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Enrolled SB 291: Relating to the municipal harbor facility grant program; and providing for an effective date.

00Enrolled SB 291 01 Relating to the municipal harbor facility grant program; and providing for an effective date. 02 _______________ 03 * Section 1. AS 29.60 is amended by adding new sections to read: 04 Article 10. Municipal Harbor Facility Grant Program. 05 Sec. 29.60.800. Municipal harbor facility grant fund. (a) There is 06 established the municipal harbor facility grant fund consisting of money appropriated 07 to the fund. Each fiscal year, the legislature may appropriate money to the fund from 08 the watercraft fuel tax account (AS 43.40.010(f)) and from the fisheries business tax 09 collected under AS 43.75.015 after payments to municipalities are made under 10 AS 43.75.130. The legislature may make other appropriations to the fund. The 11 legislature may appropriate to the fund income earned on money in the fund. 12 (b) Money appropriated to the municipal harbor facility grant fund may be 13 expended by the Department of Transportation and Public Facilities for municipal

01 harbor facility grants without further appropriation. Money in the fund does not lapse 02 and remains available for expenditure in successive fiscal years. 03 (c) Each fiscal year, the Department of Transportation and Public Facilities 04 shall use an amount equal to at least 50 percent of the balance of the municipal harbor 05 facility grant fund on June 30 of the preceding fiscal year for municipal harbor facility 06 grants. 07 Sec. 29.60.810. Grant applications. A municipality that owns a harbor facility 08 may submit to the Department of Transportation and Public Facilities an application 09 for a municipal harbor facility grant to be used for construction, expansion, major 10 repair, or major maintenance of a harbor facility. The application must include 11 information about the project requested by the department. For a proposed project to 12 be eligible for a grant, the municipality must provide evidence acceptable to the 13 department that the 14 (1) proposed project is a capital improvement project and not part of a 15 preventive maintenance program or regular custodial care program; 16 (2) municipality will provide 50 percent of the total project cost as 17 matching funds for the state grant and that money received by the municipality from 18 the state will not be used for the matching funds except money received under 19 (A) AS 29.60.010 - 29.60.080 (municipal tax resource 20 equalization); 21 (B) AS 29.60.350 - 29.60.375 (safe communities program); and 22 (C) AS 29.60.450, AS 43.75.130, and 43.75.137 (shared 23 fisheries business taxes); 24 (3) municipality has secured and will maintain adequate property loss 25 insurance for the replacement cost of the harbor facility or has an adequate program of 26 insurance; 27 (4) municipality has a preventive maintenance plan for the harbor 28 facility and will be adequately adhering to the preventive maintenance plan after 29 completion of the proposed project. 30 Sec. 29.60.820. Award of grants. (a) The Department of Transportation and 31 Public Facilities may award a municipal harbor facility grant during a fiscal year only

01 for a proposed project eligible under AS 29.60.810 based on a grant application filed 02 during the immediately preceding fiscal year before February 1. The total amount of 03 grant money made available to a municipality during a fiscal year may not exceed 04 $5,000,000. 05 (b) The Department of Transportation and Public Facilities shall award a grant 06 for every proposed project eligible under AS 29.60.810 that is for repair and major 07 maintenance of a harbor facility that was transferred by the state to a municipality 08 before grants may be made for other proposed harbor facility projects during a fiscal 09 year. However, after the department makes a grant for the repair and major 10 maintenance of a harbor facility under this subsection, no other grants for the repair 11 and major maintenance of that facility may be made during the same or any other 12 fiscal year. 13 (c) The Department of Transportation and Public Facilities shall establish 14 priorities for the award of grants for proposed municipal harbor facility projects under 15 (b) of this section and priorities for the award of grants for other proposed harbor 16 facility projects, with new construction projects having the lowest priority. The 17 department shall award grants in the order of priority established. In establishing 18 priorities, the department shall include at least the following, in the order listed: 19 (1) the extent to which the municipality can demonstrate that it will 20 have sufficient revenue to operate and maintain the harbor facility in the future 21 without state aid; 22 (2) public safety and emergency factors; 23 (3) the amount spent by the municipality on maintenance of the harbor 24 facility; 25 (4) other options that would reduce or eliminate the need for the 26 proposed project; and 27 (5) whether alternative harbor projects would better serve the public 28 interest. 29 (d) The Department of Transportation and Public Facilities may suggest 30 modifications to a project request to achieve cost savings or to better serve the public 31 interest and, if the municipality agrees, award the municipal harbor facility grant for

01 the proposed project as modified. 02 * Sec. 2. This Act takes effect July 1, 2006.