00                      CS FOR HOUSE BILL NO. 119(EDT)                                                                    
01 "An Act relating to the procurement of supplies, services, professional services, and                                   
02 construction for the Alaska Industrial Development and Export Authority; relating to                                    
03 the definition of 'own' for the economic development account; relating to the definitions                               
04 of 'development project', 'plant', 'facility', and 'project' for the Alaska Industrial                                  
05 Development and Export Authority; relating to the Alaska Industrial Development and                                     
06 Export Authority creating subsidiaries regarding projects financed under AS 44.88.172;                                  
07 and providing for an effective date."                                                                                   
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
09    * Section 1. AS 36.30.015(f) is amended to read:                                                                   
10            (f)  The board of directors of the Alaska Housing Finance Corporation,                                       
11       notwithstanding AS 18.56.088, the membership of the Alaska Industrial                                         
12       Development and Export Authority, notwithstanding AS 44.88.085, and the board                                 
13       of directors of the Knik Arm Bridge and Toll Authority under AS 19.75.111, shall                                  

01       adopt regulations under AS 44.62 (Administrative Procedure Act) and the board of                                  
02       trustees of the Alaska Retirement Management Board shall adopt regulations under                                  
03       AS 37.10.240 to govern the procurement of supplies, services, professional services,                              
04       and construction for the respective public corporation and board. The regulations must                            
05       reflect competitive bidding principles and provide vendors reasonable and equitable                               
06       opportunities to participate in the procurement process and must include procurement                              
07       methods to meet emergency and extraordinary circumstances. Notwithstanding the                                    
08       other provisions of this subsection, the Alaska Housing Finance Corporation, the                              
09       Alaska Industrial Development and Export Authority, the Knik Arm Bridge and                                   
10       Toll Authority, and the Alaska Retirement Management Board shall comply with                                      
11       AS 36.30.170(b).                                                                                                  
12    * Sec. 2. AS 44.88.172(a) is amended to read:                                                                      
13            (a)  The economic development account is established in the revolving fund.                                  
14       The economic development account consists of money or assets appropriated, loaned,                                
15       or transferred to the authority for deposit in the account and other money or assets                              
16       deposited in the account by the authority. While money is on deposit in the economic                              
17       development account, the money may be used only to finance, acquire, manage, and                                  
18       operate development projects that the authority intends to own and operate. In this                               
19       subsection,                                                                                                       
20                 (1)  "operate" includes operation directly by the authority, by an agent                                
21       of the authority, or by a person as determined under an agreement between the                                     
22       authority and other owners of the development project;                                                            
23                 (2)  "own" includes ownership by the authority of all or a percentage of                                
24       a development project, or all or a percentage of the shares of a corporation or                               
25       membership in a limited liability company for which the development project is                                
26       the sole asset of the corporation or limited liability company.                                               
27    * Sec. 3. AS 44.88 is amended by adding a new section to read:                                                     
28            Sec. 44.88.178. Creation of subsidiaries. The authority may create one or                                  
29       more subsidiary corporations for the purpose of acquiring, constructing, owning,                                  
30       operating, or financing a project financed under AS 44.88.172. A subsidiary                                       
31       corporation created under this section may be incorporated under AS 10.20.146 -                                   

01       10.20.166. The authority may transfer assets of the authority to a subsidiary created                             
02       under this section. A subsidiary created under this section may borrow money and                                  
03       issue bonds as evidence of that borrowing, and has all the powers of the authority that                           
04       the authority grants to it. Unless otherwise provided by the authority, the debts,                                
05       liabilities, and obligations of a subsidiary corporation created under this section are not                       
06       the debts, liabilities, or obligations of the authority.                                                          
07    * Sec. 4. AS 44.88.900(3) is amended to read:                                                                      
08                 (3)  "development project" has the meaning given to "project" in (9)(A)                             
09       and (D) - (H) [(9)(A) AND (D) - (F)] of this section;                                                         
10    * Sec. 5. AS 44.88.900(8) is amended to read:                                                                      
11                 (8)  "plant" or "facility" means real property, whether above or below                                  
12       mean high water, or an interest in it, and the buildings, improvements and structures                             
13       constructed or to be constructed on or in it, and may include roads, fixtures,                                
14       machinery, and equipment on it or in it, and tangible personal property, regardless of                            
15       whether the tangible personal property is attached to or connected with real property,                            
16       if the owner has agreed not to remove the tangible personal property permanently from                             
17       the state for the period the authority sets; "plant" or "facility" does not include work in                       
18       process or stock in trade;                                                                                        
19    * Sec. 6. AS 44.88.900(9) is amended to read:                                                                      
20                 (9)  "project" means                                                                                    
21                      (A)  a plant or facility used or intended for use in connection                                    
22            with making, processing, preparing, transporting, or producing in any manner,                                
23            goods, products, or substances of any kind or nature or in connection with                                   
24            developing or utilizing a natural resource, or extracting, smelting, transporting,                           
25            converting, assembling, or producing in any manner, minerals, raw materials,                                 
26            chemicals, compounds, alloys, fibers, commodities and materials, products, or                                
27            substances of any kind or nature;                                                                            
28                      (B)  a plant or facility used or intended for use in connection                                    
29            with a business enterprise;                                                                                  
30                      (C)  commercial activity by a business enterprise;                                                 
31                      (D)  a plant or facility demonstrating technological advances of                                   

01            new methods and procedures and prototype commercial applications for the                                     
02            exploration, development, production, transportation, conversion, and use of                                 
03            energy resources;                                                                                            
04                      (E)  infrastructure for a new tourism destination facility or for                                  
05            the expansion of a tourism destination facility; in this subparagraph, "tourism                              
06            destination facility" does not include a hotel or other overnight lodging facility;                          
07                      (F)  a plant or facility, other than a plant or facility described in                              
08            (D) of this paragraph, for the generation, transmission, development,                                        
09            transportation, conversion, or use of energy resources;                                                      
10                      (G)  a plant or facility that enhances, provides for, or                                       
11            promotes economic development with respect to transportation,                                            
12            communications, community public purposes, technical innovations,                                        
13            prototype commercial applications of intellectual property, or research;                                 
14                      (H)  a plant or facility used or intended for use as a federal                                 
15            facility, including a United States military, national guard, or coast guard                             
16            facility;                                                                                                
17    * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).