CSHB 381(RES): "An Act relating to the taxation of certain natural gas project property and related facilities; relating to local contributions for public school funding; relating to municipal property taxes and equity ownership agreements; relating to revenue from a North Slope natural gas project; relating to revenue received from the state's royalty gas; relating to an alternative volumetric tax on natural gas throughput; relating to agreements related to a natural gas project and a designated community impact fund; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 381(RES) 01 "An Act relating to the taxation of certain natural gas project property and related 02 facilities; relating to local contributions for public school funding; relating to municipal 03 property taxes and equity ownership agreements; relating to revenue from a North 04 Slope natural gas project; relating to revenue received from the state's royalty gas; 05 relating to an alternative volumetric tax on natural gas throughput; relating to 06 agreements related to a natural gas project and a designated community impact fund; 07 and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 LEGISLATIVE FINDINGS. The legislature finds that the tax treatment in this Act is 12 necessary to advance a major natural gas project and to ensure that 13 (1) the project maximizes the benefit to the state by ensuring direct and
01 affordable access to natural gas to the residents of the state; and 02 (2) communities affected by the natural gas project are protected from the 03 negative effects of the project. 04 * Sec. 2. AS 14.17.510 is amended by adding a new subsection to read: 05 (d) In this section, the full and true value of the taxable real and personal 06 property does not include property subject to the alternative volumetric tax levied 07 under AS 43.59.020. 08 * Sec. 3. AS 14.17.990(6) is amended to read: 09 (6) "local contribution" 10 (A) means appropriations and the value of in-kind services 11 made by a district; 12 (B) does not include 13 (i) tax revenue resulting from property taxes on a 14 gas treatment plant, carbon capture facility, or liquefied natural 15 gas facility related to a natural gas project, as defined in 16 AS 43.59.100; 17 (ii) appropriations of revenue received by a 18 municipality under AS 43.59.040; 19 * Sec. 4. AS 29.45.050 is amended by adding a new subsection to read: 20 (aa) A municipality may by ordinance partially or totally exempt from 21 taxation or provide an alternate tax rate for all or some property related to a natural gas 22 project for a designated period. A municipality may by ordinance permit deferral of 23 payment of taxes on a natural gas project for a designated period. A municipality may 24 apply an exemption or deferral under this subsection to taxes levied for special 25 services in a service area that is supervised by an elected service area board under 26 AS 29.35.460 unless the elected service area board objects to the exemption or 27 deferral by resolution adopted not later than 60 days after the effective date of the 28 municipal ordinance enacting the tax exemption or deferral. A municipality may adopt 29 an ordinance under this subsection only if, before it is adopted, copies of the proposed 30 ordinance made available at a public hearing on it contain written notice that the 31 ordinance, if adopted, may be repealed by the voters through referendum. An
01 ordinance adopted under this subsection must include specific eligibility requirements 02 and require a written application for each exemption or deferral. In this subsection, 03 "natural gas project" has the meaning given in AS 43.59.100. 04 * Sec. 5. AS 29.45 is amended by adding a new section to read: 05 Sec. 29.45.085. Alternative volumetric tax election; equity option. (a) A 06 municipality may by ordinance elect to exempt from municipal taxation under 07 AS 29.45.010 - 29.45.560 a gas treatment plant, carbon capture facility, or liquefied 08 natural gas plant. 09 (b) If a municipality by ordinance elects to exempt property from tax under (a) 10 of this section, the municipality may by ordinance elect to enter into an agreement 11 with the owner of the gas treatment plant, carbon capture facility, or liquefied natural 12 gas plant to receive an equity interest in the gas treatment plant, carbon capture 13 facility, or liquefied natural gas plant. 14 (c) An equity interest accrued under (b) of this section 15 (1) may be structured as an ownership interest, revenue interest, or 16 other equivalent participation; 17 (2) must be in proportion to the value determined as if the property 18 were subject to municipal property tax; 19 (3) must entitle the municipality to distributions, participation, voting 20 and governance rights, contractual rights, and options, consistent with other equity 21 holders. 22 (d) An equity interest accrued under this section is exempt from the limitations 23 in AS 29.45.080(c) - (f) and 29.45.090. 24 (e) In this section, "carbon capture facility," "gas treatment plant," and 25 "liquefied natural gas plant" mean a "carbon capture facility," "gas treatment plant," or 26 "liquefied natural gas plant" associated with a natural gas project, as defined in 27 AS 43.59.100. 28 * Sec. 6. AS 37.14 is amended by adding a new section to read: 29 Article 12. Constitutional Education Fund. 30 Sec. 37.14.900. Alaska education fund. (a) Under art. IX, sec. 18, 31 Constitution of the State of Alaska, the Alaska education fund is established as a
01 separate fund in the state treasury. 02 (b) Notwithstanding any other provision of law, the Alaska education fund 03 consists of all revenue received by the state associated with a North Slope natural gas 04 project that remains after 05 (1) the payment to the Alaska permanent fund under AS 37.13.010; 06 (2) the payments to municipalities, reserves, and communities in the 07 unorganized borough under AS 43.59.040; and 08 (3) the payment to the renewable energy grant fund under 09 AS 42.45.045(m). 10 (c) The commissioner of revenue is the fiduciary of the Alaska education 11 fund. The commissioner of revenue shall manage and invest the fund assets as 12 provided in AS 37.10.071. 13 (d) In this section, "North Slope natural gas project" has the meaning given to 14 "natural gas project" in AS 43.59.100. 15 * Sec. 7. AS 42.45.045(b) is amended to read: 16 (b) The authority shall administer the fund as a fund distinct from other funds 17 of the authority. The fund consists of 18 (1) money appropriated to the fund by the legislature, including 19 appropriations made under (m) of this section, to provide grants for certain energy 20 projects determined by the legislature; 21 (2) gifts, bequests, contributions from other sources, and federal 22 money; 23 (3) interest earned on the fund balance; and 24 (4) investments to be managed by the Department of Revenue, which 25 shall be the fiduciary of the fund under AS 37.10.071. 26 * Sec. 8. AS 42.45.045 is amended by adding a new subsection to read: 27 (m) Each year, the legislature may appropriate to the fund 20 percent of the 28 revenue received from the state's royalty gas transported in an Alaska liquefied natural 29 gas project that remains after the payment to the Alaska permanent fund under 30 AS 37.13.010. In this subsection, "Alaska liquefied natural gas project" has the 31 meaning given in AS 31.25.390.
01 * Sec. 9. AS 43.56.010(a) is amended to read: 02 (a) Except as provided in AS 43.59.020, an [AN] annual tax of 20 mills is 03 levied each tax year beginning January 1, 1974, on the full and true value of taxable 04 property taxable under this chapter. 05 * Sec. 10. AS 43.56.010(a), as amended by sec. 9 of this Act, is amended to read: 06 (a) An [EXCEPT AS PROVIDED IN AS 43.59.020, AN] annual tax of 20 07 mills is levied each tax year beginning January 1, 1974, on the full and true value of 08 taxable property taxable under this chapter. 09 * Sec. 11. AS 43.56.010(b) is amended to read: 10 (b) A municipality may levy and collect a tax under AS 29.45.080 at the rate 11 of taxation that applies to other property taxed by the municipality. The tax shall be 12 levied at a rate not [NO] higher than the rate applicable to other property taxable by 13 the municipality. Except as provided in this section and AS 29.45.085, a [A] 14 municipality may not exempt from taxation property authorized to be taxed under this 15 chapter. Exemptions shall be limited to those in AS 29.45.030, 29.45.050, and 16 AS 43.56.020. 17 * Sec. 12. AS 43.56.010(b), as amended by sec. 11 of this Act, is amended to read: 18 (b) A municipality may levy and collect a tax under AS 29.45.080 at the rate 19 of taxation that applies to other property taxed by the municipality. The tax shall be 20 levied at a rate not higher than the rate applicable to other property taxable by the 21 municipality. Except as provided in this section [AND AS 29.45.085], a municipality 22 may not exempt from taxation property authorized to be taxed under this chapter. 23 Exemptions shall be limited to those in AS 29.45.030, 29.45.050, and AS 43.56.020. 24 * Sec. 13. AS 43.56.020(d) is amended to read: 25 (d) Taxable property subject to the volumetric tax imposed under 26 AS 43.59.020 [OF A NATURAL GAS PIPELINE PROJECT OWNED OR 27 FINANCED BY THE ALASKA GASLINE DEVELOPMENT CORPORATION OR 28 A JOINT VENTURE, PARTNERSHIP, OR OTHER ENTITY THAT INCLUDES 29 THE ALASKA GASLINE DEVELOPMENT CORPORATION] is exempt from state 30 taxes levied or authorized under AS 43.56.010(a) and municipal taxes levied or 31 authorized under AS 43.56.010(b) [BEFORE THE COMMENCEMENT OF
01 COMMERCIAL OPERATIONS OF THAT NATURAL GAS PIPELINE PROJECT. 02 IN THIS SUBSECTION, "COMMENCEMENT OF COMMERCIAL 03 OPERATIONS" MEANS THE FIRST FLOW OF NATURAL GAS IN THE 04 PROJECT THAT GENERATES REVENUE TO THE OWNERS OF THE 05 NATURAL GAS PIPELINE PROJECT]. 06 * Sec. 14. AS 43.56.020(d), as amended by sec. 13 of this Act, is amended to read: 07 (d) Taxable property of a natural gas pipeline project owned or financed 08 by the Alaska Gasline Development Corporation or a joint venture, partnership, 09 or other entity that includes the Alaska Gasline Development Corporation 10 [SUBJECT TO THE VOLUMETRIC TAX IMPOSED UNDER AS 43.59.020] is 11 exempt from state taxes levied or authorized under AS 43.56.010(a) and municipal 12 taxes levied or authorized under AS 43.56.010(b) before the commencement of 13 commercial operations of that natural gas pipeline project. In this subsection, 14 "commencement of commercial operations" means the first flow of natural gas in 15 the project that generates revenue to the owners of the natural gas pipeline 16 project. 17 * Sec. 15. AS 43.56.210(5) is amended to read: 18 (5) "taxable property" 19 (A) means real and tangible personal property used or 20 committed by contract or other agreement for use within this state primarily in 21 the exploration for, production of, or pipeline transportation of gas or unrefined 22 oil (except for property used solely for the retail distribution or liquefaction of 23 natural gas), or in the operation or maintenance of facilities used in the 24 exploration for, production of, or pipeline transportation of gas or unrefined 25 oil; "taxable property" includes 26 (i) machinery, appliances, supplies, and equipment; 27 (ii) drilling rigs, wells (whether producing or not), 28 gathering lines and transmission lines, pumping stations, compressor 29 stations, power plants, topping plants, and processing units; 30 (iii) roads, tank farms, tanker terminals, docks and other 31 port facilities, and air strips;
01 (iv) aircraft and motor vehicles owned by a person 02 whose principal business in the state is the exploration for, production 03 of, or pipeline transportation of gas or unrefined oil and whose 04 operation of the aircraft or motor vehicle directly relates to the conduct 05 of that business; 06 (v) maintenance equipment and facilities, and 07 maintenance camps and other related facilities; and 08 (vi) communications facilities owned by a person 09 whose principal business in the state is the exploration for, production 10 of, or pipeline transportation of gas or unrefined oil and whose 11 operation of the communications facilities directly relates to the 12 conduct of that business; 13 (B) does not include 14 (i) permanent residences; 15 (ii) office buildings requiring substantial local 16 government services; 17 (iii) oil and gas pipeline systems owned and operated by 18 a public utility that is certificated under AS 42.05.221 and is regulated 19 by the Regulatory Commission of Alaska; 20 (iv) aircraft and motor vehicles, except aircraft and 21 motor vehicles taxable under (A)(iv) of this paragraph; [AND] 22 (v) communications facilities, except communications 23 facilities taxable under (A)(vi) of this paragraph; and 24 (vi) property related to a gas treatment plant, as 25 defined in AS 43.59.100; 26 * Sec. 16. AS 43 is amended by adding a new chapter to read: 27 Chapter 59. Natural Gas Project Volumetric Tax. 28 Sec. 43.59.020. Imposition of alternative volumetric tax. (a) The owner of 29 property subject to tax under this section shall pay an alternative volumetric tax on the 30 throughput of the property. The alternative volumetric tax applies beginning on the 31 first date of commencement of commercial operations of a major component of the
01 project. 02 (b) The volumetric tax is $0.15 for each 1,000 cubic feet of natural gas 03 transported through a gas pipeline. 04 (c) Beginning the first year the tax applies to throughput of a gas pipeline, the 05 rate of tax for throughput under this subsection shall be adjusted on January 1 of each 06 year for inflation, using 100 percent of the change over the preceding five calendar 07 years in the Consumer Price Index for all urban consumers for urban Alaska, as 08 determined by the United States Department of Labor, Bureau of Labor Statistics. 09 (d) A natural gas project is subject to the alternative volumetric tax under this 10 section only if the department determines that the project is eligible under 11 AS 43.59.030. 12 (e) The tax levied under this section is in place of 13 (1) all state taxes levied on taxable property, including property used 14 or committed by contract or other agreement for use in the natural gas project; 15 (2) taxes levied under AS 43.56.010; and 16 (3) taxes levied under AS 29.45.080. 17 (f) Each owner of property subject to tax under this section shall file a return 18 with the department on or before the last day of each month. The return must state the 19 throughput, in cubic feet of natural gas for each day, for each property subject to tax 20 for the month preceding the month in which the return is due. The owner of the 21 property shall, at the time the return is filed, pay the tax due under this section for the 22 month preceding the return. 23 (g) A payment is considered late if the payment is not received by the 24 department on or before the last day of the month in which the return is due. 25 (h) Notwithstanding AS 43.05.220, if the tax levied in this section is 26 delinquent, the department shall assess a penalty of 15 percent of the amount of 27 delinquent taxes and interest on the delinquent taxes, exclusive of penalty, at the rate 28 specified in AS 43.05.225. 29 Sec. 43.59.030. Eligibility. (a) A natural gas project is eligible for the 30 alternative volumetric tax under AS 43.59.020 only if the department determines that 31 the plans for the project meet the requirements of this section.
01 (b) To be eligible under this section, plans for the project must include a spur 02 line meeting the requirements of this subsection that serves the City of Fairbanks and 03 the Fairbanks North Star Borough. The spur line must 04 (1) have sufficient capacity to serve reasonably projected residential, 05 commercial, and industrial demand in the Interior area of the state; 06 (2) be scheduled to begin operations within two years after the 07 commencement of commercial operations of a major component of the natural gas 08 project; 09 (3) be designed to connect with local distribution infrastructure 10 capable of delivering natural gas to the City of Fairbanks and the surrounding urban 11 area; 12 (4) be designed and operated to deliver gas at the lowest reasonable 13 cost consistent with safe and reliable service; and 14 (5) allocate costs, including capital, financing, construction, 15 operations, and maintenance costs, 16 (A) across all consumers systemwide; costs related to 17 financing, construction, operations, or maintenance of the spur line may not be 18 allocated solely to the Interior area of the state; in this subparagraph, 19 "systemwide" means the area from the North Slope to the Southcentral regions 20 of the state; and 21 (B) justly, reasonably, and not unduly discriminatorily. 22 (c) If the department determines that the requirements of (b) of this section 23 have been met, the department shall issue a written determination that the natural gas 24 project is eligible for the alternative volumetric tax under AS 43.59.020. 25 Sec. 43.59.040. Allocation of alternative tax. (a) The department shall levy 26 and collect the alternative volumetric tax imposed by this chapter. 27 (b) The department shall separately account for the tax collected by the state 28 under AS 43.59.020. Each year, the legislature may appropriate 29 (1) 50 percent of the tax collected under AS 43.59.020(b) to the 30 portion of the state through which a gas pipeline runs, with appropriations 31 proportionately divided among the municipalities and unorganized borough through
01 which the gas pipeline runs; to determine the proportional distribution under this 02 paragraph, the length of pipeline in a municipality is divided by the total length of the 03 pipeline; the state shall retain the portions of the tax for the proportion of the pipeline 04 in the unorganized borough that is also outside a municipality; and 05 (2) 50 percent of the tax collected under AS 43.59.020(b) to 06 municipalities, reserves, and communities in the unorganized borough, distributed on a 07 per capita basis. 08 Sec. 43.59.050. Administrative appeals; distraint of property. (a) A 09 decision by the department regarding the imposition or calculation of the tax levied 10 under AS 43.59.020 may be appealed to the department for an informal conference 11 under AS 43.05.240, and a final decision may be appealed to the office of 12 administrative hearings under AS 43.05.405. 13 (b) The remedy of distraint of property set out in AS 43.20.270 applies to the 14 tax levied in this section. However, only the property subject to tax under 15 AS 43.59.020 may be distrained. 16 Sec. 43.59.060. Termination of status. The alternative volumetric tax 17 applicable to a natural gas project under AS 43.59.020 terminates on January 1, 2032, 18 if commencement of construction of the first 730 miles of the gas pipeline has not 19 begun by that date. 20 Sec. 43.59.070. Regulations. The department shall adopt regulations under 21 AS 44.62 (Administrative Procedure Act) to implement this chapter, including 22 procedures for 23 (1) measuring throughput; 24 (2) throughput reporting; 25 (3) calculating the rolling average of throughput. 26 Sec. 43.59.100. Definitions. In this chapter, 27 (1) "commencement of commercial operations" means the first flow of 28 natural gas through a natural gas project that delivers a commercial supply of natural 29 gas to the Southcentral or Interior area of the state; 30 (2) "gas pipeline" 31 (A) means a main natural gas pipeline from the outlet flange of
01 the gas treatment plant on the North Slope to the inlet flange of the liquefied 02 natural gas plant located in the Southcentral region of the state; 03 (B) does not include any gas lines downstream of any offtake 04 point between a gas treatment plant and a liquefied natural gas plant; 05 (3) "gas treatment plant" means a facility and the related activities 06 required to receive natural gas from a Prudhoe Bay unit gas transmission line, a Point 07 Thomson unit gas transmission line, or other facilities, to treat the natural gas to 08 pipeline specifications, to dispose of or deliver byproducts, to deliver liquid products 09 for further transportation, and to deliver treated natural gas for transportation through a 10 gas pipeline; 11 (4) "liquefied natural gas plant" means a facility for liquefying natural 12 gas and includes structures, equipment, underlying land rights, and other associated 13 systems, storage, and facilities for off-loading liquefied natural gas; 14 (5) "natural gas project" and "project" means a natural gas project that 15 includes, collectively, a Prudhoe Bay unit gas transmission line, a Point Thomson unit 16 gas transmission line, a gas pipeline, a gas treatment plant, a liquefied natural gas 17 plant, and a marine terminal; in this paragraph, 18 (A) "marine terminal" means a terminal and those facilities 19 required to receive liquefied natural gas from the boundary of the liquefied 20 natural gas plant for marine transportation, including auxiliary vessels used in 21 the operation of the terminal; 22 (B) "Point Thomson unit gas transmission line" means a natural 23 gas transmission line from the outlet flange of the Point Thomson unit 24 production facility to the inlet flange of the gas treatment plant; and 25 (C) "Prudhoe Bay unit gas transmission line" means a natural 26 gas transmission line from the outlet flange of the Prudhoe Bay unit central gas 27 facility to the inlet flange of the gas treatment plant; 28 (6) "spur line" 29 (A) means 30 (i) a natural gas transmission or lateral line that 31 branches from the main gas pipeline for the primary purpose of
01 delivering natural gas to a local community or utility distribution 02 system; and 03 (ii) compressing and metering equipment and 04 interconnection facilities related to the transmission or lateral line 05 described in (A)(i) of this paragraph; 06 (B) does not include infrastructure used for the export of 07 natural gas or lateral lines not necessary for delivering natural gas to a local 08 community or utility distribution system; 09 (7) "throughput" 10 (A) means 11 (i) the volume of natural gas measured by summing all 12 volumes sold or otherwise delivered at each outlet or offtake point, as 13 along the gas pipeline, transported through a gas treatment plant or 14 carbon capture facility, or processed by a liquefied natural gas plant, as 15 applicable; and 16 (ii) natural gas consumed as fuel for the operation of a 17 liquefaction facility; 18 (B) does not include natural gas consumed as fuel for pipeline 19 compression. 20 * Sec. 17. AS 14.17.510(d), 14.17.990(6)(B); AS 29.45.050(aa), 29.45.085; AS 37.14.900; 21 AS 43.56.210(5)(B)(vi); AS 43.59.020, 43.59.030, 43.59.040, 43.59.050, 43.59.060, 22 43.59.070, and 43.59.100 are repealed. 23 * Sec. 18. AS 37.05.610 is repealed. 24 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 REQUIRED REPORT: PHASE TWO OF THE ALASKA LIQUEFIED NATURAL 27 GAS PROJECT. (a) Before a final investment decision is made on phase two of the Alaska 28 liquefied natural gas project, the Alaska Gasline Development Corporation shall deliver a 29 report to the senate secretary and the chief clerk of the house of representatives and shall 30 notify the legislature that the report is available. The report must include 31 (1) a discussion and review of the effects and effectiveness of this Act on the
01 Alaska liquefied natural gas project; 02 (2) if applicable, suggestions for additional changes to law related to the 03 Alaska liquefied natural gas project, before implementation of phase two. 04 (b) In this section, 05 (1) "Alaska liquefied natural gas project" has the meaning given in 06 AS 31.25.390; 07 (2) "phase two" means a phase of the Alaska liquefied natural gas project that 08 includes a liquefied natural gas plant, as defined in AS 31.25.390, and other related 09 infrastructure required for the export of liquefied natural gas. 10 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 APPLICABILITY. The adjustment for inflation of the volumetric tax, required under 13 AS 43.59.020(c), added by sec. 16 of this Act, applies January 1 after the first full year of tax 14 under the rates set out in AS 43.59.020(b), added by sec. 16 of this Act. 15 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 CONDITIONAL EFFECT: BILL; NOTIFICATION TO THE REVISOR OF 18 STATUTES. (a) Sections 1 - 5, 9, 11, 13, 15, 16, 19, and 20 of this Act take effect only if, 19 before July 1, 2056, the commissioner of revenue determines that 20 (1) each owner of property that could be taxable under AS 43.59.020, added 21 by sec. 16 of this Act, has committed to 22 (A) deposit $40,000,000 into a designated community impact fund 23 with the following conditions: 24 (i) the fund administrator shall pay an impacted municipality 25 from the fund 25 percent of the anticipated costs to the municipality related to 26 construction of the gas pipeline; 27 (ii) in addition to the payments under (i) of this subparagraph, 28 an impacted municipality may submit to the fund administrator additional 29 actual costs related to the effects of construction for reimbursement from the 30 fund; 31 (iii) the fund administrator shall pay reimbursements under (ii)
01 of this subparagraph to impacted municipalities at least quarterly; 02 (iv) the fund shall be administered by the primary owner who 03 contributes to the fund; 04 (B) negotiate a project labor agreement for the construction of the gas 05 pipeline; in this subparagraph, "project labor agreement" means a comprehensive 06 collective bargaining agreement between the owner of the gas treatment plant, carbon 07 capture facility, liquefied natural gas plant, or gas pipeline and the appropriate labor 08 representatives to ensure expedited construction with labor stability by employing 09 qualified residents of the state; and 10 (2) each owner of property that could be taxable under AS 43.59.020, added 11 by sec. 16 of this Act, who would be responsible for constructing a spur line has committed to 12 construct the spur line; to meet the requirement of this paragraph, the owner shall 13 (A) on or before completion of construction of 730 miles of the gas 14 pipeline, timely and in good faith begin all necessary permit applications and take 15 action on any other regulatory requirements necessary for the construction of the spur 16 line, including, if the Regulatory Commission of Alaska has jurisdiction over the 17 tariffs, 18 (i) initiating a tariff proceeding; and 19 (ii) filing with the commission for systemwide tariff treatment 20 for the spur line; and 21 (B) begin construction on a spur line within one year after receiving all 22 permits and meeting the necessary regulatory requirements described in (A) of this 23 paragraph. 24 (b) If the commissioner of revenue determines that the conditions in (a) of this section 25 have been met, the commissioner of revenue shall notify the revisor of statutes in writing 26 within 30 days after making the determination. 27 (c) In this section, 28 (1) "gas pipeline" means a gas pipeline, as defined in AS 31.25.390, that is 29 expected to be subject to the alternative volumetric tax under AS 43.59.020, enacted by sec. 30 16 of this Act; 31 (2) "impacted municipality" means the North Slope Borough, Fairbanks North
01 Star Borough, Denali Borough, Municipality of Anchorage, Matanuska-Susitna Borough, and 02 Kenai Peninsula Borough; 03 (3) "spur line" means a spur line, as defined in AS 43.59.100, enacted by sec. 04 16 of this Act, that serves the City of Fairbanks and the Fairbanks North Star Borough; 05 (4) "systemwide" has the meaning given in AS 43.59.030(b)(5)(A), enacted by 06 sec. 16 of this Act. 07 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 CONDITIONAL EFFECT: EDUCATION FUND. Section 6 of this Act takes effect 10 only if 11 (1) a constitutional amendment to art. IX, Constitution of the State of Alaska, 12 establishing an education fund and allowing the proceeds of a state tax or license to be 13 dedicated to and deposited into the fund by law is passed by the Thirty-Fourth Alaska State 14 Legislature and approved by the voters at the 2026 general election; and 15 (2) the conditions in sec. 21(a) of this Act are met. 16 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 CONDITIONAL EFFECT: TAX SUNSET. Sections 10, 12, 14, and 17 of this Act 19 take effect only if the conditions in sec. 21(a) of this Act are met. 20 * Sec. 24. Sections 7, 8, 18, and 21 - 23 of this Act take effect immediately under 21 AS 01.10.070(c). 22 * Sec. 25. If, under sec. 21 of this Act, secs. 1 - 5, 9, 11, 13, 15, 16, 19, and 20 of this Act 23 take effect, they take effect on the day after the date the commissioner of revenue determines 24 that the conditions in sec. 21(a) of this Act have been met. 25 * Sec. 26. If, under sec. 22 of this Act, sec. 6 of this Act takes effect, it takes effect on the 26 later of 27 (1) the day after the date the 2026 general election is certified; or 28 (2) the day after the date the commissioner of revenue determines that the 29 conditions in sec. 21(a) of this Act have been met. 30 * Sec. 27. If, under sec. 23 of this Act, secs. 10, 12, 14, and 17 of this Act take effect, they 31 take effect January 1, 2056.