93
Chapter 001
Chapter: CH001
Source: CSHB 68 (FIN)(efd fld S)
Action Date: February 18, 1993
Effective Date: May 19, 1993
93
AN ACT
Making a supplemental appropriation for certain elections for regional educational attendance area school boards and coastal resource service area boards.
_______________
* Section 1. The sum of $90,000 is appropriated from the general fund to the Office of the Governor, division of elections, to replace funds appropriated for fiscal year 1993 and diverted for other purposes. This appropriation is to be used to pay for the costs of the March 2, 1993 election for regional educational attendance area school boards and coastal resource service area boards for the fiscal year ending June 30, 1993.
Chapter 002
Chapter: CH002
Source: CSHB 94 (FIN) am S
Action Date: March 8, 1993
Effective Date: March 9, 1993
93
AN ACT
Making a supplemental appropriation for costs of elections operations; and providing for an effective date.
_______________
* Section 1. (a) The sum of $284,663 is appropriated from the general fund to the Office of the Governor, division of elections, to pay for costs of elections operations through April 30, 1993.
(b) The appropriation in (a) of this section represents a reduction of $27,600 from the amount stated in the version of this Act that passed the House of Representatives. The reduction is to be allocated as follows:
($11,000): the cost of two temporary employees from February 15-April 30 (not included in the earlier $391,500 submission)
($5,600): overtime due Romayne Kareen
($2,700): travel for the Director and Administrative Officer
($8,300): REAA/CRSA printing and binding.
* Sec. 2. This Act takes effect immediately under AS 01.10.070(c).
Chapter 003
Chapter: CH003
Source: HB 114 (edf add)
Action Date: March 24, 1993
Effective Date: March 25, 1993
93
AN ACT
Allowing the Board of Nursing to authorize an advanced nurse practitioner to dispense medical, therapeutic, and corrective measures; and providing for an effective date.
_______________
* Section 1. AS 08.68.410(1) is amended to read:
(1) "advanced nurse practitioner" means a registered nurse authorized to practice in the state who, because of specialized education and experience, is certified to perform acts of medical diagnosis and the prescription and dispensing of medical, therapeutic, or corrective measures under regulations adopted by the board;
* Sec. 2. This Act takes effect immediately under AS 01.10.070(c).
Chapter 004
Chapter: CH004
Source: SB 30
Action Date: March 24, 1993
Effective Date: June 22, 1993
93
AN ACT
Extending the termination date of the Alaska Minerals Commission.
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* Section 1. Section 3, ch. 98, SLA 1986, as amended by sec. 3, ch. 71, SLA 1988, is amended to read:
Sec. 3. This Act is repealed February 1, 1999 [1994].
Chapter 005
Chapter: CH005
Source: HB 45
Action Date: April 6, 1993
Effective Date: July 1, 1993
93
AN ACT
Making appropriations to the Department of Education for support of kindergarten, primary, and secondary education and community schools programs and for school construction debt retirement; and providing for an effective date.
_______________
* Section 1. (a) The sum of $674,531,870 is appropriated from the general fund and from other funds in the amounts listed to the Department of Education for the purposes expressed and allocated in the amounts listed for operating expenditures for the fiscal year ending June 30, 1994:
FUND SOURCE AMOUNT
General fund$615,783,070
General fund/mental health trust income account
(AS 37.14.011)7,489,700
Public school trust fund (AS 37.14.110)8,452,700
School fund (AS 43.50.140)2,721,000
Interagency receipts100,000
P.L. 81-87421,885,400
Federal receipts other than
P.L. 81-87418,100,000.
PURPOSE ALLOCATION AMOUNT
Foundation program$615,723,100
Child nutrition/student lunch program18,100,000
Cigarette tax distribution2,721,000
Tuition students2,012,600
Boarding home grants230,000
Youth in detention800,000
Schools for the handicapped3,077,500
Pupil transportation28,975,900
Community schools600,000
Additional district support2,291,770.
(b) The amount allocated under (a) of this section for additional district support is further allocated to the following school districts in the amounts listed:
SCHOOL DISTRICT ALLOCATION AMOUNT
Adak Region School District$231,800
Annette Island School District165,310
Cordova School District214,110
Craig City School District149,450
Dillingham City School District238,510
Kashunamiut School District182,390
Nenana City School District167,750
Nome City School District262,300
Petersburg City School District192,760
St. Mary's School District115,900
Unalaska City School District173,240
Wrangell City School District198,250.
* Sec. 2. (a) The sum of $99,795,200 is appropriated from the general fund to the Alaska debt retirement fund (AS 37.15.011).
(b) The sum of $99,795,200 is appropriated from the Alaska debt retirement fund (AS 37.15.011) to the Department of Education for state aid for costs of school construction under AS 14.11.100.
* Sec. 3. This Act takes effect July 1, 1993.
Chapter 006
Chapter: CH006
Source: SCS HB 90 (JUD)
Action Date: April 13, 1993
Effective Date: See Chapter
93
AN ACT
Making corrective amendments to the Alaska Statutes as recommended by the revisor of statutes; and providing for an effective date.
_______________
* Section 1. AS 14.20.345(d) is amended to read:
(d) The governing body of the district may agree to continue the teacher's retirement contributions if the teacher agrees to pay the [REQUIRED SEVEN] percent required under AS 14.25.050 of the salary the teacher would have received during the leave of absence and reimburse the district for the district's required retirement contribution. Each year of leave of absence then would count as a year of retirement service.
* Sec. 2. AS 15.15.070(h) is amended to read:
(h) An abbreviated form of the notice published under (b) of this section shall be broadcast on one or more radio or television stations in each of the four judicial [MAJOR ELECTION] districts. The broadcast notice must include at a minimum the date of the election, the hours between which the polling places will be open, the names of the newspapers in which the notice is published, and the dates of publication in the newspapers.
* Sec. 3. AS 16.05.440 is amended to read:
Sec. 16.05.440. EXPIRATION DATE FOR LICENSES. Licenses issued under AS 16.05.440 - 16.05.723 [AS 16.05.440 - 16.05.720] expire at the close of December 31 following their issuance or, for licenses that are valid for two years, after December 31 of the year after the year of issuance, and shall be renewed upon application and payment of the license fees required by AS 16.05.440 - 16.05.723 [AS 16.05.440 - 16.05.720].
* Sec. 4. AS 16.05.510 is amended to read:
Sec. 16.05.510. UNLICENSED VESSEL UNLAWFUL. A person may not operate a [OPERATION WITHOUT A VESSEL LICENSE OF ANY] vessel to which AS 16.05.490 - 16.05.530 apply without a vessel license [IS UNLAWFUL], whether the absence of a vessel license results from initial failure to purchase or from another reason [ REVOCATION BY THE COMMISSIONER].
* Sec. 5. AS 16.05.930(g) is amended to read:
(g) AS 16.05.440 - 16.05.723 [AS 16.05.330 - 16.05.720] do not apply to an activity authorized by a permit issued under AS 16.40.100 or 16.40.120, or to a person or vessel employed in an activity authorized by a permit issued under AS 16.40.100 or 16.40.120.
* Sec. 6. AS 16.20.590(17) is amended to read:
(17) Township 9 South, Range 15 West, Seward Meridian (only tide and submerged land and waters east of a line from Anchor Point to Point Pogibshi);
* Sec. 7. AS 16.20.590 is amended by adding a new paragraph to read:
(22) Township 9 South, Range 12 West, Seward Meridian (only tide and submerged land and waters).
* Sec. 8. AS 18.08.020 is amended to read:
Sec. 18.08.020. ADVISORY COUNCIL ON EMERGENCY MEDICAL SERVICES. There is established in the department an Advisory Council on Emergency Medical Services. The council shall
[(1)] advise the commissioner with regard to the planning and implementation of a statewide emergency medical services system [;
(2) ASSIST THE STATEWIDE HEALTH COORDINATING COUNCIL IN PERFORMING ITS DUTIES UNDER AS 18.07.011 RELATING TO EMERGENCY MEDICAL SERVICES].
* Sec. 9. AS 18.26.030(a) is amended to read:
(a) The authority shall be managed and controlled by a seven-person board of directors, who serve at the pleasure of the governor, consisting of
(1) the commissioner of revenue, who shall also chair the board;
(2) the commissioner of health and social services;
(3) the commissioner of community and regional affairs;
(4) four public members, appointed by the governor [FROM AMONG THE NOMINEES SUBMITTED BY THE FOLLOWING:
(A) EACH HEALTH SYSTEMS AGENCY IN THE STATE, ORGANIZED AND OPERATED IN ACCORDANCE WITH 42 U.S.C. 300 l - 1, WHICH SHALL SUBMIT THREE NOMINEES FROM AMONG THE MEMBERS OF THAT AGENCY;
(B) THE STATEWIDE HEALTH COORDINATING COUNCIL, ESTABLISHED BY AS 18.07.011, WHICH SHALL SUBMIT TWO NOMINEES FROM AMONG THE MEMBERS].
* Sec. 10. AS 18.55.130(b) is amended to read:
(b) Except in the case of leased housing as provided in 42 U.S.C. 1437f [42 U.S.C. 1421b, AS AMENDED], the corporation shall fix the income limits for occupancy of its low-cost housing projects and rents that are approved by the United States Department of Housing and Urban Development after taking into consideration
(1) the family size, composition, age, physical handicaps, and other factors that might affect the rent-paying ability of the family; and
(2) the economic factors that affect the financial stability and solvency of the project.
* Sec. 11. AS 18.55.130(c) is amended to read:
(c) Rents and requirements for admission to low-cost housing projects as provided in (a) and (b) of this section must be so established that a gap of at least 20 percent, except in the case of an elderly family or displaced family or in the case of leased housing under 42 U.S.C. 1437f [42 U.S.C. 1421b, AS AMENDED], will be left between the upper rental limits for admission to low-cost housing projects of the corporation and the lowest rents at which private enterprise unaided by public subsidy is providing housing substantially similar to the low-cost housing projects of the corporation.
* Sec. 12. AS 18.60.315 is amended to read:
Sec. 18.60.315. INSPECTION STANDARDS. The 1992 [1991] edition of the National Board Inspection Code Manual for Boiler and Pressure Vessel Inspectors constitutes the minimum boiler and pressure vessel inspection standard of the state for boilers and pressure vessels after they have received their initial inspection certificates from the Department of Labor. The Department of Labor may adopt regulations for the maximum practical implementation of the manual and may grant an exception from a specific provision of the manual when the department determines that the implementation of the provision would be impractical.
* Sec. 13. AS 18.60.800(a) is amended to read:
(a) Except as provided in this subsection, the 1990 edition of the American Society of Mechanical Engineers A17.1 - 1990 [NATIONAL STANDARDS INSTITUTE] Safety Code for Elevators and Escalators [(ANSI/ASME A17.1)] published by the American Society of Mechanical Engineers is adopted as the minimum elevator safety code in the state. Section 1001.1, Inspection and Test Periods, and Part XXII, Shipboard Elevators, of the American Society of Mechanical Engineers [NATIONAL STANDARDS INSTITUTE] Safety Code for Elevators and Escalators, are not adopted as a part of the minimum elevator safety code in the state.
* Sec. 14. AS 21.18.110(f)(4) is repealed and reenacted to read:
(4) for annuities and guaranteed interest contracts valued on a change in fund basis, the weighting factors shown in (3) of this subsection are increased by .15 for plan type A, .25 for plan type B, and .05 for plan type C;
* Sec. 15. AS 21.18.110(f)(5) is repealed and reenacted to read:
(5) for annuities and guaranteed interest contracts valued on an issue year basis, other than those with no cash settlement options, which do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations received more than 12 months beyond the valuation date, the weighting factors shown in (3) of this subsection or derived in (4) of this subsection are increased by .05.
* Sec. 16. AS 24.60.070(a) is amended to read:
(a) A legislator or legislative employee shall disclose to the committee, which shall maintain a public record of the disclosure and forward the disclosure to the respective house for inclusion in the journal, the formation or maintenance of a close economic association involving a substantial financial matter with
(1) a supervisor who is not a member of the legislature who has responsibility or authority, either directly or indirectly, over the person's employment, including preparing or reviewing performance evaluations, or granting or approving pay raises or promotions; this paragraph does not apply to a public member of the committee;
(2) legislators;
(3) a public official who is required to file a financial disclosure statement under AS 39.50 and is not an appointed municipal officer;
(4) a registered lobbyist; or
(5) a legislative employee if the person required to make the disclosure is a legislator.
* Sec. 17. AS 39.35.680(8) is amended to read:
(8) "compensation" means the total remuneration earned by an employee for personal services rendered to an employer, including employee contributions under AS 39.35.160, cost-of-living differentials only as provided in AS 39.35.675, payments for leave that is actually used by the employee, the amount by which the employee's wages are reduced under AS 39.30.150(c), and any amount deferred under an employer-sponsored deferred compensation plan, but does not include retirement benefits, severance pay or other separation bonuses, welfare benefits, per diem, expense allowances, workers' compensation payments, [INCENTIVE CASH AWARDS UNDER AS 39.51.120,] or payments for leave not used by the employee whether those leave payments are scheduled payments, lump-sum payments, donations, or cash-ins;
* Sec. 18. AS 41.23.500(1)(B) is amended to read:
(B) Township 17 North, Range 7 West, Seward Meridian
Section 6: Otter Lake, Weenie Lake, and the remaining
state-owned land in [THAT PORTION OF] the SW1/4
[IN TRACT B, ASLA 81-77]
Section 7: Otter Lake and Tracts F-2 and F-3 of ASLS
79-147
Section 18: S1/2, W1/2NW1/4
Section 19
Sections 30 - 31
Section 32: W1/2
* Sec. 19. AS 44.29.100 is amended to read:
Sec. 44.29.100. ADVISORY BOARD ON ALCOHOLISM AND DRUG ABUSE. There is established in the Department of Health and Social Services an advisory board on alcoholism and drug abuse. [THE BOARD SHALL FUNCTION AS A STANDING COMMITTEE OF THE STATEWIDE HEALTH COORDINATING COUNCIL ESTABLISHED UNDER AS 18.07.011.]
* Sec. 20. AS 47.30.475(b) is amended to read:
(b) Money available under this section shall be awarded by the department to applicants on the basis of community need, [BUT ONLY IF THE AWARD IS CONSISTENT WITH THE ANNUAL IMPLEMENTATION PLAN DEVELOPED UNDER 42 U.S.C. 300l - 2(b)(2) (NATIONAL HEALTH RESOURCES PLANNING AND DEVELOPMENT ACT OF 1974) BY THE HEALTH SYSTEMS AGENCY FOR THE HEALTH SYSTEM AREA IN WHICH THE APPLICANT IS LOCATED AND THE STATE HEALTH PLAN DEVELOPED BY THE STATEWIDE HEALTH COORDINATING COUNCIL UNDER 42 U.S.C. 300m - 3(c)(2)(A), AND ONLY] after consideration of comment and advice of the Advisory Board on Alcoholism and Drug Abuse. In awarding grants, the department shall further consider the amount of money that is available for all applications and whether an application would contribute to the wise development of a comprehensive program of alcoholic and drug abuse rehabilitation and prevention.
* Sec. 21. AS 08.03.010(c)(12); AS 08.64.380(5); AS 10.06.960(d); AS 18.07.011, 18.07.111(7), 18.07.111(10); AS 18.08.090(11); AS 39.25.120(c)(20); AS 44.41.100, 44.41.110, 44.41.120, 44.41.130; AS 44.66.010(a)(13); and AS 47.30.475(e)(4) are repealed.
* Sec. 22. Section 17 of this Act takes effect only if AS 39.51 is repealed on July 1, 1993. If sec. 17 of this Act takes effect, it takes effect July 1, 1993.
* Sec. 23. Except as provided in sec. 22 of this Act, this Act takes effect immediately under AS 01.10.070(c).
Chapter 007
Chapter: CH007
Source: HB 120
Action Date: April 28, 1993
Effective Date: July 27, 1993
93
AN ACT
Changing the date by which jury lists must be prepared; requiring the use of the list of the current year's permanent fund dividend applicants in preparing the jury list; and changing the date by which state departments must submit certain lists to the Alaska Court System.
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* Section 1. AS 09.20.050(a) is amended to read:
(a) At such times as need may require, but not later than November 30 [MARCH 15] of each year, the administrative director of courts shall prepare for each judicial district a list of the names of the residents of the district who are qualified by law for jury service. If the superior court is located in different cities in the same judicial district, the administrative director shall prepare for each location of the court a list of the names of the qualified residents of that portion of the district considered to be appropriate.
* Sec. 2. AS 09.20.050(b) is amended to read:
(b) The jury list shall be based on a list prepared by the Department of Revenue of all persons who filed an application for a distribution of Alaska permanent fund income under AS 43.23 during the current [PRECEDING] calendar year that shows an Alaskan address, and of all persons who volunteer for jury duty under (d) of this section. If considered necessary by the administrative director of the Alaska Court System, the jury list shall incorporate a list prepared by the Department of Public Safety of all persons who hold a valid Alaska driver's license. The departments shall submit their respective lists to the Alaska Court System not later than September 30 [JANUARY 15] of each year. To the extent that it is available, the departments shall include on the lists they submit the following information for each person: first name, middle initial, and last name; mailing address, including the zip code; and birth date. The lists shall be recorded on magnetic tape compatible with Alaska Court System data processing equipment.
Chapter 008
Chapter: CH008
Source: SSSB 47
Action Date: April 30, 1993
Effective Date: January 1, 1994
93
AN ACT
Relating to equipment, registration, and identification of custom collector vehicles; and providing for an effective date.
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* Section 1. AS 28.05 is amended by adding a new section to article 2 to read:
Sec. 28.05.106. CUSTOM COLLECTOR VEHICLE EQUIPMENT. (a) A custom collector vehicle shall be equipped with
(1) hydraulic service brakes on all wheels;
(2) sealed beam or halogen headlights;
(3) safety belts for all occupants;
(4) turn signals and turn signaling switch;
(5) safety glass or lexan;
(6) electric or vacuum windshield wiper located in front of the driver;
(7) standard or blue-dot taillights; and
(8) a parking brake that operates on at least two wheels on the same axle.
(b) Notwithstanding any other provisions of this title or regulations adopted under this title, the department may not require a custom collector vehicle to be equipped with a bumper, hood, or fenders.
(c) A custom collector vehicle shall be equipped in a manner that while in motion and functional on the vehicle's four rims on a flat surface, the suspension, steering, or chassis does not contact the highway, vehicular way, or area.
* Sec. 2. AS 28.10 is amended by adding a new section to read:
Sec. 28.10.065. CUSTOM COLLECTOR VEHICLE REGISTRATION AND IDENTIFICATION. When the department is satisfied as to the ownership of a replica of a custom collector vehicle and the vehicle does not have an identification number, the department shall assign a vehicle identification number to the vehicle and have the number stamped on the vehicle. A custom collector replica vehicle shall be registered as a vehicle constructed during the period represented by the replica.
* Sec. 3. AS 28.10.181 is amended by adding a new subsection to read:
(r) Special request custom collector plates. Upon application by the owner of a custom collector vehicle, the department may design and issue registration plates appropriate for custom collector vehicles. The department may disapprove the issuance of registration plates under this subsection when the requested plates are a duplication of an existing registration.
* Sec. 4. AS 28.10.421(d)(2) is amended to read:
(2) special request plates for
(A) Alaska National Guard personnel $30;
(B) veterans or retired veterans $30;
(C) recipients of the Purple Heart $30;
(D) owners of custom collector vehicles$50;
(E) other special request plates $30;
plus the fee required for that vehicle under (b) of this section; the fee required by this paragraph shall be collected only on the first issuance and on the replacement of special request plates;
* Sec. 5. AS 28.40.100(a) is amended by adding a new paragraph to read:
(23) "custom collector vehicle" means a vehicle whose body and frame were manufactured before 1949 or a replica of a vehicle whose body and frame were manufactured before 1949 and that has been modified for safe road use; in this paragraph, "modified" includes a material alteration of the drive-train, suspension, brake system, or dimensions of the body.
* Sec. 6. This Act takes effect January 1, 1994.
Chapter 009
Chapter: CH009
Source: SB 83
Action Date: April 30, 1993
Effective Date: July 29, 1993
93
AN ACT
Relating to an alcohol server education course.
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* Section 1. AS 04.21 is amended by adding a new section to read:
Sec. 04.21.025. ALCOHOL SERVER EDUCATION COURSE. (a) As a condition of issuance or renewal of a license and selling alcoholic beverages under a license, the board shall require a licensee who sells or serves alcoholic beverages and a licensee's agents and employees who sell or serve alcoholic beverages to complete an alcohol server education course approved by the board, if the license is for a
(1) beverage dispensary;
(2) restaurant or eating place;
(3) club;
(4) package store;
(5) common carrier dispensary;
(6) recreational site;
(7) community;
(8) pub;
(9) conditional contractor.
(b) The subjects that are included in an approved alcohol server education course shall be determined under regulations adopted by the board. In approving alcohol server education courses, the board shall consider the needs of both urban and rural licensees regarding access to an approved alcohol server education course. A licensee, agent, or employee who sells or serves alcoholic beverages shall keep proof acceptable to the board of successful completion of an approved alcohol server education course on the licensed premises during working hours.
(c) A licensee, agent, or employee shall complete the course required under (a) of this section not more than 30 days after being licensed or employed.
(d) The board shall review an approved alcohol server education course at least once every three years.
* Sec. 2. TRANSITION. Notwithstanding AS 04.21.025(c), enacted in sec. 1 of this Act, a licensee, agent, or employee who is required to complete a course under AS 04.21.025(a), enacted in sec. 1 of this Act, shall complete the course not more than 30 days after the Alcoholic Beverage Control Board approves alcohol server education courses for both urban and rural licensees.
Chapter 010
Chapter: CH010
Source: HCS CSSB 105 (JUD) am H
Action Date: May 4, 1993
Effective Date: May 5, 1993
93
AN ACT
Relating to motor vehicle dealers and to agents for motor vehicle buyers; and providing for an effective date.
_______________
* Section 1. AS 08.66 is amended by adding a new section to read:
Sec. 08.66.015. SALE OF MOTOR VEHICLE. (a) A person who does business as a dealer in the state may not offer to sell or sell a motor vehicle as a new or current model motor vehicle unless the motor vehicle retains the manufacturer's certificate of origin.
(b) A person who does business as a dealer in the state may not offer to sell or sell a motor vehicle as a new or current model motor vehicle having a manufacturer's warranty unless
(1) the dealer has a current sales and service agreement with the manufacturer and the agreement requires the dealer, upon demand of the motor vehicle buyer, to perform or arrange for, within a reasonable distance of the dealer's place of business in the state, the repair and replacement work required of the manufacturer under the warranty; or
(2) the dealer offers to give the buyer a rebate to cover the repair and replacement work that the dealer cannot perform or arrange for within a reasonable distance of the dealer's place of business.
* Sec. 2. AS 08.66.030 is amended to read:
Sec. 08.66.030. FORM OF APPLICATION. The Department of Public Safety shall prescribe and furnish the form of application for dealer registration. The application must contain
(1) the name under which the business is conducted;
(2) the location of business;
(3) the name and address of all persons having an interest in the business [,] and, in the case of a corporation, the application shall contain the name and address of the two principal officers;
(4) the name and make of all vehicles handled;
(5) whether or not used vehicles are handled;
(6) a statement that the applicant is a bona fide dealer in motor vehicles, trailers, or semi-trailers with an established business at the location given;
(7) if the applicant sells a motor vehicle as a new or current model motor vehicle having a manufacturer's warranty, the name of the manufacturer of the motor vehicle and the date and duration of the applicant's sales and service agreement with the manufacturer;
(8) other information the Department of Public Safety requires to administer AS 08.66.010 - 08.66.090 [THIS CHAPTER].
* Sec. 3. AS 08.66.080 is amended to read:
Sec. 08.66.080. PENALTIES. A dealer who fails to register and file a bond as required by AS 08.66.010 - 08.66.090 is guilty of a violation [THIS CHAPTER SHALL PAY A PENALTY OF $100]. A dealer who knowingly [WILFULLY] violates a provision of AS 08.66.010 - 08.66.090 [THIS CHAPTER] is guilty of a class A misdemeanor [, AND UPON CONVICTION IS PUNISHABLE BY A FINE OF NOT MORE THAN $300].
* Sec. 4. AS 08.66.090 is amended to read:
Sec. 08.66.090. DEALER DEFINED. In AS 08.66.010 - 08.66.090, [THIS CHAPTER] "dealer" means a person, or an agent, broker, or salesman of a person who is engaged in buying, selling, or dealing in new or used motor vehicles, trailers, or semi-trailers in the state, but does not include a buyer's agent when acting in the capacity of a buyer's agent. In this section, "buyer's agent" has the meaning given in AS 08.66.350.
* Sec. 5. AS 08.66 is amended by adding new sections to read:
ARTICLE 2. BUYERS' AGENTS.
Sec. 08.66.200. REGISTRATION OF BUYER'S AGENT. A person may not do business in the state by negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle dealer unless the person is registered with the Department of Public Safety.
Sec. 08.66.210. APPLICATION, BOND, AND FEE. (a) In order to register under AS 08.66.200, a person shall file with the department an application, a bond required by AS 08.66.240, and an application fee established by the department by regulation.
(b) The department shall prescribe and furnish the form of application for the registration. The application must contain
(1) the name under which the business is conducted;
(2) the address of the main office of the business;
(3) the name and address of all persons having an interest in the business, and in the case of a corporation the application shall contain the name and address of the two principal officers; and
(4) other information the department requires.
Sec. 08.66.220. DEPARTMENT APPROVAL. The department shall approve an application for registration under AS 08.66.210 if the application contains the information required by AS 08.66.210 and the bond complies with AS 08.66.240.
Sec. 08.66.230. RENEWAL OF REGISTRATION. A buyer's agent shall renew the registration required by AS 08.66.200 every two years by filing with the department a request for renewal, the bond required by AS 08.66.240, and a renewal fee established by the department by regulation.
Sec. 08.66.240. BOND. (a) An applicant for registration under AS 08.66.210 or for renewal of a registration under AS 08.66.230 shall file with the application or request for renewal, and shall maintain in force while registered, a $10,000 bond that is in favor of the state and that is executed by an authorized corporate surety approved by the department.
(b) Instead of the corporate surety bond required by (a) of this section, the department may, in the department's sole discretion, accept a bond in the same amount with at least two individual sureties. A surety shall provide as security real property that has a fair market value that is equal to two times the amount of the bond. The department shall investigate as necessary the actual financial responsibility of the individual sureties.
(c) The bond required by this section is conditioned on the applicant complying with AS 08.66.200 - 08.66.350 and not committing fraud or making fraudulent representations in the course of doing business as a buyer's agent.
(d) A surety may cancel the bond after giving the department 30 days' advance written notice. Cancellation does not relieve a surety of liability arising on the bond from a purchase negotiated by the bonded buyer's agent before cancellation or a liability that accrues against the bond before cancellation. The department shall retain the cancelled bond on file.
Sec. 08.66.250. ACTION ON BOND. If a person suffers loss or damage by reason of a buyer's agent, or a person doing business as a buyer's agent, violating AS 08.66.200 - 08.66.350 or committing fraud or making fraudulent representations in the course of doing business as a buyer's agent, the person may bring an action against the buyer's agent and the surety upon the bond. The aggregate liability of the surety may not exceed the amount of the bond.
Sec. 08.66.260. BUYER'S AGENT CONTRACT REQUIRED. (a) Before a buyer's agent negotiates on behalf of a buyer the purchase of a motor vehicle from a motor vehicle dealer, the buyer's agent must have a written contract with the buyer.
(b) The contract required by (a) of this section must include a description of the specific services to be provided by the buyer's agent, the date when the buyer's agent will provide the services, and a description of the fees that the buyer's agent will charge, including any fee that the buyer is to pay before the motor vehicle is delivered to the buyer.
Sec. 08.66.270. PURCHASE AGREEMENT. A buyer's agent shall arrange for the buyer's purchase agreement with the dealer to provide all warranty information, including the warranty expiration date, mileage limitations, and other restrictions. The warranty information must be specific to the motor vehicle being purchased.
Sec. 08.66.280. FEES OF BUYER'S AGENT. (a) A buyer's agent may not collect a fee from a buyer before the agent and the buyer enter into the contract required by AS 08.66.260.
(b) A buyer's agent may not calculate the fee of the buyer's agent as a percentage of the motor vehicle purchase price or of the savings achieved by the agent for the buyer on the purchase of the motor vehicle.
(c) Until the motor vehicle is delivered to the buyer, a buyer's agent shall hold in trust in a bank account a fee that the agent receives before the buyer receives the motor vehicle.
Sec. 08.66.290. OWNERSHIP INTEREST PROHIBITED. A buyer's agent may not own an interest in the motor vehicle that is the subject of the purchase that the agent is negotiating for the buyer.
Sec. 08.66.300. CERTAIN COMPENSATION PROHIBITED. A buyer's agent may not accept a rebate, kickback, commission, or other form of compensation from a financial institution, motor vehicle dealer, or other person, except the buyer, on a motor vehicle purchase that the agent negotiates for a buyer.
Sec. 08.66.310. DUAL AGENCY PROHIBITED. When representing a buyer, a buyer's agent may not act as an agent for the motor vehicle dealer.
Sec. 08.66.320. RECORDS OF BUYER'S AGENT. A buyer's agent shall maintain complete records of each motor vehicle purchase the agent negotiates, including the purchase arrangements and monetary transactions. The records must include
(1) copies of advertisements, brochures, and pamphlets issued, used, or distributed by the buyer's agent during the sales transaction;
(2) the original contract between the buyer's agent and the buyer;
(3) copies of any purchase orders issued by the buyer's agent;
(4) evidence of the delivery of the motor vehicle to the buyer;
(5) a copy of the purchase agreement between the buyer and the motor vehicle dealer; and
(6) a copy of any service agreement between the manufacturer and the motor vehicle dealer.
Sec. 08.66.330. PENALTY. A person who knowingly violates AS 08.66.200 - 08.66.350 is guilty of a class A misdemeanor.
Sec. 08.66.350. DEFINITIONS. In AS 08.66.200 - 08.66.350,
(1) "buyer's agent" means a person who does business in the state by negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle dealer;
(2) "department" means the Department of Public Safety;
(3) "motor vehicle dealer" means a person who is engaged in the business of buying, selling, or dealing in new or used motor vehicles and maintains an inventory of motor vehicles for sale.
* Sec. 6. AS 45.50.471(b) is amended by adding new paragraphs to read:
(33) violating AS 08.66.010 - 08.66.090 (motor vehicle dealers);
(34) violating AS 08.66.200 - 08.66.350 (motor vehicle buyers' agents).
* Sec. 7. This Act takes effect immediately under AS 01.10.070(c).
Chapter 011
Chapter: CH011
Source: SB 90
Action Date: May 5, 1993
Effective Date: August 3, 1993
93
AN ACT
Clarifying powers and duties of state officials in relation to a disaster emergency caused by a catastrophic oil discharge or the release of a hazardous substance.
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* Section 1. AS 46.04.080(a) is amended to read:
(a) The commissioner of environmental conservation or the commissioner of military and veterans' affairs may request the governor to determine that an actual or imminent occurrence of a catastrophic oil discharge constitutes a disaster emergency under AS 26.23. The commissioner of environmental conservation and the commissioner of military and veterans' affairs shall respond appropriately in the relief of the actual or imminent discharge under the relevant provisions of the [WITHOUT A DECLARATION OF DISASTER BY THE GOVERNOR UNDER AS 26.23.020. THE DEPARTMENT AND THE ALASKA DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS, SHALL COORDINATE THEIR DUTIES UNDER AS 26.23.040 AND AS 46.08.100 - 46.08.190 AS THEY APPLY TO CATASTROPHIC OIL DISCHARGES, CONSISTENT WITH THE RESPONSIBILITIES ASSIGNED TO THEM UNDER] applicable incident command system [SYSTEMS].
* Sec. 2. AS 46.09.030 is amended to read:
Sec. 46.09.030. DISASTER EMERGENCIES. The commissioner of environmental conservation or the commissioner of military and veterans' affairs [DIRECTOR OF THE DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS,] may request the governor to determine that an actual or imminent release of a hazardous substance constitutes a disaster emergency under AS 26.23. The [IF THE GOVERNOR DECLARES A DISASTER EMERGENCY UNDER AS 26.23, THE] commissioner of environmental conservation and the commissioner of military and veterans' affairs [DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS,] shall respond appropriately in the relief of the actual or imminent release under [EMERGENCY, IN ACCORDANCE WITH] the relevant provisions of the applicable incident command system.
Chapter 012
Chapter: CH012
Source: HCS SB 122 (JUD)
Action Date: May 7, 1993
Effective Date: August 5, 1993
93
AN ACT
Relating to the disclosure of information by an employer about the job performance of an employee or former employee.
_______________
* Section 1. AS 09.65 is amended by adding a new section to read:
Sec. 09.65.160. JOB REFERENCES. An employer who discloses information about the job performance of an employee or former employee to a prospective employer of the employee or former employee at the request of the prospective employer or the employee or former employee is presumed to be acting in good faith and, unless lack of good faith is shown by a preponderance of the evidence, may not be held liable for the disclosure or its consequences. For purposes of this section, the presumption of good faith is rebutted upon a showing that the employer or former employer
(1) recklessly, knowingly, or with a malicious purpose disclosed false or deliberately misleading information; or
(2) disclosed information in violation of a civil right of the employee or former employee that is protected under AS 18.80 or under comparable federal law.
Chapter 013
Chapter: CH013
Source: CSSB 174 (L&C) am
Action Date: May 7, 1993
Effective Date: May 8, 1993
93
AN ACT
Exempting certain taxicab operators from coverage under the Alaska Wage and Hour Act, the Alaska Employment Security Act, and the Alaska Workers' Compensation Act; and providing for an effective date.
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* Section 1. PURPOSE. The purpose of this Act is to clarify existing law regarding the application of the Alaska Wage and Hour Act, the Alaska Employment Security Act, and the Alaska Workers' Compensation Act to taxicab drivers who receive compensation only from customers and whose relationship with permit owners, operators, and dispatch companies is based solely on a contractual flat fee payment by the driver.
* Sec. 2. AS 23.10.055 is amended by adding a new paragraph to read:
(13) an individual who drives a taxicab, is compensated for taxicab services exclusively by customers of the service, whose written contractual arrangements with owners of taxicab vehicles, taxicab permits, or radio dispatch services are based upon flat contractual rates and not based on a percentage share of the individual's receipts from customers, and whose written contract with owners of taxicab vehicles, taxicab permits, or radio dispatch services specifically provides that the contract places no restrictions on hours worked by the individual or on areas in which the individual may work except to comply with local ordinances.
* Sec. 3. AS 23.20.526(a) is amended by adding a new paragraph to read:
(21) service performed by an individual who drives a taxicab whose compensation and written contractual arrangements are as described in AS 23.10.055(13).
* Sec. 4. AS 23.30.230(a) is amended to read:
(a) The following persons are not covered by this chapter:
(1) part-time baby-sitters;
(2) cleaning persons;
(3) harvest help and similar part-time or transient help;
(4) persons employed as entertainers on a contractual basis; [AND]
(5) commercial fishermen, as defined in AS 16.05.940; and
(6) individuals who drive taxicabs whose compensation and written contractual arrangements are as described in AS 23.10.055(13), unless the hours worked by the individual or the areas in which the individual may work are restricted except to comply with local ordinances.
* Sec. 5. AS 23.10.060(d)(7) is repealed.
* Sec. 6. The provisions of sec. 3 of this Act apply to determinations under AS 23.20 as to the employment status of taxicab drivers for service before the effective date of this Act if the employment status has not been the subject of a notice of determination under AS 23.20.315.
* Sec. 7. SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the application of a provision of this Act to any person or circumstance is held invalid, the remainder of this Act and the application to other persons or circumstances shall not be affected.
* Sec. 8. This Act takes effect immediately under AS 01.10.070(c).
Chapter 014
Chapter: CH014
Source: CSHB 279 (L&C)
Action Date: May 7, 1993
Effective Date: August 5, 1993
93
AN ACT
Extending the termination date of the Alaska Public Utilities Commission to June 30, 1994.
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* Section 1. AS 44.66.010(a)(4) is amended to read:
(4) Alaska Public Utilities Commission (AS 42.05.010) - June 30, 1994 [1993];
Chapter 015
Chapter: CH015
Source: CSSB 85 (FIN) am
Action Date: May 7, 1993
Effective Date: May 8, 1993
93
AN ACT
Deleting a requirement that certain members of the board of directors of the Alaska Tourism Marketing Council be substantially involved in a visitor or recreation industry business; relating to the selection of a presiding officer for the Alaska Tourism Marketing Council; requiring that the council's tourism marketing program include promotion of the state as a destination and promotion of all forms of travel to the state, including travel by air, highway, and water; extending the termination date of the Alaska Tourism Marketing Council; requiring the council to consider methods to fund tourism marketing using both public and private assets and to consider methods to provide for the financial self-sufficiency of the council; and providing for an effective date.
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* Section 1. AS 44.33.705(c) is amended to read:
(c) If the commissioner contracts with a qualified trade association under (b) of this section, the governing body of the council is a board of directors consisting of 21 members and subject to the following provisions:
(1) a board member shall
(A) be [SUBSTANTIALLY] involved in a visitor or recreation industry business;
(B) have training in a field such as marketing;
(C) be an officer or a senior staff member of a local government or nonprofit enterprise established to promote the visitor industry; or
(D) have business or government experience that would materially enhance the member's ability to contribute to the planning, execution, or evaluation of a visitor industry promotional marketing campaign;
(2) the contract shall provide that the trade association may select up to 10 board members; the governor may remove a member of the board selected under this paragraph on the delivery by the governor to the board of a written statement explaining the reasons for the removal;
(3) the director is a member of the board; the governor shall appoint 10 other board members; each board member appointed by the governor serves at the pleasure of the governor; in making appointments to the board under this paragraph, the governor shall ensure that the board, including members selected under (2) of this subsection, is broadly representative of the different regions of the state and the various sectors of the visitor industry;
(4) eleven members of the board constitute a quorum for the transaction of business and the exercise of the powers and duties of the board, and any action by the board requires 11 affirmative votes;
(5) the governor shall appoint a member of the board to serve [DIRECTOR SERVES] as presiding officer of the board; the board shall elect other necessary officers from among its members annually;
(6) a board member may not participate or vote by proxy;
(7) the board shall meet at least four times a year at the call of the presiding officer or upon the written request of seven members of the board;
(8) the members of the board appointed by the governor serve staggered three-year terms, subject to continuation of the contract, and may be reappointed;
(9) a person appointed to fill a vacancy on the board holds office for the balance of the term of the person's predecessor;
(10) board members receive no salary for serving in that position, but are entitled to per diem and travel expenses under AS 39.20.180, except that they are entitled to per diem and travel expenses for travel only for the percentage of total travel that occurs within the state; the contract must provide that the trade association will reimburse the council for per diem and travel expenses paid to those board members appointed by the trade association; reimbursed under this paragraph does not qualify as a part of the association's required contribution under (b) of this section;
(11) notwithstanding AS 39.52, a board member who is a member of the qualified trade association that has contracted with the department under (b) of this section may vote or take action on a matter that might benefit the trade association or members of the trade association, including the issuance of contracts or the granting of rights to the trade association, but shall disclose the person's membership in the trade association before the vote or action; this paragraph may not be interpreted to allow a board member or an immediate family member of a board member to receive, apply for, be a party to, have a personal or financial interest in, or attempt to acquire a grant or contract made by the council; in this paragraph, "immediate family member" has the meaning given in AS 39.52.960.
* Sec. 2. AS 44.33.720(a) is amended to read:
(a) The council shall
(1) conduct a tourism marketing program designed to accomplish the purposes of AS 44.33.700 - 44.33.735; the marketing program must include promotion of the state as a destination and promotion of all forms of travel to the state, including travel by air, highway, and water;
(2) prepare and implement plans for the promotion of Alaska tourism, including necessary research;
(3) submit an annual report to the governor and the legislature describing the activities of the council;
(4) make available to all interested persons, including tourism businesses, a quarterly report of the council's actions and activities;
(5) annually submit a proposed operating budget to the director, to be used by the Department of Commerce and Economic Development to prepare and submit the operating budget of the council under AS 44.33.725;
(6) provide advice, on the request of the director of tourism, on the programs of the division; [AND]
(7) submit a report to the legislature, by the 10th day of each regular session, describing how the contractual money was spent in the first half of the year and explaining the plan for expenditures during the second half of the year;
(8) consider methods to fund tourism marketing using both public and private assets; and
(9) consider methods of providing for the financial self-sufficiency of the council.
* Sec. 3. AS 44.66.010(a)(15) is amended to read:
(15) Alaska Tourism Marketing Council (AS 44.33.700) - December 30, 1994 [JUNE 30, 1993];
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c).
Chapter 016
Chapter: CH016
Source: HB 99
Action Date: May 7, 1993
Effective Date: May 8, 1993
93
AN ACT
Repealing the 65-day time limit for approval or disapproval of a proposed oil discharge contingency plan by the Department of Environmental Conservation; and providing for an effective date.
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* Section 1. AS 46.04.030(p) is repealed.
* Sec. 2. This Act takes effect immediately under AS 01.10.070(c).
Chapter 017
Chapter: CH017
Source: SB 57
Action Date: May 7, 1993
Effective Date: June 30, 1993
93
AN ACT
Relating to employment contributions and to extending the pilot project for the state training and employment program; and providing for an effective date.
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* Section 1. Section 4(a), ch. 95, SLA 1989, as amended by sec. 2, ch. 17, SLA 1991, is amended to read:
(a) In the manner provided in AS 23.20, the department shall collect from each employee an amount equal to one-tenth of one percent of the wages, as set out in AS 23.20.175, on which the employee is required to make contributions under AS 23.20.290(d). This subsection applies to amounts due and collected from July 1, 1989, through June 30, 1996 [1993], on wages for employment performed from July 1, 1989, through June 30, 1996 [1993]. The department shall remit to the Department of Revenue, in accordance with AS 37.10.050, money collected under this subsection.
* Sec. 2. Section 15, ch. 95, SLA 1989, as amended by sec. 3, ch. 17, SLA 1991, is amended to read:
Sec. 15. Section 13 of this Act takes effect July 1, 1996 [1993].
* Sec. 3. This Act takes effect June 30, 1993.
Chapter 018
Chapter: CH018
Source: HCS CSSB 106 (FIN)
Action Date: May 13, 1993
Effective Date: August 11, 1993
93
AN ACT
Transferring certain projects of and amending and transferring programs of the Alaska Energy Authority to the Department of Community and Regional Affairs; relating to the Alaska Energy Authority; permitting the Alaska Industrial Development and Export Authority to issue revenue bonds for certain plants or facilities for energy resources; permitting utilities to form joint action agencies; authorizing the Alaska Industrial Development and Export Authority to issue revenue bonds for power transmission interties; relating to rates for a public utility that sends or receives power over certain power transmission interties; relating to the power cost equalization and capital improvement fund; amending the purpose of the Railbelt energy fund.
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* Section 1. FINDINGS AND INTENT. (a) The legislature finds that adequate, reliable, electric service at affordable rates is a necessary ingredient of a modern society and a prosperous developing economy. The legislature further finds that at the current stage of social and economic development in the state, direct participation by the state is necessary to assist in the development of a regional electric transmission infrastructure and to assist in holding rates in high cost service areas to affordable levels.
(b) The legislature recognizes the high cost of electric power in rural Alaska and intends that funding for power cost equalization from the general fund and from the power cost equalization and rural electric capitalization fund remain at a minimum of $17,000,000 annually through the year 2013. The legislature further intends that this long-term commitment to the power cost equalization program will permit and encourage the electric utility industry and its lenders to develop the plans, make the investments, and take other actions that are necessary or prudent to meet the utility needs of residents in rural Alaska.
* Sec. 2. AS 37.05.520 is amended to read:
Sec. 37.05.520. RAILBELT ENERGY FUND. There is established in the general fund the Railbelt energy fund. The fund consists of money appropriated to it by the legislature. The Department of Revenue shall manage the fund. Interest received on money in the fund shall be accounted for separately and may be appropriated into the fund annually. The legislature may appropriate money from the fund for programs, projects, and other expenditures to assist in meeting Railbelt energy needs, including projects for retrofitting state-owned buildings and facilities for energy conservation.
* Sec. 3. AS 42.05.141(b) is amended to read:
(b) The commission shall perform the duties assigned to it under AS 42.45.100 - 42.45.190 [AS 44.83.162].
* Sec. 4. AS 42.05.431 is amended by adding a new subsection to read:
(h) When setting or reviewing rates for a public utility that sends or receives power over the power transmission interties between Fairbanks and Healy or between Anchorage and the Kenai Peninsula, the commission shall consider those costs that have not been directly assigned to other individual generating utilities by the utility responsible for the construction of the intertie to have been incurred for the system existing on the effective date of this subsection.
* Sec. 5. AS 42 is amended by adding a new chapter to read:
CHAPTER 45. RURAL AND STATEWIDE ENERGY PROGRAMS.
ARTICLE 1. POWER ASSISTANCE PROGRAMS.
Sec. 42.45.010. POWER PROJECT FUND. (a) The power project fund is established as a separate fund. The fund shall be distinct from any other money or funds of the department and includes only money appropriated by the legislature and money deposited under (g) of this section.
(b) Subject to AS 42.45.060, the department may make loans from the power project fund
(1) to electric utilities, regional electric authorities, municipalities, regional and village corporations, village councils, independent power producers, and nonprofit marketing cooperatives to pay the costs of
(A) reconnaissance studies, feasibility studies, license and permit applications, preconstruction engineering, and design of power projects;
(B) constructing, equipping, modifying, improving, and expanding small-scale power production facilities that are designed to produce less than 10 megawatts of power, conservation facilities, bulk fuel storage facilities, and transmission and distribution facilities, including energy production, transmission and distribution, and waste energy conservation facilities that depend on fossil fuel, wind power, tidal, geothermal, biomass, hydroelectric, solar, or other nonnuclear energy sources; and
(C) reconnaissance studies, preconstruction engineering, design, construction, equipping, modification, and expansion of potable water supply including surface storage and groundwater sources and transmission of water from surface storage to existing distribution systems;
(2) to a borrower for a power project if
(A) the loan is entered into under a leveraged lease financing arrangement;
(B) the party that will be responsible for the power project is an electric utility, regional electric authority, municipality, regional or village corporation, village council, independent power producer, or nonprofit marketing cooperative; and
(C) the borrower seeking the loan demonstrates to the department that the financing arrangement for the power project will reduce project financing costs below costs of comparable public power projects.
(c) Before making a loan from the power project fund, the department shall, by regulation, specify
(1) standards for the eligibility of borrowers and the types of projects to be financed with loans;
(2) standards regarding the technical and economic viability and revenue self-sufficiency of eligible projects;
(3) collateral or other security required for loans;
(4) the terms and conditions of loans;
(5) criteria to establish financial feasibility and to measure the amount of state assistance necessary for particular projects to meet the financial feasibility criteria; and
(6) other relevant criteria, standards, or procedures.
(d) A loan made by the department shall be made according to the standards, criteria, and procedures established by regulation under this section.
(e) Repayment of the loans shall be secured in any manner that the department determines is feasible to assure prompt repayment under a loan agreement entered into with the borrower. The department may make an unsecured loan from the power project fund to a borrower regulated by the Alaska Public Utilities Commission under AS 42.05 if the borrower has a substantial history of repaying long-term loans and the capacity to repay the loan. Under a loan agreement, repayment may be deferred for 10 years or until the project for which the loan is made has achieved earnings from its operations sufficient to pay the loan, whichever is earlier.
(f) Power projects are subject to the following limitations on interest and specific restrictions:
(1) power projects for which loans are outstanding from the former water resources revolving loan fund (former AS 45.86) on July 13, 1978, may receive additional financing from the power project fund; if granted,
(A) the term of the additional financing may not exceed 50 years;
(B) the interest of the additional financing must be at a rate of not less than three or more than five percent a year on the unpaid balance;
(C) the grant of the additional financing must be conditioned on the repayment of loan principal and interest to begin on the earlier of
(i) the date of the start of commercial operation of the project; or
(ii) 10 years from the date the loan is granted;
(2) a loan for a power project
(A) may not be granted for a term that exceeds 50 years; and
(B) shall be granted at an interest rate that is not less than zero percent and that is the lesser of
(i) a rate equal to the percentage that is the average weekly yield of municipal bonds for the 12 months preceding the date of the loan, as determined by the department from municipal bond yield rates reported in the 30-year revenue index of the Weekly Bond Buyer; or
(ii) a rate determined by the department that allows the project to meet criteria of financial feasibility established under (c) of this section.
(g) Loan repayments and interest earned by loans from the power project fund shall be deposited in the power project fund unless an appropriation to fund the loan directs otherwise.
(h) The legislature may forgive the repayment of a loan made from the power project fund for a reconnaissance study or a feasibility study when the department finds that the power project for which the loan was made is not feasible.
(i) Money in the power project fund may be used by the legislature to make appropriations for costs of administering the fund.
Sec. 42.45.020. RURAL ELECTRIFICATION REVOLVING LOAN FUND. (a) The rural electrification revolving loan fund is established in the department. The fund consists of
(1) appropriations made to the fund; and
(2) repayments of principal and interest on loans made under this section.
(b) Subject to AS 42.45.060, the department may make loans from the rural electrification revolving loan fund to electric utilities certified by the Alaska Public Utilities Commission. A loan from the fund may be made only for the purpose of extending new electric service into an area of the state that an electric utility may serve under a certificate of public convenience and necessity issued by the Alaska Public Utilities Commission. A loan may be made from the fund to an electric utility if the utility invests the money necessary to provide one pole, one span of line, one transformer, and one service drop for each consumer for whom immediate service would be provided by the extension of electric service. However, a loan may not be made from the fund unless
(1) the loan is recommended by a loan advisory committee appointed under AS 42.45.030; and
(2) the extension of electric service would provide immediate service to at least three consumers.
(c) A loan from the rural electrification revolving loan fund shall bear an annual rate of interest of two percent of the unpaid balance of the loan.
(d) When the department makes a loan under this section, the electric utility receiving the loan shall,
(1) in addition to the rates that it is authorized to charge, charge the consumers served by the electric service extended with the loan proceeds an amount sufficient to pay the interest costs of the loan;
(2) pay to the department annually an amount equal to
(A) interest of two percent on the unpaid balance of the loan; and
(B) payments on the unpaid balance of the principal of the loan for each new consumer served by the electric service extended with the loan proceeds; payments on the unpaid balance of the principal of the loan shall be made at a rate equal to the difference between the actual cost of making the service connection to the consumers and the minimum investment per consumer required of the utility before a loan is made under (b) of this section.
(e) The department shall
(1) adopt regulations necessary to carry out the provisions of this section;
(2) administer the rural electrification revolving loan fund; and
(3) submit to the legislature within the first 10 days of each regular legislative session a report of actions taken by the department under this section and an accounting of the rural electrification revolving loan fund.
(f) Money in the rural electrification revolving loan fund may be used by the legislature to make appropriations for costs of administering the fund.
(g) On June 30 of each fiscal year the unexpended and unobligated cash balance of the fund that is attributable to loans owned by the fund lapses into the general fund.
(h) In this section,
(1) "consumer" means a person or a governmental agency, if the person or governmental agency requests and offers to pay for electrical service to a facility or part of a facility; the department shall consider a person who, or a governmental agency that, offers to pay for electrical service to several facilities to be a separate consumer for each facility, if each facility is physically separate from another facility, other than through electric service lines, and if the person or governmental agency requests and offers to pay for electrical service to each facility;
(2) "facility" means a structure capable of receiving and using electrical energy; and
(3) "governmental agency" includes, with respect to the state or federal government or a municipal government, a legislative body, board of regents, administrative body, board, commission, committee, subcommittee, authority, council, agency, public corporation, school board, department, division, bureau, or other subordinate unit, whether advisory or otherwise, of the state, federal, or municipal government.
Sec. 42.45.030. LOAN ADVISORY COMMITTEE. When an application for a rural electrification loan is submitted to the department under AS 42.45.020, the department shall appoint a local advisory committee from persons residing in the area that the applicant utility is certified to serve. The loan advisory committee shall consider the loan application and shall recommend whether the loan application is to be approved or disapproved. The loan advisory committee may make a favorable recommendation only if it determines that development in the area of the proposed extension of electric service is likely to provide for full repayment of the loan under AS 42.45.020(d) within 10 years. In making that determination, the committee shall consider
(1) permanence of the premises to be served by the extension;
(2) land use patterns in the area;
(3) access for the line that would be installed with loan proceeds;
(4) availability of other utility service in the area; and
(5) the economic feasibility of the extension of electric service with the proceeds of the loan.
Sec. 42.45.040. SOUTHEAST ENERGY FUND. The Southeast energy fund is established as a separate fund. The fund consists of money transferred to it under AS 42.45.050. The department may make grants from the Southeast energy fund to utilities participating in the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects for power projects, for repayment of loans, and for payments on bonds.
Sec. 42.45.050. FOUR DAM POOL TRANSFER FUND. (a) The four dam pool transfer fund is established in the department. The fund consists of repayments of principal and income that would have been deposited in the former power development revolving loan fund under former AS 44.83.500.
(b) Subject to appropriation, the department shall transfer the balance of the four dam pool transfer fund each month in accordance with this subsection. Subject to appropriation
(1) 40 percent of the balance in the four dam pool transfer fund shall be transferred to the power cost equalization and rural electric capitalization fund to be used for power cost equalization and rural electric projects;
(2) 40 percent of the balance in the four dam pool transfer fund shall be transferred to the Southeast energy fund to be used for power projects for utilities participating in the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects; and
(3) 20 percent of the balance in the four dam pool transfer fund shall be transferred to the power project fund to be used for statewide utility projects.
Sec. 42.45.060. APPROVAL BY LOAN COMMITTEE AND LEGISLATURE. (a) A loan committee consisting of seven members is established. The committee is composed of the commissioner of community and regional affairs, the commissioner of commerce and economic development, the director of management and budget, or the designees of the commissioners or the director, and four public members.
(b) The public members of the committee are appointed by and serve at the pleasure of the governor. Public members serve staggered four-year terms. Only one public member may be appointed from each judicial district described in AS 22.10.010. Public members of the committee serve without compensation but are entitled to travel and per diem as provided for members of boards and commissions under AS 39.20.180. A public member of the committee serves until a successor is appointed. An appointment to fill a vacancy among the public members on the committee is for the remainder of the unexpired term.
(c) The commissioner of community and regional affairs serves as chair of the committee. The committee may elect other officers as necessary. A majority of the members of the committee constitute a quorum and may exercise the powers of the committee.
(d) A meeting by an electronic medium as provided in this subsection has the same legal effect as a meeting in person. The committee may meet and transact business by an electronic medium if
(1) public notice of the time and locations where the meeting will be held by an electronic medium has been given in the same manner as if the meeting were held in a single location;
(2) participants and members of the public in attendance can hear and have the same right to participate in the meeting as if the meeting were conducted in person; and
(3) copies of pertinent reference materials, statutes, regulations, and audio-visual materials are reasonably available to participants and to the public.
(e) A member of the committee may not vote on a resolution of the committee relating to a lease or contract to be entered into by the department under this chapter if the member is a party to the lease or contract or has a direct ownership or equity interest in a firm, partnership, corporation, or association that is a party to the contract or lease. When abstaining from voting, the member must disclose the reason for the abstention. A member who is a member of an electric cooperative that is organized under or subject to AS 10.25 (Electric and Telephone Cooperative Act) may vote on a resolution relating to a contract or lease to which that cooperative is a party. The member shall disclose the cooperative membership at the time of voting. A resolution of the committee that is approved by a majority of the members present who are not barred from voting under this subsection is a valid action of the committee for all purposes.
(f) Except for loans from the bulk fuel revolving loan fund (AS 42.45.250), the department shall submit the loans that the department proposes to approve under this chapter to the committee for the committee's review. The department may not enter into a loan for an amount equal to or greater than $500,000 unless the committee approves the loan or unless the loan has received legislative approval under (g) of this section. The department may not enter into a loan for an amount less than $500,000 for a period of 30 days after submission of the proposal to the committee. If, within the 30 days, the committee notifies the department that it intends to review a loan for less than $500,000, the department may not enter into the loan unless it is approved by the committee.
(g) The department may not enter into a loan for a major project unless it has legislative approval of the project and the amount. An appropriation for the loan that names the project subject to this subsection constitutes approval under this subsection. Projects subject to legislative approval under this subsection include
(1) a project in which the cumulative state monetary involvement, through loans, grants, and bonds, is at least $5,000,000; or
(2) a project for which a loan of more than $5,000,000 has been requested.
ARTICLE 2. POWER COST EQUALIZATION AND
RURAL ELECTRIC CAPITALIZATION.
Sec. 42.45.100. POWER COST EQUALIZATION AND RURAL ELECTRIC CAPITALIZATION FUND. (a) The power cost equalization and rural electric capitalization fund is established as a separate fund for the purpose of
(1) equalizing power cost per kilowatt-hour statewide at a cost close to or equal to the mean of the cost per kilowatt-hour in Anchorage, Fairbanks, and Juneau by paying money from the fund to eligible electric utilities in the state; and
(2) to make grants to eligible utilities under AS 42.45.180 to improve the performance of the utility.
(b) The fund shall be administered by the department as a fund distinct from the other funds of the department. The fund is composed of
(1) money appropriated to provide power cost equalization to eligible electric utilities and to provide grants for utility improvements; and
(2) interest earned on those appropriations.
(c) The fund is not a dedicated fund.
Sec. 42.45.110. ENTITLEMENT TO POWER COST EQUALIZATION. (a) The costs used to calculate the amount of power cost equalization for all electric utilities eligible under AS 42.45.100 - 42.45.150 include all allowable costs, except return on equity, used by the Alaska Public Utilities Commission to determine the revenue requirement for electric utilities subject to rate regulation under AS 42.05. The costs used in determining the power cost equalization per kilowatt-hour shall exclude any other type of assistance that reduces the customer's costs of power on a kilowatt-hour basis and that is provided to the electric utility within 60 days before the commission determines the power cost equalization per kilowatt-hour of the electric utility. In calculating power cost equalization, the commission may not consider validated costs or kilowatt-hour sales associated with a United States Department of Defense facility.
(b) An eligible electric utility is entitled to receive power cost equalization
(1) for sales of power to local community facilities, calculated in the aggregate for each community served by the electric utility, for actual consumption of not more than 70 kilowatt-hours per month for each resident of the community; the number of community residents shall be determined under AS 29.60.020; and
(2) for actual consumption of not more than 700 kilowatt-hours per month sold to each customer in all classes served by the electric utility except
(A) customers of the utility under (1) of this subsection; and
(B) customers that are state or federal offices or state or federal facilities other than public schools.
(c) The amount of power cost equalization provided per kilowatt-hour under (b) of this section may not exceed 95 percent of the power costs, or the average rate per eligible kilowatt-hour sold, whichever is less, as determined by the department. However,
(1) during the state fiscal year that began July 1, 1993, the power costs for which power cost equalization were paid to an electric utility were limited to minimum power costs of more than 9.5 cents per kilowatt-hour and less than 52.5 cents per kilowatt-hour;
(2) during each following state fiscal year, the department shall adjust the power costs for which power cost equalization may be paid to an electric utility based on the weighted average retail residential rate in Anchorage, Fairbanks, and Juneau; and
(3) the power cost equalization per kilowatt-hour may be determined for a utility without historical kilowatt-hour sales data by using kilowatt-hours generated.
(d) An electric utility whose customers receive power cost equalization under AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost equalization and the amount of power cost equalization per kilowatt-hour sold. The rate charged to the customer shall be the difference between the two amounts. Power cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to reduce the cost of all power sold to local community facilities, in the aggregate, to the extent of 70 kilowatt-hours per month per resident of the community, and to reduce the cost of the first 700 kilowatt-hours per customer per month for all other classes served by the electric utility except state and federal offices and state and federal facilities other than public schools.
(e) The power cost equalization program shall be administered by the department based on a determination by the department under (a) and (c) of this section of power cost equalization per kilowatt-hour for each eligible electric utility.
(f) The department may not deny an eligible electric utility power cost equalization because complete cost information is not available. The department shall assist an eligible electric utility that is exempt from rate regulation under AS 42.05 to provide the cost information the department considers necessary to comply with AS 42.45.100 - 42.45.150. Only power costs that are supportable may be considered in calculating power cost equalization. Each electric utility is responsible for keeping records that provide the information necessary to comply with AS 42.45.100 - 42.45.150 including records of monthly kilowatt-hour sales or generation, monthly fuel balances, fuel purchases, and monthly utility fuel consumption.
(g) The department shall determine the cost of fuel for each eligible electric utility using the procedure for approving fuel cost rate adjustments of electric utilities subject to rate regulation under AS 42.05.
(h) Each electric utility receiving power cost equalization approved by the department shall
(1) report monthly to the department within the time and in the form the department requires; and
(2) use operational equipment designed to meter individual utility customer power consumption and to determine and record the utility's overall fuel consumption.
(i) The department shall review the report required under (h) of this section. After review and approval of the report, the department shall, subject to appropriation, pay to each eligible electric utility an amount equal to the power cost equalization per kilowatt-hour determined under (a) and (c) of this section, multiplied by the number of kilowatt-hours eligible for power cost equalization that were sold during the preceding month to all customers of the utility under (b) of this section. Payment shall be made by the department within 30 days after receipt from the utility of the report required under (h) of this section. If appropriations are insufficient for payment in full, the amount paid to each electric utility is reduced on a pro rata basis.
Sec. 42.45.120. NOTICE TO CUSTOMERS. If an electric utility receives power cost equalization under AS 42.45.100 - 42.45.150, the utility shall either give to its electric service customers eligible under this program, for each period for which the payment is received,
(1) the following notice:
NOTICE TO CUSTOMER
For the current billing period the utility will be paid under the State of Alaska's power cost equalization program (AS 42.45.100) to assist the utility and its customers in reducing the high cost of generation of electric energy. Your total electrical service cost$. . . . . .
Less state equalization$. . . . . .
Your charge$. . . . . . ; or
(2) a notice approved by the department that provides electric service customers the same information provided by the notice in (1) of this section.
Sec. 42.45.130. COST MINIMIZATION. (a) In order to qualify for power cost equalization, each electric utility shall make every reasonable effort to minimize administrative, operating, and overhead costs, including using the best available technology consistent with sound utility management practices. In reviewing applications for power cost equalization, the department may require the elimination of unnecessary operating expenses. Each eligible electric utility shall cooperate with appropriate state agencies to implement cost-effective energy conservation measures and to plan for and implement feasible alternatives to diesel generation.
(b) In this section, "energy conservation measures" include weatherization and other insulating methods, utilization of waste heat, appropriate sizing of new generating equipment, and other programs of the state or federal government intended and available for energy conservation.
Sec. 42.45.140. CUSTOMER PETITIONS. If the department receives a petition requesting power cost equalization, signed by at least 25 percent of the customers of an electric utility that is subject to rate regulation under AS 42.05 and that has not applied for power cost equalization under AS 42.45.100 - 42.45.150, the department shall require the utility to submit a power cost equalization application. Upon a determination of eligibility for power cost equalization, the utility, as a part of its service, shall receive power cost equalization and pass power cost equalization benefits to its customers under AS 42.45.100 - 42.45.150.
Sec. 42.45.150. DEFINITIONS FOR AS 42.45.100 - 42.45.150. In AS 42.45.100 - 42.45.150,
(1) "community facility" means a water and sewer facility, public outdoor lighting, charitable educational facility, or community building whose operations are not paid for by the state, the federal government, or private commercial interests;
(2) "eligible electric utility" or "electric utility" means a public, cooperative, or other corporation, company, individual, or association of individuals, and includes the lessees, trustees, or receivers appointed by a court, that
(A) owns, operates, manages, or controls a plant or system for the furnishing, by generation, transmission or distribution, of electric service to the public for compensation;
(B) during calendar year 1983, had a residential consumption level of power eligible for power cost equalization under former AS 44.83 of less than 7,500 megawatt hours or had a residential consumption level of power eligible for power cost equalization under former AS 44.83 of less than 15,000 megawatt hours if the utility served two or more municipalities or unincorporated communities; and
(C) during calendar year 1984, used diesel fired generators to produce more than 75 percent of the electrical consumption of the utility; an electric utility that is a subsidiary of another electric utility is an "eligible electric utility" if the operations of the subsidiary, considered separately, meet the eligibility requirements of AS 42.45.100 - 42.45.150; if an electric utility did not receive power cost assistance in 1983 but is otherwise eligible for power cost equalization under AS 42.45.100 - 42.45.150, the utility is an "eligible electric utility";
(3) "power costs" means costs used in determining power cost equalization under AS 42.45.110(a) and (c).
Sec. 42.45.160. ADJUSTMENTS TO POWER COST EQUALIZATION. (a) The commission may adjust the power cost equalization per kilowatt-hour, determined under AS 42.45.100 - 42.45.150, payable to an electric utility that is subject to rate regulation under AS 42.05 if the
(1) commission has approved a fuel cost rate adjustment caused by an increase or decrease in the electric utility's cost of fuel;
(2) commission has approved a permanent or interim rate increase or decrease that establishes a higher or lower power cost;
(3) authority has discovered, in reviewing the monthly data submitted by the electric utility, discrepancies that require adjustment of the power cost equalization; or
(4) authority determines that appropriations are insufficient to finance full payments to eligible electric utilities.
(b) An electric utility that is eligible to receive power cost equalization under this section and that receives power cost equalization per kilowatt-hour approved by the department shall report monthly to the department within the time and in the form the department requires. An electric utility shall report
(1) the power cost equalization per kilowatt-hour approved by the department;
(2) the total kilowatt-hours sold to each class of customer during the preceding month;
(3) the total kilowatt-hours eligible for power cost equalization under this section sold to each class of customer during the preceding month;
(4) the total kilowatt-hours generated during the preceding month, if available;
(5) any department approved amendments to the schedule of rates in effect during the preceding month; and
(6) an increase or decrease in the current unit price of fuel from the base price used by the department in determining power costs if the change is expected to result in a subsequent power cost equalization adjustment.
(c) The provisions of AS 42.45.100 - 42.45.150 relating to the determination of the amount of power cost equalization and payment of the equalization assistance apply to equalization assistance under this section.
Sec. 42.45.170. EQUALIZATION ASSISTANCE TO UNREGULATED UTILITIES. (a) An electric utility that is not subject to rate regulation by the Alaska Public Utilities Commission under AS 42.05 may receive power cost equalization if the utility is otherwise eligible for equalization assistance under AS 42.45.100 - 42.45.150 and if the utility
(1) files with the department financial data necessary to determine the power cost equalization per kilowatt-hour as prescribed by the department and that is in compliance with AS 42.45.100 - 42.45.150;
(2) reports monthly to the department, within the time and in the form required, the information required in (b) of this section;
(3) sets rates
(A) that consider the power cost equalization provided under AS 42.45.100 - 42.45.150 by subtracting from its revenue requirements for electric services the power cost equalization per kilowatt-hour that it is eligible to receive; and
(B) under which the power cost equalization provided in AS 42.45.060 - 42.45.110 is applied as a credit only against the cost of kilowatt-hours eligible for equalization assistance under AS 42.45.100 - 42.45.150 that are consumed by each customer in any month;
(4) allows audits that the department determines are necessary to ensure compliance with this section; and
(5) furnishes its electric service customers eligible under this program a notice as specified in AS 42.45.120.
(b) An electric utility that is eligible to receive power cost equalization under this section shall report in accordance with (a)(2) of this section
(1) the power cost equalization per kilowatt-hour approved by the department;
(2) the total kilowatt-hours sold to each class of customer during the preceding month;
(3) the total kilowatt-hours eligible for power cost equalization under this section sold to each class of customer during the preceding month;
(4) the total kilowatt-hours generated during the preceding month, if available;
(5) any amendments to the schedule of rates in effect during the preceding month; and
(6) an increase or decrease in the current unit price of fuel from the base price used by the department in determining power costs if the change is expected to result in a subsequent equalization assistance level adjustment.
(c) An electric utility that is eligible to receive power cost equalization under this section may have its power cost equalization per kilowatt-hour determination changed by the department if the department
(1) has verified an increase or decrease in the electric utility's cost of fuel;
(2) has verified an increase in rates based on an increase in costs;
(3) has discovered, in reviewing the monthly data submitted by the electric utility, discrepancies that require adjustment of the power cost equalization; or
(4) determines that appropriations are insufficient to finance full payments to eligible electric utilities.
(d) The provisions of AS 42.45.100 - 42.45.150 relating to the determination of the amount of power cost equalization and payment of the equalization assistance apply to equalization assistance under this section.
(e) An application for power cost equalization by an electric utility that is eligible to receive power cost under this section does not extend the jurisdiction of the Alaska Public Utilities Commission beyond that established by AS 42.05.
Sec. 42.45.180. GRANTS FOR UTILITY IMPROVEMENTS. (a) The department may make a grant from the fund for an eligible utility for a small power project that will reduce the cost of generating or transmitting power to the customers of the utility. The amount of the grant may not exceed 75 percent of the cost of the project. The department may not make a grant under this section unless the eligible utility has secured financing for 25 percent of the cost of the project from a source other than the power cost equalization and rural electric capitalization fund, as provided under (c) of this section.
(b) The department may not allocate more than three percent of the balance in the fund to grants under this section in a fiscal year.
(c) In determining whether an eligible utility has secured financing for 25 percent of the cost of the project from a source other than the power cost equalization and rural electric capitalization fund, the department shall accept solicited and unsolicited proposals for third party financing or for a joint venture between the utility and an entity from the private sector provided that the private sector participant has
(1) a valid state business license;
(2) a resolution or letter of agreement executed by the eligible utility agreeing to participation by the private sector participant;
(3) a business plan that illustrates how the proposed project will reduce the cost of generating or transmitting power to the customers of the utility.
(d) In this section,
(1) "eligible utility" has the meaning given in AS 42.45.150;
(2) "project" includes
(A) power generation systems;
(B) transmission systems;
(C) distribution systems;
(D) metering systems;
(E) energy store systems;
(F) energy conservation programs; and
(G) bulk fuel storage facilities;
(3) "small power project" means a new or modified project that will either generate, store, or conserve no more than 1.5 megawatts of power or provide a metering system, transmission system, distribution system, or bulk fuel storage facility that has an estimated cost of less than $3,000,000.
Sec. 42.45.190. DEFINITION FOR AS 42.45.100 - 42.45.190. In AS 42.45.100 - 42.45.190, "fund" means the power cost equalization and rural electric capitalization fund established under AS 42.45.100.
ARTICLE 3. ELECTRICAL SERVICE EXTENSION FUND.
Sec. 42.45.200. ELECTRICAL SERVICE EXTENSION FUND ESTABLISHED. (a) The electrical service extension fund is established as a separate fund in the department. The fund consists only of money appropriated to it by the legislature.
(b) The department may make grants from the electrical service extension fund to certificated electric utilities and to electric utilities exempt from certification under AS 42.05.711, as a first priority, to pay for costs of site preparation and construction for the extension of electrical service to private residences and small businesses not currently served by an electric utility and, as a second priority, for making improvements to existing utilities. The amount of a grant made under this section may not exceed 60 percent of the total cost of construction of the project. The costs considered in making a grant may not include costs of planning, feasibility studies, or design.
(c) An electric utility that has received a grant under this section may charge a connection fee for initial connection to the electrical service made available because of the construction. The connection fee for each residential or commercial structure shall conform to the line extension policy of the utility.
(d) The department shall adopt regulations under AS 44.62 (Administrative Procedure Act) to implement this section.
(e) In this section, "certificated" means holding a certificate of public convenience and necessity issued by the Alaska Public Utilities Commission under AS 42.05.
ARTICLE 4. BULK FUEL REVOLVING LOAN FUND.
Sec. 42.45.250. BULK FUEL REVOLVING LOAN FUND. (a) The bulk fuel revolving loan fund is established in the department to assist communities in purchasing bulk fuel. A community, or a private individual who has written endorsement from the governing body of the community, is eligible for a loan from the bulk fuel revolving loan fund for a bulk fuel purchase.
(b) Money in the fund may be used by the legislature to make appropriations for costs of administering this section.
(c) The foreclosure expense account is established as a special account within the bulk fuel revolving loan fund. This account is established as a reserve from fund equity.
(d) The department may spend money credited to the foreclosure expense account when necessary to protect the state's security interest in collateral on loans made under this section or to defray expenses incurred during foreclosure proceedings after a default by an obligor.
(e) Loans made from the bulk fuel revolving loan fund to one borrower in any fiscal year are not subject to AS 42.45.060 and
(1) may not exceed $100,000;
(2) shall be repaid in one year or less; and
(3) may not exceed 90 percent of the wholesale price of the fuel purchased.
(f) Interest may be charged on a loan made from the bulk fuel revolving loan fund. Interest shall be charged on a loan at a rate equal to the percentage of the average weekly yield of municipal bonds for the 12 months preceding the date of the loan, as determined by the department from municipal bond yield rates reported in the 30-year revenue index of the Weekly Bond Buyer. However, if the department finds that a community cannot afford to repay a portion of interest on a loan, and makes a determination in writing, the department may reduce or eliminate the interest rate applicable to the loan.
(g) Repayments of the principal, the interest, and the money chargeable to principal or interest that is collected through liquidation by foreclosure or other process on a loan made under this section shall be paid into the bulk fuel revolving loan fund. The fund is not a dedicated fund.
(h) The department may contract for the administration of the bulk fuel loan program established in this section.
(i) The department shall dispose of property acquired through default or foreclosure of a loan made under this section. Disposal shall be made in a manner that serves the best interests of the state, and may include the amortization of payments over a period of years.
(j) The department may adopt regulations necessary to carry out the provisions of this section, including regulations to establish reasonable fees for services provided and charges for collecting the fees.
(k) The department may collect the fees and collection charges established under (i) of this section and shall deposit the money in the general fund.
(l) In this section,
(1) "bulk fuel storage facility" means a storage tank capable of holding at least 10,000 gallons of petroleum fuel; and
(2) "community" means an organized municipality or an unincorporated village that is a social unit, with a population of less than 2,000 people.
ARTICLE 5. JOINT ACTION AGENCIES.
Sec. 42.45.300. JOINT ACTION AGENCIES. Two or more public utilities may form a joint action agency for the purpose of participation in the design, construction, operation, and maintenance of a generating or transmission facility and to secure financing for carrying out the design, construction, operation, and maintenance of the facility. A joint action agency may request the Alaska Industrial Development and Export Authority to issue revenue bonds for projects of the agency. A joint action agency has the powers of a public utility under AS 42.05.
ARTICLE 6. MISCELLANEOUS PROVISIONS.
Sec. 42.45.400. ASSISTANCE TO RURAL UTILITIES. The department shall provide technical assistance to rural utilities including catastrophe prevention programs and other training programs for utility projects. The department shall provide rural utilities with the technical assistance and training that the utilities need to improve the efficiency, safety, and reliability of their power systems and to prevent emergency situations from developing. At a minimum, the assistance and training must include information on
(1) reducing distribution line losses;
(2) installation of generators that are more fuel efficient;
(3) preventative maintenance programs;
(4) safety inspections;
(5) installing and maintaining waste heat systems;
(6) improved metering systems;
(7) improved management and administration; and
(8) coordinating regional activities, including circuit rider maintenance programs.
(b) In providing rural utilities with technical assistance and training, the department shall give priority to contracting with the private sector for these services.
Sec. 42.45.410. RELATIONSHIP WITH PRIVATE SECTOR. The department shall, to the maximum extent feasible, carry out its powers and duties under this chapter by entering into contracts with appropriate entities in the private sector.
ARTICLE 7. GENERAL PROVISIONS.
Sec. 42.45.990. DEFINITIONS. In this chapter, unless the context otherwise requires,
(1) "department" means the Department of Community and Regional Affairs;
(2) "feasibility study"
(A) means a study conducted to establish the economic and environmental practicality of completing a proposed power project;
(B) includes engineering and design work to meet the requirements for submission of a license application for a proposed new project to the Federal Energy Regulatory Commission;
(3) "power" includes electrical energy generated, distributed, bought, or sold for lighting, heating, power, and every other useful purpose;
(4) "power project" or "project" means a plant, works, system, or facility, together with related or necessary facilities and appurtenances, including a divided or undivided interest in or a right to the capacity of a power project or project, that is used or is useful for the purpose of
(A) electrical or thermal energy production other than nuclear energy production;
(B) waste energy utilization and energy conservation; or
(C) transmission, purchase, sale, exchange, and interchange of electrical or thermal energy, including district heating or interties;
(5) "reconnaissance study" means a study conducted to assess the present and future electrical and thermal energy needs of an area.
* Sec. 6. AS 44.47.050(a) is amended to read:
(a) The department may
(1) advise and assist local governments;
(2) serve as staff for the Local Boundary Commission;
(3) conduct studies and carry out experimental and pilot projects for the purpose of developing solutions to community and regional problems;
(4) promote cooperative solutions to problems affecting more than one community or region, including joint service agreements, regional compacts, and other forms of cooperation;
(5) serve as a clearinghouse for information useful in solution of community and regional problems, and channel to the appropriate authority requests for information and services;
(6) advise and assist community and regional governments on matters of finance, including but not limited to bond marketing and procurement of federal funds;
(7) prepare suggested guidelines relating to the content of notice of bond sale advertisements, prospectuses, and other bonding matters issued by local governments;
(8) administer state funds appropriated for the benefit of unorganized regions within the state, allowing for maximum participation by local advisory councils and similar bodies;
(9) carry out those administrative functions in the unorganized borough that the legislature may prescribe;
(10) study existing and proposed laws and state activities that affect community and regional affairs and submit to the governor recommended changes in those laws and activities;
(11) coordinate activities of the state that affect community and regional affairs;
(12) assist in the development of new communities and serve as the agent of the state for purposes of participation in federal programs relating to new communities;
(13) supervise planning, management, and other activities required for local eligibility for financial aid under those federal and state programs that [WHICH] provide assistance to community and regional governments;
(14) administer state and, as appropriate, federal programs for revenue sharing, grants, and other forms of financial assistance to community and regional governments;
(15) provide staff assistance, as requested, to the Rural Affairs Commission;
(16) apply for, receive, and use funds from federal and other sources, public or private, for use in carrying out the powers and duties of the department;
(17) request and utilize the resources of other agencies of state government in carrying out the purposes of this chapter to the extent such utilization is more efficient than maintaining departmental staff, reimbursing the other agencies when appropriate;
(18) [REPEALED
(19)] advise and assist municipalities on procedures of assessment, valuation, and taxation, and notify municipalities of major errors in those procedures;
(19) carry out the powers and duties assigned it under AS 42.45;
(20) carry out other functions and duties, consistent with law, necessary or appropriate to accomplish the purpose of this chapter.
* Sec. 7. AS 44.83.030 is repealed and reenacted to read:
Sec. 44.83.030. MEMBERSHIP OF THE AUTHORITY. The directors of the Alaska Energy Authority are the members of the Alaska Industrial Development and Export Authority.
* Sec. 8. AS 44.83.040(a) is amended to read:
(a) The chair and vice-chair of the Alaska Industrial Development and Export Authority shall serve as officers of the Alaska Energy Authority [DIRECTORS SHALL ELECT ONE OF THEIR NUMBER AS CHAIRMAN AND MAY ELECT OTHER OFFICERS THEY DETERMINE DESIRABLE]. The powers of the Alaska Energy Authority [AUTHORITY] are vested in the directors, and three [FOUR] directors of the authority constitute a quorum. Action may be taken and motions and resolutions adopted by the Alaska Energy Authority [AUTHORITY] at a meeting by the affirmative vote of a majority of the directors. The directors of the Alaska Energy Authority [AUTHORITY] serve without compensation, but they shall receive the same travel pay and per diem as provided by law for board members under AS 39.20.180.
* Sec. 9. AS 44.83.070 is amended to read:
Sec. 44.83.070. PURPOSE OF THE AUTHORITY. The purpose of the authority is to promote, develop, and advance the general prosperity and economic welfare of the people of the state by providing a means of [CONSTRUCTING, ACQUIRING,] financing and operating power projects and facilities that recover and use waste energy.
* Sec. 10. AS 44.83.080 is amended to read:
Sec. 44.83.080. POWERS OF THE AUTHORITY. In furtherance of its corporate purposes, the authority has the following powers in addition to its other powers:
(1) to sue and be sued;
(2) to have a seal and alter it at pleasure;
(3) to make and alter bylaws for its organization and internal management;
(4) to adopt regulations governing the exercise of its corporate powers;
(5) to [ACQUIRE, WHETHER BY CONSTRUCTION, PURCHASE, GIFT OR LEASE, AND TO] improve, equip, operate, and maintain power projects;
(6) to issue bonds to carry out any of its corporate purposes and powers, including [THE ACQUISITION OR CONSTRUCTION OF A PROJECT TO BE OWNED OR LEASED, AS LESSOR OR LESSEE, BY THE AUTHORITY, OR BY ANOTHER PERSON, OR THE ACQUISITION OF ANY INTEREST IN A PROJECT OR ANY RIGHT TO CAPACITY OF A PROJECT,] the establishment or increase of reserves to secure or to pay the bonds or interest on them, and the payment of all other costs or expenses of the authority incident to and necessary or convenient to carry out its corporate purposes and powers;
(7) to sell, lease as lessor or lessee, exchange, donate, convey, or encumber in any manner by mortgage or by creation of any other security interest, real or personal property owned by it, or in which it has an interest, when, in the judgment of the authority, the action is in furtherance of its corporate purposes;
(8) to accept gifts, grants, or loans from, and enter into contracts or other transactions regarding them, with any person;
(9) to deposit or invest its funds, subject to agreements with bondholders;
(10) to enter into contracts with the United States or any person and, subject to the laws of the United States and subject to concurrence of the legislature, with a foreign country or its agencies, for the financing, [CONSTRUCTION, ACQUISITION,] operation, and maintenance of all or any part of a power project, either inside or outside the state, and for the sale or transmission of power from a project or any right to the capacity of it or for the security of any bonds of the authority issued or to be issued for the project;
(11) to enter into contracts with any person and with the United States, and, subject to the laws of the United States and subject to the concurrence of the legislature, with a foreign country or its agencies for the purchase, sale, exchange, transmission, or use of power from a project, or any right to the capacity of it;
(12) to apply to the appropriate agencies of the state, the United States, and to a foreign country and any other proper agency for the permits, licenses, or approvals as may be necessary, and to [CONSTRUCT,] maintain and operate power projects in accordance with the licenses or permits, and to obtain, hold, and use the licenses and permits in the same manner as any other person or operating unit;
(13) [TO PERFORM RECONNAISSANCE STUDIES, FEASIBILITY STUDIES, AND ENGINEERING AND DESIGN WITH RESPECT TO POWER PROJECTS;
(14)] to enter into contracts or agreements with respect to the exercise of any of its powers, and do all things necessary or convenient to carry out its corporate purposes and exercise the powers granted in this chapter;
(14) [(15) TO EXERCISE THE POWER OF EMINENT DOMAIN IN ACCORDANCE WITH AS 09.55.240 - 09.55.460;
(16)] to recommend to the legislature
(A) [THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE STATE TO FINANCE THE CONSTRUCTION OF A POWER PROJECT IF THE AUTHORITY FIRST DETERMINES THAT THE PROJECT CANNOT BE FINANCED BY REVENUE BONDS OF THE AUTHORITY AT REASONABLE RATES OF INTEREST;
(B)] the pledge of the credit of the state to guarantee repayment of all or any portion of revenue bonds issued to assist in construction of power projects;
(B) [(C)] an appropriation from the general fund
(i) for debt service on bonds or other project purposes; or
(ii) to reduce the amount of debt financing for the project;
[(D) AN APPROPRIATION TO THE POWER PROJECT FUND FOR A POWER PROJECT;
(E) REPEALED
(F) DEVELOPMENT OF A PROJECT UNDER FINANCING ARRANGEMENTS WITH OTHER ENTITIES USING LEVERAGED LEASES OR OTHER FINANCING METHODS;
(G) AN APPROPRIATION FOR A POWER PROJECT ACQUIRED OR CONSTRUCTED UNDER AS 44.83.380 - 44.83.425 (ENERGY PROGRAM FOR ALASKA)].
* Sec. 11. AS 44.83.090(a) is amended to read:
(a) The authority shall, in addition to the other methods that [WHICH] it may find advantageous, provide a method by which municipal electric, rural electric, cooperative electric, or private electric utilities and regional electric authorities, or other persons authorized by law to engage in the distribution of electricity may secure a reasonable share of the power generated by a project, or any interest in a project, or for any right to the power and shall sell the power or cause the power to be sold at the lowest reasonable prices that [WHICH] cover the full cost of the electricity or services, including capital and operating costs, debt coverage as considered appropriate by the authority, and other charges that may be authorized by this chapter. Except for a contract or lease entered into under former AS 44.83.380 - 44.83.425, a contract or lease for the sale, transmission, and distribution of power generated by a project or any right to the capacity of it shall provide:
(1) for payment of all operating and maintenance expenses of a project and costs of renewals, replacements, and improvements of it;
(2) for interest on and amortization charges sufficient to retire bonds of the authority issued for the project and reserves for them, plus a debt service coverage factor as may be determined by the authority to be necessary for the marketability of its bonds;
(3) for monitoring of the project by the authority or its agents;
(4) for full and complete disclosure to the authority of all factors of costs in the transmission and distribution of power, so that rates to any persons may be fixed initially in the contract or lease and may be adjusted from time to time on the basis of true cost data;
(5) for periodic revisions of the service and rates to persons on the basis of accurate cost data obtained by the accounting methods and systems approved by the directors and in furtherance and effectuation of the policy declared in this chapter;
(6) for the cancellation and termination of a contract or lease upon violation of its terms by any person;
(7) for security for performance as the authority may consider practicable and advisable, including provisions assuring the continuance of the distribution and transmission of power generated by a project and the use of its facilities for these purposes; and
(8) other terms not inconsistent with the provisions and policy of this chapter as the authority may consider advisable.
* Sec. 12. AS 44.83.110(b) is amended to read:
(b) Notwithstanding any other provisions of this chapter, the trust indenture, trust agreement, secured loan agreement, or other instrument or the resolution constituting a contract with bondholders shall contain a covenant by the authority that it will at all times maintain rates, fees, or charges sufficient to pay, and that a contract entered into by the authority for the sale, transmission, or distribution of power shall contain rates, fees, or charges sufficient to pay the costs of operation and maintenance of the project, the principal of and interest on bonds issued under the trust agreement as the same severally become due and payable, to provide for debt service coverage as considered necessary by the authority for the marketing of its bonds and to provide for renewals, replacements, and improvements of the project, and to maintain reserves required by the terms of the trust agreement. This subsection does not require a covenant that varies from a covenant entered into in accordance with the provisions of former AS 44.83.380 - 44.83.425.
* Sec. 13. AS 44.83.382(a) is amended to read:
(a) A power development fund is established in the Alaska Energy Authority to carry out the purposes of former AS 44.83.380 - 44.83.425.
* Sec. 14. AS 44.83.384(a) is amended to read:
(a) The fund may be used by the authority to provide money for
(1) [RECONNAISSANCE AND FEASIBILITY STUDIES AND POWER PROJECT FINANCE PLANS PREPARED UNDER AS 44.83.177 - 44.83.181;
(2) THE COST OF A POWER PROJECT, INCLUDING BUT NOT LIMITED TO COSTS OF ACQUIRING NECESSARY LICENSES, PREPARING ENGINEERING DESIGNS, OBTAINING LAND, AND CONSTRUCTING THE POWER PROJECT;
(3)] the defeasance of bonds, or the payment of debt service on loans for or on an issue of bonds sold in connection with a power project constructed or acquired before the effective date of this section;
(2) [(4)] the cost of operating and maintaining power projects constructed or acquired before the effective date of this section; and
(3) [(5)] debt service on power projects constructed or acquired before the effective date of this section.
* Sec. 15. AS 44.83.388(a) is amended to read:
(a) The authority shall maintain records of power project allocations from the fund for each power project
(1) approved in accordance with former AS 44.83.185; and
(2) for which an allocation is made from an appropriation made by the legislature without specifying an appropriation to a project.
* Sec. 16. AS 44.83.396(a) is amended to read:
(a) A power project that was [IS] acquired or constructed as part of the former energy program for Alaska is owned, and shall be administered, by the authority.
* Sec. 17. AS 44.83.398(a) is amended to read:
(a) The authority shall sell power produced from power projects acquired or constructed under the former energy program for Alaska. For purposes of this section, Tyee Lake, Swan Lake, Solomon Gulch, and Terror Lake hydroelectric facilities are considered to be one power project. This power project is referred to as the initial project.
* Sec. 18. AS 44.83.398(f) is amended to read:
(f) The provisions of (b) of this section do not apply to an intertie that is authorized as a separate project under former AS 44.83.380. The authority shall establish and maintain separate power rate schedules applicable to each intertie that it has acquired or constructed as a separate power project under the energy program for Alaska. The power rate schedules shall produce sufficient revenue from utilities connected by the intertie to pay (1) operation, maintenance, and equipment replacement costs of the intertie; (2) debt service of the intertie; and (3) safety inspections and investigations of the intertie by the authority. If the authority determines that an intertie has ceased to function as a separate project and has become a part of one or more other power projects as a transmission line, the power rate schedules established under this subsection shall be terminated and a wholesale power rate applicable to the former intertie shall be calculated under (b) of this section for the project or projects of which it has become a part.
* Sec. 19. AS 44.83.510(a) is amended to read:
(a) [THE AUTHORITY MAY BORROW FROM THE FUND FOR THE PURPOSE OF FINANCING A POWER PROJECT ACQUIRED OR CONSTRUCTED BY THE AUTHORITY UNDER THE ENERGY PROGRAM FOR ALASKA (AS 44.83.380 - 44.83.425).] Repayment of a loan from the former power development revolving loan fund must be made with the proceeds from the sale of power from projects in the former energy program for Alaska. Except as provided in AS 44.83.398(i), the payments required to be made by the authority on a loan from the fund constitute debt service for the purpose of calculating the wholesale power rate in AS 44.83.398(b)(1).
* Sec. 20. AS 44.83.530 is amended to read:
Sec. 44.83.530. DEFINITIONS. In AS 44.83.500 - 44.83.530,
(1) "fund" means the former power development revolving loan fund; and
(2) "power project" means a project acquired or constructed under the former energy program for Alaska, AS 44.83.380 - 44.83.425.
* Sec. 21. AS 44.83.930(a) is amended to read:
(a) When a project is operated by the authority, the authority shall enter into one or more contracts for the sale of electrical power, energy, transmission capacity, or service from the project. Unless the contract is entered into under former AS 44.83.380 - 44.83.425, a contract entered into under this section must meet all requirements of AS 44.83.090.
* Sec. 22. AS 44.83.990(3) is amended to read:
(3) "feasibility study"
(A) means a study conducted for the purpose of establishing the economic and environmental practicality of completing a proposed power project under former AS 44.83.181;
(B) includes engineering and design work to meet the requirements for submission of a license application for a proposed new project to the Federal Energy Regulatory Commission;
* Sec. 23. AS 44.88.105(d) is amended to read:
(d) The chairman of the authority shall annually, no later than January 2, certify in writing to the governor and the legislature the amount, if any, required to restore a capital reserve fund to the capital reserve fund requirement. The legislature may appropriate to the authority the amount certified by the chairman of the authority. The authority shall deposit the amounts appropriated under this subsection during a fiscal year in the proper capital reserve fund. Nothing in this section creates a debt or liability of the state. In this subsection, "capital reserve fund" means a capital reserve fund that
(1) is created under this section on or before January 1, 1989; [, OR]
(2) secures refunding bonds if the refunding bonds are issued to refund bonds that are secured by a capital reserve fund created under this section on or before January 1, 1989; or
(3) secures bonds issued on or after the effective date of this section for a power transmission intertie.
* Sec. 24. AS 44.88.155(d) is amended to read:
(d) A loan participation purchased by the authority with assets of the enterprise development account or with proceeds of bonds secured by assets of the enterprise development account
(1) may not exceed $10,000,000; however, in the case of a loan participation for a power transmission intertie, the loan participation may exceed $10,000,000 with legislative approval;
(2) may not be purchased unless
(A) the project applicant is not, or, if the applicant is not a single proprietorship, all members of the business enterprise or enterprises constituting the project applicant are not, in default on another loan made by the state or by a public corporation of the state; and
(B) at least 20 percent of the principal amount of the loan is retained by the loan originator;
(3) may not be purchased if the loan to be purchased exceeds the cost of the project or 75 percent of the appraised value of the project, whichever is less, unless the amount of the loan in excess of this limit is federally insured or guaranteed or is insured by a qualified mortgage insurance company;
(4) may not be purchased if the participation in the loan to be purchased is for a term longer than three-quarters of the authority's estimate of the life of the project or 25 years from the date the loan is made, whichever is earlier; however, in the case of a loan participation for a power transmission intertie, the term may not be longer than 50 years from the date the loan is made;
(5) may be made only if the participation in the loan to be purchased contains amortization provisions; the amortization provisions
(A) must be complete and satisfactory to the authority and require periodic payments by the borrower;
(B) may allow the loan originator to amortize the portion of the loan retained by the loan originator using a shorter amortization schedule than the amortization schedule for the portion of the loan held by the authority if
(i) in the authority's opinion, the project financed can support the increased debt service; and
(ii) the accelerated amortization schedule is required to induce the originator to make the loan;
(6) may be made only if the participation in the loan to be purchased is in the form and contains the terms and provisions with respect to insurance, repairs, alterations, payment of taxes and assessments, default reserves, delinquency charges, default remedies, acceleration of maturity, secondary liens, and other matters the authority prescribes; and
(7) may be made only if the participation in the loan to be purchased is secured as to repayment by a mortgage or other security instrument in the manner the authority determines is feasible to assure timely repayment under a loan agreement entered into with the borrower.
* Sec. 25. AS 44.88.155(g) is amended to read:
(g) Notwithstanding any other provision of this section, the authority may waive or modify the requirements of this section as it considers appropriate and prudent in order to finance a project if the authority intends to own the project or in order to finance a power transmission intertie project.
* Sec. 26. AS 44.88.900(10) is amended to read:
(10) "project" means
(A) a plant or facility used or intended for use in connection with making, processing, preparing, transporting, or producing in any manner, goods, products, or substances of any kind or nature or in connection with developing or utilizing a natural resource, or extracting, smelting, transporting, converting, assembling, or producing in any manner, minerals, raw materials, chemicals, compounds, alloys, fibers, commodities and materials, products, or substances of any kind or nature;
(B) a plant or facility used or intended for use in connection with a business enterprise;
(C) commercial activity by a small enterprise;
(D) a plant or facility demonstrating technological advances of new methods and procedures and prototype commercial applications for the exploration, development, production, transportation, conversion, and use of energy resources;
(E) infrastructure for a new tourism destination facility or for the expansion of a tourism destination facility;
(F) a plant or facility, other than a plant or facility described in (D) of this paragraph, for the generation, transmission, development, transportation, conversion, or use of energy resources;
* Sec. 27. AS 39.50.200(b)(46) and AS 44.83.045 are repealed.
* Sec. 28. AS 39.50.200(b)(46); AS 44.83.010, 44.83.105, 44.83.162, 44.83.163, 44.83.164, 44.83.165, 44.83.170, 44.83.177, 44.83.179, 44.83.181, 44.83.183, 44.83.185, 44.83.187, 44.83.189, 44.83.300, 44.83.310, 44.83.320, 44.83.325, 44.83.330, 44.83.340, 44.83.350, 44.83.360, 44.83.361, 44.83.363, 44.83.370, 44.83.380, 44.83.384(b), 44.83.384(c), 44.83.390, 44.83.392, 44.83.400, 44.83.410, 44.83.500, 44.83.510(b), 44.83.520, 44.83.600, 44.83.605. 44.83.610, 44.83.615, 44.83.620, 44.83.625, 44.83.630, 44.83.650, 44.83.990(8), and 44.83.990(9) are repealed.
* Sec. 29. The Alaska Industrial Development and Export Authority may issue bonds to finance the acquisition, design, and construction of a power transmission intertie of at least 138 kilovolts between Healy and Fairbanks and owned, for the benefit of all of the utilities participating in the intertie, by Golden Valley Electric Association, Inc. The principal amount of the bonds may not exceed $60,000,000.
* Sec. 30. The Alaska Industrial Development and Export Authority may issue bonds to finance the acquisition, design, and construction of a power transmission intertie of at least 138 kilovolts between Anchorage and the Kenai Peninsula to be owned, for the benefit of all of the utilities participating in the interties, by Chugach Electric Association, Inc. The principal amount of the bonds may not exceed $60,000,000.
* Sec. 31. The Alaska Industrial Development and Export Authority may issue bonds to finance the acquisition, design, and construction of a power transmission intertie of at least 115 kilovolts between the Swan Lake and Tyee Lake hydroelectric projects and owned, for the benefit of all of the utilities participating in the intertie, by Ketchikan Public Utilities. The principal amount of the bonds may not exceed $40,000,000.
* Sec. 32. The Alaska Industrial Development and Export Authority may issue bonds to finance the acquisition, design, and construction of a power transmission intertie of at least 138 kilovolts between Sutton and Glennallen and owned, for the benefit of all of the utilities participating in the intertie, by Copper Valley Electric Association. The principal amount of the bonds may not exceed $25,000,000.
* Sec. 33. APPLICABILITY. The repeal of statutes by sec. 28 of this Act does not affect existing bonds or actions that have been taken under the repealed provisions.
* Sec. 34. TRANSITION. All litigation, hearings, investigations, and other proceedings pending under a law amended or repealed by this Act, or in connection with functions transferred by this Act, continue in effect and may be continued and completed by the Alaska Energy Authority or the Department of Community and Regional Affairs, as appropriate, notwithstanding a transfer or amendment or repeal provided for in this Act. Certificates, orders, and regulations issued or adopted under authority of a law amended or repealed by this Act remain in effect for the term issued, or until revoked, vacated, or otherwise modified under the provisions of this Act. All contracts, rights, liabilities, bonds, notes, or other obligations created by or under a law amended or repealed by this Act, and in effect on the effective date of this Act remain in effect notwithstanding this Act's taking effect. The Department of Community and Regional Affairs shall assume, for those programs and projects transferred to it, the licenses, contracts, rights, liabilities, notes, or other obligations of the former Alaska Energy Authority with the same limitations and provisions as under a license, contract, right, liability, note, or other obligation of the former Alaska Energy Authority. Real property, records, equipment, and other property of the Alaska Energy Authority related to the programs and projects transferred to the department shall be transferred to the Department of Community and Regional Affairs.
* Sec. 35. TRANSITIONAL PROVISION CONCERNING EMPLOYEES OF THE ALASKA ENERGY AUTHORITY. When the Department of Community and Regional Affairs determines that continued employment of certain employees of the Alaska Energy Authority is necessary to continue uninterrupted service to programs, facilities, and power projects formerly owned by the Alaska Energy Authority that have been transferred to the department under this Act, the department may continue the employment of those employees.
* Sec. 36. INITIAL TERMS OF LOAN COMMITTEE. Notwithstanding AS 42.45.060(b), enacted by sec. 5 of this Act, the initial terms of two of the public members of the loan committee established under AS 42.45.060 shall be for two years. The remaining two public members shall serve four-year terms as provided in AS 42.45.060.
* Sec. 37. CONTRACTS WITH PRIVATE SECTOR. The Alaska Energy Authority shall, to the maximum extent feasible, enter into contracts with public utilities and other entities to carry out its duties with respect to the maintenance and operation of power projects owned by the Alaska Energy Authority.
* Sec. 38. ORDERLY TRANSFER OF FUNCTIONS. (a) Notwithstanding the effective date of this Act, the governor, the Department of Community and Regional Affairs, the Alaska Energy Authority, and the office of management and budget shall implement this Act in an orderly fashion. The transfer of rural programs operated by the Alaska Energy Authority to the Department of Community and Regional Affairs must be completed no later than December 31, 1993. Until a program is transferred under this section, the Alaska Energy Authority may continue to administer that program under the former provisions of AS 44.83, notwithstanding the repeal of provisions of AS 44.83 in sec. 28 of this Act.
(b) The Alaska Energy Authority shall assist the members of the Alaska Industrial Development and Export Authority to prepare for the powers and duties granted to them under this Act.
* Sec. 39. In accordance with AS 01.10.030, if a provision of this Act, or the application of a provision of this Act to a person or circumstance, is held invalid, the remainder of this Act and the application to other persons or circumstances shall not be affected thereby.
Chapter 019
Chapter: CH019
Source: HCS CSSB 126 (FIN)
Action Date: May 13, 1993
Effective Date: August 11, 1993
93
AN ACT
Making appropriations for grants and loans for hydroelectric projects including power transmission interties, to capitalize certain funds for energy grant and loan programs in the state, including the power cost equalization and rural electric capitalization fund, to the Department of Community and Regional Affairs for operating costs related to power projects and programs and to capitalize the Railbelt energy fund.
_______________
* Section 1. (a) Subject to the conditions set out in (b) and (c) of this section, the sum of $43,200,000 is appropriated from the Railbelt intertie reserve (sec. 159, ch. 208, SLA 1990) to the Department of Administration for payments as a grant under AS 37.05.316 to Golden Valley Electric Association for the benefit of all the utilities participating in the intertie for design and construction of a power transmission intertie of at least 138 kilovolts between Healy and Fairbanks.
(b) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the Healy-Fairbanks power transmission intertie, the Department of Administration, and the Alaska Industrial Development and Export Authority that provides that the participating utility or utilities agree to
(1) pay the design and construction costs for the Healy-Fairbanks power transmission intertie that exceed $43,200,000;
(2) pay the operation and maintenance costs of the Healy-Fairbanks power transmission intertie; and
(3) allocate, in proportion to the system peak demands of the utilities participating in the intertie, less a 1.5 mill per kilowatt hour charge for all energy assessed to the line paid by the receiving utility,
(A) the costs of construction that exceed the amount of the grant under this section;
(B) the operation and maintenance costs; and
(C) the costs that may reasonably be charged for services provided, including transmission to the intertie.
(c) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the intertie and the department in which Golden Valley Electric Association agrees to provide the other participating utilities access to the intertie for the purpose of assured access to resources, economy energy transactions, and other similar uses.
* Sec. 2. (a) Subject to the conditions set out in (b) and (c) of this section, the sum of $46,800,000 is appropriated from the Railbelt intertie reserve (sec. 159, ch. 208, SLA 1990) to the Department of Administration for payment as a grant under AS 37.05.316 to Chugach Electric Association for the benefit of all the utilities participating in the intertie for design and construction of a power transmission intertie of at least 138 kilovolts between Anchorage and the Kenai Peninsula.
(b) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the Anchorage-Kenai Peninsula power transmission intertie, the Department of Administration, and the Alaska Industrial Development and Export Authority that provides that the participating utility or utilities agree to
(1) pay the design and construction costs for the Anchorage-Kenai Peninsula power transmission intertie that exceed $46,800,000;
(2) pay the operation and maintenance costs of the Anchorage-Kenai Peninsula power transmission intertie; and
(3) allocate, in proportion to the system peak demands of the utilities participating in the intertie less a 1.5 mill per kilowatt hour charge for all energy generated by the Bradley Lake hydroelectric project purchased by the receiving utility,
(A) the costs of construction that exceed the amount of the grant under this section;
(B) the operation and maintenance costs; and
(C) the costs that may reasonably be charged for services provided, including transmission to the intertie.
(c) The appropriation made by (a) of this section is contingent upon the execution of a written agreement between the electric utilities participating in the intertie and the department in which Chugach Electric Association agrees to provide the other participating utilities access to the intertie for the purpose of assured access to resources, economy energy transactions, and other similar uses.
* Sec. 3. The balance in the Railbelt intertie reserve, after the appropriations made by secs. 1 and 2 of this Act are paid, is appropriated to the Railbelt energy fund (AS 37.05.520).
* Sec. 4. (a) Subject to the conditions set out in (b) - (d) of this section, the sum of $35,000,000 is appropriated from the Railbelt energy fund (AS 37.05.520) for deposit in the power project fund (AS 42.45.010) for payment as a loan under AS 42.45.010 to the participating utilities for the design and construction of a power transmission intertie of at least 138 kilovolts between Sutton and Glennallen.
(b) Notwithstanding AS 42.45.010(g), repayments of principal and interest on the loan for which an appropriation is made under (a) of this section are appropriated to the Railbelt energy fund (AS 37.05.520).
(c) The appropriation made by (a) of this section is contingent on the participating utility or utilities and the Department of Community and Regional Affairs entering into an agreement for a loan at zero interest for a term of 50 years.
(d) The appropriation made by (a) of this section is contingent upon the completion of a feasibility study and finance plan satisfactory to the Department of Community and Regional Affairs as set out in former AS 44.83.181.
(e) In this section, "participating utilities" means the utility or utilities participating in the design, construction, operation, and maintenance of the power transmission intertie between Sutton and Glennallen.
* Sec. 5. (a) Subject to the conditions set out in (b) and (c) of this section, the sum of $20,000,000 is appropriated from the Railbelt energy fund (AS 37.05.520) for deposit in the power project fund (AS 42.45.010) for payment as a loan under AS 42.45.010 to the participating utilities for design and construction of a power transmission intertie of at least 115 kilovolts between the Swan Lake and Tyee Lake hydroelectric projects.
(b) Notwithstanding AS 42.45.010(g), repayments of principal and interest on the loan for which an appropriation is made under (a) of this section are appropriated to the Railbelt energy fund (AS 37.05.520).
(c) The appropriation made by (a) of this section is contingent on the participating utility or utilities and the Department of Community and Regional Affairs entering into an agreement for a loan at three percent interest for a term of 15 years.
(d) In this section, "participating utilities" mean the utilities participating in the design, construction, operation, and maintenance of the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects.
* Sec. 6. The sum of $3,900,000 is appropriated from the general fund to the Department of Community and Regional Affairs for operating costs for carrying out its powers and duties under AS 42.45 and AS 44.47.050(a)(19) and (20).
* Sec. 7. The unexpended and unobligated balances of the following appropriations are repealed and reappropriated to the Railbelt energy fund (AS 37.05.520):
(1) that portion of the appropriation made by sec. 25, ch. 80, SLA 1979, page 66, line 38, as amended by sec. 448(a), ch. 105, SLA 1985, and sec. 275(a), ch. 130, SLA 1986, that is allocated by sec. 25, ch. 80, SLA 1979, page 67, line 5 (Bradley Lake hydro project - $80,000);
(2) that portion of the appropriation made by sec. 1(a), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981, and sec. 236, ch. 141, SLA 1982, that is allocated by sec. 1(a)(1), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981 (Bradley Lake - $5,000,000);
(3) that portion of the appropriation made by sec. 1(b), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981, and sec. 236, ch. 141, SLA 1982, that is allocated by sec. 1(b)(1), ch. 90, SLA 1981, as amended by sec. 69, ch. 92, SLA 1981 (Bradley Lake - $10,000,000);
(4) sec. 241, ch. 141, SLA 1982 (Bradley Lake hydroelectric project - $3,000,000);
(5) AS 44.83.420, repealed by sec. 318, ch. 171, SLA 1984 (Bradley Lake hydroelectric project);
(6) sec. 5, ch. 41, SLA 1986 (Bradley Lake hydroelectric project - $50,000,000);
(7) sec. 3, ch. 128, SLA 1986, page 8, line 7, as amended by sec. 1, ch. 96, SLA 1987 (Alaska Power Authority, Bradley Lake hydroelectric project - $50,000,000);
(8) sec. 6, ch. 172, SLA 1988 (Bradley Lake power project - $7,000,000).
* Sec. 8. (a) The sum of $13,200,000 is appropriated from the general fund to the Railbelt energy fund (AS 37.05.520).
(b) The sum of $66,900,000 is appropriated from the general fund to the Railbelt energy fund (AS 37.05.520).
(c) The sum of $66,900,000 is appropriated from the Railbelt energy fund (AS 37.05.520) to the power cost equalization and rural electric capitalization fund (AS 42.45.100) to capitalize the fund.
* Sec. 9. The sum of $5,000,000 is appropriated from the general fund to the Department of Community and Regional Affairs for payment as a grant under AS 37.05.316 to the Iliamna-New Halen-Nondalton Electric Cooperative for the design and construction of a 700 kilowatt hydroelectric power project on the Tazimina River and for the associated distribution system.
* Sec. 10. The balances in the following funds on the effective date of this section are appropriated from the named former funds or accounts under the Alaska Energy Authority to the named funds established in the Department of Community and Regional Affairs to capitalize the funds:
ALASKA ENERGY FUND OR ACCOUNTDEPARTMENTAL FUND
Power cost equalization fundPower cost equalization and rural electric
(AS 44.83.162) capitalization fund (AS 42.45.100)
Power project fund (AS 44.83.170) Power project fund (AS 42.45.010)
Rural electrification revolvingRural electrification revolving
loan fund (AS 44.83.361) loan fund (AS 42.45.020)
Power development revolving loan fund Four dam pool transfer fund
(AS 44.83.500) (AS 42.45.050)
Bulk fuel revolving loan fundBulk fuel revolving loan fund
(AS 44.83.600) (AS 42.45.250)
* Sec. 11. The sum of $3,000,000 is appropriated from the general fund to the power project fund (AS 42.45.010) for payment as a loan to the City of Seward for completion of the electric transmission line from Seward to the Lawing substation.
* Sec. 12. A sum equal to the amounts deposited in the Southeast energy fund (AS 42.45.040) beginning on the effective date of this Act and ending on June 30, 1994, is appropriated from the Southeast energy fund to the Department of Administration for payment as a grant under AS 37.05.316 to the Ketchikan Public Utilities for expenses related to the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects.
* Sec. 13. The sum of $126,600 is appropriated from federal receipts to the Department of Community and Regional Affairs for federally authorized energy programs and projects.
* Sec. 14. A sum equal to the retained money held by the Alaska Energy Authority that is related to the authority's rural programs is transferred and appropriated to the Department of Community and Regional Affairs for the purposes originally intended and for other energy- related purposes and projects.
* Sec. 15. This Act takes effect only if the Eighteenth Alaska State Legislature enacts an Act that gives the Department of Community and Regional Affairs responsibility for rural power projects and programs.
