00CS FOR HOUSE BILL NO. 220(ECD)                                                                                          
01 "An Act relating to the new business incentive program."                                                                
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 44.88.080 is amended by adding a new paragraph to read:                                             
04   (26)  to screen potential applicants for a new business incentive grant                                              
05 and approve the award of the grants under AS 45.81.020.                                                                 
06    * Sec. 2.  AS 45 is amended by adding a new chapter to read:                                                         
07 Chapter 81.  New Business Incentive Program.                                                                            
08  Sec. 45.81.010.  New business incentive fund.  There is established in the                                            
09 department the new business incentive fund consisting of appropriations to the fund                                     
10 from money available under AS 44.88.088 or from other sources.  Up to $3,000,000                                        
11 may be appropriated to the fund each fiscal year.  The department may use money in                                      
12 the fund for new business incentive grants.  On June 30 of each fiscal year, the                                        
13 unexpended and unobligated balance in the fund lapses into the general fund.                                            
14  Sec. 45.81.020.  Eligibility for grants.  (a)  A new business or a business that                                      

01 is opening a new branch in the state is eligible for a new business incentive grant if                                  
02   (1)  the business is primarily engaged in manufacturing a product for                                                
03 export outside of the state;                                                                                            
04   (2)  the business will not directly compete with an existing business that                                           
05 is located in the state as determined by the department;                                                                
06   (3)  for a business located in a municipality, the municipality has                                                  
07 provided support to the business in a form acceptable to the department;                                                
08   (4)  the business is primarily financed by the private sector;                                                       
09   (5)  the business is receiving financing from the Alaska Industrial                                                  
10 Development and Export Authority;  and                                                                                  
11   (6)  the business has been approved for a business incentive grant by                                                
12 the Alaska Industrial Development and Export Authority.                                                                 
13  (b)  The department shall prescribe the form and procedure for submitting new                                         
14 business incentive grant applications.  Subject to the availability of money in the new                                 
15 business incentive fund, the department may award a grant to an eligible applicant in                                   
16 an amount that does not exceed the amount approved by the Alaska Industrial                                             
17 Development and Export Authority for that applicant.                                                                    
18  Sec. 45.81.030.  Use of grant money.  After awarding a new business incentive                                         
19 grant, the department may pay money from the grant to the recipient business only as                                    
20 reimbursement for one or more of the following costs incurred and paid by the                                           
21 business:                                                                                                               
22   (1)  cost of relocating key personnel and of moving and installing                                                   
23 equipment and initial inventory;                                                                                        
24   (2)  up to 50 percent of the cost of site preparation and installation of                                            
25 utilities for a new facility;                                                                                           
26   (3)  work force training costs for a period of up to 36 months in an                                                 
27 amount not to exceed $5,000 for each employee receiving training during a 12-month                                      
28 period if the costs are not covered by another governmental program;                                                    
29   (4)  up to 50 percent of the costs of business feasibility analyses, market                                          
30 studies, and business facility designs.                                                                                 
31  Sec. 45.81.040.  Grant conditions.  (a)  A business that receives a new                                               

01 business incentive grant must continue to operate in the state for at least five years                                  
02 after the date the grant is awarded or must, within 90 days after ceasing to operate,                                   
03 repay the grant money together with interest on the money in an amount established                                      
04 by the department.  A business that is a branch or subsidiary of another business may                                   
05 not receive a grant unless that other business agrees, in a form acceptable to the                                      
06 department, to be responsible for the obligation to repay grant money and interest                                      
07 under this subsection.                                                                                                  
08  (b)  The department may set additional terms and conditions for the award of                                          
09 new business incentive grants and for the payment of grant money.  The terms and                                        
10 conditions may include requirements for the repayment of grant money even though                                        
11 repayment is not required under (a) of this section.                                                                    
12  Sec. 45.81.050.  Definition.  For purposes of AS 45.81.010 - 45.81.050,                                               
13 "department" means the Department of Commerce and Economic Development.