00                      CS FOR HOUSE BILL NO. 431(STA)                                                                    
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 municipal dividends.  (a)  The amount of a                                      
12       municipal dividend for a fiscal year equals $250 for each person physically residing in                           
13       the municipality.  The population of each municipality shall be determined annually                               
14       by using the latest numbers of permanent fund dividend recipients or other population                             

01       data that, in the judgment of the department, is reliable.  In determining the population                         
02       of a borough, the population of all cities in the borough shall be deducted from the                              
03       total population 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 under (a) and (b) of this section, the amount of each                                 
08       dividend shall be reduced on a pro-rata 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 fund municipal                                  
13       dividends for the next fiscal year, or the balance in the earnings reserve account,                               
14       whichever is less.                                                                                                
15    * Sec. 3.  This Act takes effect June 30, 2004.