CSHB 20(RLS): "An Act relating to organization grants to cities, to state aid for unincorporated communities, and to municipal dividends."
00 CS FOR HOUSE BILL NO. 20(RLS) 01 "An Act relating to organization grants to cities, to state aid for unincorporated 02 communities, and to municipal dividends." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.05.180(a) is amended to read: 05 (a) To defray the cost of transition to city government and to provide for 06 interim government operations, each city incorporated after June 30, 2002, 07 [DECEMBER 31, 1985] is entitled to [AN] organization grants [GRANT OF $50,000 08 FOR THE FIRST FULL OR PARTIAL FISCAL YEAR] after incorporation as 09 follows: 10 (1) $100,000 for the city's first full or partial fiscal year; 11 (2) $50,000 for the city's second fiscal year; and 12 (3) $25,000 for the city's third fiscal year. 13 * Sec. 2. AS 29.05.180(b) is amended to read: 14 (b) To defray the cost of reclassification, each second class city in the
01 unorganized borough incorporated before January 1, 1986, that reclassifies as a first 02 class city or adopts a home rule charter after June 30, 2002, [DECEMBER 31, 1985] 03 is entitled to [AN] organization grants [GRANT EQUAL TO $50,000 FOR THE 04 FIRST FULL OR PARTIAL FISCAL YEAR] after reclassification as follows: 05 (1) $200,000 for the city's first full or partial fiscal year; 06 (2) $100,000 for the city's second fiscal year; 07 (3) $50,000 for the city's third fiscal year. 08 * Sec. 3. AS 29.60.140 is amended to read: 09 Sec. 29.60.140. State aid for [TO] unincorporated communities. (a) 10 Subject to (c) of this section, the [THE] department shall pay for [TO] each 11 unincorporated community an entitlement each fiscal year to be used for a public 12 purpose. The department shall pay an entitlement for an unincorporated 13 community in a borough or unified municipality to that borough or unified 14 municipality. The borough or unified municipality may use the money from the 15 entitlement only for the benefit of that unincorporated community. The 16 department with advice from the Department of Law shall determine whether there is 17 in each unincorporated community in the unorganized borough an incorporated 18 nonprofit entity or a Native village council that will agree to receive and spend the 19 entitlement. If there is more than one qualified entity in an unincorporated community 20 in the unorganized borough, the department shall pay the money under the 21 entitlement to the entity that the department finds most qualified to receive and spend 22 the money. The department may not pay money under an entitlement to a Native 23 village council unless the council waives immunity from suit for claims arising out of 24 activities of the council related to the entitlement. A waiver of immunity from suit 25 under this subsection must be on a form provided by the Department of Law. If there 26 is no qualified incorporated nonprofit entity or Native village council in an 27 unincorporated community in the unorganized borough that is willing to receive 28 money under an entitlement, the entitlement for that unincorporated community may 29 not be paid. Neither this subsection nor any action taken under it enlarges or 30 diminishes the governmental authority or jurisdiction of a Native village council. If at 31 least $41,472,000 is appropriated for all entitlements under as 29.60.010 - 29.60.310
01 for a fiscal year, the entitlement for each unincorporated community under this 02 subsection for that year equals $40,000. Otherwise, the entitlement equals $25,000. 03 (b) In this section "unincorporated community" means a place [IN THE 04 UNORGANIZED BOROUGH] that is not incorporated as a city and in which 25 or 05 more persons reside as a social unit. 06 * Sec. 4. AS 29.60.140 is amended by adding a new subsection to read: 07 (c) The department may pay an entitlement under (a) of this section for an 08 unincorporated community in a borough or unified municipality only if the borough or 09 unified municipality on a service area basis provides at least three of the following 10 services within the community: 11 (1) fire protection and emergency services; 12 (2) water and sewer; 13 (3) solid waste management and disposal; 14 (4) public road or ice road maintenance; 15 (5) public health. 16 * Sec. 5. AS 29.60 is amended by adding a new section to article 3 to read: 17 Sec. 29.60.330. Municipal dividend fund. There is established in the 18 department the municipal dividend fund consisting of municipal dividends transferred 19 to the fund under AS 37.13.145(e). Each fiscal year, the legislature may appropriate 20 money in the municipal dividend fund for the organization grant program 21 (AS 29.05.200), municipal tax resource equalization program (AS 29.60.010 - 22 29.60.080), priority revenue sharing for municipal services program (AS 29.60.100 - 23 29.60.180), and revenue sharing for safe communities program (AS 29.60.350 - 24 29.60.375). Any balance in the fund may be appropriated for 25 (1) capital project matching grants (AS 37.06.010 - 37.06.090); 26 (2) payments to municipalities for costs of confinement and care of 27 state prisoners. 28 * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read: 29 (e) On or after July 1 and after all the other transfers under this section, the 30 corporation shall, subject to appropriation, transfer a municipal dividend from the 31 earnings reserve account to the municipal dividend fund established under
01 AS 29.60.330. The municipal dividend equals the lesser of 02 (1) the amount calculated by multiplying $100 by the number of 03 permanent fund dividends paid by the Department of Revenue during the calendar 04 year immediately preceding the year the transfer is made under this subsection; or 05 (2) the balance of the earnings reserve account on the date of the 06 transfer under this subsection. 07 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 APPLICABILITY. This Act applies beginning fiscal year 2003 and thereafter.