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CS FOR HOUSE BILL NO. 124(STA)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE HOUSE STATE AFFAIRS COMMITTEE

Offered: 2/18/26
Referred: Finance

Sponsor(s): REPRESENTATIVES CARRICK, Mina
A BILL

FOR AN ACT ENTITLED

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