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SENATE BILL NO. 125
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR YUNDT
Introduced: 3/12/25
Referred: Resources, Finance
A BILL
FOR AN ACT ENTITLED
"An Act establishing the Alaska Gasline Finance Corporation; and relating to 1
contributions from permanent fund dividends for the financing of a natural gas 2
pipeline." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 31 is amended by adding a new chapter to read: 5
Chapter 27. Alaska Gasline Finance Corporation. 6
Sec. 31.27.010. Alaska Gasline Finance Corporation. The Alaska Gasline 7
Finance Corporation is established in the Department of Revenue. The corporation is a 8
public corporation and government instrumentality managed by a board of directors. 9
The purpose of the corporation is to finance a natural gas pipeline in the state. 10
Sec. 31.27.020. Board of directors. (a) The corporation shall be governed by a 11
board of directors consisting of 12
(1) four public members; and 13
(2) the commissioner of revenue. 14 34-LS0469\N
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(b) The governor shall appoint the public members of the board. When 1
appointing a public member to the board, the governor shall consider an individual's 2
expertise and experience in natural gas project construction financing, large project 3
financing, and other expertise and experience that is relevant to the purpose, powers, 4
and duties of the corporation. Public members of the board serve staggered five-year 5
terms. A public member serves at the pleasure of the governor. A vacancy shall be 6
filled in the same manner as the original appointment. 7
Sec. 31.27.030. Purpose; powers. (a) The corporation shall develop and have 8
primary responsibility for financing a natural gas pipeline in the state. 9
(b) The corporation may enter into agreements with other state agencies as 10
necessary or convenient to implement this chapter. 11
(c) The corporation may contract for the services of underwriters, paying 12
agents, trustees, escrow agents, rating agencies, insurance providers, credit 13
enhancement providers, accountants, financial advisors, legal counsel, and other 14
services as are necessary or desirable to accomplish the financing of a natural gas 15
pipeline. 16
Sec. 31.27.040. Fund. (a) The Alaska Gasline Finance Corporation fund is 17
established in the corporation. The fund consists of 18
(1) money appropriated to the fund by the legislature; 19
(2) proceeds from the sale of ownership shares in a natural gas 20
pipeline, including from share purchases under AS 43.23.135; and 21
(3) other money of the corporation that the corporation decides to 22
deposit in the fund. 23
(b) Money in the fund may be invested in the same manner and on the same 24
conditions as permitted for investment of funds belonging to the state or held in the 25
treasury under AS 37.10.070. 26
Sec. 31.27.050. Shares. (a) The corporation shall offer shares of a natural gas 27
pipeline to the public. Except as provided in (b) of this section, the minimum 28
investment amount is $2,500. 29
(b) At the time of the initial share offering, the corporation shall offer shares 30
of a natural gas pipeline with no minimum or maximum investment amount.
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Sec. 31.27.060. Regulations. The corporation may adopt regulations necessary 1
to implement the provisions of this chapter. 2
Sec. 31.27.090. Definitions. In this chapter, 3
(1) "corporation" means the Alaska Gasline Finance Corporation; 4
(2) "fund" means the Alaska Gasline Finance Corporation fund; 5
(3) "natural gas pipeline" has the meaning given in AS 31.25.390. 6
* Sec. 2. AS 43.23 is amended by adding a new section to read: 7
Sec. 43.23.135. Natural gas pipeline share purchase. (a) Notwithstanding 8
AS 43.23.200, the electronic Alaska permanent fund dividend application must allow 9
an applicant to direct that the applicant's dividend payment be invested in shares of a 10
natural gas pipeline financed by the Alaska Gasline Finance Corporation. A share 11
purchase under this subsection must be for the entire amount of the permanent fund 12
dividend that the applicant is entitled to receive. An applicant may not make 13
contributions under AS 43.23.130 or donations under AS 43.23.230 if the applicant 14
makes a share purchase under this subsection. 15
(b) To make a share purchase under this section, an applicant must agree to 16
purchasing shares with at least three consecutive years of permanent fund dividend 17
payments. There is no penalty for violation of an agreement under this subsection. 18
(c) A parent, guardian, or other authorized representative may elect to 19
purchase shares under this subsection on behalf of an individual. A public agency that 20
claims a permanent fund dividend on behalf of an individual under AS 43.23.015(e) 21
may not elect to make a share purchase from the dividend under this section. 22
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 23
read: 24
ALASKA GASLINE FINANCE CORPORATION BOARD. Notwithstanding 25
AS 39.05.055, the governor shall set the terms of the initially appointed public members of 26
the board as follows: 27
(1) two members shall serve two-year terms; 28
(2) one member shall serve a three-year term; and 29
(3) one member shall serve a five-year term. 30