00 SENATE BILL NO. 125 01 "An Act establishing the Alaska Gasline Finance Corporation; and relating to 02 contributions from permanent fund dividends for the financing of a natural gas 03 pipeline." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 31 is amended by adding a new chapter to read: 06 Chapter 27. Alaska Gasline Finance Corporation.  07 Sec. 31.27.010. Alaska Gasline Finance Corporation. The Alaska Gasline 08 Finance Corporation is established in the Department of Revenue. The corporation is a 09 public corporation and government instrumentality managed by a board of directors. 10 The purpose of the corporation is to finance a natural gas pipeline in the state. 11 Sec. 31.27.020. Board of directors. (a) The corporation shall be governed by a 12 board of directors consisting of 13 (1) four public members; and 14 (2) the commissioner of revenue. 01 (b) The governor shall appoint the public members of the board. When 02 appointing a public member to the board, the governor shall consider an individual's 03 expertise and experience in natural gas project construction financing, large project 04 financing, and other expertise and experience that is relevant to the purpose, powers, 05 and duties of the corporation. Public members of the board serve staggered five-year 06 terms. A public member serves at the pleasure of the governor. A vacancy shall be 07 filled in the same manner as the original appointment. 08 Sec. 31.27.030. Purpose; powers. (a) The corporation shall develop and have 09 primary responsibility for financing a natural gas pipeline in the state.  10 (b) The corporation may enter into agreements with other state agencies as 11 necessary or convenient to implement this chapter. 12 (c) The corporation may contract for the services of underwriters, paying 13 agents, trustees, escrow agents, rating agencies, insurance providers, credit 14 enhancement providers, accountants, financial advisors, legal counsel, and other 15 services as are necessary or desirable to accomplish the financing of a natural gas 16 pipeline. 17 Sec. 31.27.040. Fund. (a) The Alaska Gasline Finance Corporation fund is 18 established in the corporation. The fund consists of  19 (1) money appropriated to the fund by the legislature; 20 (2) proceeds from the sale of ownership shares in a natural gas 21 pipeline, including from share purchases under AS 43.23.135; and 22 (3) other money of the corporation that the corporation decides to 23 deposit in the fund. 24 (b) Money in the fund may be invested in the same manner and on the same 25 conditions as permitted for investment of funds belonging to the state or held in the 26 treasury under AS 37.10.070. 27 Sec. 31.27.050. Shares. (a) The corporation shall offer shares of a natural gas 28 pipeline to the public. Except as provided in (b) of this section, the minimum 29 investment amount is $2,500. 30 (b) At the time of the initial share offering, the corporation shall offer shares 31 of a natural gas pipeline with no minimum or maximum investment amount.  01 Sec. 31.27.060. Regulations. The corporation may adopt regulations necessary 02 to implement the provisions of this chapter. 03 Sec. 31.27.090. Definitions. In this chapter,  04 (1) "corporation" means the Alaska Gasline Finance Corporation; 05 (2) "fund" means the Alaska Gasline Finance Corporation fund; 06 (3) "natural gas pipeline" has the meaning given in AS 31.25.390. 07  * Sec. 2. AS 43.23 is amended by adding a new section to read: 08 Sec. 43.23.135. Natural gas pipeline share purchase. (a) Notwithstanding 09 AS 43.23.200, the electronic Alaska permanent fund dividend application must allow 10 an applicant to direct that the applicant's dividend payment be invested in shares of a 11 natural gas pipeline financed by the Alaska Gasline Finance Corporation. A share 12 purchase under this subsection must be for the entire amount of the permanent fund 13 dividend that the applicant is entitled to receive. An applicant may not make 14 contributions under AS 43.23.130 or donations under AS 43.23.230 if the applicant 15 makes a share purchase under this subsection. 16 (b) To make a share purchase under this section, an applicant must agree to 17 purchasing shares with at least three consecutive years of permanent fund dividend 18 payments. There is no penalty for violation of an agreement under this subsection. 19 (c) A parent, guardian, or other authorized representative may elect to 20 purchase shares under this subsection on behalf of an individual. A public agency that 21 claims a permanent fund dividend on behalf of an individual under AS 43.23.015(e) 22 may not elect to make a share purchase from the dividend under this section. 23  * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 ALASKA GASLINE FINANCE CORPORATION BOARD. Notwithstanding 26 AS 39.05.055, the governor shall set the terms of the initially appointed public members of 27 the board as follows: 28 (1) two members shall serve two-year terms; 29 (2) one member shall serve a three-year term; and 30 (3) one member shall serve a five-year term.