00                            HOUSE BILL NO. 431                                                                          
01 "An Act relating to the municipal dividend program; and providing for an effective                                      
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.60 is amended by adding new sections to read:                                                  
05                   Article 10.  Municipal Dividend Program.                                                            
06            Sec. 29.60.800.  Municipal dividend fund.  There is established in the                                     
07       department the municipal dividend fund consisting of money transferred to the fund                                
08       under AS 37.13.145(e).  Subject to appropriations for the purpose, the amount                                     
09       transferred to the fund shall be distributed by the department as dividends to                                    
10       municipalities for each fiscal year.                                                                              
11            Sec. 29.60.810.  Amount of dividends.  (a)  The amount of a municipal                                      
12       dividend for a fiscal year equals $250 for each person residing in the municipality.                              
13       The population of each municipality shall be determined annually by using the latest                              
14       numbers of permanent fund dividend recipients or other population data that, in the                               

01       judgment of the department, is reliable.  In determining the population of a borough,                             
02       the population of all cities in the borough shall be deducted from the total population                           
03       of the borough.                                                                                                   
04            (b)  Notwithstanding (a) of this section, the minimum amount of a municipal                                  
05       dividend for each municipality is $40,000.                                                                        
06            (c)  If the amount appropriated is not sufficient to fully fund municipal                                    
07       dividends for a fiscal year, the amount of each dividend shall be reduced on a pro-rata                           
08       basis.                                                                                                            
09    * Sec. 2.  AS 37.13.145 is amended by adding a new subsection to read:                                             
10            (e)  After the transfers under (b) and (c) of this section, on June 30 of each                               
11       year, the corporation shall transfer from the earnings reserve account to the municipal                           
12       dividend fund established under AS 29.60.800 the amount needed to fully fund                                      
13       municipal dividends for the next fiscal year, or the balance in the earnings reserve                              
14       account, whichever is less.                                                                                       
15    * Sec. 3.  This Act takes effect June 30, 2004.