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CSSSSB 28(CRA)(EFD AM): "An Act relating to the unincorporated community capital project matching grant program; and providing for an effective date."

00CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 28(CRA)(efd am) 01 "An Act relating to the unincorporated community capital project matching 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 37.06.020(b) is amended to read: 05  (b) The unincorporated community capital project matching grant fund is 06 established in the department and consists of appropriations to the fund. Appropriations 07 to the fund do not lapse except as provided in (h) of this section. The money in the 08 fund is held by the department in custody under this subsection for each 09 unincorporated community eligible for an allocation under this subsection. The 10 department shall establish an individual grant account within the fund for each eligible 11 unincorporated community [THAT WAS ENTITLED TO RECEIVE STATE AID 12 UNDER AS 29.60.140 DURING THE PRECEDING FISCAL YEAR]. As provided 13 in this subsection, each fiscal year the department shall allocate, to the individual grant 14 accounts, appropriations to the fund. An unincorporated community is eligible for an

01 allocation in a fiscal year if the requirements of (d) are met and the community was 02 a place in the state in which 25 or more individuals resided as a social unit 03 [ELIGIBLE TO RECEIVE STATE AID UNDER AS 29.60.140] during the preceding 04 fiscal year. The department shall credit interest earned on money in an individual 05 grant account to that account. Except as provided in (c) of this section, the amount 06 allocated under this subsection to an individual grant account in a fiscal year is the 07 amount needed to fund the projects presented to the legislature in the order of 08 state priority established by the department under (e) of this section subject to 09 [DETERMINED BY DIVIDING] the total amount appropriated to the fund during that 10 fiscal year [BY THE NUMBER OF UNINCORPORATED COMMUNITIES 11 ELIGIBLE FOR AN ALLOCATION DURING THAT FISCAL YEAR]. 12 * Sec. 2. AS 37.06.020(c) is amended to read: 13  (c) A maximum [MINIMUM] of $25,000 may [SHALL] be allocated to an 14 [EACH] eligible unincorporated community's grant account each fiscal year under (b) 15 of this section. If appropriations exceed the amount necessary to fully fund the 16 amount for each eligible unincorporated community, the excess amount lapses into 17 the general fund. If appropriations are not sufficient to fully fund the [MINIMUM] 18 amount for each eligible unincorporated community, the amount appropriated shall be 19 allocated [EQUALLY] among the eligible unincorporated communities in the order 20 of the state priority for projects ranked by the department under (e) of this 21 section . 22 * Sec. 3. AS 37.06.020(d) is amended to read: 23  (d) The department shall designate, in each eligible unincorporated community, 24 an incorporated nonprofit entity or a Native village council that agrees to receive and 25 spend grant money allocated to the unincorporated community's individual grant 26 account under (b) of this section. If the community is located in a borough or a 27 unified municipality, the department may only designate the entity that has been 28 approved by the assembly and the department must have written evidence of that 29 approval. If there is more than one qualified entity in a community in the 30 unorganized borough , the department shall designate the entity that the department 31 finds most qualified to make draws from that unincorporated community's individual

01 grant account and spend the money. If there is no qualified incorporated nonprofit 02 entity or Native village council in an unincorporated community that will agree to 03 receive and spend money allocated to the community under (b) of this section, draws 04 may not be made from the unincorporated community's individual grant account and 05 the amount allocated to the account lapses into the general fund. 06 * Sec. 4. AS 37.06.020(e) is amended to read: 07  (e) By October 1 of each fiscal year, the incorporated nonprofit entity or 08 Native village council designated by the department under (d) of this section shall 09 submit to the department [GOVERNOR] a prioritized list of capital projects and 10 estimated costs to be financed with money from the community's individual grant 11 account established under (b) of this section. The list must include the amount and 12 source of the local share required by AS 37.06.030. If the community is located in 13 a borough or unified municipality, the list is subject to approval of the assembly 14 and must be accompanied by written evidence of that approval. The department 15 shall rank all of the projects listed in order of state priority based on health and 16 safety considerations, and the governor shall include in the capital improvements 17 program presented to the legislature under AS 37.07.060 the amount [PROJECTS 18 SUBMITTED BY DESIGNATED ENTITIES UNDER THIS SUBSECTION] that the 19 governor recommends for funding the unincorporated community capital project 20 matching grant program . If the state's priority ranking of [, IN THE CAPITAL 21 IMPROVEMENTS PROGRAM, THE GOVERNOR INCLUDES] projects for a 22 community is in other than the priority order submitted by a designated entity, the 23 governor shall provide the legislature with a written statement of the reasons for that 24 action. 25 * Sec. 5. AS 37.06.020(h) is amended to read: 26  (h) An entity designated by the department under (d) of this section shall repay 27 to the department money it has drawn from an unincorporated community's individual 28 grant account if substantial, ongoing work on the project is not started within four 29 [FIVE] years after the effective date of the appropriation from which the draw is 30 funded. Money repaid shall be deposited into the general fund. Money from an 31 allocation to an unincorporated community's individual grant account that has not been

01 drawn out by a designated entity within four [FIVE] years after the effective date of 02 the appropriation from which the allocation is funded lapses into the general fund. 03 * Sec. 6. AS 37.06.030(b) is amended to read: 04  (b) For each draw made by an entity or council under AS 37.06.020, the 05 incorporated entity or Native village council that makes the draw shall contribute a 06 local share of the cost of the capital project for which the draw is made. The amount 07 of the local share for an unincorporated community in a borough or unified 08 municipality is the amount of the local share for that borough or unified 09 municipality as calculated under (a) of this section. The amount of the local share 10 for an unincorporated community in the unorganized borough equals the local 11 share percentage as calculated under (1) of this subsection, divided by the state share 12 percentage as calculated under (2) of this subsection, multiplied by the amount of the 13 draw. For purposes of this subsection, 14  (1) the local share percentage is five percent; 15  (2) the state share percentage equals one minus the local share 16 percentage; 17  (3) the local share may be satisfied from (A) federal or local money; 18 (B) labor, materials, or equipment used directly in the construction of the project, or 19 land, including land transferred by the state; the department shall determine the value 20 of a contribution under this subparagraph; (C) money from another nonstate source; 21 (D) money received by the unincorporated community under AS 29.60.010 - 22 29.60.375; or (E) money obtained from the sale or lease of land or other assets 23 transferred by the state; except as provided in this paragraph, the local share may not 24 be satisfied with money from, or with the portion of an asset that was obtained with 25 money from, an appropriation, allocation, entitlement, grant, or other payment from the 26 state. 27 * Sec. 7. This Act takes effect July 1, 1999.