Legislature(2025 - 2026)
2026-05-18 House Journal
Full Journal pdf2026-05-18 House Journal Page 2764 SB 180 The Speaker stated that, without objection, the following, which was held from the May 17 calendar (page 2740), would be taken up first and was read the second time: CS FOR SENATE BILL NO. 180(L&C) "An Act relating to the regulation of liquefied natural gas import facilities by the Regulatory Commission of Alaska; and providing for an effective date." with the: Journal Page L&C RPT HCS(L&C) NEW TITLE 2DP 3NR 1AM 2570 FN1: ZERO(CED) 2570 Representative Kopp moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: HOUSE CS FOR CS FOR SENATE BILL NO. 180(L&C) "An Act relating to the development of the Susitna River power project by the Alaska Energy Authority; relating to the regulation of liquefied natural gas import facilities by the Regulatory Commission of Alaska; and providing for an effective date." (HCR 20 – title change resolution) 2026-05-18 House Journal Page 2765 Representative Frier objected. The question being: "Shall the House adopt HCS CSSB 180(L&C)?" The roll was taken with the following result: CSSB 180(L&C) Second Reading Adopt Labor & Commerce HCS YEAS: 28 NAYS: 10 EXCUSED: 0 ABSENT: 2 Yeas: Bynum, Costello, Coulombe, Dibert, Eischeid, Elam, Fields, Galvin, Hall, Himschoot, Holland, Jimmie, Johnson, Kopp, McCabe, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schrage, Schwanke, St. Clair, Story, Stutes, Tomaszewski, Underwood, Vance Nays: Carrick, Edgmon, Foster, Frier, Gray, Hannan, Josephson, Mears, Mina, Stapp Absent: Allard, Moore Jimmie changed from "NAY" to "YEA" And so, HCS CSSB 180(L&C) was adopted Amendment No. 1 was offered by Representative Gray: Page 1, line 1, following "Act" (title amendment): Insert "establishing an income tax on certain entities producing or transporting oil or gas in the state;" Page 1, following line 4: Insert new bill sections to read: "* Section 1. AS 43.20 is amended by adding a new section to read: Sec. 43.20.019. Tax on income of certain oil and gas pass- through entities. (a) Each taxable year, a tax is imposed on the entire taxable income derived from sources in the state of every qualified entity. The tax is computed as follows: If the taxable income is: Then the tax is: Less than $1,000,000 zero $1,000,000 but less than $2,000,000 5 percent of the taxable income over $1,000,000 $2,000,000 but less than $3,000,000 $50,000 plus 6 2026-05-18 House Journal Page 2766 percent of the taxable income over $2,000,000 $3,000,000 but less than $4,000,000 $110,000 plus 7 percent of the taxable income over $3,000,000 $4,000,000 but less than $5,000,000 $180,000 plus 8 percent of the taxable income over $4,000,000 $5,000,000 or more $260,000 plus 9.4 percent of the taxable income over $5,000,000. (b) For purposes of calculating taxable income under this section, (1) taxable income of a qualified entity is determined under AS 43.20.144 as if the qualified entity were taxable as a C corporation, as defined by 26 U.S.C. 1361(a)(2) (Internal Revenue Code), as that section read on January 1, 2026; (2) notwithstanding AS 43.20.021 and AS 43.20.036, a qualified entity may not apply as a credit or deduction against tax liability a credit or deduction allowed as to federal taxes under 26 U.S.C. (Internal Revenue Code), except that the qualified entity may take a credit or deduction allowed for a C corporation under (1) of this subsection. (c) The tax under this section does not apply to a corporation subject to tax under AS 43.20.011 or to an entity that is part of a unitary business with a corporation subject to tax under AS 43.20.011. (d) A public corporation is exempt from the tax under this section. If a qualified entity is held in part by a public corporation, income in proportion to the ownership interest held by the public corporation is exempt from the tax under this section. The department may direct each owner of a qualified entity that is owned in part by the Alaska Gasline Development Corporation (AS 31.25) to file a return with the department. Notwithstanding AS 40.25.100(a) and AS 43.05.230(a), a return filed by the Alaska Gasline Development Corporation under this subsection is a public record and is not confidential. (e) For the purpose of determining the tax due under this section, the department shall (1) aggregate the taxable income of two or more entities 2026-05-18 House Journal Page 2767 if the department determines that, without the provisions of this section, the taxable income would reasonably be expected to be attributed to a single entity; (2) except as provided in (c) of this section, include in the calculation of taxable income of the qualified entity income that is attributable to an entity that is part of a unitary business with the qualified entity paying tax under this section; and (3) adopt regulations to prevent evasion of taxes imposed under this section. (f) For purposes of calculating income under this section, a qualified entity may deduct from income a payment to the shareholder, owner, member, or partner of the qualified entity, if (1) the shareholder, owner, member, or partner is a taxpayer under this chapter; (2) the payment does not include a transfer of property; (3) the payment is included in the shareholder's, owner's, member's, or partner's income for purposes of this chapter; and (4) the payment was not made with the specific intent to reduce or evade the payment of tax under this chapter. (g) In this section, (1) "carbon capture" and "carbon storage" have the meanings given in AS 43.55.165(e)(23); (2) "pipeline" means a pipeline that transports oil or gas from north of 68 degrees North latitude to a location outside of the lease or property where the oil or gas is produced for the direct purpose of sale and delivery of the oil or gas to a commercial market; (3) "qualified entity" (A) means a sole proprietorship, partnership, limited liability company, or entity that has elected to file federal returns under 26 U.S.C. 1361 - 1379 (Internal Revenue Code) that (i) has taxable income; (ii) owns, operates, manages, or controls an entity that has taxable income; (iii) holds an ownership, investment, or similar interest in an entity that has taxable income; or (iv) owns an operating right, operating interest, or working interest in a mineral interest of an entity with taxable income; 2026-05-18 House Journal Page 2768 (B) does not include a natural person; (4) "taxable income" means income (A) from the production of oil or gas from a lease or property in the state; (B) from the transportation of oil or gas by pipeline in the state; (C) from the supply of oil or gas for transportation by pipeline in the state, whether directly, to an intermediary, or as an intermediary; (D) from gas treatment, carbon capture, or carbon storage activities in the state; (E) from liquefied natural gas processing in the state; (F) from the marine transportation of liquefied natural gas produced in the state; and (G) of an entity that is part of a unitary business with a carrier or producer paying tax under this section as provided under (e)(2) of this section. * Sec. 2. AS 43.20.030(a) is amended to read: (a) If a taxpayer [CORPORATION], or a partnership that has a taxpayer [CORPORATION] as a partner, is required to make a return under the provisions of the Internal Revenue Code, the taxpayer [IT] shall file with the department, within 30 days after the federal return is required to be filed, a return setting out (1) the amount of tax due under this chapter, less credits claimed against the tax; and (2) other information for the purpose of carrying out the provisions of this chapter that the department requires. * Sec. 3. AS 43.20.031(i) is amended to read: (i) A taxpayer that [CORPORATION WHICH] is a member of a group of unitary corporations or entities that [WHICH] collectively has income from business activity taxable both inside and outside the state, or income from other sources both inside and outside the state, shall determine its income from sources in this state by use of the combined method of accounting." Page 1, line 5: Delete "Section 1" Insert "Sec. 4" Renumber the following bill sections accordingly. 2026-05-18 House Journal Page 2769 Page 1, following line 8: Insert new bill sections to read: "* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to read: APPLICABILITY: OIL AND GAS ENTITY TAX. The tax established under AS 43.20.019, added by sec. 1 of this Act, applies to a qualified entity for a tax year beginning on or after January 1, 2026. In this section, "qualified entity" has the meaning given in AS 43.20.019(g), added by sec. 1 of this Act. * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: PAYMENT OF TAX. A person subject to the tax levied under AS 43.20.019, added by sec. 1 of this Act, before the effective date of sec. 1 of this Act, shall pay the balance of the tax due for a tax year ending before January 1, 2027, by January 1, 2027. Until January 1, 2027, the Department of Revenue shall waive interest that would otherwise accrue under AS 43.05.225 and civil and criminal penalties accruing under AS 43.05.220, 43.05.245, and 43.05.290, that are a result of the retroactivity of secs. 1 - 3 of this Act. * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY OF REGULATIONS. Notwithstanding a contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in a regulation that the regulation applies retroactively to a specific date, a regulation adopted by the Department of Revenue to implement, interpret, make specific, or otherwise carry out secs. 1 - 3 of this Act applies retroactively to that date. * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY. Sections 1 - 3, 6, and 7 of this Act are retroactive to January 1, 2026." Renumber the following bill section accordingly. Representative Gray moved and asked unanimous consent that Amendment No. 1 be adopted. There was objection. 2026-05-18 House Journal Page 2770 Representative Gray moved and asked unanimous consent to withdraw Amendment No. 1. There being no objection, it was so ordered. Amendment No. 2 was offered by Representative Kopp: Page 1, line 1 (title amendment): Delete "development of the Susitna River power project by the Alaska Energy Authority" Insert "taxation of certain natural gas project property and related facilities; relating to local contributions for public school funding; relating to municipal property taxes; relating to the Alaska Gasline Development Corporation; 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; relating to the regulation of liquefied natural gas import facilities by the Regulatory Commission of Alaska; relating to an Alaska liquefied natural gas project mitigation fund" Page 1, lines 5 - 9: Delete all material and insert: "* Section 1. The uncodified law of the State of Alaska is amended by adding a new section to read: LEGISLATIVE FINDINGS. The legislature finds that the tax treatment in this Act is necessary to advance a major natural gas project and to ensure that (1) the project maximizes the benefit to the state by ensuring direct and affordable access to natural gas to the residents of the state; and (2) communities affected by the natural gas project are protected from the negative effects of the project. * Sec. 2. AS 14.17.510 is amended by adding a new subsection to read: (d) In this section, the full and true value of the taxable real and personal property does not include property subject to the alternative volumetric tax levied under AS 43.59. * Sec. 3. AS 14.17.990(6) is amended to read: (6) "local contribution" (A) means appropriations and the value of in-kind 2026-05-18 House Journal Page 2771 services made by a district; (B) does not include revenue from the alternative volumetric tax levied by the municipality under AS 43.59; * Sec. 4. AS 29.45.080(c) is amended to read: (c) A municipality may levy and collect a tax on the full and true value of that portion of taxable property taxable under AS 43.56 as assessed by the Department of Revenue which value, when combined with the value of property otherwise taxable by the municipality, does not exceed the product of the percentage determined in (f) of this section of the average per capita assessed full and true value of property in the state multiplied by the number of residents of the taxing municipality. Property subject to the alternative volumetric tax levied under AS 43.59.020 is not included in the value of property for the purpose of making the calculation under this subsection. * Sec. 5. AS 31.25.010 is amended to read: Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a public corporation and government instrumentality acting in the best interest and as a fiduciary of the state for the purposes required by AS 31.25.005, located for administrative purposes in the Department of Commerce, Community, and Economic Development, but having a legal existence independent of and separate from the state. The corporation may not be terminated as long as it has bonds, notes, or other obligations outstanding. The corporation may dissolve when no bonds, notes, or other obligations of the corporation or a subsidiary of the corporation are outstanding and the corporation or a subsidiary of the corporation is no longer engaged in the development, financing, construction, or operation of an in-state natural gas pipeline or an Alaska liquefied natural gas project. Upon termination of the corporation, its rights and property pass to the state. * Sec. 6. AS 31.25.040(b) is amended to read: (b) The board shall by regulation adopted under AS 44.62 (Administrative Procedure Act) adopt and publish procedures to govern the procurement by the corporation of supplies, services, professional services, and construction. The procurement procedures must (1) reflect competitive bidding principles and provide vendors reasonable and equitable opportunities to participate 2026-05-18 House Journal Page 2772 in the procurement process; (2) include procurement methods to meet emergency and extraordinary circumstances; (3) comply with the five percent preference under AS 36.30.321(a); and (4) provide for an Alaska veterans' preference that is consistent with the Alaska veterans' preference in AS 36.30.175. * Sec. 7. AS 31.25.080(a) is amended to read: (a) In addition to other powers granted in this chapter, the corporation may (1) determine the form of ownership and the operating structure of an in-state natural gas pipeline developed by the corporation and may, subject to AS 31.25.120(b), enter into agreements with other persons for joint ownership, joint operation, or both of an in-state natural gas pipeline or an Alaska liquefied natural gas project; (2) plan, finance, construct, develop, acquire, maintain, and operate a pipeline system and other transportation mechanism, including pipelines, compressors, storage facilities, and other related facilities, equipment, and works of public improvement, in the state to facilitate production, transportation, and delivery of natural gas or other related natural resources to the point of consumption or to the point of distribution for consumption; (3) lease or rent facilities, structures, and properties; (4) exercise the power of eminent domain and file a declaration of taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is necessary for an in-state natural gas pipeline or an Alaska liquefied natural gas project; the exercise of powers by the corporation under this paragraph may not exceed the permissible exercise of the powers by the state; (5) acquire, by purchase, lease, or gift, land, structures, real or personal property, an interest in property, a right-of-way, a franchise, an easement, or other interest in land, or an interest in or right to capacity in a pipeline system determined to be necessary or convenient for the development, financing, construction, or operation of an in-state natural gas pipeline project or an Alaska liquefied natural gas project or part of an in-state natural gas pipeline project or an Alaska liquefied natural gas project; (6) subject to AS 31.25.120(b), transfer or otherwise dispose of all or part of an in-state natural gas pipeline project, an 2026-05-18 House Journal Page 2773 Alaska liquefied natural gas project, or an interest in an asset of the corporation; (7) elect to provide transportation of natural gas as a contract carrier, common carrier, or otherwise; (8) provide light, water, security, and other services for property of the corporation; (9) conduct hearings to gather and develop data consistent with the purpose and powers of the corporation; (10) advocate for new pipeline capacity before the Federal Energy Regulatory Commission; (11) make and execute agreements, contracts, and other instruments necessary or convenient in the exercise of the powers and functions of the corporation under this chapter, including a contract with a person, firm, corporation, governmental agency, or other entity; (12) sue and be sued in its own name; (13) adopt an official seal; (14) adopt bylaws for the regulation of its affairs and the conduct of its business and adopt regulations and policies in connection with the performance of its functions and duties; (15) employ fiscal consultants, engineers, attorneys, appraisers, and other consultants and employees that may, in the judgment of the corporation, be required and fix and pay their compensation from funds available to the corporation; (16) procure insurance against a loss in connection with its operation; (17) borrow money as provided in this chapter to carry out its corporate purposes and issue its obligations as evidence of borrowing; (18) include in a borrowing the amounts necessary to pay financing charges, to pay interest on the obligations, and to pay the interest, consultant, advisory, and legal fees, and other expenses that are necessary or incident to the borrowing; (19) receive, administer, and comply with the conditions and requirements of an appropriation, gift, grant, or donation of property or money; (20) do all acts and things necessary, convenient, or desirable to carry out the powers expressly granted or necessarily implied in this chapter; (21) invest or reinvest, subject to its contracts with 2026-05-18 House Journal Page 2774 noteholders and bondholders, money or funds held by the corporation, including funds in the in-state natural gas pipeline fund (AS 31.25.100) and the Alaska liquefied natural gas project fund (AS 31.25.110), in obligations or other securities or investments in which banks or trust companies in the state may legally invest funds held in reserves or sinking funds or funds not required for immediate disbursement, and in certificates of deposit or time deposits secured by obligations of, or guaranteed by, the state or the United States; (22) enter into, as it determines to be necessary or appropriate, any swap or hedge, cap, or other contract providing for payments based on levels of or changes in interest rates or indices or in the cost or price of any commodity, supply, or expense expected to be used or incurred in connection with the acquisition, construction, or operation of any facility or property owned, leased, or operated by the corporation, or an option with respect to any of the foregoing; (23) except as provided in (g) of this section, acquire an ownership or participation interest in an Alaska liquefied natural gas project, natural gas treatment facilities, natural gas pipeline facilities, liquefaction facilities, marine terminal facilities related to the infrastructure of an Alaska liquefied natural gas project, or an entity or joint venture that has an ownership interest in or is engaged in the planning, financing, acquisition, maintenance, construction, and operation of an Alaska liquefied natural gas project; (24) after consultation with the commissioner of revenue and the commissioner of natural resources, enter into contracts relating to an Alaska liquefied natural gas project, including contracts for services related to operation, marketing, transportation, gas treatment, marine terminal operation, or liquefaction. * Sec. 8. AS 31.25.080 is amended by adding new subsections to read: (h) If the corporation or a subsidiary of the corporation negotiates with another entity to acquire an interest in an Alaska liquefied natural gas project, the corporation shall provide an opportunity for municipalities in the state to purchase a portion of the corporation's right to acquire additional equity interest in the natural gas project not exercised by the corporation, through an 2026-05-18 House Journal Page 2775 entity managed by the corporation. A municipality may not acquire a direct interest in a natural gas project under this subsection. (i) The corporation shall, to the maximum extent possible, use contractors and suppliers in the state in order to benefit from the experience of workers and businesses in the state in arctic engineering and construction. * Sec. 9. AS 31.25.090(f) is amended to read: (f) Subject to the restrictions in this section, the [THE] corporation may enter into confidentiality agreements necessary to acquire or provide information to carry out its functions. If a state agency determines that a law or provision of a contract to which the state agency is a party requires the state agency to preserve the confidentiality of the information and that delivering the information to the corporation would violate the confidentiality provision of that law or contract, the state agency shall (1) identify the applicable law or contract provision to the corporation; and (2) obtain the consent of the person who has the right to waive the confidentiality of the information under the applicable law or contract provision before the state agency transfers the information to the corporation. * Sec. 10. AS 31.25.090 is amended by adding new subsections to read: (j) The parties to a confidentiality agreement entered into under (f) of this section may agree to waive confidentiality, in whole or in part, to allow the release of information to a legislator or a public agent or for publication. Information released under this subsection may include reasonable redactions. Information released under this subsection may include (1) a contract or agreement or a specific term of a contract or agreement; (2) a pending contract or agreement or a specific term of a pending contract or agreement; (3) a record, file, or other information in possession of the corporation, a subsidiary of the corporation, or an entity partnered with the corporation; or (4) the confidentiality agreement or terms of the confidentiality agreement. (k) Notwithstanding (g) or (j) of this section, information 2026-05-18 House Journal Page 2776 subject to a confidentiality agreement entered into by the corporation may be discussed in a legislative committee in regular or executive session if all parties to the confidentiality agreement consent to the session, the consent is lawful, and one or more of the consenting parties is available to testify at the session. (l) A confidentiality agreement entered into under (f) of this section may not (1) prevent compliance with an administrative or court order mandating disclosure; (2) make confidential contract terms, or prospective contract terms, that bind the corporation, a subsidiary of the corporation, or an entity with which the corporation, or a subsidiary of the corporation, has a legal relationship to assume fiscal or performance liability, obligation, or risk that could extend to or encumber the state with that fiscal or performance liability, obligation, or risk, either directly or indirectly; in this paragraph, "legal relationship" means a partnership, joint venture, joint ownership agreement, or other legally binding business arrangement formed for the purpose of shared ownership or management of, or pooling of resources for, an entity in which the corporation, or a subsidiary of the corporation, has an ownership or management interest; (3) except as provided in (m) of this section, make confidential information that may lead to (A) a significant fiscal liability, obligation, or risk to the state; or (B) appropriations or other state funding or in-kind payments or services from the state; (4) make confidential contract terms governing the ownership or management structure of a subsidiary of the corporation; or (5) make confidential information related to a state interest option under AS 31.25.125. (m) A confidentiality agreement entered into under (f) of this section may make confidential specific known or reasonably anticipated project economics or costs related to the Alaska liquefied natural gas project only if the parties to the contract agree (1) that release of the project economics or costs would cause commercial or competitive harm to an entity involved in the 2026-05-18 House Journal Page 2777 Alaska liquefied natural gas project; and (2) to release reasonable estimated ranges or a summarization of project economics and costs sufficient for a legislator or a public agent to assess the fiscal liability, obligation, or risk to the state. (n) In this section, "public agent" means (1) a public agency, as defined in AS 40.25.220, or an agent or contractor of a public agency; (2) an agent or contractor of a member of the legislature or of a legislative committee. * Sec. 11. AS 31.25.120 is amended by adding a new subsection to read: (b) Unless the legislature approves the action by law, the corporation may not transfer, sell, or otherwise dispose of an ownership or management interest in a subsidiary of the corporation. * Sec. 12. AS 31.25 is amended by adding a new section to read: Sec. 31.25.125. Involvement in revenue-generating projects. (a) If the corporation negotiates with another entity for participation by the corporation in a revenue-generating project, the corporation shall negotiate an option for the state to acquire an interest in the project. The corporation shall immediately notify the president of the senate, the speaker of the house of representatives, and the chairs of the finance committee of each house of the legislature on each occasion that an option is available for consideration by the legislature under (b)(1) of this section. (b) An option negotiated under this section must (1) before being agreed to, be approved by the legislature by law; and (2) allow the state to exercise the option for at least six months after notification of the legislature under (d) of this section. (c) At the request of the legislature, a state agency shall cooperate with and assist the legislature in determining whether to approve under (b)(1) of this section the terms of an option negotiated under (a) of this section. (d) The corporation shall immediately notify the president of the senate, the speaker of the house of representatives, and the chairs of the finance committee of each house of the legislature on 2026-05-18 House Journal Page 2778 each occasion that the state may exercise an option negotiated under (a) of this section. The corporation shall notify the legislature under this subsection on the later of the date that (1) the corporation determines, with reasonable assurance and considering the totality of circumstances, including review of all relevant financial information, that the revenue- generating project will be completed, with or without state investment; or (2) a final investment decision is made for the revenue- generating project. (e) The state may not acquire an interest in a revenue- generating project under this section unless the interest is approved by the legislature by law. When making an investment decision under this section, the legislature shall act as a prudent investor. (f) The Department of Revenue shall cooperate with and assist the legislature in determining whether to acquire an interest in a revenue-generating project under (e) of this section by exercising an option negotiated under (a) of this section, including by identifying potential funding sources for exercising the option and potential fiscal effects on the state. If requested by the legislature, another state agency shall cooperate with and assist the legislature with making a determination under (e) of this section. (g) The corporation, and any other entity participating in a revenue-generating project, shall (1) cooperate with and assist the legislature in determining whether to approve the terms of an option negotiated under (a) of this section or to acquire an interest in the project by exercising an option negotiated under this section; (2) provide information requested by the legislature related to the project, including (A) information necessary for the legislature to act as a prudent investor; and (B) financial records of or related to the revenue- generating project; and (3) ensure that at least one representative of the corporation and of each participating entity are available to testify during public hearings of legislative committees requesting testimony. (h) In this section, 2026-05-18 House Journal Page 2779 (1) "corporation" includes a subsidiary of the corporation; notwithstanding the definition of "subsidiary of the corporation" in AS 31.25.390, a subsidiary of a corporation does not include a partially owned subsidiary for purposes of this section; (2) "revenue-generating project" means a project, entity ownership, legal business arrangement, partnership, joint venture, or other commercial endeavor expected to generate revenue. * Sec. 13. AS 31.25.130(a) is amended to read: (a) Except as otherwise provided in this chapter and except for AS 44.62.310 - 44.62.319 (Open Meetings Act), AS 44.62 (Administrative Procedure Act) does not apply to this chapter. The corporation shall make available to members of the public copies of the regulations adopted under (b) - (e) of this section. * Sec. 14. AS 31.25 is amended by adding a new section to article 1 to read: Sec. 31.25.145. Accounting. (a) The corporation shall deposit into separate accounts in the general fund revenue (1) generated by a subsidiary of the corporation; and (2) resulting from an option negotiated under AS 31.25.125. (b) The legislature may appropriate the annual estimated balance in the accounts for operations of the corporation or for any other purpose. * Sec. 15. AS 31.25.160 is amended by adding a new subsection to read: (g) The corporation, or a subsidiary of the corporation, may issue bonds only if the legislature approves issuance of the bonds. The limitation in this section does not apply (1) to refunding bonds; refunding bonds may be issued without further approval by the legislature in a principal amount sufficient to provide funds for the payment of all bonds to be refunded by the refunding bonds and, in addition, for the payment of all other amounts that the corporation considers appropriate in connection with the refunding, including expenses incident to the redeeming, calling, retiring, or paying of the outstanding bonds, the funding of reserves, and the issuance of the refunding bonds; or (2) if the total outstanding bonds of the corporation are 2026-05-18 House Journal Page 2780 less than $5,000,000. * Sec. 16. AS 31.25 is amended by adding a new section to read: Sec. 31.25.285. Legislative notification of ownership change. (a) The corporation shall promptly notify the president of the senate, the speaker of the house of representatives, and the chairs of the finance committee of each house of the legislature if (1) an entity in a legal relationship with the corporation, or a subsidiary of the corporation, has a significant change in ownership structure; or (2) the corporation becomes aware that an entity in a legal relationship with the corporation, or a subsidiary of the corporation, plans to make a significant change in ownership structure. (b) In this section, "legal relationship" means a partnership, joint venture, joint ownership agreement, or other legally binding business arrangement (1) of which the corporation, or a subsidiary of the corporation, has at least a 10 percent interest; or (2) that has an interest in a third entity in which the corporation, or a subsidiary of the corporation, also has at least a 10 percent interest; and (3) that formed for the purpose of shared ownership or shared management of, or pooling of resources for, an entity in which the corporation, or a subsidiary of the corporation, has an ownership or management interest. * Sec. 17. AS 31.25.390 is amended by adding a new paragraph to read: (8) "subsidiary of the corporation" includes a subsidiary partially owned by the corporation. * Sec. 18. AS 37.14 is amended by adding a new section to read: