HCS CSSB 29(FIN): "An Act relating to certain programs of state aid to municipalities and recipients in the unorganized borough; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 29(FIN) 01 "An Act relating to certain programs of state aid to municipalities and recipients 02 in the unorganized borough; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.10.200(50) is amended to read: 05 (50) AS 29.60.120(a) and (c) (priority revenue sharing [STATE AID] 06 for health facilities and hospitals); 07 * Sec. 2. AS 29.20.640(b) is amended to read: 08 (b) Compliance with the provisions of this section is a prerequisite to receipt 09 of municipal tax resource equalization assistance under AS 29.60.010 - 29.60.080 and 10 priority revenue sharing [STATE AID] for [MISCELLANEOUS] municipal services 11 under AS 29.60.100 - 29.60.180. If a municipality does not comply with this section, 12 the department shall withhold the allocations until the required reports are filed. 13 * Sec. 3. AS 29.45.020 is amended to read: 14 Sec. 29.45.020. Taxpayer notice. (a) If a municipality levies and collects
01 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 MUNICIPAL TAX RESOURCE EQUALIZATION 11 [ASSISTANCE] (AS 29.60.010 - 29.60.080) $ 12 PRIORITY REVENUE SHARING [STATE 13 AID] FOR [MISCELLANEOUS] MUNICIPAL 14 SERVICES (AS 29.60.100 - 29.60.180) $ 15 REVENUE SHARING FOR COMMUNITIES 16 (AS 29.60.350 - 29.60.375) $ 17 TOTAL AID $ 18 The millage equivalent of this state aid, based on the dollar value of a mill in the 19 municipality during the current assessment year and for the preceding assessment year, 20 is: 21 MILLAGE EQUIVALENT 22 PREVIOUS YEAR THIS YEAR 23 PUBLIC SCHOOL FOUNDATION 24 PROGRAM ASSISTANCE . . . . MILLS . . . . MILLS 25 STATE AID FOR RETIREMENT 26 OF SCHOOL CONSTRUCTION 27 DEBT . . . .MILLS . . . .MILLS 28 MUNICIPAL TAX RESOURCE 29 EQUALIZATION [ASSISTANCE] . . . .MILLS . . . .MILLS 30 PRIORITY REVENUE SHARING 31 [STATE AID] FOR [MISCELLANEOUS]
01 MUNICIPAL SERVICES . . . .MILLS . . . .MILLS 02 REVENUE SHARING FOR 03 COMMUNITIES . . . .MILLS . . . .MILLS 04 TOTAL MILLAGE 05 EQUIVALENT . . . .MILLS . . . .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 municipal tax resource equalization [ASSISTANCE] under AS 29.60.010 - 15 29.60.080 and priority revenue sharing [STATE AID] for [MISCELLANEOUS] 16 municipal services under AS 29.60.100 - 29.60.180. The department shall withhold 17 annual allocations under those sections until municipal officials demonstrate that the 18 requirements of this section have been met. 19 * Sec. 4. AS 29.45.660(b) is amended to read: 20 (b) Compliance with the provisions of this section is a prerequisite to receipt 21 of municipal tax resource equalization [ASSISTANCE] under AS 29.60.010 - 22 29.60.080 and priority revenue sharing [STATE AID] for [MISCELLANEOUS] 23 municipal services under AS 29.60.100 - 29.60.180. The department shall withhold 24 annual allocations under those sections until municipal officials demonstrate that the 25 requirements of this section have been met. 26 * Sec. 5. AS 29.60.100 is amended to read: 27 Sec. 29.60.100. Priority revenue sharing for municipal services [REVENUE 28 SHARING PAYABLE]. In addition to the equalization entitlements paid under 29 AS 29.60.010 - 29.60.080, during each fiscal year the department shall pay priority 30 revenue sharing for municipal services to [AID] 31 (1) [TO] a municipality or other eligible recipient that has the power
01 to provide the services described in AS 29.60.110 - 29.60.130 and exercises the power 02 in the manner required by AS 29.60.100 - 29.60.180; 03 (2) [TO] an unincorporated community under AS 29.60.140. 04 * Sec. 6. AS 29.60.170 is amended to read: 05 Sec. 29.60.170. Municipal [MISCELLANEOUS] services account. The 06 municipal [MISCELLANEOUS] services account is established. Money to carry out 07 the provisions of AS 29.60.100 - 29.60.180 shall be allocated by the department to the 08 account in accordance with AS 29.60.280. If amounts in the account are insufficient 09 to pay each municipality's or other recipient's share authorized under AS 29.60.100 - 10 29.60.180, the amounts that are available shall be distributed pro rata among eligible 11 municipalities and other recipients. 12 * Sec. 7. AS 29.60.280(b) is amended to read: 13 (b) Money in the municipal [MISCELLANEOUS] services account established 14 in AS 29.60.170 that exceeds the amount required to fully fund distributions authorized 15 by AS 29.60.100 - 29.60.180 shall be reallocated to the tax equalization account 16 established in AS 29.60.060 and distributed according to the provisions of 17 AS 29.60.010 - 29.60.080. 18 * Sec. 8. AS 29.60.350 is amended to read: 19 Sec. 29.60.350. Communities [MUNICIPAL ASSISTANCE] fund. (a) To 20 implement the revenue sharing for communities program, there [THERE] is 21 established in the department the communities [MUNICIPAL ASSISTANCE] fund 22 consisting of the base amount account and the per capita account. The legislature 23 may appropriate to the communities [MUNICIPAL ASSISTANCE] fund during each 24 fiscal year a total [AN] amount equal to or greater than 30 percent of the income tax 25 revenue received by the state under AS 43.20.011(e) for the previous fiscal year. 26 Unless otherwise provided in the appropriation, the department shall allocate 27 money to the base amount account and the per capita account in the same 28 proportion as under AS 29.60.360 and 29.60.370 in state fiscal year 1997. 29 (b) The department shall distribute money from the communities 30 [MUNICIPAL ASSISTANCE] fund to each municipality on an annual basis as 31 provided in AS 29.60.360 and 29.60.370 and as adjusted under AS 29.60.373. A
01 municipality may not receive payment until it submits to the department a resolution 02 approved by the governing body of the municipality that requests the money. 03 Distribution of money from the communities [MUNICIPAL ASSISTANCE] fund to 04 all municipalities must be made on July 31 [FEBRUARY 1] of the state fiscal year 05 for which the appropriation to the fund is made. A municipality that incorporates after 06 July 1 [DECEMBER 31] of a state fiscal year is not eligible for a distribution under 07 this section until the following state fiscal year. 08 * Sec. 9. AS 29.60.350 is amended by adding new subsections to read: 09 (c) Money from the revenue sharing for the communities program distributed 10 to a municipality shall be used by that municipality only for the following services in 11 the following ranking of priority: 12 (1) police protection and related public safety services; 13 (2) fire protection and emergency medical services; 14 (3) water and sewer services not offset by user fees; 15 (4) solid waste management; 16 (5) other services determined by the governing body to have the highest 17 priority. 18 (d) Subsection (c) of this section may not be construed to require a 19 municipality to fund all requests it receives for services in a category with a higher 20 ranking of priority before funding services in a category with a lower ranking of 21 priority. 22 * Sec. 10. AS 29.60.360 is amended to read: 23 Sec. 29.60.360. Base amount account distributions [OF ASSISTANCE]. 24 (a) The base amount to be distributed from the base amount account [MUNICIPAL 25 ASSISTANCE FUND] to each municipality for the fiscal year shall be the amount 26 received by the municipality during fiscal year 1978 under AS 43.70.080 as that 27 section provided before the 1978 amendment. A city incorporated within a borough 28 after June 30, 1977, shall receive as a base amount a share of the amount distributed 29 to the borough in which it is located based on the ratio of population in the city to the 30 total population in the borough. A city incorporated outside a borough after June 30, 31 1977, shall receive as a base amount the amount received by the city in the state most
01 closely approximating it in population at the time of its incorporation. A borough 02 incorporated after June 30, 1977, shall receive as a base amount the amount received 03 by the borough in the state most closely approximating it in population at the time of 04 its incorporation, excluding each borough with a per capita full and true property 05 value exceeding $500,000. The base amount to be distributed to each municipality 06 organized under federal law shall be the amount received as a base amount by the city 07 most closely approximating it in population on June 30, 1977. 08 (b) If the amount in the base amount account from allocation of 09 appropriations [APPROPRIATED] to the communities [MUNICIPAL 10 ASSISTANCE] fund [BY THE LEGISLATURE] during a fiscal year is insufficient 11 for distribution of the full base amount to each municipality, the department shall 12 prorate the amount available for distribution [ON THE BASIS OF AMOUNTS 13 RECEIVED DURING THE FISCAL YEAR 1978 UNDER AS 43.70.080]. 14 * Sec. 11. AS 29.60.365 is amended to read: 15 Sec. 29.60.365. Municipalities organized under federal law. To qualify to 16 receive money under AS 29.60.350 - 29.60.375 [AS 29.60.350 - 29.60.370], a 17 municipality organized under federal law as an Indian reserve that existed before 18 enactment of 43 U.S.C. 1618(a) and is continued in existence under that subsection 19 shall form a community development corporation with authority to determine how 20 money received under AS 29.60.350 - 29.60.375 [AS 29.60.350 - 29.60.370] will be 21 used. The charter must require that the governing board of the corporation shall be 22 elected at an annual election open to all residents of the municipality who are 23 registered and qualified to vote in state elections. The department may distribute 24 money for the municipality only to a corporation organized in accordance with this 25 section and only after the corporation has delivered a written waiver of sovereign 26 immunity from legal action by the state to recover all or a portion of the money 27 distributed under AS 29.60.350 - 29.60.375 [AS 29.60.350 - 29.60.370]. 28 * Sec. 12. AS 29.60.370(a) is amended to read: 29 Sec. 29.60.370. Per capita account distribution [INCREASED 30 ASSISTANCE]. (a) The [IF THE] amount allocated to the per capita account in 31 the communities [MUNICIPAL ASSISTANCE] fund [AT THE TIME OF
01 DISTRIBUTION EXCEEDS THE BASE AMOUNT TO BE DISTRIBUTED UNDER 02 AS 29.60.360, THE EXCESS AMOUNT] shall be distributed to each municipality on 03 the basis of population. Population for the purpose of this section shall be as certified 04 by the commissioner of community and regional affairs. In determining the population 05 of a borough, the population of all cities in the borough shall be deducted from the 06 total population of the borough. 07 * Sec. 13. AS 29.60 is amended by adding new sections to read: 08 Sec. 29.60.372. Minimum entitlement. (a) If a municipality qualifies for a 09 payment during a fiscal year under AS 29.60.350 and also under AS 29.60.010 - 10 29.60.080, 29.60.100 - 29.60.180, or 29.60.290, and if the total amount payable to the 11 municipality under those sections is less than a minimum entitlement of $40,000, the 12 department shall pay to the municipality an amount equal to the difference between 13 the total amount payable under those sections and $40,000 as adjusted under 14 AS 29.60.373. 15 (b) If the total amount appropriated to the communities fund for a fiscal year 16 is less than $29,402,300, the minimum entitlement under (a) of this section shall be 17 reduced by a percent equal to the percent of reduction that the amount appropriated for 18 that fiscal year represents when compared to $29,402,300. 19 Sec. 29.60.373. Adjustment of payments. Adjustment of payments shall be 20 determined by prorating amounts payable under AS 29.60.360, 29.60.370, and 21 29.60.372 by a factor that, when applied, reduces all payments in equal proportion so 22 that total payments equal the amount appropriated to the communities fund. 23 * Sec. 14. AS 29.60.375 is amended to read: 24 Sec. 29.60.375. Definition. In AS 29.60.350 - 29.60.375 [AS 29.60.350 - 25 29.60.370] "municipality" includes a municipality organized under federal law as an 26 Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in 27 existence under that subsection. 28 * Sec. 15. AS 29.60.370(b) is repealed. 29 * Sec. 16. This Act takes effect July 1, 1997.