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HB 202: "An Act relating to the community revenue sharing program; and providing for an effective date."

00 HOUSE BILL NO. 202 01 "An Act relating to the community revenue sharing program; and providing for an 02 effective 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 11. Community Revenue Sharing Program. 06 Sec. 29.60.850. Community revenue sharing fund. (a) The community 07 revenue sharing fund is established in the general fund. By August 1 of each fiscal 08 year, the Department of Revenue shall transfer to the fund an amount equal to six 09 percent of the money received by the state during the immediately preceding fiscal 10 year from mineral lease rentals, royalties, royalty sale proceeds, and federal mineral 11 revenue sharing payments and bonuses. 12 (b) Each fiscal year, the legislature may appropriate money in the community 13 revenue sharing fund to the department for community revenue sharing payments or 14 appropriate it for other public purposes.

01 (c) Nothing in this section creates a dedicated fund. 02 Sec. 29.60.860. Amount of community revenue sharing payments. (a) The 03 basic community revenue sharing payment for a fiscal year equals 04 (1) $250,000 for a borough or unified municipality; 05 (2) $75,000 for a reserve eligible under AS 29.60.870(a) or a city; 06 (3) $25,000 for an unincorporated community in a borough or unified 07 municipality eligible under AS 29.60.870; and 08 (4) $25,000 for an unincorporated community in the unorganized 09 borough eligible under AS 29.60.870(a). 10 (b) If the amount appropriated for a fiscal year 11 (1) is not sufficient to fully fund all the basic payments, the amount 12 paid to each recipient shall be reduced on a pro rata basis so that the entire amount 13 appropriated is distributed; 14 (2) exceeds the amount needed to fully fund all the basic payments, the 15 balance shall be distributed on a per capita basis to each recipient of a basic payment 16 under (a)(1) or (2) of this section. 17 Sec. 29.60.870. Unincorporated community eligibility. (a) The department, 18 with advice from the Department of Law, shall determine whether there is, in each 19 reserve or unincorporated community, an incorporated nonprofit entity or a Native 20 village council that will agree to receive and spend the community revenue sharing 21 payment for the benefit of the reserve or unincorporated community. The department 22 may make the payment for an unincorporated community located in a borough or 23 unified municipality only to the municipality as provided in (b) of this section. If there 24 is more than one qualified entity in a reserve or unincorporated community located in 25 the unorganized borough, the department shall pay the dividend to the entity that the 26 department finds most qualified to receive and spend the money. The department may 27 not make a payment for a reserve or an unincorporated community unless the 28 incorporated nonprofit entity or Native village council waives immunity from suit for 29 claims arising out of activities of the corporation or council related to the payment. A 30 waiver of immunity from suit under this subsection must be on a form provided by the 31 Department of Law. If there is not a qualified incorporated nonprofit entity or Native

01 village council in a reserve or unincorporated community that is willing to receive and 02 spend the community revenue sharing payment for the benefit of the reserve or 03 unincorporated community, that reserve or unincorporated community is not eligible 04 for the payment, and the payment may not be made. 05 (b) The department may make a community revenue sharing payment on 06 behalf of an unincorporated community in a borough or unified municipality only to 07 the municipality for payment by the municipality to an incorporated nonprofit entity or 08 Native village council that has been approved by the assembly. The department must 09 have written evidence of the assembly approval. The assembly may only approve an 10 incorporated nonprofit entity or Native village council that provides at least three of 11 the following services within the unincorporated community that are generally 12 available to all residents of the unincorporated community: 13 (1) fire protection; 14 (2) emergency medical; 15 (3) water and sewer; 16 (4) solid waste management; 17 (5) public road or ice road maintenance; 18 (6) public health; 19 (7) search and rescue. 20 Sec. 29.60.880. Determination of population. For purposes of determining 21 the amount of a revenue sharing payment under AS 29.60.860(b)(2), the population of 22 the municipality, reserve, or unincorporated community in a borough or unified 23 municipality shall be determined by using the numbers of permanent fund dividend 24 recipients or other population data that the department determines is reliable. For 25 purposes of determining the population of a borough, the population of each city in the 26 borough shall be deducted from the total population of the borough. 27 Sec. 29.60.889. Definitions. In AS 29.60.850 - 29.60.889, 28 (1) "reserve" means a place that is organized under federal law as an 29 Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in 30 existence under that subsection; 31 (2) "unincorporated community" means a place that is not incorporated

01 as a city, is not a reserve, and in which 25 or more persons reside as a social unit. 02 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).