CSSB 158(RES) am: "An Act directing the commissioner of revenue to prepare a report to the legislature relating to the state's participation in owning or financing a gas pipeline project; and providing for an effective date."
00 CS FOR SENATE BILL NO. 158(RES) am 01 "An Act directing the commissioner of revenue to prepare a report to the legislature 02 relating to the state's participation in owning or financing a gas pipeline project; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 REPORT OF THE COMMISSIONER OF REVENUE. (a) In furtherance of the 08 public policy that the State of Alaska "encourage . . . the development of its resources by 09 making them available for maximum use consistent with the public interest," and the 10 obligation of the legislature to "provide for the utilization, development, and conservation of 11 all natural resources belonging to the State . . . for the maximum benefit of its people," the 12 commissioner of revenue shall, not later than January 31, 2002, provide to the governor and 13 legislature a comprehensive report, with recommendations, addressing options for the state to 14 participate in the commercial development of the state's natural gas resources through
01 ownership of or provision of financing for a gas pipeline project. The report must consider 02 whether 03 (1) the state should participate by taking an equity position in a gas pipeline 04 project by 05 (A) owning all or a portion of the project; or 06 (B) establishing a state-owned public corporation or authority to 07 construct and operate the project; 08 (2) the state should participate in financing the project and, if so, 09 (A) whether it should 10 (i) issue debt, in the form of its general obligation bonds or 11 revenue bonds of a state-owned public corporation or authority or in another 12 appropriate form; or 13 (ii) guarantee debt; and 14 (B) what terms it, or its public corporation or authority, should require 15 as conditions for provision of financial support for the project; 16 (3) the state is able to participate under (1) or (2) of this subsection; the 17 consideration given under this subsection must examine the effect of that participation on the 18 state's cash flow, its continuing ability to pay for essential public services, and the effect of its 19 participation on the state's financial integrity and creditworthiness; 20 (4) state participation under (1) or (2) of this subsection would 21 (A) create additional risks for the completion and operation of the 22 project; 23 (B) more likely than not cause the project to be completed and to 24 operate successfully; and 25 (C) accrue benefits or detriments for other parties participating with 26 the state or its public corporation or authority in the completion and operation of the 27 project; 28 (5) the state should participate in a gas pipeline project by establishing a 29 private corporation, which would be composed of Alaska residents who wish to become 30 shareholders, that would own a portion of the project or assist in the construction and 31 operation of the project; and
01 (6) consistent with the constitutional authority that requires provision for "the 02 utilization, development, and conservation of all natural resources belonging to the state . . . 03 for the maximum benefit of its people," state participation under (1), (2), or (5) of this 04 subsection would ensure or materially contribute to natural gas development and distribution 05 within the state by installation of additional pipeline facilities connecting to population 06 centers in the state, thereby supplying the energy base required for the state's long-term 07 economic development. 08 (b) The commissioner of revenue shall 09 (1) contract with a qualified and suitable firm or person qualified by education 10 or experience or of demonstrated competence for the performance of the requirements 11 described in (a) of this section; the contract awarded under this paragraph is made for a 12 purpose in which timely performance is essential that makes a procurement under AS 36.30 13 through competitive sealed bidding or competitive sealed proposals impracticable; 14 (2) require, as a term of the contract, that the person or one or more 15 representatives of the firm with which the commissioner contracts under (1) of this subsection 16 meet with the legislators who, during the Twenty-Second Alaska State Legislature, chair the 17 standing committees that have legislative jurisdiction over natural resources as provided in the 18 Uniform Rules of the Alaska State Legislature or their designees, for the purposes of allowing 19 review of the data and providing information to those legislators or designees regarding the 20 preparation and content of the report to be prepared under (a) of this section; 21 (3) provide progress reports regarding the preparation of the report to the 22 chairs of the standing committees described in (2) of this subsection at intervals of no more 23 than 60 days; and 24 (4) prepare and deliver a comprehensive report with final recommendations. 25 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).