchange, or other 26 disposition of all or substantially all of the assets of the benefit corporation by at least 27 the minimum vote required under AS 10.60.700 for a status change. 28 Article 2. Directors.  29 Sec. 10.60.100. Standard of conduct for directors. In discharging their duties 30 and in considering the best interests of a benefit corporation, the board of directors, 31 committees of the board, and individual directors of the benefit corporation 01 (1) shall consider the effects of an action or inaction on 02 (A) the shareholders of the benefit corporation; 03 (B) the employees and workforce of the benefit corporation, its 04 subsidiaries, and its suppliers; 05 (C) the interests of customers to the extent they are 06 beneficiaries of the general public benefit purpose or specific public benefit 07 purpose of the benefit corporation; 08 (D) community and societal factors, including the interests of 09 each community in which offices or facilities of the benefit corporation, its 10 subsidiaries, or its suppliers are located; 11 (E) local and global health; 12 (F) the short-term and long-term interests of the benefit 13 corporation, including benefits that may accrue to the benefit corporation from 14 its long-term plans and the possibility that those interests may be best served 15 by the continued independence of the benefit corporation; and 16 (G) the ability of the benefit corporation to accomplish its 17 general public benefit purpose and specific public benefit purpose, if any; 18 (2) may consider 19 (A) the resources, intent, and conduct of a person seeking to 20 acquire control of the benefit corporation; and 21 (B) other pertinent factors or the interests of other groups the 22 directors consider appropriate; 23 (3) are not required to give priority to a particular interest or factor 24 referred to in (1) or (2) of this section over another interest or factor unless the benefit 25 corporation has stated in its articles of incorporation its intention to give priority to 26 certain interests or factors related to its accomplishment of its general public benefit 27 purpose or of a specific public benefit purpose identified in its articles. 28 Sec. 10.60.110. Coordination with other corporate board requirements.  29 The consideration of interests and factors in the manner required by AS 10.60.100 30 does not constitute a violation of AS 10.06.450. 31 Sec. 10.60.120. Exoneration from personal liability. Except as provided in 01 the articles of incorporation, a director is not personally liable for monetary damages 02 for 03 (1) an action or inaction in the course of performing the duties of a 04 director under AS 10.60.100 if the director performed the duties of office in 05 compliance with AS 10.06.450 and AS 10.60.100 - 10.60.140; or 06 (2) a failure of the benefit corporation to pursue or create a general 07 public benefit or a specific public benefit. 08 Sec. 10.60.130. No duty to beneficiary. A director of a benefit corporation 09 does not have a duty arising from the person's status as a beneficiary to a person who 10 is a beneficiary of the general public benefit purpose or a specific public benefit 11 purpose of the benefit corporation. 12 Sec. 10.60.140. Business judgments. (a) A director of a benefit corporation 13 who makes a business judgment in good faith fulfills the duty under AS 10.60.100 - 14 10.60.140 if the director 15 (1) is disinterested in the subject of the business judgment; 16 (2) is informed with respect to the subject of the business judgment to 17 the extent the director reasonably believes to be appropriate under the circumstances; 18 and 19 (3) reasonably believes that the business judgment is in the best 20 interests of the benefit corporation; in this paragraph, "best interests" includes the 21 creation of the general public benefit purpose and any specific public benefit purpose. 22 (b) When making a determination under (a) of this section, the director shall 23 consider the interests and factors listed in AS 10.60.100. 24 Article 3. Benefit Director.  25 Sec. 10.60.150. Benefit director. The board of directors of a benefit 26 corporation may include a director who 27 (1) is designated the benefit director; and 28 (2) has, in addition to the powers, duties, rights, and immunities of the 29 other directors of the benefit corporation, the powers, duties, rights, and immunities 30 provided in AS 10.60.150 - 10.60.220. 31 Sec. 10.60.160. Election of benefit director. The board of directors shall elect 01 and may remove the benefit director in the manner provided by AS 10.06.453 - 02 10.06.463. 03 Sec. 10.60.170. Qualifications of benefit director. (a) The benefit director of 04 a benefit corporation, except as provided in AS 10.60.210, shall be an individual who 05 does not have a material relationship under AS 10.60.220 with the benefit corporation 06 or a subsidiary of the benefit corporation. The benefit director may serve as the benefit 07 officer at the same time as serving as the benefit director. The articles of incorporation 08 or bylaws of a benefit corporation may prescribe additional qualifications of the 09 benefit director not inconsistent with this subsection. 10 (b) Serving as benefit director of a benefit corporation does not establish that 11 an individual has a material relationship with the benefit corporation or a subsidiary of 12 the benefit corporation. 13 Sec. 10.60.180. Annual compliance statement. The benefit director shall 14 prepare, and the benefit corporation shall include in the annual benefit report to 15 shareholders required by AS 10.60.500, 16 (1) the opinion of the benefit director on whether the benefit 17 corporation acted in accordance with its general public benefit purpose and any 18 specific public benefit purpose in all material respects during the period covered by 19 the report; 20 (2) the opinion of the benefit director on whether the directors and 21 officers complied with AS 10.60.100 and 10.60.230 during the period covered by the 22 report; and 23 (3) if the benefit director believes the benefit corporation or its 24 directors or officers failed to act or comply in the manner described in (1) or (2) of this 25 section, a description of the ways in which the benefit corporation or its directors or 26 officers failed to act or comply. 27 Sec. 10.60.190. Status of actions. The action or inaction of a benefit director 28 in the capacity of a benefit director constitutes for all purposes an action or inaction of 29 that individual in the capacity of a director of the benefit corporation. 30 Sec. 10.60.200. Exoneration from personal liability. Regardless of whether 31 the articles of incorporation of a benefit corporation include a provision eliminating or 01 limiting the personal liability of directors under AS 10.06.210, a benefit director is not 02 personally liable for an action or omission when done in the capacity of a benefit 03 director unless the action or omission constitutes self-dealing, willful misconduct, or a 04 knowing violation of law. 05 Sec. 10.60.210. Professional corporations. The benefit director of a benefit 06 corporation that is a professional corporation is not prohibited from having a material 07 relationship under AS 10.60.220 with the benefit corporation or a subsidiary of the 08 benefit corporation. 09 Sec. 10.60.220. Material relationship. When determining under 10 AS 10.60.170 whether a benefit director of a benefit corporation has a material 11 relationship with the benefit corporation or a subsidiary of the benefit corporation, a 12 material relationship is conclusively presumed to exist if 13 (1) the individual is, or has been within the last three years, an 14 employee other than a benefit officer of the benefit corporation or a subsidiary; 15 (2) an immediate family member of the individual is, or has been 16 within the last three years, an executive officer other than a benefit officer of the 17 benefit corporation or a subsidiary; 18 (3) there is beneficial or record ownership of five percent or more of 19 the outstanding shares of the benefit corporation, calculated as if all outstanding rights 20 to acquire equity interests in the benefit corporation had been exercised, by 21 (A) the individual; or 22 (B) an entity 23 (i) of which the individual is a director, an officer, or a 24 manager; or 25 (ii) in which the individual owns beneficially or of 26 record five percent or more of the outstanding equity interests, 27 calculated as if all outstanding rights to acquire equity interests in the 28 entity had been exercised. 29 Article 4. Officers.  30 Sec. 10.60.230. Standard of conduct for officers. An officer of a benefit 31 corporation shall consider the interests and factors under AS 10.60.100 if the officer 01 (1) has discretion to act with respect to a matter; and 02 (2) reasonably believes that the matter identified under (1) of this 03 section may have a material effect on the creation by the benefit corporation of general 04 public benefit or a specific public benefit identified in the articles of incorporation of 05 the benefit corporation. 06 Sec. 10.60.240. Coordination with other corporate officer requirements.  07 The consideration of interests and factors under AS 10.60.230 by an officer of a 08 benefit corporation does not constitute a violation of AS 10.06.483. 09 Sec. 10.60.250. Exoneration from personal liability. Except as provided in 10 the articles of incorporation, an officer of a benefit corporation is not personally liable 11 for monetary damages for 12 (1) an action or inaction as an officer in the course of performing the 13 duties of an officer under AS 10.60.230 - 10.60.270 if the officer performs the duties 14 of the position in compliance with AS 10.06.483 and this section; or 15 (2) a failure of the benefit corporation to pursue or create a general 16 public benefit or a specific public benefit. 17 Sec. 10.60.260. No duty to beneficiary. An officer of a benefit corporation 18 does not have a duty arising from the person's status as a beneficiary to a person who 19 is a beneficiary of the general public benefit purpose or a specific public benefit 20 purpose of the benefit corporation. 21 Sec. 10.60.270. Business judgment. An officer who makes a business 22 judgment in good faith fulfills the duty under AS 10.60.230 - 10.60.270 if the officer 23 (1) is disinterested in the subject of the business judgment; 24 (2) is informed with respect to the subject of the business judgment to 25 the extent the officer reasonably believes to be appropriate under the circumstances; 26 and 27 (3) reasonably believes that the business judgment is in the best 28 interests of the benefit corporation; in this paragraph, "best interests" includes the 29 creation of the general public benefit purpose and any specific public benefit purpose. 30 Sec. 10.60.280. Benefit officer. A benefit corporation may designate an officer 31 as the benefit officer of the benefit corporation. A benefit officer has the powers and 01 duties of the benefit corporation that relate to the creation of a general public benefit 02 and a specific public benefit, as the powers and duties are provided in the bylaws, or, 03 absent controlling provisions in the bylaws, by resolutions or orders of the board of 04 directors. A benefit officer shall prepare the benefit report required by AS 10.60.500. 05 Article 5. Actions and Claims.  06 Sec. 10.60.300. Actions and claims. Unless another provision of this chapter 07 limits liability, a person identified under AS 10.60.320 may bring an action or assert a 08 claim against a benefit corporation or its directors or officers with respect to 09 (1) a failure to pursue or create general public benefit or a specific 10 public benefit set out in its articles of incorporation; or 11 (2) a violation of an obligation, duty, or standard of conduct under this 12 chapter. 13 Sec. 10.60.310. Limitation on liability of corporation. Notwithstanding 14 AS 10.60.300, a benefit corporation is not liable for monetary damages under this 15 chapter for a failure of the benefit corporation to pursue or create a general public 16 benefit or a specific public benefit. 17 Sec. 10.60.320. Right to bring action. (a) An action under AS 10.60.300 may 18 be commenced or maintained only 19 (1) directly by the benefit corporation; or 20 (2) derivatively under AS 10.06.435 by 21 (A) a person or group of persons that owned beneficially or of 22 record at least two percent of the total number of the shares of the benefit 23 corporation of a class or series outstanding at the time of the act or omission 24 complained of; 25 (B) a director of the benefit corporation; 26 (C) a person or group of persons who owned beneficially or of 27 record five percent or more of the outstanding equity interests in a person of 28 which the benefit corporation is a subsidiary at the time of the act or omission 29 complained of; or 30 (D) another person specified in the articles of incorporation or 31 bylaws of the benefit corporation. 01 (b) In this section, a person is the beneficial owner of shares or equity interests 02 if the shares or equity interests are held in a voting trust or by a nominee on behalf of 03 the person. 04 Article 6. Reporting.  05 Sec. 10.60.500. Benefit report. In addition to the biennial report required by 06 AS 10.06.805, a benefit corporation shall prepare an annual benefit report. 07 Sec. 10.60.510. Contents of report. The benefit report required by 08 AS 10.60.500 must contain 09 (1) a description of 10 (A) the ways in which the benefit corporation pursued the 11 general public benefit during the year being reported and the extent to which 12 the benefit corporation created general public benefit; 13 (B) the ways in which the benefit corporation pursued each 14 specific public benefit identified in the articles of incorporation and the extent 15 to which the benefit corporation created the specific public benefit; 16 (C) any circumstances that have hindered the creation by the 17 benefit corporation of general public benefit or specific public benefit; 18 (D) the process and rationale for selecting or changing the 19 third-party standard used to prepare the benefit report; 20 (2) an assessment of the overall performance of the general public 21 benefit purpose by the benefit corporation against a third-party standard 22 (A) applied consistently with any application of that standard in 23 prior benefit reports; or 24 (B) accompanied by an explanation of the reasons for 25 (i) any inconsistent application; or 26 (ii) the change to that standard from the one used in the 27 immediately prior report; 28 (3) the name of the benefit director, if any, and the benefit officer, if 29 any, and the address to which correspondence to each of them may be directed; 30 (4) the compensation paid by the benefit corporation during the year to 31 each director in the capacity of a director; 01 (5) the statement of the benefit director described in AS 10.60.180; and 02 (6) a statement of any connection between the organization that 03 established the third-party standard or its directors, officers, or any holder of five 04 percent or more of the governance interests in the organization and the benefit 05 corporation or its directors, officers, or any holder of five percent or more of the 06 outstanding shares of the benefit corporation, including any financial or governance 07 relationship that might materially affect the credibility of the use of the third-party 08 standard. 09 Sec. 10.60.520. Correspondence relating to change of benefit director. If, 10 during the year covered by a benefit report, a benefit director resigned from or refused 11 to stand for reelection to the position of benefit director, or was removed from the 12 position of benefit director, and the benefit director furnished the benefit corporation 13 with written correspondence concerning the circumstances surrounding the 14 resignation, refusal, or removal, the benefit report must include that correspondence as 15 an exhibit. 16 Sec. 10.60.530. Audit not required. A benefit corporation is not required to 17 have the benefit report, including the assessment of the performance of the benefit 18 corporation in the benefit report required by AS 10.60.510(2), audited or certified by a 19 person without a connection to the benefit corporation. 20 Sec. 10.60.540. Delivery of annual benefit report to shareholders. A benefit 21 corporation shall send its annual benefit report to each shareholder not later than the 22 earlier of the date 23 (1) that is 120 days after the end of the fiscal year of the benefit 24 corporation; or 25 (2) the same date as the date that the benefit corporation delivers any 26 other annual report to its shareholders. 27 Sec. 10.60.550. Internet website posting. If a benefit corporation has an 28 Internet website, the benefit corporation shall post all of its benefit reports on the 29 public portion of the website. The benefit corporation may omit from the benefit 30 reports posted on the website the compensation paid to directors and financial or 31 proprietary information included in the benefit report.  01 Sec. 10.60.560. Availability of copies of benefit report. If a benefit 02 corporation does not have an Internet website, the benefit corporation shall provide a 03 copy of its most recent benefit report, without charge, to any person who requests a 04 copy, but the benefit corporation may omit the compensation paid to directors and 05 financial or proprietary information included in the benefit report from the copy of the 06 benefit report provided to the person. 07 Sec. 10.60.570. Filing of report. Concurrently with the delivery of the benefit 08 report to shareholders under AS 10.60.540, a benefit corporation shall deliver a copy 09 of the benefit report to the department for filing by the department, but the benefit 10 corporation may omit the compensation paid to directors and financial or proprietary 11 information included in the benefit report from the benefit report delivered to the 12 department. The department shall charge a fee established by the department for filing 13 a benefit report. 14 Article 7. Miscellaneous Provisions.  15 Sec. 10.60.700. Status change approval. In addition to any other required 16 approval or vote, to accomplish a status change of a benefit corporation, 17 (1) the shareholders of each class or series may vote as a separate 18 voting group on the status change, regardless of a limitation stated in the articles of 19 incorporation or bylaws on the voting rights of a class or series; 20 (2) the shareholders shall approve the status change by a vote of each 21 class or series entitled to cast at least two-thirds of the votes that all shareholders of 22 the class or series are entitled to cast on the action. 23 Sec. 10.60.710. Shareholder dissent. In addition to the corporate actions to 24 which a shareholder may dissent under AS 10.06.574(a), a shareholder of a 25 corporation organized under AS 10.06 may dissent under AS 10.06.574 - 10.06.582 if 26 the corporation amends its articles under AS 10.60.010(2) to become a benefit 27 corporation. 28 Sec. 10.60.720. Third-party standard. In this chapter, whenever a third-party 29 standard is used, the standard refers to a recognized standard for defining, reporting, 30 and assessing corporate performance 31 (1) that is comprehensive because it assesses the effect of the benefit 01 corporation and its operations on the interests listed in AS 10.60.100(1)(B) - (E); 02 (2) that is developed by a person that is not controlled by the benefit 03 corporation; 04 (3) that is credible because it is developed by a person that 05 (A) has access to the expertise necessary to assess overall 06 corporate performance; and 07 (B) uses an approach, including a reasonable public comment 08 period, to develop the standard that is balanced and considers multiple 09 concerns and interests; 10 (4) for which the following information about the standard is publicly 11 available: 12 (A) the criteria considered when measuring the overall 13 performance of a business; 14 (B) the relative weightings, if any, of the criteria in (A) of this 15 paragraph; 16 (5) for which the following information about the development and 17 revision of the standard is publicly available: 18 (A) the identity of the directors, officers, material owners, and 19 governing body of the entity that developed and controls revisions to the 20 standard; 21 (B) the process by which revisions to the standard and changes 22 to the membership of the governing body are made; 23 (C) an accounting of the revenue and sources of financial 24 support for the entity, with sufficient detail to disclose any relationships that 25 could reasonably be considered to present a potential conflict of interest. 26 Sec. 10.60.730. Tax exemptions. A benefit corporation may not claim a tax 27 exemption under AS 43.20 (Alaska Net Income Tax Act) if the tax exemption is not 28 also available to corporations that are not benefit corporations. 29 Sec. 10.60.740. Interpretation. The authorization under AS 10.60.010 to form 30 a benefit corporation for a general public benefit purpose and the authorization under 31 AS 10.60.040 for a benefit corporation to identify a specific public benefit purpose 01 may not be interpreted to prevent a business entity that is formed under another law of 02 this state from including in its general powers the consideration of, or donation to, a 03 general public benefit purpose or a specific public benefit purpose. 04 Article 8. General Provisions.  05 Sec. 10.60.910. Regulations. The department may adopt regulations under 06 AS 44.62 (Administrative Procedure Act) to implement this chapter. 07 Sec. 10.60.920. Application to business corporations generally. The 08 existence of a provision of this chapter does not, by itself, suggest that a contrary or 09 different rule of law applies to a business corporation that is not a benefit corporation. 10 This chapter does not affect a statute or other law that applies to a business corporation 11 that is not a benefit corporation. 12 Sec. 10.60.930. Applicable laws. Except as otherwise provided in this chapter, 13 AS 10.06 applies to a benefit corporation. A benefit corporation may be 14 simultaneously subject to this chapter and AS 10.45. The provisions of AS 10.06 and 15 AS 10.45 are subject to this chapter. 16 Sec. 10.60.940. Consistency with chapter. A provision of the articles of 17 incorporation or bylaws of a benefit corporation may not limit, be inconsistent with, or 18 supersede a provision of this chapter. 19 Sec. 10.60.990. Definitions. In this chapter, 20 (1) "benefit corporation" means a corporation that elects under 21 AS 10.60.010 to become subject to this chapter; 22 (2) "benefit director" means the director designated as the benefit 23 director of a benefit corporation under AS 10.60.150; 24 (3) "benefit officer" means the individual designated as the benefit 25 officer of a benefit corporation under AS 10.60.280; 26 (4) "benefit report" means the report required by AS 10.60.500; 27 (5) "business corporation" means a corporation organized under 28 AS 10.06, including a professional corporation under AS 10.45; 29 (6) "general public benefit" means a material positive effect on people 30 or their surroundings, taken as a whole, assessed against a third-party standard; 31 (7) "general public benefit purpose" means the public benefit purpose 01 under AS 10.60.030; 02 (8) "specific public benefit" means a benefit that serves a public 03 welfare, religious, charitable, scientific, literary, or educational purpose, or another 04 purpose beyond the strict interest of the shareholders of the benefit corporation; 05 (9) "specific public benefit purpose" means a specific public benefit 06 purpose that is identified as a public benefit purpose by a benefit corporation under 07 AS 10.60.040(a) or (b); 08 (10) "status change" means 09 (A) an amendment of the articles of incorporation under 10 AS 10.60.010; 11 (B) an election of an existing corporation to become a benefit 12 corporation under AS 10.60.010; 13 (C) the approval of a plan of merger, consolidation, conversion, 14 or interest or share exchange under AS 10.60.020; 15 (D) the termination of benefit corporation status under 16 AS 10.60.060; or 17 (E) a disposition of assets under AS 10.60.070; 18 (11) "subsidiary" means an entity in which a person owns beneficially 19 or of record 50 percent or more of the outstanding equity interests calculated as if all 20 outstanding rights to acquire equity interests in the entity had been exercised. 21  * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 24 Economic Development may adopt regulations under AS 10.60.910, enacted by sec. 1 of this 25 Act, necessary to implement this Act. The regulations take effect under AS 44.62 26 (Administrative Procedure Act), but not before July 1, 2015. 27  * Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c). 28  * Sec. 4. Except as provided in sec. 3 of this Act, this Act takes effect July 1, 2015.