00                            SENATE BILL NO. 216                                                                         
01 "An Act relating to participation by the Alaska Industrial Development and Export                                       
02 Authority in the development of oil and gas resources in the state."                                                    
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 44.88.080 is amended by adding a new paragraph to read:                                            
05                 (32)  to acquire an interest in a project as necessary or appropriate to                                
06       provide working or venture capital for an oil or natural gas development project under                            
07       AS 44.88.650 - 44.88.660, whether by purchase, gift, or lease;                                                    
08    * Sec. 2. AS 44.88 is amended by adding new sections to read:                                                      
09            Sec. 44.88.650. Acquisition of interest in businesses. (a) The authority may                               
10       acquire, through purchase or other means, an interest in an in-state asset of a                                   
11       corporation or other business entity that has a lease interest in an oil or natural gas                           
12       field in the state that has been explored, but only if the authority determines the                               
13       leaseholder has made reasonable efforts to obtain financing from the private sector to                            
14       develop the lease and those efforts have, in whole or part, been unsuccessful. The                                

01       authority shall exercise due diligence in acquiring an interest in an in-state asset of a                         
02       business entity under this section.                                                                               
03            (b)  If the authority acquires an interest in an in-state asset of a business entity                         
04       under this section, the authority may use the authority's assets, as appropriate, to aid in                       
05       the development of the oil or natural gas field in which the business entity has a lease                          
06       interest.                                                                                                         
07            Sec. 44.88.660. Alaska resource development fund. (a) The Alaska resource                                  
08       development fund is established in the authority for the purpose of developing oil and                            
09       gas resources, and consists of appropriations to the fund. The authority shall manage                             
10       the fund and may create separate accounts within it. Income of the fund or of                                     
11       enterprises of the authority shall be separately accounted for and may be appropriated                            
12       to the fund.                                                                                                      
13            (b)  The authority may use money from the fund to carry out the fund's                                       
14       purposes set out in (a) of this section.                                                                          
15    * Sec. 3. AS 44.88.900(9) is amended to read:                                                                      
16                 (9)  "project" means                                                                                    
17                      (A)  a plant or facility used or intended for use in connection                                    
18            with making, processing, preparing, transporting, or producing in any manner,                                
19            goods, products, or substances of any kind or nature or in connection with                                   
20            developing or utilizing a natural resource, or extracting, smelting, transporting,                           
21            converting, assembling, or producing in any manner, minerals, raw materials,                                 
22            chemicals, compounds, alloys, fibers, commodities and materials, products, or                                
23            substances of any kind or nature;                                                                            
24                      (B)  a plant or facility used or intended for use in connection                                    
25            with a business enterprise;                                                                                  
26                      (C)  commercial activity by a business enterprise;                                                 
27                      (D)  a plant or facility demonstrating technological advances of                                   
28            new methods and procedures and prototype commercial applications for the                                     
29            exploration, development, production, transportation, conversion, and use of                                 
30            energy resources;                                                                                            
31                      (E)  infrastructure for a new tourism destination facility or for                                  

01            the expansion of a tourism destination facility; in this subparagraph, "tourism                              
02            destination facility" does not include a hotel or other overnight lodging facility;                          
03                      (F)  a plant or facility, other than a plant or facility described in                              
04            (D) of this paragraph, for the generation, transmission, development,                                        
05            transportation, conversion, or use of energy resources;                                                      
06                      (G)  a plant or facility that enhances, provides for, or promotes                                  
07            economic development with respect to transportation, communications,                                         
08            community public purposes, technical innovations, prototype commercial                                       
09            applications of intellectual property, or research;                                                          
10                      (H)  a plant or facility used or intended for use as a federal                                     
11            facility, including a United States military, national guard, or coast guard                                 
12            facility;                                                                                                    
13                      (I)  development of an oil and gas lease by providing                                          
14            working or venture capital in exchange for an equity interest;                                           
15    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
16 read:                                                                                                                   
17       ANALYSIS AND REPORT ON ALASKA RESIDENT INVESTMENT PROGRAM.                                                        
18 The Alaska Industrial Development and Export Authority shall research the possibility of                              
19 creating a program through which a resident of the state could invest the resident's permanent                          
20 fund dividend or other funds in an in-state oil or gas asset acquired by the authority under                            
21 AS 44.88.650 and report its findings to the legislature on December 31, 2012.