00                             SENATE BILL NO. 164                                                                         
01 "An Act establishing a program for Alaska residents to participate as owners in a North                                 
02 Slope natural gas pipeline; and providing for an effective date."                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 44.25 is amended by adding a new section to read:                                                  
05         Article 4. Resident Investment in a North Slope Natural Gas Pipeline.                                         
06            Sec. 44.25.200. Resident participation in ownership of a North Slope                                       
07       natural gas pipeline. (a) The commissioner shall offer individuals eligible to receive                          
08       a permanent fund dividend under AS 43.23 the opportunity to participate as a co-                                  
09       owner in a North Slope natural gas pipeline. An eligible individual may invest in the                             
10       North Slope natural gas pipeline by designating an amount to be deducted from a                                   
11       permanent fund dividend for the year for the commissioner to invest in an ownership                               
12       interest in a North Slope natural gas pipeline. The commissioner shall provide a                                  
13       method for an applicant for a permanent fund dividend to designate the amount to be                               
14       deducted in a manner similar to the manner for designating a contribution under                                   
01       AS 43.23.062.                                                                                                     
02            (b)  Subject to the commissioner's discretion, an eligible individual acquiring                              
03       an ownership interest in a North Slope natural gas pipeline may receive an interest in                            
04       that portion of a North Slope natural gas pipeline acquired by the state or through the                           
05       purchase of stock in a publicly traded corporation that invests in a North Slope natural                          
06       gas pipeline.                                                                                                     
07            (c)  If the commissioner purchases stock in a publicly traded corporation on                                 
08       behalf of an individual under (b) of this section, the commissioner shall make the                                
09       purchase on the date that the eligible individual would receive payment of the                                    
10       permanent fund dividend by electronic transfer or, if the eligible individual has                                 
11       requested that the permanent fund dividend be delivered by mail, the date the                                     
12       permanent fund dividend payment would be mailed.                                                                  
13            (d)  The commissioner shall provide written notice to an eligible individual                                 
14       receiving an ownership interest under this section. The notice shall describe the type                            
15       of ownership interest received by the eligible individual and whether the interest is a                           
16       part of the equity interest originally owned by the state or is stock in a corporation                            
17       described in (b) of this section. The written notice shall include a certificate of                               
18       ownership or description of the stock held. The certificate may be transferred or                                 
19       assigned by an eligible individual to another person.                                                             
20            (e)  The state is not liable for a decline in value in the ownership interest or                             
21       stock received by an eligible individual.                                                                         
22            (f)  If a certificate of ownership or description of stock held is lost, the eligible                        
23       individual, transferee, or assignee may apply to the commissioner for a replacement in                            
24       the manner established by the commissioner by regulation.                                                         
25            (g)  If the state receives a dividend or other income for the interest held by the                           
26       state on its own behalf or on behalf of eligible individuals who share in the ownership                           
27       of the state's interest under this section, the state shall pay the proportionate share of                        
28       the dividend or income received to the individual as soon as practicable after the                                
29       receipt by the state of the dividend or income. A payment to an individual holding a                              
30       certificate of ownership under this section is not subject to payment of interest by the                          
31       state. An individual receiving payment under this section is liable for any federal,                              
01       state, or local tax applicable to the receipt of the payment.                                                     
02            (h)  Within 30 days after the first day of each regular session of the legislature,                          
03       the commissioner shall report to the legislature the number of eligible individuals                               
04       applying for an ownership interest in a North Slope natural gas pipeline during the                               
05       immediately preceding calendar year, the total amount of money received from those                                
06       individuals, the amount invested in the ownership interest of the state in a North Slope                          
07       natural gas pipeline, and the amount invested in publicly traded corporations that                                
08       invest in a North Slope natural gas pipeline.                                                                     
09            (i)  The commissioner shall provide a list of publicly traded corporations that                              
10       invest in a North Slope natural gas pipeline at the time that the application for the                             
11       annual permanent fund dividend is published or is electronically available to the                                 
12       public. A corporation may request to be included on the list by submitting an                                     
13       application to the commissioner at least 90 days before the date the commissioner is                              
14       required to provide the list in this subsection. The application by a corporation must                            
15       include information required by the commissioner, including a description of the                                  
16       interest held by the corporation in the North Slope natural gas pipeline.                                         
17            (j)  In this section,                                                                                        
18                 (1)  "commissioner" means the commissioner of revenue;                                                  
19                 (2)  "eligible individual" means an individual who applies for and is                                   
20       eligible to receive a permanent fund dividend under AS 43.23;                                                     
21                 (3)  "North Slope natural gas pipeline" means a natural gas pipeline                                    
22       project that transports natural gas produced in the state north of 68 degrees North                               
23       latitude to a market in the state or to tidewater for export from the state including a                           
24       facility in the state for liquefying natural gas for transport.                                                   
25    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
26 read:                                                                                                                   
27       APPLICABILITY. If sec. 1 of this Act takes effect, AS 44.25.200 is applicable on the                              
28 first day of January that is more than six months after the effective date of sec. 1 of this Act.                       
29    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
30 read:                                                                                                                   
31       TRANSITION; REGULATIONS; CORPORATION LIST. (a) Notwithstanding the                                                
01 effective date of sec. 1 of this Act, the commissioner of revenue may adopt regulations                                 
02 necessary to implement sec. 1 of this Act. The regulations take effect under AS 44.62                                   
03 (Administrative Procedure Act), but not before the effective date of sec. 1 of this Act.                                
04       (b)  The commissioner of revenue may receive an application for inclusion on the list                             
05 described in AS 44.25.200(i), enacted by sec. 1 of this Act, before the date that sec. 1 of this                        
06 Act is applicable under sec. 2 of this Act.                                                                             
07    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
08 read:                                                                                                                   
09       CONDITIONAL EFFECT. Section 1 of this Act takes effect only if the state acquires                                 
10 an ownership interest in a natural gas pipeline that transports natural gas produced in the state                       
11 north of 68 degrees North latitude to a market in the state or to tidewater for export from the                         
12 state or acquires an ownership interest in a project to construct and own a natural gas pipeline                        
13 designed to transport natural gas produced in the state north of 68 degrees North latitude to a                         
14 market in the state or to tidewater for export from the state. The commissioner of revenue                              
15 shall notify the lieutenant governor of the date the state acquires an ownership interest                               
16 described in this section.                                                                                              
17    * Sec. 5. If sec. 1 of this Act takes effect under sec. 4 of this Act, sec. 1 of this Act takes                    
18 effect on the date of acquisition of an ownership interest that is reported to the lieutenant                           
19 governor under sec. 4 of this Act.                                                                                      
20    * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect immediately under                        
21 AS 01.10.070(c).