CSSB 171(FIN)(efd fld): "An Act amending the National Petroleum Reserve - Alaska special revenue fund; and establishing the Special Legislative Oil and Gas NPR-A Development Impact Review Committee and defining its powers and duties."
00 CS FOR SENATE BILL NO. 171(FIN)(efd fld) 01 "An Act amending the National Petroleum Reserve - Alaska special revenue fund; and 02 establishing the Special Legislative Oil and Gas NPR-A Development Impact Review 03 Committee and defining its powers and duties." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature to provide financial 08 assistance to municipalities for the purpose of meeting certain operating and capital 09 improvement expenditures arising out of oil and gas development under 42 U.S.C. 6506a, 10 formerly 42 U.S.C. 6508. 11 * Sec. 2. AS 24.20 is amended by adding a new section to read: 12 Article 4A. Special Legislative Oil and Gas NPR-A Development Impact Review 13 Committee. 14 Sec. 24.20.580. Special Legislative Oil and Gas NPR-A Development
01 Impact Review Committee. (a) There is established the Special Legislative Oil and 02 Gas NPR-A Development Impact Review Committee. The committee is composed of 03 three members of the senate appointed by the president of the senate and three 04 members of the house of representatives appointed by the speaker of the house of 05 representatives. The committee membership from each house shall include at least one 06 member from the minority caucus of that house. The committee members must 07 include one member of the house of representatives or senate from an election district 08 that includes part or all of the National Petroleum Reserve - Alaska. Except when it 09 may be necessary to appoint a member of the legislature under (2) of this subsection to 10 serve on the committee and the member is not also a member of a finance committee, 11 the committee members may be appointed only from the finance committee of each 12 house. If a member of the house of representatives or senate from an election district 13 that includes part or all of the National Petroleum Reserve - Alaska 14 (1) is appointed to serve on the appropriate finance committee, the 15 member serving on the finance committee also serves on the committee established in 16 this subsection; however, under this paragraph, not more than one member 17 representing an election district that includes part or all of the National Petroleum 18 Reserve - Alaska may serve on the committee and, if designation of the one member is 19 necessary, the speaker of the house of representatives and the president of the senate 20 shall jointly designate the one member to serve; 21 (2) is not serving on the committee under (1) of this subsection, the 22 speaker of the house of representatives and the president of the senate shall jointly 23 appoint one member of the legislature who represents an election district that includes 24 part or all of the National Petroleum Reserve - Alaska to serve on the committee. 25 (b) The committee shall be organized within 15 days after the organization of 26 each legislature. The committee shall select its own chair. Members serve for the 27 duration of the legislature during which they are appointed. If a committee member is 28 reelected or the member's term of office extends into the next succeeding legislature, 29 the member continues to serve until reappointed or until the member's successor is 30 appointed. 31 (c) The committee may meet during sessions of the legislature and during the
01 interim between sessions at times and places in the state as the committee chair may 02 determine. 03 (d) Members of the committee may receive, for the minimum time required to 04 get to and from meetings and for the period while attending meetings, the same travel 05 and per diem allowances provided by law for members of the legislature when 06 attending sessions. However, members of the committee do not receive per diem for 07 committee meetings during legislative sessions other than the per diem paid to 08 members of the legislature. 09 (e) A majority of the members of the committee appointed from each house 10 (1) constitutes a quorum for the purpose of carrying out the 11 committee's duties under this section; and 12 (2) is necessary to approve and forward to the respective finance 13 committees in each house the committee's recommendations for grants. 14 (f) Each member of the committee shall visit each community within the 15 National Petroleum Reserve - Alaska 16 (1) within one year after the member's appointment to the committee; 17 and 18 (2) at least once every three years during the member's term of service 19 if the member continues to serve on the committee during succeeding legislatures. 20 (g) The committee may consult with the Department of Commerce, 21 Community, and Economic Development about applications submitted under 22 AS 37.05.530. 23 * Sec. 3. AS 37.05.530(a) is amended to read: 24 (a) The National Petroleum Reserve - Alaska special revenue fund is 25 established. The fund consists of all money disbursed to the state by the federal 26 government under 42 U.S.C. 6506a(l) and former 42 U.S.C. 6508 (P.L. 96-514) since 27 December 12, 1980, less the amount deposited in the general fund and expended by 28 the state by general fund appropriations before June 9, 1984. 29 * Sec. 4. AS 37.05.530(c) is repealed and reenacted to read to read: 30 (c) The Department of Commerce, Community, and Economic Development 31 shall adopt regulations under which municipalities that are most directly and severely
01 impacted by National Petroleum Reserve - Alaska oil and gas development under 42 02 U.S.C. 6506a, formerly 42 U.S.C. 6508, may apply for and be eligible to receive 03 grants from the fund established in this section to alleviate the impact. A grant under 04 this section may be made only on application by the municipality to the Department of 05 Commerce, Community, and Economic Development. Each application must state the 06 intended use for which the grant will be expended. When a municipality applies under 07 this subsection, the municipality shall also submit to the department evidence or a 08 certificate that the municipality is current on submission of reports concerning the 09 expenditure of any grant previously received under this section. The department 10 (1) shall receive the applications and related materials and verify that 11 the municipality is current on submission of reports concerning the expenditure of any 12 grant previously received under this section; 13 (2) shall conduct a preliminary evaluation of each application; in 14 conducting the preliminary evaluation, the department shall determine if the 15 application is for an activity, facility, or service that involves planning; construction, 16 maintenance, and operation of essential public facilities by the municipality; and 17 necessary public services provided by the municipality; 18 (3) within 10 days after the convening of each regular session of the 19 legislature, shall submit to the committee a list of 20 (A) all qualifying activities, facilities, or services based on the 21 department's preliminary evaluation made under (2) of this subsection; and 22 (B) all municipalities that have already received grants and 23 written justification for each previous grant; and 24 (4) when advised of the committee's recommendations for grants, shall 25 notify municipalities of that action. 26 * Sec. 5. AS 37.05.530(d) is repealed and reenacted to read: 27 (d) In its review of applications submitted under (c) of this section, the 28 committee shall, within 45 days after receipt of the information submitted by the 29 department under (c)(3) of this section, 30 (1) examine applications and related and supporting materials to verify 31 the needs claimed for each facility or service for which an application was submitted;
01 (2) evaluate the needs claimed; 02 (3) rank the needs that the committee believes comply with the 03 standards set out in 42 U.S.C. 6506a(l), formerly 42 U.S.C. 6508, and (c)(2) of this 04 section; and 05 (4) forward to the respective finance committees in each house the 06 committee's recommendations for grants for facilities and services under this section; 07 the committee shall list its recommendations by project. 08 * Sec. 6. AS 37.05.530(e) is repealed and reenacted to read: 09 (e) A municipality that receives a grant under this section shall 10 (1) account separately for each grant received; 11 (2) provide for an independent audit of the separate accounts 12 maintained for each grant or appropriation, except that, for a grant that is not more 13 than $300,000, the municipality shall provide for an independent unaudited review of 14 the accounts maintained for the grant; 15 (3) submit a copy of the independent audit report or independent 16 review to the Department of Commerce, Community, and Economic Development; 17 and 18 (4) expend the funds only for the use or purpose for which the grant 19 was made; the Department of Commerce, Community, and Economic Development 20 may not otherwise modify the terms of a grant to change the purpose or objective of 21 the grant or the terms and conditions under which the grant may be expended. 22 * Sec. 7. AS 37.05.530(f) is amended to read: 23 (f) Funds appropriated under [(d) OF] this section may not be used for the 24 retirement of municipal debt. 25 * Sec. 8. AS 37.05.530(g) is amended to read: 26 (g) The provisions of this subsection apply to amounts [AMOUNTS] 27 received by the state under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508, as follows: 28 (1) amounts received and not appropriated for grants to municipalities 29 under (c) - (e) [(d)] of this section shall be deposited at the end of each fiscal year as 30 follows: 31 (A) [(1)] 25 percent of amounts received by the state during
01 that fiscal year under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508 to the 02 principal of the Alaska permanent fund; and 03 (B) [(2)] .5 percent of amounts received by the state during 04 that fiscal year under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508 to the 05 public school trust fund (AS 37.14.110); 06 (2) if, after making the grants under (c) - (e) of this section, the 07 amounts remaining are insufficient to make payment in full of the deposits 08 required by (1)(A) and (B) of this subsection, the deposits shall be allocated pro 09 rata between the fund deposits; 10 (3) the [. THE] amounts remaining after the making of the payment 11 of the deposits in full to the Alaska permanent fund and the public school trust fund 12 under (2) of this subsection may be appropriated 13 (A) first, to each of the funds described in (1)(A) and (B) of 14 this subsection to recover amounts not paid to those funds on or after the 15 effective date of this Act because of deficiencies in making the payments 16 required by (2) of this subsection; and 17 (B) after appropriations authorized by (A) of this 18 paragraph, to the power cost equalization and rural electric capitalization fund 19 (AS 42.45.100); 20 (4) the [. THE] amounts remaining after any appropriation to the 21 power cost equalization and rural electric capitalization fund shall lapse into the 22 general fund for use by the state for the following facilities and services: planning; 23 construction, maintenance, and operation of essential public facilities; and other 24 necessary public services. 25 * Sec. 9. AS 37.05.530(h) is amended to read: 26 (h) In making appropriations from the National Petroleum Reserve - 27 Alaska special revenue fund, the legislature shall identify the grants for services 28 and facilities as appropriation items and shall specify the amounts for each. 29 Notwithstanding other provisions of law and unless expressly provided by the 30 legislature in the appropriation item making the appropriation, an appropriation from 31 the National Petroleum Reserve - Alaska special revenue fund shall, for the purposes
01 of determining the funding sources for the appropriation, be treated as though the 02 appropriation takes effect in the fiscal year in which the appropriation passes the 03 legislature. The authorization to expend funds appropriated from the fund shall take 04 effect as otherwise provided by law. 05 * Sec. 10. AS 37.05.530 is amended by adding new subsections to read: 06 (i) The Department of Commerce, Community, and Economic Development 07 may 08 (1) suspend award of a new grant made under this section to a 09 municipality if, in the department's judgment, the municipality has not made adequate 10 progress in complying in the expenditure or use of a previously awarded grant; 11 (2) extend the period during which the municipality may expend a 12 grant for unusual circumstances beyond the control of the municipality. 13 (j) Amounts that are unexpended at the end of the period authorized by law or, 14 if extended under (i) of this section, by the department and that lapse shall revert to the 15 general fund. However, if, at any time, there is a cumulative deficiency in amounts 16 due and payable to the principal of the Alaska permanent fund and the public school 17 trust fund because of allocation pro rata among those funds as authorized by (g)(2) of 18 this section, the commissioner of administration shall first apply the lapsing amounts 19 to restore previously prorated allocations to the Alaska permanent fund and the public 20 school trust fund to the amounts due each of those funds. 21 (k) In this section, "committee" means the Special Legislative Oil and Gas 22 NPR-A Development Impact Review Committee (AS 24.20.580).