00HOUSE BILL NO. 70                                                                                                       
01 "An Act relating to state impact aid for municipalities; and providing for an                                           
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.60  is amended by adding new sections to read:                                                   
05 ARTICLE 9.  STATE IMPACT AID.                                                                                           
06  Sec. 29.60.670.  STATE IMPACT AID FUND.  (a)  The state impact aid fund                                               
07 is established in the department.  The fund consists of appropriations to the fund.                                     
08 Unless provided otherwise in an appropriation, money appropriated to the fund does                                      
09 not lapse, but is retained in the fund and may be used by the department for state                                      
10 impact aid grants and for costs of administering the state impact aid grant program.                                    
11  (b)  The legislature may appropriate to the state impact aid fund 10 percent of                                       
12 all mineral or other lease rentals, royalties, royalty sale proceeds, or other payments                                 
13 received by the state from a resource development project on state land, or the                                         
14 legislature may appropriate the money for any other public purpose.  Money                                              

01 appropriated under this subsection to the state impact aid fund shall be used by the                                    
02 department for state impact aid grants to municipalities affected by the resource                                       
03 development project from which the money was derived by the state and for costs of                                      
04 administering those grants.                                                                                             
05  Sec. 29.60.680.  STATE IMPACT AID GRANTS.  (a)  A municipality affected                                               
06 by a resource development project on state land may apply to the department for a                                       
07 state impact aid grant to be used to help alleviate the effects of the project that are                                 
08 resulting or will result in a financial or social burden to the municipality if the project                             
09 is located in whole or part in                                                                                          
10   (1)  the municipality;                                                                                               
11   (2)  the unorganized borough but close to the municipality;                                                          
12   (3)  water under federal jurisdiction off the coast of the municipality.                                             
13  (b)  The department shall establish grant application procedures and eligibility                                      
14 requirements by regulation.  The department shall consider each grant application and                                   
15 may award a grant to a municipality if it determines that the proposed use of the grant                                 
16 proceeds will help alleviate the adverse effects on the municipality of the resource                                    
17 development project.  The department shall give priority in the allocation of grant                                     
18 money to a municipality that, compared to other applicants, is experiencing or will                                     
19 experience the most direct or severe economic or social burden as a result of a project.                                
20  (c)  Money from a state impact aid grant may not be used for retirement of                                            
21 municipal debt.  A municipality may use money from a grant only for                                                     
22    (1)  planning;                                                                                                       
23   (2)  construction, maintenance, and operation of essential public                                                    
24 facilities;                                                                                                             
25   (3)  other necessary public services provided by the municipality.                                                   
26  Sec. 29.60.690.  REPORT TO THE LEGISLATURE.  Within 10 days after the                                                 
27 convening of each regular session, the department shall submit to the legislature a list                                
28 of all municipalities that received a state impact aid grant during the current fiscal                                  
29 year, a written justification for each grant that has been awarded during that fiscal                                   
30 year, and a list of municipalities determined by the department to be eligible for                                      
31 additional grants.  The department shall include a recommendation of the amount of                                      

01 money that should be appropriated to the state impact aid fund to enable the                                            
02 department to make grants to all municipalities determined to be eligible for them.                                     
03    * Sec. 2.  This Act takes effect July 1, 1993.