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SB 20: "An Act establishing the Alaska municipal basic services program, relating to certain programs of state aid to municipalities and recipients in the unorganized borough; and providing for an effective date."

00SENATE BILL NO. 20 01 "An Act establishing the Alaska municipal basic services program, relating to 02 certain programs of state aid to municipalities and recipients in the unorganized 03 borough; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 29.20.640(b) is amended to read: 06  (b) Compliance with the provisions of this section is a prerequisite to receipt 07 of an entitlement under the Alaska basic municipal services program under 08 AS 29.60.011 - 29.60.330 [MUNICIPAL TAX RESOURCE EQUALIZATION 09 ASSISTANCE UNDER AS 29.60.010 - 29.60.080 AND STATE AID FOR 10 MISCELLANEOUS MUNICIPAL SERVICES UNDER AS 29.60.100 - 29.60.180]. 11 If a municipality does not comply with this section, the department shall withhold the 12 entitlement [ALLOCATIONS] until the required reports are filed. 13 * Sec. 2. AS 29.45.020 is amended to read: 14  Sec. 29.45.020. TAXPAYER NOTICE. (a) If a municipality levies and

01 collects property taxes, the governing body shall provide the following notice: 02 "NOTICE TO TAXPAYER 03 For the current fiscal year the (city)(borough) has been allocated the following amount 04 of state aid for school and municipal purposes under the applicable financial assistance 05 Acts: 06 PUBLIC SCHOOL FOUNDATION PROGRAM 07 ASSISTANCE (AS 14.17) $ 08 STATE AID FOR RETIREMENT OF SCHOOL 09  CONSTRUCTION DEBT (AS 14.11.100) $ 10 ALASKA MUNICIPAL BASIC SERVICES 11 (AS 29.60.011 - 29.60.330) 12 [MUNICIPAL TAX RESOURCE EQUALIZATION 13  ASSISTANCE (AS 29.60.010 - 29.60.080) $ 14 STATE AID FOR MISCELLANEOUS MUNICIPAL 15  SERVICES (AS 29.60.100 - 29.60.180)] $ 16 TOTAL AID $ 17 The millage equivalent of this state aid, based on the dollar value of a mill in the 18 municipality during the current assessment year and for the preceding assessment year, 19 is: 20 MILLAGE EQUIVALENT 21 PREVIOUS YEAR THIS YEAR 22 PUBLIC SCHOOL FOUNDATION 23  PROGRAM ASSISTANCE . . . . MILLS . . . 24 .MILLS 25 STATE AID FOR RETIREMENT 26   OF SCHOOL CONSTRUCTION 27  DEBT . . . .MILLS . . . .MILLS 28 ALASKA MUNICIPAL BASIC SERVICES 29 [MUNICIPAL TAX RESOURCE 30  EQUALIZATION ASSISTANCE . . . .MILLS . . . .MILLS 31 STATE AID FOR MISCELLANEOUS

01 MUNICIPAL SERVICES] . . . .MILLS . . . 02 .MILLS 03 TOTAL MILLAGE 04 EQUIVALENT . . . .MILLS . . . 05 .MILLS" 06 Notice shall be provided 07  (1) by furnishing a copy of the notice with tax statements mailed for 08 the fiscal year for which aid is received; or 09  (2) by publishing in a newspaper of general circulation in the 10 municipality a copy of the notice once each week for a period of three successive 11 weeks, with publication to occur not later than 45 days after the final adoption of the 12 municipality's budget. 13  (b) Compliance with the provisions of this section is a prerequisite to receipt 14 of an entitlement under the Alaska municipal basic services program under 15 AS 29.60.011 - 29.60.330 [MUNICIPAL TAX RESOURCE EQUALIZATION 16 ASSISTANCE UNDER AS 29.60.010 - 29.60.080 AND STATE AID FOR 17 MISCELLANEOUS MUNICIPAL SERVICES UNDER AS 29.60.100 - 29.60.180]. 18 The department shall withhold annual allocations under those sections until municipal 19 officials demonstrate that the requirements of this section have been met. 20 * Sec. 3. AS 29.45.660(b) is amended to read: 21  (b) Compliance with the provisions of this section is a prerequisite to receipt 22 of an entitlement under the Alaska municipal basic services program under 23 AS 29.60.011 - 29.60.330 [MUNICIPAL TAX RESOURCE EQUALIZATION 24 ASSISTANCE UNDER AS 29.60.010 - 29.60.080 AND STATE AID FOR 25 MISCELLANEOUS MUNICIPAL SERVICES UNDER AS 29.60.100 - 29.60.180]. 26 The department shall withhold annual allocations under those sections until municipal 27 officials demonstrate that the requirements of this section have been met. 28 * Sec. 4. AS 29.60 is amended by adding new sections to read: 29  Sec. 29.60.011. ALASKA MUNICIPAL BASIC SERVICES PROGRAM. 30 The Alaska municipal basic services program is established in the department. The 31 department shall deposit appropriations for the program in the municipal basic services

01 account. During each state fiscal year the department shall compute entitlements under 02 AS 29.60.013 - 29.60.330 for payment the following state fiscal year based upon 03 appropriations for the program. Money in the account shall be fully distributed by the 04 department each year for entitlements under the program. 05  Sec. 29.60.013. ENTITLEMENTS FOR MUNICIPAL BASIC SERVICES. 06 (a) The department shall reserve from appropriations for the Alaska municipal basic 07 services program amounts necessary to fully fund entitlements under AS 29.60.130, 08 29.60.140, and 29.60.290. The balance shall be allocated among the municipal basic 09 services categories as follows: 10  (1) police - 18 percent; 11  (2) water and sewer operation and maintenance - 14 percent; 12  (3) roads and ice roads operation and maintenance - 13 percent; 13  (4) waste management operation and maintenance - 12 percent; 14  (5) fire and emergency medical services - 11 percent; 15  (6) assessment and taxation, finance, land use planning - 10 percent; 16  (7) transportation facilities operation and maintenance, other than roads 17 and ice roads - 8 percent; 18  (8) community services, including operation and maintenance of parks, 19 libraries, and other recreational, educational, or cultural facilities, and health and social, 20 recreational, and cultural services - 7 percent; 21  (9) health facilities operation and maintenance - 7 percent. 22  (b) A municipality that provides services within one of the municipal basic 23 service categories listed in (a) of this section qualifies for a share of the amount 24 allocated to that category based upon the population, amount expended on the services, 25 and ability to pay for the services in each of the taxing units in which the services are 26 provided. The municipality's share for each category is determined by applying the 27 following formula to each of the taxing units within which the services are provided 28 and adding the resulting amounts: share = (P x E) R, where (1) P = population of 29 the taxing unit; (2) E = the amount of local expenditures in the municipal basic 30 services category; and (3) R = one-tenth of one percent of the full and true value of 31 the assessed property in the taxing unit; however, the per capita property value used

01 under this subsection may not be less than 30 percent nor more than 300 percent of 02 the statewide average per capita full and true assessed property value. 03  Sec. 29.60.015. DETERMINATION OF THE AMOUNT OF LOCAL 04 EXPENDITURES. (a) For purposes of AS 29.60.013(b) the amount of local 05 expenditures on municipal basic services is the amount of actual expenditures made 06 for all services and the maintenance and operation of all facilities included in the 07 particular municipal basic services category during the municipal fiscal year 08 immediately preceding the year in which the municipality's share of the money 09 allocated to that category is being computed. 10  (b) Except for money received by a municipality under AS 41.15.180, a local 11 contribution for schools made by a municipality under AS 14.17.025 shall be treated 12 as a local expenditure for municipal basic services for purposes of AS 29.60.013(b). 13 The amount of the local contribution spent by the municipality for schools during the 14 municipal fiscal year immediately preceding the year the municipality's share of the 15 money allocated to each municipal basic services category is being computed shall be 16 divided up and added on a proportional basis to other amounts spent by the 17 municipality for services within each category. This subsection does not apply to 18 money received by a municipality under AS 41.15.180. 19  (c) If water, sewer, or waste management services are provided by a private 20 business in a municipality and the municipality makes no expenditures for the services, 21 for purposes of AS 29.60.013(b) the municipality shall receive credit for a local 22 expenditure for that service. The amount of the credit is equal to the municipality's 23 population multiplied by a figure determined by the department to be the per capita 24 average cost of providing the service by other municipalities with similar populations 25 and other relevant characteristics. 26 * Sec. 5. AS 29.60.020 is amended to read: 27  Sec. 29.60.020. DETERMINATION OF POPULATION. For purposes of 28 AS 29.60.011 - 29.60.330 [AS 29.60.010 - 29.60.080], the population of a taxing 29 unit shall be determined annually by the latest figures of the United States Bureau of 30 the Census or other population data that in the judgment of the department is reliable. 31 * Sec. 6. AS 29.60.030(d) is amended to read:

01  (d) The full and true assessed property value shall be determined by the 02 department in the manner provided for the computation of state aid to education under 03 AS 14.17.140. [WHEN THE DETERMINATION OF LOCALLY GENERATED 04 REVENUE INCLUDES REVENUE OF A UTILITY RECEIVED UNDER 05 AS 29.60.010(c)(1)(E), THE FULL AND TRUE ASSESSED PROPERTY VALUE 06 MUST INCLUDE THE COMPUTED ASSESSED VALUE OF THE UTILITY, 07 DETERMINED BY DIVIDING THE AMOUNT OF THE PAYMENT IN PLACE OF 08 TAXES MADE BY THE UTILITY BY THE MILLAGE RATE THAT WOULD 09 APPLY TO THE UTILITY IF THE UTILITY WERE SUBJECT TO LEVY AND 10 COLLECTION OF TAXES UNDER AS 29.45.] 11 * Sec. 7. AS 29.60.030(e) is amended to read: 12  (e) In addition to the computation for municipalities that levy and collect a 13 property tax, the department shall determine an estimated full and true assessed 14 property value under (d) of this section for 15  (1) each municipality that is a school district and that does not levy and 16 collect a property tax; 17  (2) each second class city with a population of 750 or more persons; 18 however, a computation is not required under this paragraph more often than once 19 during a period of three successive calendar years; and 20  (3) all other second class cities, by determining the average per capita 21 full and true assessed property value of all second class cities having a population of 22 less than 750 persons in which an assessment has been completed within the last 23 three calendar years by a municipality or the department [FOR WHICH A 24 DETERMINATION IS NOT MADE UNDER (1) OR (2) OF THIS SUBSECTION]. 25 * Sec. 8. AS 29.60.040 is amended to read: 26  Sec. 29.60.040. REPORTS. A payment of an [EQUALIZATION] entitlement 27 may not be made to a municipality under AS 29.60.011 - 29.60.330 [AS 29.60.010 - 28 29.60.080] until the municipality has submitted its certificate of local annual 29 municipal basic services expenditures [ESTIMATED REVENUE] and its financial 30 report to the department for the municipal fiscal year preceding the year in which the 31 department's computation of entitlements under the Alaska municipal basic

01 services program [DETERMINATION OF THE MILLAGE RATE EQUIVALENT] 02 is made [UNDER AS 29.60.030], together with the municipality's budget for the fiscal 03 year for which an entitlement is sought. The financial report must include a listing of 04 local annual municipal basic services expenditures for the appropriate taxing unit 05 [GENERAL REVENUE COLLECTED FROM TAXES LEVIED AND ASSESSED 06 AND ANY OTHER REVENUE] that, in the opinion of the municipal officials, is 07 eligible for inclusion in computations of the local municipal basic services 08 expenditures [LOCALLY GENERATED REVENUE] of the taxing unit. 09 * Sec. 9. AS 29.60.070(a) is amended to read: 10  (a) The department shall [MAY] adopt regulations necessary to implement 11 AS 29.60.011 - 29.60.330 [AS 29.60.010 - 29.60.080]. The regulations must include, 12 among other provisions, 13  (1) procedures and filing dates for submitting certification and financial 14 reports; 15  (2) procedures for obtaining information required to compute and 16 determine the municipality's entitlement [MILLAGE RATE EQUIVALENT]; [AND] 17  (3) procedures by which the department shall notify a municipality in 18 writing of the reasons for a proposed disallowance or adjustment of any factor bearing 19 upon the determination of the municipality's entitlement and by which the municipality 20 will be provided reasonable time in which to respond or to challenge the department's 21 determination; and 22  (4) classification of expenditures that qualify as local expenditures 23 for municipal basic services. 24 * Sec. 10. AS 29.60.070(b) is amended to read: 25  (b) The department shall make reasonable efforts to advise and assist 26 municipalities in collecting information and completing reports necessary for the 27 determination of entitlements under AS 29.60.011 - 29.60.330 [AS 29.60.010 - 28 29.60.080]. 29 * Sec. 11. AS 29.60.120(a) is amended to read: 30  (a) The department shall pay 31  (1) to a municipality that has the power to provide hospital facilities

01 and services and that exercises that power, $1,000 per bed for each bed actually used 02 for patient care, limited to the number of beds provided for in the construction design 03 of the hospital, or $250,000 a hospital for those hospitals with 10 or more beds, or 04 $50,000 a hospital for those hospitals with less than 10 beds, as the municipality may 05 elect; money received under this paragraph may be used only for hospitals and shall 06 be apportioned among qualifying hospitals as the municipality determines; 07  (2) on the basis set out in (1) of this subsection to a municipality for 08 a nonprofit hospital not operated by a municipality if the municipality first certifies to 09 the department that the nonprofit hospital is in compliance with all standards for 10 hospitals that have been adopted by the municipality; money may not be paid on 11 behalf of a nonprofit hospital without this certification; payments to the municipality 12 shall be transferred to the nonprofit hospital in accordance with the basis by which the 13 payment was generated by the hospital, and shall be applied to the annual cost of 14 operation and maintenance of the hospital or for the provision of health care service 15 at the hospital as the directors of the hospital determine; 16  (3) to a municipality in which a health facility is operated, $2,000 per 17 bed for each bed actually used for patient care [, LIMITED TO THE NUMBER OF 18 BEDS PROVIDED FOR IN THE CONSTRUCTION DESIGN OF THE HEALTH 19 FACILITY,] or $8,000 per health facility as the municipality determines. 20 * Sec. 12. AS 29.60.120 is amended by adding a new subsection to read: 21  (g) Only money allocated under AS 29.60.013(a)(9) to the municipal basic 22 services category for health facilities operation and maintenance may be used for 23 entitlements under this section. If the amount allocated to that category is insufficient 24 to pay each entitlement or if the amount exceeds that required to pay each entitlement, 25 the amount available shall be distributed pro rata among eligible municipalities. 26 * Sec. 13. AS 29.60.130(a) is amended to read: 27  (a) The department shall pay to a volunteer fire department registered with the 28 state fire marshal and serving an area not in an organized municipality a sum for 29 protection purposes equal to $5 [$10] per capita for the population served by the fire 30 department, as determined by the Department of Community and Regional Affairs 31 [STATE FIRE MARSHAL].

01 * Sec. 14. AS 29.60.140(a) is amended to read: 02  (a) The department shall pay to each unincorporated community an entitlement 03 each fiscal year to be used for a public purpose. The department with advice from the 04 Department of Law shall determine whether there is in each unincorporated community 05 an incorporated nonprofit entity or a Native village council that will agree to receive 06 and spend the entitlement. If there is more than one qualified entity in an 07 unincorporated community, the department shall pay the money under the entitlement 08 to the entity that the department finds most qualified to receive and spend the money. 09 The department may not pay money under an entitlement to a Native village council 10 unless the council waives immunity from suit for claims arising out of activities of the 11 council related to the entitlement. A waiver of immunity from suit under this 12 subsection must be on a form provided by the Department of Law. If there is no 13 qualified incorporated nonprofit entity or Native village council in an unincorporated 14 community that is willing to receive money under an entitlement, the entitlement for 15 that unincorporated community may not be paid. Neither this subsection nor any action 16 taken under it enlarges or diminishes the governmental authority or jurisdiction of a 17 Native village council. The [IF AT LEAST $41,472,000 IS APPROPRIATED FOR 18 ALL ENTITLEMENTS UNDER AS 29.60.010 - 29.60.310 FOR A FISCAL YEAR, 19 THE] entitlement for each unincorporated community under this subsection for each 20 [THAT] year equals $10,000 [[$40,000. OTHERWISE, THE ENTITLEMENT 21 EQUALS $25,000]. 22 * Sec. 15. AS 29.60.290(a) is amended to read: 23  (a) A municipality qualifying for an entitlement under AS 29.60.013 [AS 24 29.60.010 - 29.60.080] or 29.60.120 [29.60.100 - 29.60.180] shall receive a minimum 25 payment of $50,000 [PLUS AN AREA COST-OF-LIVING DIFFERENTIAL] for each 26 fiscal year if 27  (1) the municipality has conducted a regular election during the state 28 fiscal year preceding the year in which the department's computation 29 [DETERMINATION] of the municipality's entitlement [MILLAGE RATE 30 EQUIVALENT ] is made [UNDER AS 29.60.030] and has reported the results of the 31 election to the commissioner;

01  (2) regular meetings of the governing body are held in the municipality 02 during the state fiscal year preceding the year in which the department's computation 03 [DETERMINATION] of the municipality's entitlement [MILLAGE RATE 04 EQUIVALENT] is made [UNDER AS 29.60.030] and a record of the proceedings is 05 maintained; 06  (3) a municipal budget has been adopted for the fiscal year during 07 which payment of an entitlement is authorized by AS 29.60.013 [AS 29.60.010 - 08 29.60.080] or 29.60.120 [29.60.100 - 29.60.180] and an audit or financial statement for 09 the fiscal year preceding the year in which the department's computation 10 [DETERMINATION] of the municipality's entitlement [MILLAGE RATE 11 EQUIVALENT] is made [UNDER AS 29.60.030] has been prepared and furnished to 12 the department in accordance with AS 29.20.640(a); [AND] 13  (4) local ordinances adopted by the municipality have been codified in 14 accordance with AS 29.25.050; and 15  (5) the municipality is providing services in at least two of the nine 16 municipal basic services categories listed on AS 29.60.013(a). 17 * Sec. 16. AS 29.60.290(c) is amended to read: 18  (c) The department shall pay under this section to each municipality eligible 19 to receive a minimum payment [UNDER THIS SECTION] an amount equal to the 20 difference between $50,000 [THE MINIMUM PAYMENT DETERMINED UNDER 21 (a) AND (b) OF THIS SECTION] and the sum of the amounts payable for the same 22 fiscal year under AS 29.60.013 [AS 29.60.010 - 29.60.080] and 29.60.120 [29.60.100 23 - 29.60.180] . 24 * Sec. 17. AS 29.60 is amended by adding a new section to read: 25  Sec. 29.60.295. INDIAN RESERVES ORGANIZED UNDER FEDERAL 26 LAW. (a) An Indian reserve organized under federal law that existed before 27 enactment of 43 U.S.C. 1618(a) and is continued in existence under that subsection is 28 eligible for an entitlement under AS 29.60.013 and 29.60.120 under the conditions 29 applicable to a municipality that, in the determination of the department, are 30 appropriately applied to the reserve, and subject to the following additional 31 requirements:

01  (1) the reserve must have adopted a budget for the fiscal year in which 02 the entitlement is payable and provided a copy to the department; 03  (2) the reserve must have prepared an audit for the fiscal year 04 preceding the year the amount of the entitlement is computed by the department and 05 provided a copy to the department; 06  (3) during the fiscal year in which the entitlement is payable the reserve 07 must be providing services in at least two of the municipal basic services categories 08 listed in AS 29.60.013(a); and 09  (4) the reserve must have formed a community development 10 corporation with authority to determine how the entitlement will be used and ensure 11 that the use complies with all applicable law, and the corporation must have 12  (A) delivered to the department a written waiver of sovereign 13 immunity from legal action by the state to recover all or a portion of the 14 entitlement; 15  (B) during the state fiscal year preceding the year in which the 16 entitlement computation is made by the department, conducted an election for 17 members of its board of directors open to all residents of the reserve who are 18 registered and qualified to vote in state elections; and 19  (C) provided a copy of the results of the election held under 20 (B) of this paragraph to the department. 21  (b) The department may pay an entitlement under this section only to the 22 community development corporation formed by the Indian reserve. If the department 23 pays an entitlement under this section during a fiscal year, no other entity in the 24 reserve may receive an entitlement during the same fiscal year under AS 29.60.130 or 25 29.60.140. 26  (c) A reserve that qualifies for an entitlement under this (a) of this section 27 during a fiscal year qualifies for a minimum payment of $50,000 for that year. The 28 department shall pay under this subsection to the community development corporation 29 of a reserve that qualifies for a minimum payment the difference between $50,000 and 30 the amount of entitlement the reserve qualifies for under (a) of this section. 31 * Sec. 18. AS 29.60.310 is amended to read:

01  Sec. 29.60.310. TIME OF PAYMENT. The department shall make payments 02 under AS 29.60.011 - 29.60.330 [AS 29.60.010 - 29.60.300] no later than July 31, 03 based upon the entitlement calculations made during the preceding fiscal year. 04 * Sec. 19. AS 29.60 is amended by adding a new section to article 3 to read: 05  Sec. 29.60.330. DEFINITION. In AS 29.60.011 - 29.60.310, "taxing unit" 06 means a municipality, and 07  (1) in a borough or unified municipality, a service area or the entire 08 area outside cities; 09  (2) in a city, a differential tax zone. 10 * Sec. 20. AS 37.06.030(a) is amended to read: 11  (a) For each draw made by a municipality under AS 37.06.010, the 12 municipality shall contribute a local share to the cost of the capital project for which 13 the draw is made. The amount of the local share equals the local share percentage as 14 calculated under (1) of this subsection, divided by the state share percentage as 15 calculated under (2) of this subsection, multiplied by the amount of the draw. For 16 purposes of this subsection, 17  (1) the local share percentage is 18  (A) 30 percent for a municipality with a population of 5,000 or 19 more; 20  (B) for a municipality with a population of 1,000 - 4,999, the 21 greater of 22  (i) 15 percent; or 23  (ii) the percentage obtained by dividing the amount that 24 would be received by the municipality from a property tax levy of 1/1000th of 25 a mill per $1,000 of grant funds received by the sum of that first amount plus 26 the amount of the grant or draw, but not more than 30 percent; 27  (C) for a municipality with a population of under 1,000, the 28 greater of 29  (i) five percent; or 30  (ii) the percentage obtained by dividing the amount that 31 would be received by the municipality from a property tax levy of 1/1000th of

01 a mill per $1,000 of grant funds received by the sum of that first amount plus 02 the amount of the grant or draw, but not more than 30 percent; 03  (2) the state share percentage equals one minus the local share 04 percentage; 05  (3) the local share to be contributed by a municipality may be satisfied 06 with (A) federal, municipal, or local money; (B) labor, materials, or equipment used 07 directly in the construction of the project, or land, including land transferred by the 08 state to the municipality; the department shall determine the value of a contribution 09 under this subparagraph; (C) money from another nonstate source; (D) money received 10 by the municipality under AS 29.60.011 - 29.60.330 (Alaska municipal basic services 11 program) [AS 29.60.010 - 29.60.375]; (E) state taxes refunded or reimbursed to the 12 municipality whose use for the purposes of this subsection is not prohibited; (F) 13 allocations of state aid for the costs of school construction debt under AS 14.11.100; 14 and (G) money obtained from the sale or lease of land or other assets transferred by 15 the state to the municipality; except as provided in this paragraph, the local share may 16 not be satisfied with money from, or with the portion of an asset that was obtained 17 with money from, an appropriation, allocation, entitlement, grant, or other payment 18 from the state. 19 * Sec. 21. AS 37.06.030(b) is amended to read: 20  (b) For each draw made by an entity or council under AS 37.06.020, the 21 incorporated entity or Native village council that makes the draw shall contribute a 22 local share of the cost of the capital project for which the draw is made. The amount 23 of the local share equals the local share percentage as calculated under (1) of this 24 subsection, divided by the state share percentage as calculated under (2) of this 25 subsection, multiplied by the amount of the draw. For purposes of this subsection, 26  (1) the local share percentage is five percent; 27  (2) the state share percentage equals one minus the local share 28 percentage; 29  (3) the local share may be satisfied from (A) federal or local money; 30 (B) labor, materials, or equipment used directly in the construction of the project, or 31 land, including land transferred by the state; the department shall determine the value

01 of a contribution under this subparagraph; (C) money from another nonstate source; 02 (D) money received by the unincorporated community under AS 29.60.011 - 29.60.330 03 (Alaska municipal basic services program) [AS 29.60.010 - 29.60.375]; or (E) 04 money obtained from the sale or lease of land or other assets transferred by the state; 05 except as provided in this paragraph, the local share may not be satisfied with money 06 from, or with the portion of an asset that was obtained with money from, an 07 appropriation, allocation, entitlement, grant, or other payment from the state. 08 * Sec. 22. AS 41.15.180(d) is amended to read: 09  (d) From the percentage of the unorganized borough national forest receipts 10 fund allocated to public roads under (b) of this section, the commissioner shall pay to 11 each 12  (1) home rule city, first class city, or second class city that exercises 13 road powers, that is located within the unorganized borough and within a national 14 forest or within 20 miles of a national forest, a share of the income from the roads 15 allocation of the fund; a home rule city, first class city, or second class city's share 16 shall be calculated as the proportion of the number of road miles within municipal 17 boundaries over which the community exercises road powers plus the number of state 18 road miles maintained by the municipality under agreement with the state compared 19 to the total number of road miles maintained by state or local governments in the 20 unorganized borough and within the national forest or within 20 miles of the national 21 forest; 22  (2) [MUNICIPALITY ORGANIZED UNDER FEDERAL LAW 23 AS AN] Indian reserve organized under federal law that existed before the enactment 24 of 43 U.S.C. 1618(a) and is continued in existence under that subsection and that has 25 formed a community development corporation under AS 29.60.295(a) [AS 29.60.365], 26 that exercises road powers and that is located within the unorganized borough and 27 within the national forest or within 20 miles of the national forest a share of the 28 income from the roads allocation of the fund; the share due a reserve 29 [MUNICIPALITY] organized under federal law that exercises road powers shall be 30 calculated as the proportion of the number of road miles within reserve 31 [MUNICIPAL] boundaries over which the community exercises road powers plus the

01 number of state road miles maintained by the reserve [MUNICIPALITY] under 02 agreement with the state compared to the total number of road miles maintained by 03 state or local governments in the unorganized borough and within the national forest 04 or within 20 miles of the national forest; however, the commissioner may pay income 05 from national forest receipts under this paragraph only after the community 06 development corporation has delivered a written waiver of sovereign immunity from 07 legal action by the state to recover all or a portion of the money distributed under this 08 section. 09 * Sec. 23. AS 29.10.200(49); AS 29.60.010, 29.60.030(a), 29.60.030(c), 29.60.050, 10 29.60.060, 29.60.070(c), 29.60.080, 29.60.100, 29.60.110, 29.60.130(b), 29.60.150,29.60.160, 11 29.60.170, 29.60.180, 29.60.280, 29.60.290(b), 29.60.290(d), 29.60.290(e), 29.60.300, 12 29.60.350, 29.60.360, 29.60.365, 29.60.370, and 29.60.375 are repealed. 13 * Sec. 24. This Act takes effect July 1, 1995.