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HB 106: "An Act relating to the municipal assistance program and the organization grant program; and providing for an effective date."

00HOUSE BILL NO. 106 01 "An Act relating to the municipal assistance program and the organization grant 02 program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.05.200(a) is amended to read: 05  (a) The organization grant program [FUND] is established in the department. 06 An appropriation made to the program [FUND] shall be used for organization grants 07 to municipalities that qualify under AS 29.05.180 or 29.05.190. 08 * Sec. 2. AS 29.60.350 is amended to read: 09  Sec. 29.60.350. Municipal assistance program [FUND]. (a) There is 10 established in the department the municipal assistance program [FUND]. The 11 legislature may appropriate to the municipal assistance program [FUND] during each 12 fiscal year an amount equal to or greater than 30 percent of the income tax revenue 13 received by the state under AS 43.20.011(e) for the previous fiscal year. 14  (b) The department shall distribute money appropriated for [FROM] the

01 municipal assistance program [FUND] to each municipality on an annual basis as 02 provided in AS 29.60.360 and 29.60.370. A municipality may not receive payment 03 until it submits to the department a resolution approved by the governing body of the 04 municipality that requests the money. Distribution of money appropriated for 05 [FROM] the municipal assistance program [FUND] to all municipalities must be made 06 on February 1 of the state fiscal year for which the appropriation to the fund is made. 07 A municipality that incorporates after December 31 of a state fiscal year is not eligible 08 for a distribution under this section until the following state fiscal year. 09 * Sec. 3. AS 29.60.360 is amended to read: 10  Sec. 29.60.360. Base amount of assistance. (a) The base amount to be 11 distributed from the appropriation for the municipal assistance program [FUND] to 12 each municipality for the fiscal year shall be the amount received by the municipality 13 during fiscal year 1978 under AS 43.70.080 as that section provided before the 1978 14 amendment. A city incorporated within a borough after June 30, 1977, shall receive 15 as a base amount a share of the amount distributed to the borough in which it is 16 located based on the ratio of population in the city to the total population in the 17 borough. A city incorporated outside a borough after June 30, 1977, shall receive as 18 a base amount the amount received by the city in the state most closely approximating 19 it in population at the time of its incorporation. A borough incorporated after June 30, 20 1977, shall receive as a base amount the amount received by the borough in the state 21 most closely approximating it in population at the time of its incorporation. The base 22 amount to be distributed to each municipality organized under federal law shall be the 23 amount received as a base amount by the city most closely approximating it in 24 population on June 30, 1977. 25  (b) If the amount appropriated to the municipal assistance program [FUND] 26 by the legislature during a fiscal year is insufficient for distribution of the full base 27 amount to each municipality, the department shall prorate the amount available for 28 distribution on the basis of amounts received during [THE] fiscal year 1978 under 29 AS 43.70.080. 30 * Sec. 4. AS 29.60.370(a) is amended to read: 31  (a) If the amount appropriated for [IN] the municipal assistance program

01 and available for distribution [FUND] at the time of distribution exceeds the base 02 amount to be distributed under AS 29.60.360, the excess amount shall be distributed 03 to each municipality on the basis of population. Population for the purpose of this 04 section shall be as certified by the commissioner of community and regional affairs. 05 In determining the population of a borough, the population of all cities in the borough 06 shall be deducted from the total population of the borough. 07 * Sec. 5. DISTRIBUTION OF UNANTICIPATED RECEIPTS. If money accruing to the 08 organization grant fund or municipal assistance fund is received by the State of Alaska on or 09 after the effective date of this Act, the money shall be deposited into the general fund. 10 * Sec. 6. This Act takes effect July 1, 1997.