00CS FOR SENATE BILL NO. 159(L&C)                                                                                       
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 recommend 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.  Up to $3,000,000 may be appropriated                                       
10 to the fund each fiscal year.  The department may use money in the fund for new                                         
11 business incentive grants.  On June 30 of each fiscal year, the unexpended and                                          
12 unobligated balance in the fund lapses into the general fund.                                                           
13  Sec. 45.81.020.  Eligibility for grants.  (a)  A new business or a business that                                    
14 is opening a new branch in the state is eligible for a new business incentive grant if                                  

01   (1)  the business is primarily engaged in manufacturing a product for                                                
02 export outside of the state;                                                                                            
03   (2)  the business will not directly compete with an existing business that                                           
04 is located in the state as determined by the department;                                                                
05   (3)  for a business located in a municipality, the municipality has                                                  
06 provided support to the business in a form and in an amount acceptable to the                                           
07 department;                                                                                                             
08   (4)  the business is primarily financed by the private sector; and                                                   
09   (5)  the business has been recommended as complying with the                                                         
10 requirements for a business incentive grant by the Alaska Industrial Development and                                    
11 Export Authority.                                                                                                       
12  (b)  The department shall prescribe by regulation the standards for new business                                      
13 incentive grant eligibility and the form and procedure for submitting grant applications.                               
14 Subject to the availability of money in the new business incentive fund, the department                                 
15 may award a grant to an eligible applicant in an amount that does not exceed the                                        
16 amount recommended by the Alaska Industrial Development and Export Authority for                                        
17 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 that                                             
30 relate to situations unique to the state, market studies applicable to the state, and                                   
31 business facility designs necessary to address conditions in the state.                                                 

01  Sec. 45.81.040.  Grant conditions.  (a)  A business that receives a new                                             
02 business incentive grant must continue to operate in the state for at least five years                                  
03 after the date the grant is awarded or must, within 90 days after ceasing to operate,                                   
04 repay the grant money together with interest on the money in an amount established                                      
05 by the department.  A business that is a branch or subsidiary of another business may                                   
06 not receive a grant unless that other business agrees, in a form acceptable to the                                      
07 department, to be responsible for the obligation to repay grant money and interest                                      
08 under this subsection.                                                                                                  
09  (b)  The department may set additional terms and conditions for the award of                                          
10 new business incentive grants and for the payment of grant money.  The terms and                                        
11 conditions may include requirements for the repayment of grant money even though                                        
12 repayment is not required under (a) of this section.                                                                    
13  Sec. 45.81.050.  Definition.  For purposes of AS 45.81.010 - 45.81.050,                                             
14 "department" means the Department of Commerce and Economic Development.