HB 271: "An Act relating to the Alaska Industrial Development and Export Authority; and providing for an effective date."
00 HOUSE BILL NO. 271 01 "An Act relating to the Alaska Industrial Development and Export Authority; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 44.88.030(a) is amended to read: 05 (a) The membership of the authority consists of 06 (1) the commissioner of revenue and the commissioner of commerce, 07 community, and economic development; and 08 (2) five public members appointed by the governor and confirmed by 09 a majority of the members of the legislature in joint session, each of whom has 10 expertise in private sector business or industry, or both, and possesses demonstrated 11 leadership skills. 12 * Sec. 2. AS 44.88.030(c) is amended to read: 13 (c) Public members of the authority described in (a)(2) of this section serve 14 staggered five-year [AT THE PLEASURE OF THE GOVERNOR FOR TWO-
01 YEAR] terms. 02 * Sec. 3. AS 44.88.030 is amended by adding a new subsection to read: 03 (e) The five public members appointed under (a)(2) of this section shall 04 include at least 05 (1) one member who represents an Alaska Native tribal government; 06 (2) one member who has leadership experience financing a private 07 sector project valued at or above $20,000,0000; 08 (3) one member with experience in socially responsible investing; and 09 (4) one member with experience in renewable energy project 10 development. 11 * Sec. 4. AS 44.88.050(c) is amended to read: 12 (c) The authority may appoint persons as officers it considers advisable, 13 including an executive director confirmed by a majority of the members of the 14 legislature in joint session, and may employ professional advisors, counsel, technical 15 experts, agents, and other employees it considers advisable. The executive director and 16 employees of the authority are in the exempt service under AS 39.25. The authority 17 shall adopt regulations or bylaws establishing a personnel policy, including 18 minimum qualifications for the executive director. 19 * Sec. 5. AS 44.88.085(b) is amended to read: 20 (b) The authority may adopt regulations [UNDER THIS SECTION BY 21 MOTION OR] by resolution [OR IN ANY OTHER MANNER PERMITTED BY ITS 22 BYLAWS]. 23 * Sec. 6. AS 44.88.085(d) is amended to read: 24 (d) Except as provided in (e) of this section, at least 30 [15] days before the 25 adoption, amendment, or repeal of a regulation, the authority shall give public notice 26 of the proposed action by publishing the notice in at least three newspapers of general 27 circulation in the state and by mailing a copy of the notice to every person who has 28 filed a request for notice of proposed regulations with the authority. The public notice 29 must include a statement of the time, place, and nature of the proceedings for the 30 adoption, amendment, or repeal of the regulation and must include an informative 31 summary of the subject of the proposed action. On the date and at the time and place
01 designated in the notice, the authority shall give each interested person or an 02 authorized representative of the person, or both, the opportunity to present statements, 03 arguments, or contentions orally or in writing and shall give each member 04 [MEMBERS] of the public an opportunity to present oral statements, arguments, or 05 contentions for not less than two minutes [A TOTAL PERIOD OF AT LEAST ONE 06 HOUR]. The authority shall consider all relevant matter presented to it before taking 07 the proposed action on the regulation, and shall publish written responses to public 08 comments. At a hearing under this subsection, the authority may continue or postpone 09 the hearing to a time and place determined by the authority and announced at the 10 hearing before taking the action to continue or postpone the hearing. The authority 11 shall publish written justification when adopting, amending, or repealing a 12 regulation. A regulation adopted, amended, or repealed by the authority may vary 13 from the informative summary specified in this subsection if the subject matter of the 14 action taken on the regulation remains the same and if the original notice of the 15 proposed action was written so as to assure that members of the public are reasonably 16 notified of the subject matter of the proposed action in order for them to determine 17 whether their interests could be affected by the authority's proposed action on that 18 subject. 19 * Sec. 7. AS 44.88.088(a) is amended to read: 20 (a) The authority shall adopt a policy for payment of a dividend from the 21 revolving fund, the Alaska Industrial Development and Export Authority sustainable 22 energy transmission and supply development fund (AS 44.88.660), and the Arctic 23 infrastructure development fund (AS 44.88.810) to the state each fiscal year. The 24 dividends for a fiscal year shall be made available by the authority before the end of 25 that fiscal year. The authority shall notify the commissioner of revenue when the 26 dividends for a fiscal year are available for appropriation. The amount of the dividend 27 payable from the 28 (1) revolving fund for a fiscal year must be at least [MAY NOT BE 29 LESS THAN 25 PERCENT NOR MORE THAN] 50 percent of the net income of the 30 revolving fund for the base fiscal year; however, in no event, may the dividend 31 payable from the revolving fund for a fiscal year exceed the total unrestricted net
01 income of the revolving fund for the base year; 02 (2) Alaska Industrial Development and Export Authority sustainable 03 energy transmission and supply development fund (AS 44.88.660) for a fiscal year 04 must be at least [MAY NOT BE LESS THAN 25 PERCENT NOR MORE THAN] 05 50 percent of the net income of the Alaska Industrial Development and Export 06 Authority sustainable energy transmission and supply development fund for the base 07 fiscal year; however, the dividend payable from the Alaska Industrial Development 08 and Export Authority sustainable energy transmission and supply development fund 09 for a fiscal year may not exceed the total unrestricted net income of the Alaska 10 Industrial Development and Export Authority sustainable energy transmission and 11 supply development fund for the base year; 12 (3) Arctic infrastructure development fund (AS 44.88.810) for a fiscal 13 year must be at least [MAY NOT BE LESS THAN 25 PERCENT NOR MORE 14 THAN] 50 percent of the net income of the Arctic infrastructure development fund for 15 the base fiscal year; however, the dividend payable from the Arctic infrastructure 16 development fund for a fiscal year may not exceed the total unrestricted net income of 17 the Arctic infrastructure development fund for the base year. 18 * Sec. 8. AS 44.88.174(a) is amended to read: 19 (a) Within 30 days after the authority adopts a resolution certifying that a 20 project in the unorganized borough is eligible for financing under AS 44.88.172 or 21 adopts a resolution under AS 44.88.179(b), the governor shall appoint a Regional 22 Resource Advisory Council in the area of the state where the project is to be located 23 and for which a regional housing authority has been established under AS 18.55.996. 24 The purpose of a council is to assist the authority in reviewing a project that has been 25 proposed for development in its area of the state. 26 * Sec. 9. AS 44.88 is amended by adding a new section to read: 27 Sec. 44.88.179. Project oversight. (a) Before agreeing to expend more than 28 $10,000,000 on a project, the authority shall 29 (1) obtain a certified copy of a resolution of the governing body of the 30 political subdivision of the state, if any, in which the project is to be located, 31 consenting to the location of the project; the consent need only refer to the general
01 nature of the project; 02 (2) find, based on all information reasonably available to it, that 03 (A) the project and its development under this chapter will be 04 economically advantageous to the state and the general public welfare and will 05 contribute to the economic growth of the state; 06 (B) the project applicant, if any, is financially responsible; 07 (C) provisions to meet increased demand on public facilities 08 that might result from the project is reasonably assured; 09 (D) the project will provide or retain employment reasonably 10 related to the amount of the financing by the authority, if any, considering the 11 amount of investment for each employee for comparable facilities and other 12 relevant factors; 13 (E) the project is economically and financially feasible and able 14 to produce revenue adequate to repay the bonds or loans, if any, with which it 15 is financed; and 16 (F) the project complies with applicable law; 17 (3) compile and make available to the public a document that 18 summarizes the projected economic, social, and environmental effects of the project; 19 and, in conjunction with the Department of Fish and Game, the Department of Natural 20 Resources, the Department of Environmental Conservation, and the Department of 21 Labor and Workforce Development, the authority shall conduct a public hearing on 22 the projected effects of the project. 23 (b) In addition to the requirements under (a) of this section, before approving a 24 project for financing of more than $10,000,000 the authority shall 25 (1) adopt a resolution describing the project that the authority intends 26 to finance; 27 (2) obtain the approval of each Regional Resource Advisory Council 28 appointed under (d) of this section or municipality in the area in which the proposed 29 project is to be located; approval must be evidenced by a certified copy of a resolution 30 of the council or of the governing body of the municipality adopted after the council or 31 governing body conducted a public hearing on the proposed project;
01 (3) prepare a finance plan that includes 02 (A) an estimate of the total cost of the project; 03 (B) a description of the sources of money that will be used to 04 finance the total cost of the project; 05 (C) an estimate of the operational costs of the completed 06 project, as well as a description of the source of the money that is to be used to 07 pay the operational costs; and 08 (D) identification of the method of financing that minimizes the 09 cost to the state. 10 (c) In addition to the requirements under (a) and (b) of this section, before 11 issuing more than $10,000,000 of bonds for a project, the authority shall 12 (1) find, based on all information reasonably available to it, that 13 issuance of the bonds is not expected to adversely affect the ability of the state or any 14 political subdivision of the state to market other bonds; 15 (2) obtain approval from the legislature, excluding refunding bonds; 16 refunding bonds may be issued without approval by the legislature in a principal 17 amount sufficient to provide funds for the payment of all bonds to be refunded by 18 them and, in addition, for the payment of all other amounts that the authority considers 19 appropriate in connection with the refunding, including expenses incident to the 20 redeeming, calling, retiring, or paying of the outstanding bonds, the funding of 21 reserves, and the issuance of the refunding bonds; 22 (3) submit a finance plan prepared under (b) of this section to the state 23 bond committee, the governor, and the legislature before issuing bonds or otherwise 24 incurring debt for the project; if a project requires financial assistance from the state, 25 the state financial assistance must be available before bonds are issued for the project. 26 (d) Within 30 days after the authority adopts a resolution certifying that a 27 project in the unorganized borough is eligible for financing under (b) of this section, 28 the governor shall appoint a Regional Resource Advisory Council in the area of the 29 state where the project is to be located and for which a regional housing authority has 30 been established under AS 18.55.996. The purpose of a council is to assist the 31 authority in reviewing a project that has been proposed for development in its area of
01 the state. A Regional Resource Advisory Council consists of five members registered 02 to vote in the region. The governor shall appoint the members to reflect the economic 03 and geographic diversity of the region. Council members serve three-year terms at the 04 pleasure of the governor, except that the initial members may be appointed for less 05 than three years so that the term of at least one of the members expires each year. The 06 governor shall appoint a chairperson who shall call meetings as required and preside 07 over the deliberations of the council. A majority of the council constitutes a quorum 08 for conducting the business of the council. Members of a Regional Resource Advisory 09 Council do not receive compensation for their services on the council, but are entitled 10 to per diem and travel expenses authorized by law for state boards and commissions 11 under AS 39.20.180. 12 * Sec. 10. AS 44.88 is amended by adding a new section to read: 13 Sec. 44.88.185. Priority of projects. When selecting projects and investments, 14 the authority shall prioritize projects that further the state Arctic policy under 15 AS 44.99.105 and the state energy policy under AS 44.99.115. 16 * Sec. 11. AS 44.88.210(a) is amended to read: 17 (a) By January 10 of each year, the authority shall publish a report for 18 distribution to the governor, legislature, and the public. The authority shall notify the 19 legislature that the report is available. The authority shall develop performance 20 metrics to evaluate, and the report must include analysis of, the impact of the 21 authority's activities on job creation, supported industry growth, financial and 22 technical assistance provided to state businesses, and private investment 23 increases. The report shall be written in easily understandable language. The report 24 must include a financial statement audited by an independent outside auditor, a 25 statement of the authority's investments under this chapter including an appraisal of 26 the investments at market value, a comparison of the authority's performance with the 27 goals of the authority and the levels of bonding and investment activities anticipated in 28 the previous year's report under (b) of this section, and any other information the 29 members of the authority believe would be of interest to the governor, the legislature, 30 and the public. The annual income statement and balance sheet of the authority shall 31 be published in at least one newspaper in each judicial district. The authority may also
01 publish other reports it considers desirable to carry out its purpose. 02 * Sec. 12. AS 44.88.215 is repealed and reenacted to read: 03 Sec. 44.88.215. Records and information; public records. (a) The records or 04 information submitted to the authority are public records under AS 40.25.110 - 05 40.25.220. 06 (b) Before accepting submission of records or information, the authority shall 07 require a written waiver acknowledging that the submission is a public record under 08 AS 40.25.110 - 40.25.220. 09 * Sec. 13. AS 44.88.030(b) is repealed. 10 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 MEMBERS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT 13 AUTHORITY: TRANSITION. (a) The terms of the members of the Alaska Industrial 14 Development and Export Authority, other than the commissioner of revenue and the 15 commissioner of commerce, community, and economic development, expire on the date the 16 legislature has confirmed at least two members appointed by the governor under (b) of this 17 section. 18 (b) Notwithstanding AS 44.88.030(c), as amended by sec. 2 of this Act, members of 19 the Alaska Industrial Development and Export Authority appointed by the governor under 20 AS 44.88.030(a), as amended by sec. 1 of this Act, are appointed by the governor to initial 21 terms as follows: 22 (1) one member for one year; 23 (2) one member for two years; 24 (3) one member for three years; 25 (4) one member for four years; 26 (5) one member for five years. 27 (c) Nothing in this section prevents the appointment of a person whose term expires 28 under (a) of this section as a member of the Alaska Industrial Development and Export 29 Authority if the person meets the qualifications under AS 44.88.030, as amended by secs. 1 - 30 3 of this Act. 31 * Sec. 15. This Act takes effect January 1, 2023.