HB 398: "An Act relating to disposition of revenue from certain charges collected on valuable mineral deposits on land belonging to the state and subject to location or lease for the extraction of natural resources under the Alaska Land Act, and to aid to municipalities to offset the anticipated effect of lessees' exploration or location activities on land made subject to extraction of valuable mineral deposits; and providing for an effective date."
00 HOUSE BILL NO. 398 01 "An Act relating to disposition of revenue from certain charges collected on valuable 02 mineral deposits on land belonging to the state and subject to location or lease for the 03 extraction of natural resources under the Alaska Land Act, and to aid to municipalities 04 to offset the anticipated effect of lessees' exploration or location activities on land made 05 subject to extraction of valuable mineral deposits; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 37.05 is amended by adding a new section to read: 08 Sec. 37.05.535. State mineral lease assistance special revenue fund. (a) The 09 state mineral lease assistance special revenue fund is established as a separate fund in 10 the general fund. The fund consists of money deposited into it from amounts 11 accounted for under AS 38.05.035(a)(10) and from appropriations made from other 12 sources. 13 (b) The legislature may appropriate money in the state mineral lease assistance
01 special revenue fund to pay state aid to a municipality 02 (1) in which is located any part of an oil or gas exploration license 03 issued under AS 38.05.131 - 38.05.134, a nonconventional gas lease subject to 04 AS 38.05.177, an oil and gas lease or gas only lease issued under AS 38.05.180, a coal 05 lease entered into under AS 38.05.150, a lease containing a deposit subject to 06 disposition as described in AS 38.05.145, or a right to deposits of minerals set out in 07 AS 38.05.185 - 38.05.275; or 08 (2) that is proximate to any part of an oil or gas exploration license 09 issued under AS 38.05.131 - 38.05.134, a nonconventional gas lease subject to 10 AS 38.05.177, an oil and gas lease or gas only lease issued under AS 38.05.180, a coal 11 lease entered into under AS 38.05.150, a lease containing a deposit subject to 12 disposition as described in AS 38.05.145, or a right to deposits of minerals set out in 13 AS 38.05.185 - 38.05.275, and that, in the judgment of the commissioner of 14 commerce, community, and economic development, is reasonably likely to be affected 15 by exploration or development activities on the licensed or leased tracts. 16 (c) The Department of Commerce, Community, and Economic Development 17 (1) shall use appropriations made by the legislature from the state 18 mineral lease assistance special revenue fund to make grants to municipalities under 19 (b) of this section that are located in areas of the state that in the judgment of the 20 commissioner of commerce, community, and economic development, 21 (A) are remote and may qualify for state assistance for 22 commercial development of mineral resources under AS 19.30.020 - 23 19.30.051; for purposes of making the determination required by this 24 subparagraph, in the application of the standards set out in AS 19.30.020 - 25 19.30.051, the restriction against providing state assistance under 26 AS 19.30.020 to facilitate the commercial development of oil and gas does not 27 apply; and 28 (B) have few or no resource extraction activities currently 29 operating within or proximate to the municipality; 30 (2) shall include terms and conditions in a grant made under this 31 subsection to require use of the proceeds of the grant by the municipality to offset or
01 defray the effects within the municipality of exploration or development activities 02 under the related licenses or leases; the proceeds of the grant may be used only for 03 (A) planning; and 04 (B) construction, maintenance, and operation of essential 05 public facilities by the municipality; 06 (3) may impose additional reasonable terms and conditions on the use 07 of amounts provided as grants under this subsection; and 08 (4) may not make grants to a municipality from the fund established in 09 this section for more than five consecutive state fiscal years. 10 * Sec. 2. AS 38.05.035(a)(10) is amended to read: 11 (10) account for the fees, licenses, taxes, or other money received in 12 the administration of this chapter including the sale or leasing of land, identify their 13 source, and promptly transmit them to the proper fiscal department after crediting 14 them to the proper fund; receipts from land application filing fees, licenses and 15 license fees, lease fees, and other money received, except royalties due and 16 payable under this chapter and except as otherwise specifically provided in this 17 paragraph, shall be separately accounted for and deposited as required by 18 AS 38.05.138, and receipts from charges for copies of maps and records shall be 19 deposited immediately in the general fund of the state [BY THE DIRECTOR]; 20 * Sec. 3. AS 38.05 is amended by adding a new section to read: 21 Sec. 38.05.138. Mineral receipts account. (a) The mineral receipts account is 22 established in the general fund. Ten percent of the revenue derived as fees, charges, 23 and miscellaneous receipts from the location, license, or lease activities on state land 24 that are described in AS 38.05.035(a)(10) shall be deposited in the account. 25 (b) The legislature may appropriate money deposited into the account to the 26 fund established in AS 37.05.535 or for any other public purpose. 27 * Sec. 4. This Act takes effect July 1, 2006.