CSHB 519(FIN): "An Act authorizing priority treatment under the Right-of-Way Leasing Act for an Alaska North Slope natural gas project; authorizing the Alaska Railroad Corporation to provide financing for the acquisition, construction, improvement, maintenance, equipping, or operation of facilities for the transportation by others of natural gas resources within and outside the state and to issue its bonds to finance those facilities; exempting an Alaska North Slope natural gas project from state and municipal property taxes during construction and initial operation, and eliminating the authority of a municipality to levy a sales or use tax on property or services used or to be used on the project; providing, through the Department of Community and Economic Development, emergency financial assistance for municipalities affected by natural gas development; expanding the scope for the kinds of gas development projects that may become qualified projects under the Alaska Stranded Gas Development Act to natural gas projects, including an Alaska North Slope natural gas pipeline and any spurs; extending the deadline for submitting applications under the Alaska Stranded Gas Development Act; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 519(FIN) 01 "An Act authorizing priority treatment under the Right-of-Way Leasing Act for an 02 Alaska North Slope natural gas project; authorizing the Alaska Railroad Corporation to 03 provide financing for the acquisition, construction, improvement, maintenance, 04 equipping, or operation of facilities for the transportation by others of natural gas 05 resources within and outside the state and to issue its bonds to finance those facilities; 06 exempting an Alaska North Slope natural gas project from state and municipal property 07 taxes during construction and initial operation, and eliminating the authority of a 08 municipality to levy a sales or use tax on property or services used or to be used on the 09 project; providing, through the Department of Community and Economic Development, 10 emergency financial assistance for municipalities affected by natural gas development; 11 expanding the scope for the kinds of gas development projects that may become 12 qualified projects under the Alaska Stranded Gas Development Act to natural gas 13 projects, including an Alaska North Slope natural gas pipeline and any spurs; extending
01 the deadline for submitting applications under the Alaska Stranded Gas Development 02 Act; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS AND INTENT. The legislature finds that 07 (1) a vast quantity of gas in Alaska is currently stranded from commercial 08 development, in part due to the cost associated with providing access to markets for that gas; 09 the Alaska North Slope has the largest known discovered natural gas resources, estimated to 10 be 35 trillion cubic feet, in the United States and has undiscovered gas resources estimated to 11 be in excess of 100 trillion cubic feet; 12 (2) demand for natural gas in the lower 48 states is expected to experience 13 record growth; the lower 48 states have an inadequate resource base to meet this expected 14 demand, and there is an urgency to make an Alaska natural gas pipeline project move forward 15 to fill this gap with North American gas rather than with gas from uncertain sources overseas; 16 (3) it is important for the United States to have a reliable and affordable source 17 of domestic natural gas for energy for its economy, for the well-being of its citizens, for the 18 growth of its businesses, and for the national security; 19 (4) the North Slope of Alaska is one of the few known locations in the United 20 States that can supply significant natural gas supplies to the lower 48 states for years to come; 21 (5) during the past three decades, several companies and entities have studied 22 different ways to commercialize Alaska North Slope gas and have been unsuccessful in 23 identifying an economic project; most recently, the three major producers, through their 24 Alaska Gas Producers Pipeline Team, have studied a southern route approximately following 25 a route along the Trans Alaska Pipeline System from Pump Station One to Delta Junction and 26 along the Alaska Highway through Alaska and Canada to the lower 48 states and a northern 27 route off the shore of the Arctic National Wildlife Refuge in the Beaufort Sea, and have 28 concluded that neither is sufficiently economic, given the magnitude of the risks associated 29 with the project; however, at least one producer has indicated a willingness to proceed further
01 if federal and state enabling legislation with provisions to mitigate long-term natural gas price 02 risks and for fiscal certainty and incentives is enacted; 03 (6) the major producers have proposed new federal enabling legislation that 04 they believe will expedite the construction and operation of a natural gas pipeline from the 05 North Slope to the lower 48 states; 06 (7) in addition to the state's receipt of revenue from taxes and royalties, 07 Alaskans will benefit from the commercialization of Alaska North Slope natural gas through 08 opportunities for in-state use of the natural gas and for participation by Alaskans in 09 construction, maintenance, and operation of a natural gas pipeline project; 10 (8) because of the high cost of providing access to markets for Alaska North 11 Slope gas, exploration efforts on the North Slope have historically focused on oil; recently, 12 some companies have expressed interest in gas exploration; if the infrastructure needed to 13 provide access to market for Alaska North Slope gas were available, new gas exploration 14 efforts might be initiated on the Alaska North Slope and in other basins that currently remain 15 largely unexplored for oil and gas; it is vital to the State of Alaska that there be continued and 16 robust exploration and development of natural gas resources on the Alaska North Slope; 17 (9) Alaskans need a portion of the gas from a natural gas pipeline project for 18 in-state use; however, it is unlikely that markets will develop within the state that would need 19 more than a relatively small portion of the volume of gas already discovered on the Alaska 20 North Slope; it is vital for economic development that Alaska communities and businesses 21 have access under fair and reasonable terms to the pipeline for in-state use of Alaska North 22 Slope natural gas; 23 (10) the construction and operation of a natural gas pipeline in the state and 24 the sale of Alaska North Slope gas is critical to the health and welfare of the state; 25 (11) for a natural gas pipeline project to become economically viable and 26 competitive, the estimated costs of constructing the project and the associated financial risk 27 must be reduced significantly; changes in the local, state, and federal tax structure may also be 28 necessary to make commercialization of the gas resources economically viable by, in part, 29 structuring tax and royalty incentives related to the project and providing as much clarity and 30 certainty as possible regarding the taxes that would apply to a project throughout its life; 31 (12) art. IX, sec. 4, Constitution of the State of Alaska, empowers the
01 legislature to create tax exemptions by general law, and the creation of tax exemptions to 02 make Alaska North Slope gas commercially viable and competitive is consistent with the 03 legislature's responsibility under art. VIII, sec. 2, Constitution of the State of Alaska; 04 (13) good faith efforts by producers and other companies engaged in the 05 design, construction, and operation of the natural gas pipeline voluntarily to provide 06 employment opportunities for Alaska residents and opportunities for Alaska businesses are in 07 the long-term interests of the state; 08 (14) there has been a history of costly disputes between producers of oil and 09 the state over the determination of the production taxes due for oil produced and sold, in part 10 because of disputes over the definition of terms pertinent to the calculation of the tax; 11 (15) it is in the state's best interest to provide clarity and certainty to the 12 process of determining a producer's tax and royalty liability, AS 43.82 (Alaska Stranded Gas 13 Development Act) provides, among other provisions, in AS 43.82.020, 43.82.200, and 14 43.82.210, mechanisms for the state and the sponsor of a North Slope natural gas pipeline 15 project to negotiate a contract that could provide that clarity and certainty and resolve other 16 important issues, including accommodating the interests of affected municipalities. 17 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 FINDINGS, INTENT, AND PURPOSE OF SECTIONS 4 - 6 AND 15. (a) The 20 Alaska State Legislature finds that 21 (1) the Alaska Railroad Corporation is uniquely suited to serve essential 22 functions of the state by providing financing for a facility for the transportation of certain 23 natural gas resources located within the state; 24 (2) providing financing for that facility furthers the purposes of both the state 25 and the Alaska Railroad Corporation by assuring that the state's natural gas resources will be 26 transported to their appropriate markets, thus creating revenue for the Alaska Railroad 27 Corporation and for the state and providing employment opportunities for residents of the 28 state; 29 (3) the facility also will enhance and improve the state's ability to develop and 30 transport other natural resources of the state, including oil and gas resources located off the 31 North Slope of this state; and
01 (4) these results are essential purposes of the state and the achievement of 02 these purposes is critical to the health and welfare of the state. 03 (b) A purpose of secs. 4 - 6 and 15 of this Act is to clarify the statutory functions and 04 powers of the Alaska Railroad Corporation by expressly including the power to provide 05 financing for transportation facilities as described in those sections of this Act. 06 (c) It is the intent of the legislature that 07 (1) secs. 4 - 6 and 15 of this Act be construed broadly to permit the Alaska 08 Railroad Corporation the greatest flexibility to accomplish the purpose described in (b) of this 09 section within the limitations set out in those sections of this Act; and 10 (2) other provisions of AS 42.40 in existence before the enactment of secs. 4 - 11 6 and 15 of this Act be similarly construed to complement the provisions of this Act. 12 * Sec. 3. AS 38.35 is amended by adding a new section to read: 13 Sec. 38.35.240. Expeditious priority treatment by state officials and 14 agencies in support of development and construction of an Alaska North Slope 15 natural gas project under this chapter. (a) In the development and construction of 16 an Alaska North Slope natural gas project that requires the grant of a right-of-way 17 lease under this chapter, every state official and agency shall give full cooperation to 18 the commissioner, or to any official to whom delegation of the authority of the 19 commissioner is made by or under law, consistent with the provisions of the law 20 administered by the official or agency, by issuing or granting necessary permits, 21 certificates, authorizations, and similar actions required to be taken at the earliest 22 practicable date, with action to be taken on an expedited basis and, notwithstanding 23 any other provision of law, having precedence over any like matter pending before the 24 official or agency. 25 (b) In the commissioner's consideration of an application under this chapter 26 for a lease for the Alaska North Slope natural gas project, the commissioner may limit 27 the scope of review, analysis, and finding for the applicant's proposed lease 28 application under this chapter to a particular phase of the project if, in the judgment of 29 the commissioner, the project is capable of proceeding in discrete phases and 30 (1) the uses and activities involving the project on the land for which 31 the approval is to be granted are part of that discrete phase;
01 (2) before the next phase of the project may proceed, the commissioner 02 gives public notice and opportunity for comment about that phase, unless the use or 03 activity to be approved is subject to a consistency determination under AS 46.40 and 04 public notice and the opportunity to comment are provided under AS 46.40.096(c); 05 (3) the commissioner's approval is required before the next phase of 06 the project may proceed; and 07 (4) the commissioner sets out the reasons for proceeding on the 08 application in discrete phases. 09 (c) In this section, "Alaska North Slope natural gas project" means "North 10 Slope natural gas pipeline" as set out in AS 38.35.120(a)(1)(B), including the facilities 11 that are necessary for, and to the extent used for, treating and conditioning the gas to 12 be transported, and the components of the processing plants associated with natural 13 gas conditioning, to be constructed or modified to follow generally a route that 14 parallels the Trans Alaska Pipeline System and the Alaska Highway to the Canadian 15 border, or to tidewater for liquefied natural gas, and any spur lines to serve people in 16 the state, to transport natural gas derived from the area of the state lying north of 64 17 degrees North latitude. 18 * Sec. 4. AS 42.40.250 is amended by adding a new paragraph to read: 19 (31) provide financing for the acquisition, construction, improvement, 20 maintenance, equipping, and operation of facilities for the transportation of natural gas 21 resources within and outside the state without regard to whether the facilities are or 22 will be owned in whole or in part by the corporation or located on land owned by the 23 corporation. 24 * Sec. 5. AS 42.40.630 is amended by adding new subsections to read: 25 (b) Before issuing bonds to provide the financing described in 26 AS 42.40.250(31) for a facility to be owned in whole or in part by an entity other than 27 the corporation, the corporation shall enter into a contract, lease, or other form of 28 agreement that will, in the judgment of the corporation, provide sufficient 29 consideration to 30 (1) pay the principal of and interest on the bonds as they become due; 31 (2) create and maintain the reserves for the payments that the
01 corporation considers necessary or desirable; and 02 (3) pay all costs necessary to service or additionally secure the bonds, 03 including trustee's fees and bond insurance premiums, unless these costs are to be paid 04 by a party other than the corporation. 05 (c) Before issuing bonds to provide the financing described in 06 AS 42.40.250(31), whether for a facility to be owned by the corporation or for a 07 facility to be owned as described in (b) of this section, the corporation shall obtain the 08 prior approval of the governor. 09 * Sec. 6. AS 42.40 is amended by adding a new section to read: 10 Sec. 42.40.695. Public purpose of bonds. Bonds of the corporation issued to 11 finance facilities described in AS 42.40.250(31) are issued by a public corporation and 12 an instrumentality of the state for an essential public and governmental purpose. 13 * Sec. 7. AS 43.56.020(a) is amended to read: 14 (a) The following are exempt from local taxes levied or authorized under 15 AS 43.56.010(b): 16 (1) property rights attached to or inherent in the right to explore for or 17 produce oil or gas; 18 (2) oil or gas leases or properties, whether producing or not; 19 (3) oil or gas in place; 20 (4) oil or gas produced or extracted in the state; 21 (5) the value of intangible drilling expenses and exploration expenses; 22 (6) an interest in property described in AS 43.55.017(a); 23 (7) an interest in taxable property that is part of an Alaska North 24 Slope natural gas project, whether or not, under AS 43.82, the project has been 25 determined by the commissioner of revenue to meet the requirements of 26 AS 43.82.100, from the project's construction commencement date, as determined 27 by the commissioner, until 24 full calendar months after the project is placed in 28 service, but not later than December 31, 2012, but the commissioner shall extend 29 this date after project construction has commenced if that construction is delayed 30 due to litigation or to shortages of supplies for construction that are not due to or 31 under the control of a taxpayer who is a producer, as that term is defined in
01 AS 31.05.170, or not due to or under the control of a project sponsor; for 02 purposes of this paragraph, "Alaska North Slope natural gas project" has the 03 meaning given in AS 38.35.240. 04 * Sec. 8. AS 43.56.020(b) is amended to read: 05 (b) There is exempt from state taxes levied or authorized under 06 AS 43.56.010(a), 07 (1) before the construction commencement date, property that is 08 committed by contract or other agreement for use in this state primarily for the 09 production or pipeline transportation of gas or unrefined oil, or in the operation or 10 maintenance of facilities for the production or pipeline transportation of gas or 11 unrefined oil; and 12 (2) taxable property described in (a)(7) of this section, subject to 13 the procedures set out in (d) of this section. 14 * Sec. 9. AS 43.56.020 is amended by adding new subsections to read: 15 (d) For the Alaska North Slope natural gas project, the exemptions provided in 16 (a)(7) and (b)(2) of this section do not apply unless a taxpayer, or a person acting 17 under contract with the taxpayer or the project's sponsor, 18 (1) complies with all relevant requirements of 15 U.S.C. 717z (Natural 19 Gas Act) and 15 U.S.C. 719 - 719o (Alaska Natural Gas Transportation Act of 1976), 20 as applicable to the project; 21 (2) complies with all valid federal, state, and municipal laws relating to 22 hiring Alaska residents and contracting with Alaska businesses to work in the state in 23 the design, construction, and operation of the project to the extent the residents and 24 businesses are available, competitively priced, and qualified, and the taxpayer or 25 project sponsor does not discriminate against Alaska residents or businesses; 26 (3) advertises for available positions in newspapers in the location 27 where the work is to be performed and in other publications distributed throughout the 28 state, including in rural areas, and uses Alaska job service organizations located 29 throughout the state and not just in the location where the work is to be performed in 30 order to notify Alaskans of work opportunities on the project; 31 (4) within the constraints of law, encourages the owner's contractors to
01 train and subsequently to hire state residents consistent with (2), (3), and (5) of this 02 subsection; 03 (5) recruits, within the constraints of law, and employs state residents 04 as workers on available jobs; the owner shall prepare and submit to the commissioner 05 of labor and workforce development 06 (A) on an annual basis, a report that sets out in detail the 07 specific measures that the owner and the owner's contractors have taken or are 08 planning to take 09 (i) to recruit qualified state residents for available jobs 10 and that describes job training opportunities; and 11 (ii) to use Alaska businesses; 12 (B) on a quarterly basis, a report concerning the use of state 13 residents, including the number of residents hired or employed during the 14 previous period; 15 (6) makes, to the extent permitted by law, reasonable efforts 16 (A) to employ Alaska firms that are available and qualified to 17 perform engineering and construction services; and 18 (B) to fabricate or manufacture in the state needed gas 19 production and pipeline modules and other facilities; 20 (7) agrees to apply, and does apply the full value of the tax exemptions 21 provided in (a)(7) and (b)(2) of this section and AS 43.56.030(2)(A) and (C) to reduce 22 the natural gas pipeline tariff; 23 (8) agrees to submit an application under AS 43.82.120; and 24 (9) requires that its agents and contractors, the agents and contractors 25 of a person acting under contract, or the agents and contractors of a project sponsor, 26 negotiate to obtain, where possible, a project labor agreement for the employment of 27 laborers and mechanics for the construction, operation, and maintenance of the 28 project. 29 (e) The provisions of (d) of this section do not create or abridge individual 30 rights and do not create a private right of action or claim by any person. 31 * Sec. 10. AS 43.56.030 is amended to read:
01 Sec. 43.56.030. In place of other taxes. Except for those taxes imposed 02 under AS 43.55, the taxes levied or authorized under AS 43.56.010(b) are in place of 03 all other 04 (1) [ALL OTHER] ad valorem taxes or other taxes imposed by a 05 municipality on property subject to tax under this chapter or exempted from taxation 06 by AS 43.56.020; and 07 (2) [ALL OTHER] taxes imposed by a municipality on or with respect 08 to the property subject to tax under this chapter or exempted from taxation by 09 AS 43.56.020, including, but not limited to, 10 (A) taxes on the retail sale or use of the property except for the 11 retail sales tax on the first $1,000 of each sale; however, the exception for 12 retail sales or use taxes on the first $1,000 of each sale does not apply to a 13 retail sale or use involving property used or committed by contract or 14 other agreement for use in the development, construction, operation, or 15 maintenance of an Alaska North Slope natural gas project as that term is 16 defined in AS 38.35.240; 17 (B) taxes on the sale or use of gas or unrefined oil; 18 (C) taxes on the sale or use of services used in or associated 19 with the property or in its maintenance or operation except for the sales tax on 20 the first $1,000 of each sale; however, the exception for retail sales or use 21 taxes on the first $1,000 of each sale does not apply to a retail sale or use 22 involving services used in or associated with the property used or 23 committed by contract or other agreement for use in the development, 24 construction, operation, or maintenance of an Alaska North Slope natural 25 gas project as that term is defined in AS 38.35.240; 26 (D) taxes on or measured by gross or net income from the 27 property, including income from the exploration for, production of, or pipeline 28 transportation of gas or unrefined oil or property; and 29 (E) any license, excise, fee, charge, or other tax on or 30 pertaining to the property or services. 31 * Sec. 11. AS 43.56.210(2) is amended to read:
01 (2) "construction commencement date" means, for property subject 02 to tax under this chapter used in the exploration for, production of, or pipeline 03 transportation of unrefined oil through a facility the construction of which was 04 begun before April 1, 1974, the earlier of April 1, 1974, or the date the following 05 occur, and, for property subject to tax under this chapter used in the exploration 06 for, production of, or pipeline transportation of North Slope natural gas through 07 an Alaska North Slope natural gas project, as that term is defined in 08 AS 38.35.240, the date on which all of the following have occurred: 09 (A) there has been issued to the owner or an agent of the owner 10 right-of-way permits, leases, and title and other rights in land, and other 11 approvals, permits, licenses, and certificates, by federal, state, and local 12 agencies that a reasonable and prudent person would consider adequate to 13 commence construction of the facilities in the expectation that all other 14 approvals, permits, licenses, and certificates necessary for the completion of 15 facilities will be obtained; 16 (B) all approvals, permits, licenses, and certificates are in full 17 force and effect, unrevoked and without any modification that might jeopardize 18 the completion or continued construction of the facilities; and 19 (C) no order, judgment, decree, determination, or award of a 20 federal, state, or local court or administrative or regulatory agency enjoining, 21 either temporarily or permanently, the construction or the continuation of 22 construction of the facilities is in effect; 23 * Sec. 12. AS 43.82.100 is amended to read: 24 Sec. 43.82.100. Qualified project. Based on information available to the 25 commissioner, the commissioner may determine that a proposal for new investment is 26 a qualified project under this chapter only if the project 27 (1) is a project that principally involves 28 (A) the transportation of natural gas by pipeline to one or 29 more markets outside the state, including an Alaska North Slope natural 30 gas project as that term is defined in AS 38.35.240; or 31 (B) [FOR] the export of liquefied natural gas from the state to
01 one or more other states or countries; 02 (2) would produce at least 500,000,000,000 cubic feet of stranded gas 03 within 20 years from the commencement of commercial operations; and 04 (3) is capable, subject to applicable commercial regulation and 05 technical and economic considerations, of making gas available to meet the reasonably 06 foreseeable demand in this state for gas within the economic proximity of the project. 07 * Sec. 13. AS 43.82.170 is amended to read: 08 Sec. 43.82.170. Application deadline. The commissioner of revenue or the 09 commissioner of natural resources may not act on an application for a contract 10 submitted under AS 43.82.120 unless the application is received by the Department of 11 Revenue no later than April 1, 2004 [JUNE 30, 2001]. 12 * Sec. 14. As 44.33 is amended by adding a new section to read: 13 Article 5A. Natural Gas Pipeline Impact Assistance. 14 Sec. 44.33.440. Natural gas pipeline impact assistance. (a) It is the 15 intention of the legislature to provide temporary emergency financial assistance to 16 municipalities for the purpose of meeting certain extraordinary operating and capital 17 improvement expenditures necessitated by population growth resulting from natural 18 gas pipeline development construction. It is the further intention of the legislature that 19 the state respond promptly to the needs of municipalities that are related to the effect 20 of natural gas pipeline development. 21 (b) Subject to legislative appropriations for the purpose, the department may 22 make grants to a municipality that is affected by natural gas pipeline development, 23 demonstrating extraordinary municipal and educational operating expenditures that are 24 beyond its reasonable capability to meet from growth in receipts from current 25 municipal revenue sources. Grants made under this subsection may be expended only 26 for municipal and educational operating services. 27 (c) Grants made under this section may not be used directly or indirectly to 28 reduce current municipal tax rates. 29 (d) Where the impact of rapid, sudden population growth threatens to develop 30 open space land that otherwise would remain free of urban development, the 31 department may make grants to a municipality affected by natural gas pipeline
01 development, contributing an equal amount for the acquisition or improvement of 02 open space or greenbelt lands, recreation facilities, parks, or wildlife refuges. A grant 03 under this subsection may exceed $500,000. A grant made under this subsection may 04 not be used directly or indirectly to reduce current municipal tax rates or to retire 05 existing bonded indebtedness. 06 (e) Grants under this section may be made only upon application by the 07 municipality to the department. Each grant application must state the intended use for 08 which the grant will be expended. 09 (f) A municipality receiving grants under this section shall 10 (1) maintain a separate account for the grants received under this 11 section; 12 (2) provide for an annual independent audit of the separate account for 13 grants received under this section; and 14 (3) submit a copy of the independent audit report to the department. 15 (g) The department may adopt regulations necessary to carry out the purpose 16 of this section. 17 (h) In this section, 18 (1) "department" means the Department of Community and Economic 19 Development; 20 (2) "municipality" means a home rule or general law city or borough, 21 including but not limited to a unified municipality; 22 (3) "operating expenditures" means personal services, contractual 23 services, travel, commodities, and up to $20,000 for each item of equipment, except 24 that the term does not include any of these items if the item is part of a capital 25 improvement expenditure; relocatable classrooms necessary for expanded school 26 enrollment are not subject to the $20,000 limitation. 27 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 LEGISLATIVE AUTHORIZATION AND APPROVAL. (a) Subject to the 30 requirements of AS 42.40.630(b), enacted by sec. 5 of this Act, the Alaska Railroad 31 Corporation is authorized to issue bonds under the power granted to it in AS 42.40 to finance
01 the construction of a natural gas pipeline and related facilities for the transportation of natural 02 gas recovered from the North Slope of this state. The maximum principal amount of bonds 03 that the Alaska Railroad Corporation may issue under this section is $17,000,000,000. The 04 Alaska Railroad Corporation may issue the bonds in a single issuance or in several issuances, 05 without limitation as to number of issuances or timing, and as the Alaska Railroad 06 Corporation determines best furthers the purpose of financing the gas pipeline and related 07 facilities described in this section. The Alaska Railroad Corporation shall negotiate with the 08 producers of the gas or with one or more other entities as the Alaska Railroad Corporation 09 considers appropriate, and shall enter into agreements with those producers or one or more 10 other entities to provide revenue sufficient to accomplish the purposes described in 11 AS 42.40.630. 12 (b) This section constitutes the approval required by AS 42.40.285 for the issuance of 13 the bonds described in this section. 14 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 RETROACTIVITY. Sections 12 and 13 of this Act are retroactive to July 1, 2001. 17 * Sec. 17. Sections 7 - 11 and 14 of this Act are effective January 1, 2003. 18 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect immediately under 19 AS 01.10.070(c).