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HCS CSSB 72(CRA): "An Act relating to the community revenue sharing program; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 72(CRA) 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. The fund consists of 08 appropriations to the fund. In addition, by August 1 of each fiscal year, the 09 Department of Revenue shall transfer to the fund the lesser of 10 (1) $50,000,000; or 11 (2) an amount equal to three percent of the money received by the state 12 during the immediately preceding fiscal year from all mineral lease rentals, royalties, 13 royalty sale proceeds, federal mineral revenue sharing payments, and bonuses. 14 (b) Each fiscal year, the legislature may appropriate money in the community

01 revenue sharing fund to the department for community revenue sharing payments or 02 appropriate it for other public purposes. 03 (c) Nothing in this section creates a dedicated fund. 04 Sec. 29.60.855. Community revenue sharing payments for communities. 05 (a) Seven percent of the amount appropriated for a fiscal year for community revenue 06 sharing payments is available for payments by the department on behalf of 07 unincorporated communities eligible under AS 29.60.865. The department shall 08 calculate the amount of each payment under (b) of this section and distribute the 09 payments. 10 (b) The basic payment value for a fiscal year equals $25,000 for each 11 unincorporated community. If the amount available under (a) of this section for a 12 fiscal year 13 (1) is not sufficient to fully fund total basic payment values, the 14 amount paid on behalf of each unincorporated community shall be reduced on a pro 15 rata basis so that the entire available amount is distributed; 16 (2) exceeds the amount needed to fully fund each of the basic payment 17 values, the balance shall be added on a per capita basis to each basic payment value so 18 that the entire available amount is distributed; however, the maximum amount that 19 may be added to the basic payment value for an unincorporated community under this 20 paragraph may not exceed $50,000. 21 Sec. 29.60.860. Community revenue sharing payments for municipalities 22 and reserves. (a) Ninety-three percent of the amount appropriated for a fiscal year for 23 community revenue sharing payments is available for payments by the department to 24 municipalities and to reserves eligible under AS 29.60.865. The amount of each 25 payment shall first be calculated by the department under (b) of this section and then 26 adjusted under (c) and (d) of this section. 27 (b) The basic payment value for a fiscal year equals $250,000 for a borough or 28 unified municipality and $75,000 for a city or reserve. If the amount available under 29 (a) of this section for a fiscal year 30 (1) is not sufficient to fully fund the total basic payment values, the 31 basic payment values shall be reduced on a pro rata basis so that the entire amount

01 available is accounted for; 02 (2) exceeds the amount needed to fully fund the total basic payment 03 values, the basic payment value calculated for each municipality and reserve shall be 04 increased on a per capita basis so that the entire amount available is accounted for. 05 (c) The community revenue sharing payment amount for each of the following 06 municipalities equals the basic payment value calculated under (b) of this section for 07 that municipality reduced by the following percent: 08 MUNICIPALITY PERCENT OF REDUCTION 09 Anchorage 39.76 percent 10 Fairbanks 17.73 percent 11 Juneau 9.04 percent 12 Fairbanks North Star Borough 2.34 percent 13 Matanuska-Susitna Borough 2.30 percent 14 Kenai Peninsula Borough 3.35 percent 15 Ketchikan 3.80 percent 16 Sitka 2.91 percent 17 Kodiak 2.38 percent 18 Kenai 2.04 percent 19 Valdez 1.94 percent 20 Kodiak Island Borough 0.97 percent 21 Ketchikan Gateway Borough 0.73 percent 22 Homer 1.08 percent 23 Palmer 1.06 percent 24 Petersburg 1.20 percent 25 North Slope Borough 0.57 percent 26 Wrangell 1.10 percent 27 Cordova 1.07 percent 28 Haines Borough 0.55 percent 29 Soldotna 0.52 percent 30 Nome 0.54 percent 31 Seward 0.56 percent

01 Wasilla 0.18 percent 02 Bristol Bay Borough 0.21 percent 03 Lake and Peninsula Borough 0.12 percent 04 Unalaska 0.20 percent 05 Denali Borough 0.07 percent 06 North Pole 0.32 percent 07 Dillingham 0.22 percent 08 Craig 0.29 percent 09 Yakutat 0.04 percent 10 Saxman 0.16 percent 11 Sand Point 0.11 percent 12 Saint Paul 0.12 percent 13 Skagway 0.09 percent 14 Hoonah 0.06 percent 15 King Cove 0.06 percent 16 Nenana 0.06 percent 17 Unalakleet 0.02 percent 18 Kachemak 0.03 percent 19 Huslia 0.03 percent 20 Pelican 0.03 percent 21 Atka 0.02 percent 22 Egegik 0.01 percent 23 (d) The community revenue sharing payment amount for each municipality or 24 reserve not subject to (c) of this section equals the basic payment value for that 25 municipality or reserve calculated under (b) of this section increased on a per capita 26 basis. The total amount used for payment increases under this subsection equals the 27 total amount by which payments are decreased under (c) of this section. 28 Sec. 29.60.865. Eligibility. (a) The department, with advice from the 29 Department of Law, shall determine whether there is, in each reserve or 30 unincorporated community, an incorporated nonprofit entity or a Native village 31 council that will agree to receive and spend the community revenue sharing payment

01 for the benefit of the reserve or unincorporated community. If there is more than one 02 qualified entity in an unincorporated community located in the unorganized borough 03 or in a reserve, the department shall pay the dividend to the entity that the department 04 finds most qualified to receive and spend the money. The department may make a 05 payment on behalf of an unincorporated community located in a borough or unified 06 municipality only to the municipality as provided in (b) of this section. The 07 department may not make a payment on behalf of any reserve or unincorporated 08 community unless the incorporated nonprofit entity or Native village council waives 09 immunity from suit for claims arising out of activities of the corporation or council 10 related to the payment. A waiver of immunity from suit under this subsection must be 11 on a form provided by the Department of Law. If there is not a qualified incorporated 12 nonprofit entity or Native village council in a reserve or unincorporated community 13 that is willing to receive and spend the community revenue sharing payment for the 14 benefit of the reserve or unincorporated community, that reserve or unincorporated 15 community is not eligible for the payment, and the payment may not be made. 16 (b) The department may make a community revenue sharing payment on 17 behalf of an unincorporated community in a borough or unified municipality only to 18 the municipality for payment by the municipality to an incorporated nonprofit entity or 19 Native village council that has been approved by the assembly and meets the 20 requirements of (a) of this section. The department must have written evidence of the 21 assembly approval. The assembly may only approve an incorporated nonprofit entity 22 or Native village council that provides at least three of the following services within 23 the unincorporated community that are generally available to all residents of the 24 unincorporated community; 25 (1) fire protection; 26 (2) emergency medical; 27 (3) water and sewer; 28 (4) solid waste management; 29 (5) public road or ice road maintenance; 30 (6) public health; 31 (7) search and rescue.

01 Sec. 29.60.870. Determination of population. For purposes of determining 02 the amount of revenue sharing payments, the population of a municipality, reserve, or 03 unincorporated community shall be determined by using the numbers of permanent 04 fund dividend recipients or other population data that the department determines is 05 reliable. For purposes of determining the population of a borough, the population of 06 each city, unincorporated community, and reserve in the borough shall be deducted 07 from the total borough population. For purposes of determining the population of a 08 unified municipality, the population of each unincorporated community and reserve in 09 the unified municipality shall be deducted from the total population of the unified 10 municipality. 11 Sec. 29.60.879. Definitions. In AS 29.60.850 - 29.60.879, 12 (1) "reserve" means a place that is organized under federal law as an 13 Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in 14 existence under that subsection; 15 (2) "unincorporated community" means a place in the unorganized 16 borough, in a borough, or in a unified municipality that is not incorporated as a city, 17 that is not a reserve, and in which 25 or more individuals reside as a social unit. 18 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).