00                            SENATE BILL NO. 35                                                                          
01 "An Act establishing a program for individuals to participate as owners in an Alaska                                    
02 liquefied natural gas project; and providing for an effective date."                                                    
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 44.25 is amended by adding a new section to read:                                                  
05      Article 4. Individual Investment in an Alaska Liquefied Natural Gas Project.                                     
06            Sec. 44.25.200. Individual participation in ownership of an Alaska                                         
07       liquefied natural gas project. (a) The commissioner shall offer individuals the                                 
08       opportunity to participate as a co-owner in an Alaska liquefied natural gas project.                              
09            (b)  The commissioner shall provide written notice to an individual receiving                                
10       an ownership interest under this section. The notice must                                                         
11                 (1)  describe the type of ownership interest received by the individual;                                
12                 (2)  include a certificate of ownership; the certificate may be transferred                             
13       or assigned by an individual to another person.                                                                   
14            (c)  The state is not liable for a decline in value in an ownership interest                                 

01       acquired under this section.                                                                                      
02 (d)  If a certificate of ownership is lost, the individual, transferee, or assignee                                     
03 may apply to the commissioner for a replacement in the manner established by the                                        
04       commissioner by regulation.                                                                                       
05 (e)  If the state receives a dividend or other income for the interest held by the                                      
06 state on its own behalf or on behalf of individuals who share in the ownership of the                                   
07 state's interest under this section, the state shall pay the proportionate share of the                                 
08 dividend or income received to the individual as soon as practicable after the receipt                                  
09 by the state of the dividend or income. A payment to an individual holding a                                            
10 certificate of ownership under this section is not subject to payment of interest by the                                
11 state. An individual receiving payment under this section is liable for any federal,                                    
12       state, or local tax applicable to the receipt of the payment.                                                     
13 (f)  Within 30 days after the first day of each regular session of the legislature,                                     
14 the commissioner shall report to the legislature the number of individuals applying for                                 
15 an ownership interest in an Alaska liquefied natural gas project during the                                             
16 immediately preceding calendar year, the total amount of money received from those                                      
17 individuals, and the amount invested in the ownership interest of the state in an Alaska                                
18       liquefied natural gas project.                                                                                    
19            (g)  In this section,                                                                                        
20 (1)  "Alaska liquefied natural gas project" has the meaning given in                                                    
21       AS 31.25.390;                                                                                                     
22                 (2)  "commissioner" means the commissioner of revenue.                                                  
23    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
24 read:                                                                                                                   
25 APPLICABILITY. If AS 44.25.200, enacted by sec. 1 of this Act, is applicable on the                                     
26 first day of January that is more than six months after the effective date of this Act.                                 
27    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
28 read:                                                                                                                   
29 TRANSITION; REGULATIONS. The commissioner of revenue may adopt                                                          
30 regulations necessary to implement AS 44.25.200, enacted by sec. 1 of this Act. The                                     
31 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the                               

01 effective date of this Act.                                                                                             
02    * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).