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HB 391: "An Act relating to succession to assets and liabilities of dissolved municipalities."

00 HOUSE BILL NO. 391                                                                                                      
01 "An Act relating to succession to assets and liabilities of dissolved municipalities."                                  
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 29.06.520 is amended to read:                                                                       
04  Sec. 29.06.520.  SUCCESSION.  (a)  When a municipality dissolves, the                                                
05 Local Boundary Commission shall arrange for the assumption of the liabilities                                           
06 and, except as provided in AS 44.47.150(f), the assets of the dissolved municipality                                    
07 by one or more successors.  Assets or liabilities may not be transferred to a                                           
08 successor except upon terms approved in writing by the Department of Law.  A                                            
09 successor may be                                                                                                        
10   (1)  the state;                                                                                                      
11   (2)  a municipality;                                                                                                 
12   (3)  a Native council organized under federal law that is operating                                                  
13 within the entire area of the dissolved municipality;  or                                                               
14   (4)  a nonprofit corporation that is qualified for an entitlement                                                    
01 under AS 29.60.140 and that is operating within the entire area of the dissolved                                        
02 municipality.                                                                                                           
03  (b)  If the state or a [A] municipality succeeds [SUCCEEDING] to assets or                                        
04 liabilities of a dissolved municipality, the state or successor municipality succeeds                                
05 to all rights, powers, and duties [, ASSETS, AND LIABILITIES] of the dissolved                                        
06 municipality necessary for the management of the assets or liabilities  [.                                            
07 OTHERWISE, THE STATE SUCCEEDS TO THOSE RIGHTS, POWERS, DUTIES,                                                          
08 ASSETS, AND LIABILITIES].  If the state succeeds to assets or liabilities of a                                        
09 dissolved municipality, the state may enter into a contract for the performance of                                      
10 duties or powers in the area of the dissolved municipality.                                                             
11  (c)  Transfer of assets or liabilities of a dissolved municipality to an                                             
12 organization under (a)(3) or (4) of this section or [HOWEVER,] a contract with an                                      
13 organization for the performance of duties or powers entered into under (b) of this                                   
14 section does not constitute recognition by the state of governmental powers of that                                     
15 organization.                                                                                                           
16    * Sec. 2.  AS 44.47.150(a) is amended to read:                                                                       
17  (a)  The commissioner                                                                                                 
18   (1)  shall accept, administer, and dispose of land conveyed to the state                                             
19 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska                                
20 Native Claims Settlement Act) for the purposes specified in that section;                                               
21   (2)  may, with the concurrence of an appropriate village entity                                                      
22 recognized by the commissioner under (b) of this section or, in the absence of an                                       
23 appropriate village entity, under procedures prescribed by regulations of the                                           
24 commissioner, accept, administer, and dispose of land conveyed in trust by a state or                                   
25 federal agency [AND BY THE DISSOLUTION OF A MUNICIPALITY UNDER                                                          
26 AS 29.06.450 - 29.06.530].