About the Public Corporations & Governmental Services Section
We provide legal services to legislatively created state corporations and boards that perform important functions such as managing and investing billions of dollars in state funds and supporting the development of Alaska’s economy - and to specific executive branch agencies that carry out critical day to day services for Alaskans.
Scope of Work
Alaska Department of Education and Early Development
Education in Alaska is unique:
- Students in Alaska travel to school via planes, boats and snowmachines, along with the more typical methods, like walking and school buses.
- Alaska is home to the three most diverse high schools in the united states for 2022, according to niche.com. Students attending these high schools are estimated to represent over 50 different cultures.
Legal takeaways:
- The Alaska Constitution directly addresses the state’s responsibilities
- Article VII, Sec. 1 requires the legislature to maintain a system of public schools for all children of Alaska
- Several major court decisions have set out Alaska’s responsibility to educate all of the state’s children
- Section lawyers – advise the State Board of Education and department officials on constitutional law issues related to education, state statutes and regulations; litigate before administrative forums and courts; review and prepare education related legislation and regulations.
Alaska Department of Commerce, Community and Economic Development
It does things other state commerce departments do – plus some unique Alaska things:
- Supports Alaska’s fishing industry by providing loans for commercial fishing vessels and gear.
- Supports local and tribal governments by providing technical assistance on all aspects of governing as well. As administering grant programs.
- Banking and securities industry regulation and enforcement of state financial services laws.
- Local boundary commission – an independent commission that makes decisions regarding the creation, altering or dissolution of municipal governments.
Legal takeaways:
- Alaska Constitution mandates certain of the Department’s functions
- Article X requires that there be a local government agency to advise and assist local governments.
- Article X mandated that a Local Boundary Commission be established to consider any proposed local government boundary changes.
- Section lawyers – advise on matters ranging from commercial fishing loan transactions to local government boundary changes to the administration of grant programs and the regulation of the financial services industry; litigate before administrative forums and courts on all of these issues; review and prepare legislation and regulations.
Alaska Division of Retirement and Benefits – Alaska Retirement Management Board
Interesting facts:
- Alaska manages over $25 billion dollars in pension funds for over 130,000 employees and retirees.
- Alaska is one of only a handful of states with a constitution that protects public employee pensions.
Legal takeaways:
- Alaska Constitution
- Article XII, Sec. 7 – Pensions for state and local government employees constitute a contract and shall not be diminished or impaired.
- Section lawyers – advise on the administration of state pension and health plans and the investment of pension funds including the fiduciary duties of officials; review changes in the plans for conformity with IRS rules and state constitutional requirements; litigate cases in administrative forums and state and federal courts; review proposed legislation and assist in preparation of regulations.
Alaska Permanent Fund Corporation
(manages and invests the permanent fund)
Interesting facts:
- The Alaska permanent fund is one of the largest sovereign wealth funds in the world and it has gained world-wide recognition as a model for converting a non-renewable natural resource into a renewable financial resource.
- The investment earnings of the permanent fund are one of the two top sources of state revenue funding Alaska’s state government.
- Alaska is the only state that each year shares its mineral wealth with its residents – through the permanent fund dividend.
Legal takeaways:
- Alaska Constitution
- Article IX, Sec. 15 – a constitutional amendment passed in 1976 that requires at least one-quarter of the State’s annual revenues from oil royalties to be saved into a Permanent Fund with only the investment earnings from the Fund eligible to be spent by the legislature.
- The Alaska Permanent Fund is now one of the largest sovereign wealth funds in the world and its earnings are a major source of revenues to operate state government – and also produces an annual Permanent Fund Dividend payment for Alaska residents.
- The Dividend
- In 2017 the Alaska Supreme Court ruled that the amount of the PFD is determined yearly by the legislature and is subject to reduction by veto by the governor.
- Section lawyers – advise the APFC Corporation’s management team and Board of Trustees on state law matters; review securities cases to identify potential litigation to protect the Fund’s assets; review and advise the APFC regarding proposed legislation affecting the Permanent Fund.
Economic Development Agencies
(including the Alaska Housing Finance Corporation (AHFC), Alaska Seafood Marketing Institute (ASMI); Alaska Industrial Development and Export Authority (AIDEA), Alaska Gasline Development Authority, Alaska Energy Authority (AEA), and the Alaska Municipal Bond Bank Authority)
Did you know:
- AHFC and its predecessor have helped Alaskans meet their housing needs from the early years of Alaska statehood.
- The famed red dog time in northwestern Alaska was developed with financing from the Alaska industrial development and export authority- the mine operates on land owned by the native corporation for northwest Alaska and profits are shared with the native corporation.
Legal takeaways:
- Alaska Constitution
- Article IX, Sec. 11 – The framers of Alaska’s Constitution envisioned the creation of state public corporations and authorized those entities to issue revenue bonds to finance economic development.
- Major Court cases
- Alaska Supreme Court upheld the authority of public corporations to issue revenue bonds for industrial development and to purchase home mortgages.
- Section lawyers – advise the Corporations on board governance, public records, Open Meetings Act; proposed transactions and contracts; financing and development options; litigation support; draft and review proposed legislation and assist in preparation of regulations.
Special purpose state authorities:
Alaska Mental Health Trust Authority (AMHTA); Alaska Seafood Marketing Institute (ASMI)
Did you know:
- Before Alaska became a state it received a land grant from the federal government to provide for the mental health needs of Alaskans – the Alaska mental health trust authority serves as the state’s fiduciary to manage the land and financial assets that are devoted in perpetuity to support the current and future mental health needs of Alaskans.
- Section lawyers – advise the AMHTA on meeting its fiduciary duties to manage and invest the authority’s assets as well as advise on board governance; litigation, and review proposed legislation.
- Alaska seafood marketing institute helps market wild Alaska salmon to countries around the world.
- Section lawyers – advise the ASMI on various legal issues related to its mission to market Alaska’s seafood.
Section Contact
For further information on the Public Corporations & Governmental Services Section contact:
Bill Milks
Chief Assistant Attorney General, Section Supervisor
907-465-3600