The Alaska Productive Capacity Authority Act

                    THIRTY-FOURTH ALASKA LEGISLATURE
                         Second Regular Session

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HOUSE BILL ____ / SENATE BILL ____

BY __________

CONCERNING THE ESTABLISHMENT OF THE ALASKA PRODUCTIVE CAPACITY AUTHORITY AS A STATE-CHARTERED CITIZEN-SHAREHOLDER PUBLIC CORPORATION ON THE ALASKA NATIVE CLAIMS SETTLEMENT ACT MODEL; ESTABLISHING A CIVIC ROBOT CORPS OF ALASKA AS A PUBLIC-GOOD LABOR BODY; CREATING A PERSONAL PRODUCTIVE ASSET ENTITLEMENT FOR EVERY ELIGIBLE ALASKA RESIDENT; APPROPRIATING FROM THE ALASKA PERMANENT FUND EARNINGS RESERVE AND AUTHORIZING BONDED INDEBTEDNESS UNDER AS 44.88; ENACTING NEW SECTIONS OF AS 44 (STATE GOVERNMENT); AND PROVIDING FOR AN EFFECTIVE DATE.

                        A BILL FOR AN ACT

LONG TITLE

AN ACT CONCERNING THE ESTABLISHMENT OF THE ALASKA PRODUCTIVE CAPACITY AUTHORITY (APCA) AS A STATE-CHARTERED CITIZEN-SHAREHOLDER PUBLIC CORPORATION UNDER THE OPERATIONAL CHASSIS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AS 44.88) AND THE ALASKA RAILROAD CORPORATION (AS 42.40); INHERITING THE CITIZEN-SHAREHOLDER STRUCTURE OF THE ALASKA NATIVE CLAIMS SETTLEMENT ACT OF 1971; CHARTERING SIX REGIONAL ALASKA PRODUCTIVE CAPACITY DISTRICTS GEOGRAPHICALLY DISTRIBUTED ACROSS THE STATE; ISSUING NON-TRANSFERABLE PRODUCTIVE CAPACITY SHARES TO EVERY ELIGIBLE ALASKA RESIDENT ON THE ENACTMENT DATE AND TO QUALIFYING RESIDENTS THEREAFTER; ESTABLISHING A SECTION 7(i)-EQUIVALENT REVENUE POOLING MECHANISM REQUIRING SEVENTY PERCENT (70%) OF EACH REGIONAL DISTRICT'S PRODUCTIVE CAPACITY REVENUE TO BE SHARED ACROSS REGIONS; ESTABLISHING A SECTION 7(j)-EQUIVALENT CITIZEN-SHAREHOLDER DISTRIBUTION MECHANISM PAYING SEVENTY-FIVE PERCENT (75%) OF POOLED REVENUE TO SHAREHOLDERS ANNUALLY THROUGH THE EXISTING PERMANENT FUND DIVIDEND DISTRIBUTION INFRASTRUCTURE; AUTHORIZING BONDED INDEBTEDNESS UP TO TWO BILLION FIVE HUNDRED MILLION DOLLARS UNDER THE AIDEA BORROWING CHASSIS FOR INITIAL CAPITALIZATION; APPROPRIATING FROM THE ALASKA PERMANENT FUND EARNINGS RESERVE ACCOUNT FOR OPERATIONAL SEED FUNDING; EXPLICITLY DECLINING TO ESTABLISH ANY STATE INCOME TAX, SALES TAX, OR INDUSTRY ASSESSMENT FOR THE FUNDING OF THIS AUTHORITY; PROVIDING THAT THE PRINCIPAL OF THE ALASKA PERMANENT FUND ITSELF SHALL NOT BE EXPENDED IN THE SEEDING OF THIS AUTHORITY; ESTABLISHING THE CIVIC ROBOT CORPS OF ALASKA AS THE PUBLIC-GOOD LABOR BODY THAT OPERATES REPLICATION-THRESHOLD ROBOTIC MANUFACTURING TECHNOLOGY UNDER THE AUTHORITY; CREATING A PERSONAL PRODUCTIVE ASSET ENTITLEMENT FOR EVERY ELIGIBLE ALASKA RESIDENT, ENROLLED THROUGH THE EXISTING PFD INFRASTRUCTURE OPERATED BY THE DEPARTMENT OF REVENUE; PROVIDING FOR INTEGRATION WITH THE ALASKA NATIVE CLAIMS SETTLEMENT ACT REGIONAL CORPORATIONS AND VILLAGE CORPORATIONS, EACH RETAINING FULL SOVEREIGNTY AND OPERATIONAL INDEPENDENCE; PROVIDING FOR COORDINATION WITH FEDERAL FUSION ENERGY PROGRAMS FOR ELECTRICAL POWER PROCUREMENT; ESTABLISHING A PHASED IMPLEMENTATION SCHEDULE; AND PROVIDING EFFECTIVE DATES FOR IMPLEMENTATION.

LEGISLATIVE ROUTING NOTE

Alaska legislative bills are designated HB (House Bill) or SB (Senate Bill) and filed with the Chief Clerk of the House or Secretary of the Senate. The enacting clause, per AS 24.08.040, reads: "Be it enacted by the Legislature of the State of Alaska." Committee referrals are made by the presiding officer.

Suggested committee referrals for this Act:

HOUSE: - House Resources Committee (Title III productive capacity, fusion energy procurement, Permanent Fund integration) - House Finance Committee (Title II bonded indebtedness, Permanent Fund Earnings Reserve appropriation, fiscal note) - House Labor and Commerce Committee (Title IV Civic Robot Corps of Alaska, employment displacement framework) - House Community and Regional Affairs Committee (Title V Regional Productive Capacity Districts, ANCSA Regional Corporation coordination)

SENATE: - Senate Resources Committee - Senate Finance Committee - Senate Labor and Commerce Committee - Senate Community and Regional Affairs Committee

The Alaska Legislature operates on a fiscal year beginning July 1.

FUNDING ARCHITECTURE:

This Act explicitly declines to establish, increase, or extend any state income tax, statewide sales tax, oil-and-gas production tax surcharge, or industry assessment to fund the Alaska Productive Capacity Authority. Operating revenue shall be derived from:

(a) Initial bonded indebtedness up to $2.5 billion under the AIDEA

    chassis (AS 44.88), repaid from authority-generated revenue;

(b) An appropriation from the Alaska Permanent Fund Earnings Reserve

    Account (NOT from the principal of the Permanent Fund itself, which
    is constitutionally protected under Article IX Section 15) of an
    amount the Legislature determines sufficient for operational seed
    funding over the four-year initial buildout window;

(c) At-cost sales of goods and services produced by the Authority and

    its Regional Productive Capacity Districts;

(d) Investment earnings on a state-level Productive Capacity Permanent

    Fund seeded from goods-revenue surplus.

The Permanent Fund principal is not touched. The PFD distribution infrastructure already in place at the Department of Revenue distributes shareholder dividends; no new distribution infrastructure is required.

TITLE I - SHORT TITLE, FINDINGS, AND DECLARATIONS

SECTION 1. SHORT TITLE.

This Act may be cited as the "Alaska Productive Capacity Authority Act" or "APCA Act."

SECTION 2. FINDINGS.

The Legislature of the State of Alaska finds:

FINDING 1 - The State of Alaska faces a chronic structural deficit. The FY2027 budget projects a $1.5 billion shortfall against a $7.75 billion operating budget. Oil revenue volatility, declining North Slope production, federal cost-shifts (including the SNAP administrative cost-shift from fifty percent to seventy-five percent effective October 1, 2026), and the absence of a state income or broad sales tax leave Alaska structurally dependent on a single volatile revenue stream and on Permanent Fund earnings transfers. A second productive revenue stream, not derived from oil and not derived from taxation, is required.

FINDING 2 - The State of Alaska has already proven, in operation, every load-bearing component of a citizen-shareholder productive-asset architecture. ANCSA proved that communal-shareholder corporations work in the United States. The Permanent Fund proved that principal-protected sovereign asset management works. The PFD proved that universal citizen-distribution works. AIDEA, AHFC, ASMI, the Alaska Railroad Corporation, and the Alaska Permanent Fund Corporation prove that state-chartered public corporations operating commercially are a mature, politically durable Alaska institution. What this Act proposes is not a new posture for Alaska. It is the integration of postures Alaska has already adopted, separately, into a single chartering statute aimed at the productive capacity gap rather than at land, housing, fish, or rail.

FINDING 3 - Replication-threshold humanoid robotic manufacturing technology arrived in Q4 2025 through Q2 2026. Boston Dynamics Atlas entered production at CES 2026 with a Hyundai factory targeted at 30,000 units per year by 2028. Tesla Optimus targets 50,000-100,000 units in 2026 ramping to 500,000-1,000,000 per year by 2027. Apptronik Apollo reached a $5 billion valuation with $935 million Series A funding in February 2026. Agility Robotics Digit operates under a multi-year Robotics-as-a-Service contract at GXO Logistics at approximately $20-25K per year per unit. Unitree R1 retails at $5,900, a price point Forbes reported in April 2026 was "thought to be five years away." The foundation-model robotic intelligence ecosystem is valued at more than $60 billion in aggregate. The historical horizon for full robotic-built- by-robotic manufacturing has compressed from generational to year-over- year. Alaska, with the highest per-capita commodity costs in the United States, has the most to gain and the most to lose from this transition.

FINDING 4 - The military commissary system has operated at-cost food distribution at JBER, Eielson AFB, Fort Wainwright, Clear SFS, and Fort Greely continuously since 1867 - one hundred and fifty-eight years of operational track record. The military has already solved the at-cost distribution problem in Alaska, in every climate zone Alaska contains, at every level of geographic remoteness Alaska contains. The Alaska Productive Capacity Authority extends this solved operational model from service-member households to all eligible Alaska residents.

FINDING 5 - The Alaska Native Claims Settlement Act of 1971 (Public Law 92-203, codified at 43 U.S.C. Chapter 33) established twelve Regional Corporations plus a thirteenth at-large corporation, with more than two hundred village corporations, with non-transferable shares issued to qualifying Alaska Natives, with Section 7(i) requiring seventy percent of all timber and subsurface mineral revenues received by each Regional Corporation to be shared with the other eleven, and with Section 7(j) requiring fifty percent of the 7(i) pooled revenue to pass through to villages and at-large shareholders. ASRC reported FY2024 revenue of $5.7 billion with a record $122 per share dividend to its 14,000-plus shareholders. NANA Regional Corporation's shareholders voted in 2023 to create a permanent fund from Red Dog Mine proceeds. Doyon, Limited holds 12.5 million acres, the largest private landholding in Alaska. ANCSA has operated continuously for fifty-five years without political reversal. This Act follows the ANCSA structural model for the State of Alaska shareholder structure, while leaving the ANCSA Regional Corporations and village corporations themselves entirely sovereign, independent, and untouched by this Act.

FINDING 6 - The Alaska Permanent Fund, established 1976 under Alaska Constitution Article IX Section 15, holds approximately $86 billion in assets, distributes an annual Permanent Fund Dividend to every qualifying resident, and has demonstrated forty-nine years of constitutional principal protection. The Permanent Fund Dividend ranged from $331 in 1984 to $3,284 in 2022; was $1,702 in 2024; was $1,000 in 2025. The PFD distribution infrastructure operated by the Department of Revenue under AS 43.23 reaches every eligible Alaska resident. This Act uses the existing PFD infrastructure to distribute APCA citizen-shareholder dividends, requiring no new distribution administration.

FINDING 7 - The historical apoplexy thesis (Cooper, Historical Apoplexy 2025-2026) names the civilizational disease of forgetting solved problems. Defense Commissary Agency at-cost distribution since 1867; Roman annona civica from 27 BC for over four hundred years; Nerva alimenta from approximately AD 98; the Tabula Alimentaria from Veleia (CIL XI 1147, bronze, Parma Museum); the Augustus tyrant record (300 senators and 2,000 equestrians proscribed - Suetonius, Life of Augustus 27) - all solved at-cost distribution and citizen-asset provision at operational scale, in writing, in stone, in continuous practice. The arithmetic of abundance was solved. The collection mechanism was forgotten. The Alaska Productive Capacity Authority is one of the instruments by which the State of Alaska restores collection.

FINDING 8 - The Bush Alaska food price crisis exemplifies the distribution-markup pathology nationally documented in USDA Food Dollar Series data: 24.3 cents farm share, 75.7 cents marketing share. In Bush Alaska, the marketing share approaches 90 percent because aviation-based transportation costs are astronomical. The federal Bypass Mail program (39 USC 5402) has subsidized food shipping to rural Alaska for over fifty years - acknowledgment that market distribution cannot reach these communities at acceptable cost. This Act replaces the subsidy model ("pay the markup") with infrastructure ("build a distribution system that minimizes the markup").

FINDING 9 - Alaska's suicide crisis - the highest age-adjusted suicide rate of any racial or ethnic group in 2022 among American Indians and Alaska Natives; among the highest overall suicide rates in the nation - is not a medical failure but a social-architecture failure. Loss of language, culture, subsistence economy, and intergenerational connection produced the behavioral sink that Calhoun described, caused by loss rather than provision. A productive-capacity infrastructure that restores meaningful work, that integrates with village economies, that preserves Native language, and that creates structured pathways for youth - in coordination with ANCSA Regional and village corporations, in coordination with tribal governments, in coordination with the Department of Health - is part of the structural response.

FINDING 10 - Alaska is uniquely positioned to lead this architecture nationally. Alaska has the per-capita sovereign asset depth (~$117,000 per resident) to seed the Authority without taxation. Alaska has the ANCSA institutional memory to implement citizen-shareholder structures without invention. Alaska has the PFD distribution infrastructure to deliver dividends without new administration. Alaska has the military logistics expertise to deliver at-cost goods to extreme remoteness. And Alaska has the political culture - self-reliant, resource-rooted, suspicious of federal overreach, accustomed to citizen-shareholder mechanisms - to charter and govern this Authority on its own terms.

SECTION 3. DECLARATIONS.

DECLARATION 1 - PARAMOUNT RIGHT TO A PERSONAL PRODUCTIVE ASSET. The Legislature declares that every eligible Alaska resident possesses a paramount right to a personal productive asset under the State of Alaska. This right is conferred by this Act as a Personal Productive Asset entitlement (Title IV) and is operative whether or not the Constitution of Alaska is amended to codify the same right at constitutional rank. The Legislature recommends - but does not as a matter of this enactment require - that the people of Alaska adopt by the procedure of Article XIII Section 1 a constitutional amendment recognizing the paramount right. Until such amendment is adopted, the statutory entitlement under this Act shall be of the highest available state-statutory rank, governing all conflicting state statutes and regulations except those expressly required by federal law.

DECLARATION 2 - OPERATIONAL MANDATE PRECEDES RATIFICATION. The Legislature declares that the operational mandate of this Act shall not await the constitutional amendment recommended under Declaration 1. Implementation begins on the effective date of this Act under the state-statutory authority alone.

DECLARATION 3 - ANCSA SOVEREIGNTY UNTOUCHED. The Legislature declares that nothing in this Act shall be construed to diminish, modify, preempt, supersede, or in any way affect the sovereignty, operational independence, share structure, revenue-pooling mechanisms, or any other attribute of the Alaska Native Claims Settlement Act of 1971, the twelve Regional Corporations chartered thereunder, the at-large thirteenth Regional Corporation, or the more than two hundred village corporations chartered thereunder. The Alaska Productive Capacity Authority is a separate state-chartered entity inheriting the structural model of ANCSA. It does not replace, succeed, supplant, compete with, or in any way affect the ANCSA Regional Corporations or village corporations.

DECLARATION 4 - TRIBAL SOVEREIGNTY UNTOUCHED. The Legislature declares that nothing in this Act shall affect the sovereignty of the 229 federally recognized tribes in the State of Alaska. Coordination with tribal governments under this Act shall proceed on a government-to- government basis through the existing protocols of the Department of Commerce, Community, and Economic Development and the Alaska Department of Law.

DECLARATION 5 - PERMANENT FUND PRINCIPAL UNTOUCHED. The Legislature declares that the principal of the Alaska Permanent Fund, constitutionally protected under Alaska Constitution Article IX Section 15, shall not be expended, encumbered, pledged, or in any way diminished by this Act. The Authority may receive transfers from the Alaska Permanent Fund Earnings Reserve Account as appropriated by the Legislature; the Authority may not receive any transfer from the Permanent Fund principal.

TITLE II - ESTABLISHMENT OF THE ALASKA PRODUCTIVE CAPACITY AUTHORITY

SECTION 4. ESTABLISHMENT.

There is established within the executive branch of the State of Alaska, but operating as an independent instrumentality of the state, a public corporation to be known as the "Alaska Productive Capacity Authority" (hereafter "the Authority" or "APCA"). The Authority is constituted as a body corporate and politic, with the powers, duties, and immunities generally conferred on Alaska state public corporations by AS 44.88 (AIDEA chassis) and AS 42.40 (Alaska Railroad Corporation chassis), modified by the specific provisions of this Act.

SECTION 5. BOARD OF DIRECTORS.

The Authority is governed by a Board of Directors of nine members, constituted as follows:

(a) Six members appointed by the Governor with the advice and consent of

    the Legislature, one from each Regional Productive Capacity District
    established under Section 11, each member residing in the district
    they represent for at least three years preceding appointment;

(b) The Commissioner of the Department of Revenue, or a designee, ex

    officio with full voting rights;

(c) The Commissioner of the Department of Commerce, Community, and

    Economic Development, or a designee, ex officio with full voting
    rights;

(d) One member jointly selected by the Alaska Federation of Natives, the

    Alaska Inter-Tribal Council, and the Association of Village Council
    Presidents, serving as the Native-coordination member, voting with
    full rights.

Members serve five-year staggered terms. No member may be removed except for cause by majority vote of the Legislature in joint session.

SECTION 6. POWERS OF THE AUTHORITY.

The Authority has the power to:

(a) Charter, capitalize, and govern six Regional Productive Capacity

    Districts established under Section 11;

(b) Issue Productive Capacity Shares under Section 9; (c) Acquire, hold, manage, lease, sell, and dispose of real and

    personal property, including replication-threshold robotic
    manufacturing equipment, fusion-energy power-purchase rights,
    distribution infrastructure, and at-cost retail facilities;

(d) Enter into contracts, including with the federal government, with

    other state agencies, with Alaska Native Regional and village
    corporations on a corporation-to-corporation basis, with tribal
    governments on a government-to-government basis (in coordination
    with the Department of Law), with private vendors, and with
    out-of-state purchasers;

(e) Borrow money and issue bonds under the AIDEA chassis (AS 44.88) up

    to a cumulative outstanding limit of two billion five hundred
    million dollars ($2,500,000,000) for initial capitalization;

(f) Establish the Alaska Productive Capacity Permanent Fund (Section 8)

    and receive transfers thereto;

(g) Make annual distributions to Productive Capacity Shareholders under

    Section 10 through the existing PFD infrastructure operated by the
    Department of Revenue;

(h) Charter the Civic Robot Corps of Alaska under Title IV; (i) Coordinate procurement of fusion-derived electrical power, including

    federal long-term power-purchase agreements;

(j) Adopt regulations under the Administrative Procedure Act (AS 44.62)

    necessary or convenient to carry out this Act;

(k) Sue and be sued in its own name.

SECTION 7. PROHIBITED POWERS.

The Authority shall not:

(a) Issue Productive Capacity Shares to any person who is not an eligible

    Alaska resident under AS 43.23.005;

(b) Sell, transfer, alienate, or treat as collateral any Productive

    Capacity Share;

(c) Expend, encumber, or pledge any portion of the Alaska Permanent Fund

    principal;

(d) Establish, propose to establish, or operate any state income tax,

    statewide sales tax, oil-and-gas production tax surcharge, or
    industry assessment;

(e) Diminish, modify, preempt, or supersede any sovereignty, structure,

    or operation of the ANCSA Regional Corporations, the at-large
    thirteenth Corporation, or any village corporation;

(f) Compete with, replace, or displace ANCSA Regional and village

    corporations in their existing commercial operations;

(g) Replace or displace the Alaska Permanent Fund Corporation in its

    management of the Permanent Fund principal.

SECTION 8. THE ALASKA PRODUCTIVE CAPACITY PERMANENT FUND.

There is established as a separate fund in the state treasury the "Alaska Productive Capacity Permanent Fund" (hereafter "the APC Permanent Fund"). The APC Permanent Fund shall:

(a) Receive transfers from the Authority's annual operating surplus

    after dividends paid under Section 10;

(b) Receive any appropriations the Legislature directs from the Alaska

    Permanent Fund Earnings Reserve Account or the general fund for the
    seeding of the APC Permanent Fund;

(c) Be managed by the Alaska Permanent Fund Corporation under a

    management agreement adopted under AS 37.13, on terms substantially
    equivalent to the management of the Alaska Permanent Fund itself;

(d) Have its principal constitutionally protected to the maximum extent

    permitted under the Constitution of Alaska; the Legislature
    recommends a constitutional amendment to extend Article IX Section
    15 principal-protection to this Fund;

(e) Make available its annual investment earnings, less reasonable

    management costs, for Authority operating use under such terms as
    the Authority's Board of Directors determines.

TITLE III - PRODUCTIVE CAPACITY SHARES AND DISTRIBUTION

SECTION 9. PRODUCTIVE CAPACITY SHARES.

(a) ISSUANCE. The Authority shall issue Productive Capacity Shares as

    follows:

    (1) ONE Productive Capacity Share shall be issued to every eligible
        Alaska resident, as defined under AS 43.23.005 (PFD eligibility),
        living on the effective date of this Act;

    (2) ONE Productive Capacity Share shall be issued to every person
        born thereafter to an eligible Alaska resident parent at the
        time of birth, subject to the parent's election;

    (3) ONE Productive Capacity Share shall be issued to every person
        who establishes eligibility under AS 43.23.005 after the
        effective date, upon completion of the one-year residency
        period.

(b) NON-TRANSFERABLE. Productive Capacity Shares are non-transferable.

    They may not be sold, pledged, assigned, used as collateral, gifted,
    or in any other manner conveyed to a non-eligible person. A
    Productive Capacity Share may be inherited by an eligible Alaska
    resident through ordinary probate. A Productive Capacity Share held
    by a person who ceases to be an eligible Alaska resident shall be
    held in suspense for up to ten years pending re-establishment of
    eligibility; if not re-established, the Share shall be retired.

(c) ONE PERSON, ONE SHARE. Each eligible person holds exactly one

    Productive Capacity Share regardless of household composition,
    income, prior shareholder status, ANCSA shareholder status, age, or
    any other factor. The structure is universal.

(d) ANCSA COORDINATION. An eligible Alaska resident who is also a

    shareholder of an ANCSA Regional Corporation, a village corporation,
    or both, holds those shares separately and without affect by this
    Act. APCA shares are in addition to, not in place of, ANCSA shares.

SECTION 10. ANNUAL DISTRIBUTION.

(a) SECTION 7(i)-EQUIVALENT POOLING. Seventy percent (70%) of all

    productive-capacity revenue received by each of the six Regional
    Productive Capacity Districts under Section 11 shall be remitted to
    the Authority for inter-regional pooling. Each Regional District
    retains the remaining thirty percent (30%) for district-level
    operations and reserves.

(b) SECTION 7(j)-EQUIVALENT DISTRIBUTION. Seventy-five percent (75%) of

    the inter-regional pool established under subsection (a) shall be
    distributed annually to Productive Capacity Shareholders, equally
    per share, through the existing PFD distribution infrastructure
    operated by the Department of Revenue under AS 43.23. The remaining
    twenty-five percent (25%) shall be retained by the Authority for
    operating reserves, debt service, APC Permanent Fund seeding, and
    expansion capital.

(c) DISTRIBUTION TIMING. The Authority shall make the annual Productive

    Capacity Dividend distribution coincident with the existing PFD
    distribution timing, with one administrative consolidated payment
    to each shareholder per year. The Productive Capacity Dividend
    shall be separately accounted for, separately reported on the
    annual distribution statement, and separately denominated as the
    "Productive Capacity Dividend" or "PCD."

(d) FEDERAL TAX TREATMENT. The Authority shall coordinate with the

    Internal Revenue Service to obtain a determination on the federal
    tax treatment of the Productive Capacity Dividend, analogous to the
    PFD treatment under existing Treasury regulations. State income tax
    treatment is moot, as the State of Alaska has no state income tax.

TITLE IV - CIVIC ROBOT CORPS OF ALASKA

SECTION 11. REGIONAL PRODUCTIVE CAPACITY DISTRICTS.

Six Regional Productive Capacity Districts (RPCDs) are established within the Authority, geographically distributed:

DISTRICT I - SOUTHEAST. Comprising the Ketchikan Gateway, Prince of Wales-Hyder, Wrangell, Petersburg, Sitka, Juneau, Haines, Skagway, and Yakutat census areas. District seat: Juneau.

DISTRICT II - SOUTHCENTRAL. Comprising the Anchorage Municipality, the Matanuska-Susitna Borough, the Kenai Peninsula Borough, and the Chugach, Copper River, and Valdez-Cordova census areas. District seat: Anchorage.

DISTRICT III - INTERIOR. Comprising the Fairbanks North Star Borough, the Denali Borough, the Southeast Fairbanks Census Area, and the Yukon- Koyukuk Census Area. District seat: Fairbanks.

DISTRICT IV - SOUTHWEST. Comprising the Bristol Bay Borough, the Lake and Peninsula Borough, the Dillingham Census Area, the Aleutians East Borough, the Aleutians West Census Area, the Kodiak Island Borough, and the Kusilvak Census Area. District seat: Dillingham.

DISTRICT V - NORTHWEST. Comprising the Nome Census Area, the Northwest Arctic Borough, and the Bering Strait region. District seat: Nome.

DISTRICT VI - NORTH SLOPE. Comprising the North Slope Borough. District seat: Utqiagvik.

Each Regional Productive Capacity District operates as an operating subsidiary of the Authority, with a District Manager appointed by the Authority Board, a District Advisory Council of seven residents appointed by the Authority Board upon nomination by the borough or census-area assemblies within the district, and authority delegated by the Authority Board for district-level productive-capacity operations.

SECTION 12. CIVIC ROBOT CORPS OF ALASKA - ESTABLISHMENT.

There is established within the Authority a public-good labor body to be known as the "Civic Robot Corps of Alaska" (hereafter "the Corps" or "CRC-AK"). The Corps shall operate replication-threshold robotic manufacturing equipment owned by the Authority for the production of goods and services delivered at-cost to eligible Alaska residents.

SECTION 13. SERVICE LINES.

The Corps shall operate the following service lines, organized by Regional Productive Capacity District but coordinated authority-wide:

(a) AT-COST GOODS PRODUCTION AND DISTRIBUTION. Production and at-cost

    distribution of basic-needs goods including non-perishable food,
    canned and frozen food, clothing, hand tools, household goods,
    educational supplies, and the basic-tier production goods
    enumerated in Title V Section 17.

(b) BUSH ALASKA DISTRIBUTION. Specialized aviation and overland

    logistics for Bush Alaska distribution, building on the federal
    Bypass Mail (39 USC 5402) operational chassis and on the military
    commissary distribution model proven at JBER, Eielson, Fort
    Wainwright, Clear SFS, and Fort Greely. The Corps shall operate, or
    contract with the Alaska Air National Guard and Alaska Army National
    Guard for, aviation logistics to villages off the road system. The
    objective is to reduce the marketing-share component of food and
    basic-goods cost in Bush Alaska from the current approximately 90
    percent to a target of 25 percent or below by the end of Phase III.

(c) FISHERIES PROCESSING AND VALUE-ADDED PRODUCTION. Coordination with

    the Alaska Seafood Marketing Institute under AS 16.51, with state
    fishery cooperative associations, and with private processors for
    Corps-operated value-added processing, packaging, and direct-to-
    shareholder distribution of Alaska-caught seafood at the bottom
    operational quartile of the marketing markup.

(d) OIL AND GAS DECOMMISSIONING. Coordination with the Department of

    Natural Resources and the federal Bureau of Land Management for
    Corps-operated robotic decommissioning of legacy oil and gas
    infrastructure, including capped well rehabilitation and pipeline
    decommissioning. Revenue from federal-state cost-share agreements
    flows to the Authority.

(e) RURAL INFRASTRUCTURE CONSTRUCTION AND MAINTENANCE. Corps-operated

    robotic construction and maintenance of rural infrastructure
    including water and sewer in unserved villages (in coordination
    with the Department of Environmental Conservation), Molly-Hootch
    educational facility maintenance, and inter-village ground
    transportation infrastructure where economically and ecologically
    justified.

(f) FUSION ENERGY DISTRIBUTION. When federal fusion energy capacity

    becomes available for procurement under federal long-term
    power-purchase agreements, the Corps shall operate the distribution
    interface for fusion-derived power into the Railbelt Intertie and,
    over time, into the off-Railbelt distribution areas, in
    coordination with the Alaska Energy Authority and the Regulatory
    Commission of Alaska.

SECTION 14. HUMAN WORKFORCE.

The Corps shall employ a human workforce of Alaska residents, preferentially recruited from the Regional Productive Capacity District in which the work is performed, for:

(a) Robotic system operation, maintenance, programming, and supervision; (b) Aviation and overland logistics piloting and operation; (c) Skilled trades work that complements but does not duplicate robotic

    capacity;

(d) Administration, distribution-center management, and shareholder

    services;

(e) Training and apprenticeship programs that move workers between

    service lines as the production posture matures.

The Corps shall maintain a wage floor of one hundred and twenty percent (120%) of the prevailing Alaska state minimum wage. The Corps shall participate in the Public Employees' Retirement System under AS 39.35. The Corps shall coordinate with the Department of Labor and Workforce Development for apprenticeship pipeline integration.

SECTION 15. NATIVE COORDINATION.

The Corps shall coordinate operations with ANCSA Regional Corporations, village corporations, and tribal governments through:

(a) A Native Coordination Office reporting to the Native-coordination

    member of the Authority Board;

(b) Right-of-first-refusal contracts for ANCSA Regional Corporation

    subsidiaries and village corporation enterprises on Corps service
    contracts within their statutory or traditional territories;

(c) Coordinated apprenticeship pipelines with Alaska Native vocational

    education programs, including the Alaska Vocational Technical
    Center (AVTEC) and the Yuut Elitnaurviat program;

(d) Language preservation integration in Corps materials, signage, and

    training in regions with active Alaska Native language communities,
    in coordination with the UAF Alaska Native Language Center.

TITLE V - PERSONAL PRODUCTIVE ASSET ENTITLEMENT

SECTION 16. PERSONAL PRODUCTIVE ASSET ENTITLEMENT.

(a) ENTITLEMENT. There is established a Personal Productive Asset

    entitlement for every eligible Alaska resident. The Personal
    Productive Asset entitlement consists of:

    (1) One Productive Capacity Share issued under Section 9;
    (2) Annual Productive Capacity Dividend distribution under Section
        10;
    (3) Access to at-cost basic-needs goods produced by the Civic Robot
        Corps of Alaska under Section 13, at Corps-operated distribution
        points authority-wide;
    (4) Priority access to Corps-operated training and apprenticeship
        programs under Section 14(e).

(b) ENROLLMENT. Eligible Alaska residents are enrolled automatically

    upon their PFD eligibility determination under AS 43.23.005. No
    separate APCA enrollment is required.

(c) AT-COST GOODS ACCESS - BASIC TIER. The basic tier of at-cost goods

    available to Personal Productive Asset entitlement holders shall
    include, at minimum:

    (1) Non-perishable food (rice, beans, grains, canned proteins,
        canned vegetables and fruits, baking supplies, cooking oils);
    (2) Frozen food (proteins, vegetables, ready meals);
    (3) Basic clothing (work clothing, weather-appropriate outerwear,
        undergarments, footwear);
    (4) Hand tools, household goods, basic kitchen and cleaning supplies;
    (5) Educational supplies for K-20 students (paper, pens, calculators,
        textbooks);
    (6) Subsistence-supporting equipment in Bush Alaska districts (fishing
        nets, traps, basic ammunition for subsistence hunting in compliance
        with state and federal regulations, snow machines and ATVs in
        cooperative-purchase arrangements).

(d) AT-COST GOODS ACCESS - EXPANSION. The Authority Board may, by

    regulation under AS 44.62, expand the basic tier to additional
    goods as Corps production capacity scales. The Authority shall
    propose annual basic-tier expansions to the Legislature concurrent
    with the annual budget submission.

(e) MARKET PRESERVATION. The at-cost basic tier covers basic needs and

    basic mid-tier goods. Premium-tier, luxury-tier, status-signaling,
    and rare-substrate goods continue to be served by the private
    market. The Authority and the Corps shall not enter premium-tier,
    luxury-tier, status-signaling, or rare-substrate markets. The
    operational principle is: basic needs through Corps at-cost
    distribution; premium and above through the existing private market
    economy.

SECTION 17. PARAMOUNT RANK.

The Personal Productive Asset entitlement under this Title is of the highest available state-statutory rank. In any conflict between this entitlement and any other state statute or regulation, this entitlement prevails, except where conflict is expressly required by federal law. The Legislature recommends a constitutional amendment to codify this entitlement at constitutional rank.

TITLE VI - PERMANENT FUND INTEGRATION

SECTION 18. RELATIONSHIP TO THE ALASKA PERMANENT FUND.

(a) PRINCIPAL UNTOUCHED. The principal of the Alaska Permanent Fund,

    constitutionally protected under Alaska Constitution Article IX
    Section 15, shall not be expended, encumbered, pledged, or in any
    way diminished by this Act. This Act creates no claim on the
    Permanent Fund principal.

(b) EARNINGS RESERVE APPROPRIATION. The Legislature may appropriate from

    the Alaska Permanent Fund Earnings Reserve Account, by ordinary
    appropriations procedure, an amount the Legislature determines
    sufficient for the operational seed funding of the Authority and
    the Corps over the four-year initial buildout window under Section
    21.

(c) DIVIDEND DISTRIBUTION INFRASTRUCTURE. The Department of Revenue

    shall add the annual Productive Capacity Dividend distribution to
    the existing PFD distribution operation, treating the PCD as a
    separately-denominated additional dividend payable to APCA
    shareholders on the same distribution date. The Department of
    Revenue shall be reimbursed by the Authority for incremental
    administrative cost of the PCD distribution; no general fund
    appropriation is required for this incremental administrative
    overhead.

(d) PFD UNAFFECTED. Nothing in this Act shall affect the Permanent Fund

    Dividend calculation, distribution, eligibility, or governance under
    AS 43.23.

TITLE VII - IMPLEMENTATION PHASES

SECTION 19. FOUR-PHASE IMPLEMENTATION.

The Authority shall implement this Act in four phases:

PHASE I - CHARTERING AND ENROLLMENT (Months 0 - 18 from effective date).

The Authority is chartered. The Board of Directors is appointed and confirmed. Initial bonded indebtedness of up to one billion dollars ($1,000,000,000) is authorized under the AIDEA chassis. Productive Capacity Shares are issued to all eligible Alaska residents on file as of the effective date through the PFD enrollment system. Regional Productive Capacity Districts are seated. Initial District Managers and District Advisory Councils are appointed.

PHASE II - INITIAL CORPS OPERATIONS (Months 18 - 48).

The Civic Robot Corps of Alaska commences initial operations in the Southcentral and Interior Districts (Districts II and III), focusing on at-cost goods production and distribution at urban centers (Anchorage, Fairbanks, Mat-Su). Initial Corps human workforce of approximately 500 Alaska residents is hired. First at-cost distribution points are opened. Bush Alaska distribution capacity is built in coordination with the Alaska Air National Guard and Bypass Mail integration. Additional bonded indebtedness up to one billion dollars ($1,000,000,000) (cumulative authority $2 billion) is available. First annual Productive Capacity Dividend may, but is not required to, be distributed at the end of Phase II depending on revenue position.

PHASE III - STATEWIDE CORPS OPERATIONS (Months 48 - 96).

Corps operations extend to all six Regional Productive Capacity Districts. Bush Alaska distribution reaches the target of marketing- share component reduction to 25 percent or below. Fisheries processing, oil and gas decommissioning, and rural infrastructure service lines come online. Federal fusion energy procurement coordination is operational where federal supply is available. Annual Productive Capacity Dividend is in regular distribution. Cumulative bonded indebtedness up to two billion five hundred million dollars ($2,500,000,000) (full authorization) is available.

PHASE IV - TERMINAL OPERATING STATE (Month 96 onward).

The Authority reaches Terminal Operating State as defined in Section 20. At-cost basic-tier goods reach every eligible Alaska resident at operating cost plus minimal distribution. The Corps human workforce operates at steady-state. The APC Permanent Fund accumulates surplus operating revenue annually. The Authority operates indefinitely.

SECTION 20. TERMINAL OPERATING STATE.

The Authority reaches Terminal Operating State when:

(a) All six Regional Productive Capacity Districts have operational

    Corps service lines under Section 13;

(b) Bush Alaska distribution operates at the marketing-share target

    of 25 percent or below;

(c) Annual Productive Capacity Dividend is in steady-state

    distribution;

(d) The APC Permanent Fund balance exceeds one billion dollars

    ($1,000,000,000) and is growing year-over-year;

(e) Authority bonded indebtedness is on a declining repayment schedule; (f) The Civic Robot Corps of Alaska has reached sustained human

    workforce employment of at least 2,500 Alaska residents.

The Authority is intended to operate in Terminal Operating State indefinitely. There is no sunset.

SECTION 21. INITIAL APPROPRIATION.

There is appropriated from the Alaska Permanent Fund Earnings Reserve Account the sum of two hundred and fifty million dollars ($250,000,000) for fiscal year 2027 for the initial operational seed funding of the Authority. This appropriation shall be made available to the Authority upon its chartering. Subsequent fiscal-year appropriations from the Earnings Reserve Account may be made by ordinary Legislative appropriation as the buildout progresses.

TITLE VIII - GENERAL PROVISIONS

SECTION 22. SEVERABILITY.

If any provision of this Act, or its application to any person or circumstance, is held invalid by a court of competent jurisdiction, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 23. CONSTITUTIONAL CONSTRUCTION.

This Act shall be construed in harmony with the Constitution of Alaska, the Constitution of the United States, the Alaska Native Claims Settlement Act of 1971, and federal statutes governing tribal-state relations.

SECTION 24. STATE CHARTERING DURABILITY.

The Authority shall continue in existence under this Act notwithstanding any future statutory amendment that does not expressly repeal this Act by name. A repeal of this Act requires affirmative legislative action expressly invoking the repeal of the "Alaska Productive Capacity Authority Act" by name. The Authority's bonded indebtedness, share issuances, and shareholder distributions outstanding at the time of any repeal shall continue to be honored as contractual obligations of the State of Alaska.

SECTION 25. RECOMMENDED CONSTITUTIONAL AMENDMENT.

The Legislature recommends that the people of the State of Alaska adopt, by the procedure of Alaska Constitution Article XIII Section 1, a constitutional amendment of the following substance:

"EVERY ELIGIBLE RESIDENT OF THE STATE OF ALASKA SHALL POSSESS A PARAMOUNT RIGHT TO A PERSONAL PRODUCTIVE ASSET, COMPRISING A NON-TRANSFERABLE SHARE IN THE STATE'S PRODUCTIVE CAPACITY INFRASTRUCTURE AND THE ANNUAL DISTRIBUTION OF DIVIDENDS THEREON. THE LEGISLATURE SHALL ENACT LAWS NECESSARY TO IMPLEMENT THIS RIGHT. THIS RIGHT SHALL NOT BE CONSTRUED TO DIMINISH ANY RIGHT, INCLUDING THE RIGHT TO THE PERMANENT FUND DIVIDEND UNDER AS 43.23, EXISTING ON THE DATE OF ADOPTION OF THIS AMENDMENT."

The recommended amendment may be submitted to the people by the procedures of Article XIII Section 1 (legislative referral by two-thirds of each house) or Article XIII Section 2 (constitutional convention). The Legislature does NOT require this amendment as a condition of operation of this Act. The statutory entitlement under Title V is fully operative on the effective date of this Act without regard to the adoption status of this recommended amendment.

SECTION 26. EFFECTIVE DATE.

This Act takes effect July 1, 2027, except that Section 21 (Initial Appropriation) takes effect on the date this Act becomes law, and Section 4 (Establishment) and Section 5 (Board of Directors) take effect ninety (90) days after this Act becomes law to permit Board appointment and confirmation.

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