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SB 136: "An Act relating to resource development and to grants for the purpose of promoting resource development from appropriations of a portion of the revenue derived from the extraction of certain state natural resources."

00 SENATE BILL NO. 136 01 "An Act relating to resource development and to grants for the purpose of promoting 02 resource development from appropriations of a portion of the revenue derived from the 03 extraction of certain state natural resources." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05 is amended by adding a new section to article 1 to read: 06 Sec. 38.05.041. Resource development fund. (a) The resource development 07 fund is established in the Department of Natural Resources. 08 (b) From the money received in the administration of the resources of the state 09 under this chapter, the legislature may appropriate to the resource development fund 10 an amount equal to one-quarter of one percent of all mineral lease rentals, royalties, 11 royalty sale proceeds, federal mineral revenue sharing payments, and bonuses received 12 by the state. 13 * Sec. 2. AS 39.50.200(b) is amended by adding a new paragraph to read: 14 (57) Resource Development Board (AS 41.05.110).

01 * Sec. 3. AS 41.05 is amended by adding new sections to read: 02 Sec. 41.05.110. Resource Development Board. (a) The Resource 03 Development Board is established in the department. The board is composed of seven 04 members, appointed by the governor as follows: 05 (1) five persons of whom 06 (A) one member shall be appointed from a list of three persons 07 submitted by the oil industry through its state trade association; 08 (B) one member shall be appointed from a list of three persons 09 submitted by the gas industry through its state trade association; 10 (C) one member shall be appointed from a list of three persons 11 submitted by the forest industry through its state trade association; 12 (D) one member shall be appointed from a list of three persons 13 submitted by the mining industry through its state trade association; and 14 (E) one other person shall be appointed at large; 15 (2) one person appointed from a list of recommended nominees 16 containing at least three names submitted by the president of the senate; and 17 (3) one person appointed from a list of recommended nominees 18 containing at least three names submitted by the speaker of the house of 19 representatives. 20 (b) The board members appointed under (a) of this section serve at the 21 pleasure of the governor for a four-year term. Each board member shall be a state 22 resident and qualified voter at the time of appointment and shall comply with the 23 requirements of AS 39.50 (public official financial disclosure). Each board member 24 holds office for the term of appointment and until a successor has been appointed and 25 complies with the requirements of AS 39.50. A board member is eligible for 26 reappointment. A vacancy in a board membership occurring other than by expiration 27 of term shall be filled in the same manner as the original appointment but for the 28 unexpired term only. 29 (c) Members of the board do not receive compensation but are entitled to per 30 diem and travel expenses authorized for boards and commissions under AS 39.20.180. 31 Sec. 41.05.120. Board organization and operation. (a) The board shall

01 (1) establish procedures for scheduling and organizing board meetings; 02 (2) annually elect one of its members as board chair and one of its 03 members as vice-chair; a member may be reelected to serve additional terms as chair 04 or vice-chair; and 05 (3) subject to appropriation for the purpose, employ persons to serve as 06 staff to the board in the exercise of its responsibilities. 07 (b) Four members of the board constitute a quorum. Each decision of the 08 board requires the affirmative vote of a majority of the board members. 09 (c) The department, the Department of Fish and Game, and the Department of 10 Environmental Conservation shall provide technical staffing and information as 11 needed by the board. 12 Sec. 41.05.130. Duties of the Resource Development Board. The Resource 13 Development Board shall facilitate the commercial development of the state's natural 14 resources by authorizing grants from the resource development fund established under 15 AS 38.05.041 to private nonprofit corporations to assist in the promotion of the 16 development of resources having commercial promise using methods of responsible 17 resource extraction. To that end, the board shall review proposals for projects and, if 18 the project is found feasible under standards for evaluation of proposed projects 19 approved by the board, may, after setting out the terms and conditions for use of the 20 grant, award a grant for conducting market research, advertising, promotion, 21 education, establishing and operating a system for responding to inquiries, and 22 publishing and distributing information, including establishing and maintaining 23 Internet sites. The board shall set out the terms and conditions of the use of the grant 24 in a contract. 25 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 TRANSITIONAL PROVISION. Notwithstanding AS 41.05.110(b), added by sec. 3 28 of this Act, the persons first appointed to the Resources Development Board serve initial 29 terms as follows: 30 (1) one member appointed under AS 41.05.110(a)(1) serves a one-year term; 31 (2) one member appointed under AS 41.05.110(a)(1) and the member

01 appointed from the list of nominees submitted by the speaker of the house of representatives 02 under AS 41.05.110(a)(3) serve two-year terms; 03 (3) two members appointed under AS 41.05.110(a)(1) serve three-year terms; 04 and 05 (4) one member appointed under AS 41.05.110(a)(1) and the member 06 appointed from the list of nominees submitted by the president of the senate under 07 AS 41.05.110(a)(2) serve four-year terms.