SB 154: "An Act relating to the economic development grant program; and providing for an effective date."

00SENATE BILL NO. 154 01 "An Act relating to the economic development grant program; and providing for 02 an 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. ECONOMIC DEVELOPMENT GRANT PROGRAM. 06  Sec. 29.60.670. ECONOMIC DEVELOPMENT GRANT FUND. (a) The 07 economic development grant fund consisting of appropriations to the fund is 08 established in the Department of Commerce and Economic Development. Except as 09 otherwise provided in an appropriation act, money appropriated to the fund does not 10 lapse but is retained in the fund. 11  (b) The legislature may appropriate money from the fund for an economic 12 development grant or for any other public purpose. 13  Sec. 29.60.675. ECONOMIC DEVELOPMENT GRANTS. (a) A municipality 14 or a regional development organization may apply for an economic development grant

01 for a fiscal year by submitting, before October 1 of the preceding fiscal year, a form 02 prescribed by the commissioner of commerce and economic development. The grant 03 money may only be used for construction of a capital project that will be owned by 04 the municipality or the organization and that will increase economic opportunity within 05 the municipality or region that the organization represents. The grant application must 06 include the following information: 07  (1) the amount of money available to the municipality or the 08 organization from nonstate sources that the municipality or the organization proposes 09 to use to match grant funds for the project; 10  (2) the amount of money available from private, nongovernmental 11 sources that has been committed to or as a result of investment in the project; 12  (3) an estimate of the number and duration of construction jobs within 13 the municipality or region that will result from the project; 14  (4) an estimate of the number of new permanent jobs within the 15 municipality or region that will result directly or indirectly from the project; 16  (5) an estimate of the amount of state and municipal taxes that will be 17 generated as a result of the project during the 10 years following its completion; and 18  (6) a description of how the municipality or organization will pay for 19 the operation and maintenance of the project after it is constructed. 20  (b) The Department of Commerce and Economic Development shall evaluate 21 all grant applications received for a fiscal year. The department may request from a 22 municipality or organization additional information needed to evaluate a proposed 23 capital project. By February 1 of each year, the department shall submit to the finance 24 committees of each house of the legislature a prioritized list of projects for which the 25 department recommends funding based on the degree to which each project has the 26 potential to improve the economy of the state, and of the municipality that has applied 27 for the grant or the region represented by the organization that has applied for the 28 grant. 29  (c) The legislature may appropriate from the economic development fund all 30 or a portion of the money requested by a municipality or organization for a project 31 identified by the department in its prioritized list. Money appropriated shall be made

01 available by the department to the municipality or organization as a grant for the 02 project. 03  Sec. 29.60.680. GRANTS. The Department of Commerce and Economic 04 Development shall by regulation establish requirements for economic development 05 grants and shall administer the grants. A grant may not be awarded by the department 06 unless money for the project is appropriated under AS 29.60.675(c) and the 07 municipality or organization meets or exceeds the amount of matching money 08 identified in its grant application. 09  Sec. 29.60.685. DEFINITIONS. In AS 29.60.670 - 29.60.680, "regional 10 development organization" and "organization" have the meanings given in 11 AS 44.33.026(e). 12 * Sec. 2. This Act takes effect July 1, 1993.