CSHB 124(STA): "An Act relating to the Alaska Industrial Development and Export Authority; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 124(STA) 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. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 SHORT TITLE. This Act may be known as the AIDEA Accountability Act. 07 * Sec. 2. AS 44.88.030(a) is amended to read: 08 (a) The membership of the authority consists of 09 (1) the commissioner of revenue and the commissioner of commerce, 10 community, and economic development; [AND] 11 (2) five public members appointed by the governor and confirmed by 12 a majority of the members of the legislature in joint session, each of whom has 13 expertise in private sector business or industry, or both, and possesses demonstrated 14 leadership skills;
01 (3) one public member, appointed by the president of the senate, 02 who is a former legislator or meets the qualifications in (2) of this subsection; and 03 (4) one public member, appointed by the speaker of the house of 04 representatives, who is a former legislator or meets the qualifications in (2) of this 05 subsection. 06 * Sec. 3. AS 44.88.030(c) is amended to read: 07 (c) Public members of the authority described in (a)(2) - (4) [(a)(2)] of this 08 section serve staggered three-year [AT THE PLEASURE OF THE GOVERNOR 09 FOR TWO-YEAR] terms. 10 * Sec. 4. AS 44.88.050(c) is amended to read: 11 (c) The authority may appoint persons as officers it considers advisable, 12 including an executive director, and may employ professional advisors, counsel, 13 technical experts, agents, and other employees it considers advisable. The executive 14 director and employees of the authority are in the exempt service under AS 39.25. The 15 authority shall adopt regulations or bylaws establishing a personnel policy, 16 including minimum qualifications for the executive director. 17 * Sec. 5. AS 44.88.085(b) is amended to read: 18 (b) The authority may adopt regulations [UNDER THIS SECTION BY 19 MOTION OR] by resolution [OR IN ANY OTHER MANNER PERMITTED BY ITS 20 BYLAWS]. 21 * Sec. 6. AS 44.88.085(d) is amended to read: 22 (d) Except as provided in (e) of this section, at least 30 [15] days before the 23 adoption, amendment, or repeal of a regulation, the authority shall give public notice 24 of the proposed action by publishing the notice in at least three newspapers of general 25 circulation in the state and by mailing a copy of the notice to every person who has 26 filed a request for notice of proposed regulations with the authority. The public notice 27 must include a statement of the time, place, and nature of the proceedings for the 28 adoption, amendment, or repeal of the regulation and must include an informative 29 summary of the subject of the proposed action. On the date and at the time and place 30 designated in the notice, the authority shall give each interested person or an 31 authorized representative of the person, or both, the opportunity to present statements,
01 arguments, or contentions orally or in writing and shall give each member 02 [MEMBERS] of the public an opportunity to present oral statements, arguments, or 03 contentions for not less than two minutes or, if a shorter time allotment is 04 necessary to allow all members of the public to present, not less than one minute 05 [A TOTAL PERIOD OF AT LEAST ONE HOUR]. The authority shall consider all 06 relevant matter presented to it before taking the proposed action on the regulation, and 07 shall publish all public comments received in writing, with personal contact 08 information redacted, on the authority's public Internet website. At a hearing 09 under this subsection, the authority may continue or postpone the hearing to a time and 10 place determined by the authority and announced at the hearing before taking the 11 action to continue or postpone the hearing. The authority shall publish written 12 justification on the authority's public Internet website when adopting, amending, 13 or repealing a regulation. A regulation adopted, amended, or repealed by the 14 authority may vary from the informative summary specified in this subsection if the 15 subject matter of the action taken on the regulation remains the same and if the 16 original notice of the proposed action was written so as to assure that members of the 17 public are reasonably notified of the subject matter of the proposed action in order for 18 them to determine whether their interests could be affected by the authority's proposed 19 action on that subject. 20 * Sec. 7. AS 44.88 is amended by adding a new section to read: 21 Sec. 44.88.179. Project oversight. Before agreeing to expend more than 22 $100,000,000 on a project, adjusted annually for inflation on July 1 of each year based 23 on the percentage increase in the Consumer Price Index for all urban consumers for 24 urban Alaska during the previous calendar year, as determined by the United States 25 Department of Labor, Bureau of Labor Statistics, the authority shall 26 (1) find, based on all information reasonably available to it, that 27 (A) the project and its development under this chapter will be 28 economically advantageous to the state and the general public welfare and will 29 contribute to the economic growth of the state; 30 (B) the project applicant, if any, is financially responsible; 31 (C) provisions to meet increased demand on public facilities
01 that might result from the project are reasonably assured; 02 (D) the project will provide or retain employment reasonably 03 related to the amount of the financing by the authority, if any, considering the 04 amount of investment for each employee for comparable facilities and other 05 relevant factors; 06 (E) the project is economically and financially feasible and able 07 to produce revenue adequate to repay the bonds or loans, if any, with which it 08 is financed; and 09 (F) the project complies with applicable law; 10 (2) compile and make available to the public a document that 11 summarizes the projected economic, social, and environmental effects of the project; 12 and, in conjunction with the Department of Fish and Game, the Department of Natural 13 Resources, the Department of Environmental Conservation, and the Department of 14 Labor and Workforce Development, the authority shall conduct a public hearing on 15 the projected effects of the project; 16 (3) obtain an independent feasibility study of the project from a 17 contractor approved by the Legislative Budget and Audit Committee; 18 (4) submit a report that includes the documents and findings required 19 under (1) - (3) of this section to the senate secretary and the chief clerk of the house of 20 representatives and notify the legislature that the report is available; and 21 (5) obtain approval of the Legislative Budget and Audit Committee. 22 * Sec. 8. AS 44.88.180(a) is amended to read: 23 (a) A member of the authority may not vote on a resolution of the authority 24 relating to a lease or contract to be entered into by the authority under this chapter if 25 the member is a party to the lease or contract or has a direct or indirect ownership 26 interest or equity interest in, or receives an economic benefit from, a firm, 27 partnership, corporation, or association that may be a party to the contract or lease. An 28 interest is indirect under this subsection if the interest is held on behalf of the 29 member through an intermediary, trust, or other arrangement, if the member 30 receives a financial benefit from the interest, if the member exercises control of 31 the interest through another individual or entity, or if the interest is held by an
01 immediate family member. A resolution of the authority that is approved by a 02 majority of the members who are not barred from voting under this subsection is a 03 valid action of the authority for all purposes. 04 * Sec. 9. AS 44.88.190(b) is amended to read: 05 (b) The funds, income, or receipts of the authority may not be considered or 06 constitute money of the state except as provided in AS 44.88.205(c), nor may real 07 property in which the authority has an interest be considered land owned in fee by the 08 state or to which the state may become entitled or in any way land belonging to the 09 state, or state land referred to in art. VIII of the Alaska Constitution. 10 * Sec. 10. AS 44.88.205 is amended to read: 11 Sec. 44.88.205. Compliance with executive budget act; authority finances. 12 (a) The [OPERATING BUDGET OF THE] authority is subject to AS 37.07 13 (Executive Budget Act). 14 (b) To further ensure effective budgetary decision making by the legislature, 15 the authority shall 16 (1) annually review the authority's assets to determine whether assets 17 of the authority exceed an amount required to fulfill the purposes of the authority as 18 defined in this chapter; in making its review, the authority shall determine whether, 19 and to what extent, assets in excess of the amount required to fulfill the purposes of 20 the authority during at least the next fiscal year are available without 21 (A) breaching any agreement entered into by the authority; 22 (B) materially impairing the operations or financial integrity of 23 the authority; or 24 (C) materially affecting the ability of the authority to fulfill the 25 authority's purposes set out in AS 44.88.070; and 26 (2) by January 10 of each year, make available to the legislature [BY 27 JANUARY 10 OF EACH YEAR] a complete accounting of all assets of the authority 28 and a report of the review and determination made under (1) of this subsection, 29 submit the accounting and report to the senate secretary and the chief clerk of 30 the house of representatives, and notify the legislature that the accounting and 31 report are available; the accounting shall be audited by the auditor who conducts the
01 audit required by AS 44.88.200 and must include a full description of all loan interest 02 and principal payments and program receipts, including 03 (A) loan commitment fees received by or accrued to the 04 authority during the preceding fiscal year; and 05 (B) all income earned on assets of the authority during that 06 period. 07 * Sec. 11. AS 44.88.205 is amended by adding a new subsection to read: 08 (c) The legislature may appropriate the income of the authority, including loan 09 interest payments, loan commitment fees, and income earned on assets of the 10 authority, as follows: 11 (1) 20 percent to the authority for the purposes described in this 12 chapter; and 13 (2) 80 percent for other purposes the legislature considers appropriate. 14 * Sec. 12. AS 44.88.210(a) is amended to read: 15 (a) By January 10 of each year, the authority shall publish a report for 16 distribution to the governor, the legislature, and the public, submit the report to the 17 senate secretary and the chief clerk of the house of representatives, and [. THE 18 AUTHORITY SHALL] notify the legislature that the report is available. The 19 authority shall develop performance metrics to evaluate, and the report must 20 include analysis of, the effect of the authority's activities on job creation, 21 supported industry growth, financial and technical assistance provided to state 22 businesses, and private investment increases. The report shall be written in easily 23 understandable language. The report must include a financial statement audited by an 24 independent outside auditor, the findings from the authority's annual audit, 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, a list of all actions taken at each 29 meeting of the authority since the previous year's annual report, and any other 30 information the members of the authority believe would be of interest to the governor, 31 the legislature, and the public. The annual income statement and balance sheet of the
01 authority shall be published in at least one newspaper in each judicial district. The 02 authority may also publish other reports it considers desirable to carry out its purpose. 03 * Sec. 13. AS 44.88.215 is repealed and reenacted to read: 04 Sec. 44.88.215. Records and information. (a) Except as provided under (b) of 05 this section, information in the possession of the authority is public and open to public 06 inspection at reasonable times. 07 (b) The authority may by regulation designate and withhold public disclosure 08 of matters of a privileged or proprietary nature. Those matters include personnel 09 records, communications with and work product of legal counsel, and proprietary 10 information relating to investment decisions. 11 (c) If a legislator has a valid legislative purpose for reviewing information in 12 possession of the authority and agrees to maintain confidentiality of the information, 13 the authority may not prevent a legislator from reviewing the information even if the 14 information is withheld from public disclosure under (b) of this section. 15 * Sec. 14. AS 44.88.600 is amended to read: 16 Sec. 44.88.600. Rural development initiative fund. The rural development 17 initiative fund is created in the authority outside of the revolving fund. The rural 18 development initiative fund is a fund for the uses and purposes of AS 44.88.600 - 19 44.88.620. The rural development initiative fund consists of money or assets 20 appropriated or transferred to the authority for the purposes of this section [,] and [OF] 21 loan repayments [, INTEREST, OR OTHER INCOME EARNED ON LOANS OR 22 INVESTMENTS OF THE FUND]. In addition, the authority may deposit other assets 23 into the fund if the total value of those deposits does not exceed $2,000,000. The 24 authority, in its discretion, may transfer money or other assets from the rural 25 development initiative fund to the revolving fund. 26 * Sec. 15. AS 44.88.660 is amended to read: 27 Sec. 44.88.660. Alaska Industrial Development and Export Authority 28 sustainable energy transmission and supply development fund. The Alaska 29 Industrial Development and Export Authority sustainable energy transmission and 30 supply development fund is established in the authority. The development fund 31 consists of appropriations made to the development fund by the legislature, money or
01 other assets transferred to the development fund by a vote of the members of the 02 authority under AS 44.88.050 from any other fund controlled by the authority, and 03 unrestricted loan repayments [, INTEREST, OR OTHER INCOME EARNED ON 04 LOANS, INVESTMENTS, OR ASSETS OF THE DEVELOPMENT FUND]. The 05 development fund is not an account in the revolving fund established in AS 44.88.060, 06 and the authority shall account for the development fund separately from the revolving 07 fund. The authority may create additional accounts in the development fund. Subject 08 to agreements made with the holders of the authority's bonds or with other persons, the 09 authority may transfer amounts in an account in the development fund to another 10 account in the development fund. Amounts deposited in the development fund may be 11 pledged to the payment of bonds of the authority or expended for the purposes of 12 AS 44.88.650 - 44.88.690. The authority has the powers and responsibilities 13 established in AS 37.10.071 with respect to the investment of amounts held in the 14 development fund. 15 * Sec. 16. AS 44.88.810 is amended to read: 16 Sec. 44.88.810. Arctic infrastructure development fund. The Arctic 17 infrastructure development fund is established in the authority. The fund consists of 18 appropriations made to the fund by the legislature, money or other assets transferred to 19 the fund by a majority vote of the members of the authority under AS 44.88.050 from 20 any other fund controlled by the authority, and unrestricted loan repayments [, 21 INTEREST, OR OTHER INCOME EARNED ON LOANS, INVESTMENTS, OR 22 ASSETS OF THE FUND]. The fund is not an account in the revolving fund 23 established in AS 44.88.060, and the authority shall account for the fund separately 24 from the revolving fund. The authority may create additional accounts in the fund. 25 Subject to agreements made with the holders of the authority's bonds or with other 26 persons, the authority may transfer amounts in an account in the fund to another 27 account in the fund. Amounts deposited in the fund may be pledged to the payment of 28 bonds of the authority or expended for the purposes of AS 44.88.800 - 44.88.840. The 29 authority has the powers and responsibilities established in AS 37.10.071 with respect 30 to the investment of amounts held in the fund. 31 * Sec. 17. AS 44.88.088 is repealed.
01 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 MEMBERS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT 04 AUTHORITY: TRANSITION. (a) The terms of the members of the Alaska Industrial 05 Development and Export Authority, other than the commissioner of revenue and the 06 commissioner of commerce, community, and economic development, expire on the date the 07 legislature has confirmed at least two members appointed by the governor under (b) of this 08 section. 09 (b) Notwithstanding AS 44.88.030(c), as amended by sec. 3 of this Act, members of 10 the Alaska Industrial Development and Export Authority appointed by the governor under 11 AS 44.88.030(a), as amended by sec. 2 of this Act, are appointed by the governor to initial 12 terms as follows: 13 (1) two members for one year; 14 (2) two members for two years; 15 (3) one member for three years. 16 (c) The president of the senate and the speaker of the house of representatives shall 17 appoint public members of the Alaska Industrial Development and Export Authority under 18 AS 44.88.030(a), as amended by sec. 2 of this Act, on or before the 30th day of the First 19 Regular Session of the Thirty-Fifth Alaska State Legislature. 20 (d) Nothing in this section prevents the appointment of a person whose term expires 21 under (a) of this section as a member of the Alaska Industrial Development and Export 22 Authority if the person meets the qualifications under AS 44.88.030, as amended by secs. 2 23 and 3 of this Act. 24 * Sec. 19. This Act takes effect January 1, 2027.