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Enrolled SB 72: Relating to the community revenue sharing program; repealing certain programs providing state payments to municipalities and other entities; and providing for an effective date.

00Enrolled SB 72 01 Relating to the community revenue sharing program; repealing certain programs providing 02 state payments to municipalities and other entities; and providing for an effective date. 03 _______________ 04 * Section 1. AS 18.70.075(a) is amended to read: 05 (a) A fire officer of a municipal fire department or a fire department registered 06 with the state fire marshal [UNDER AS 29.60.130], while providing fire protection 07 or other emergency services, has the authority to 08 (1) control and direct activities at the scene of a fire or emergency; 09 (2) order a person to leave a building or place in the vicinity of a fire or 10 emergency, for the purpose of protecting the person from injury; 11 (3) blockade a public highway, street, or private right-of-way 12 temporarily while at the scene of a fire or emergency; 13 (4) trespass upon property at or near the scene of a fire or emergency at

01 any time of the day or night; 02 (5) enter a building, including a private dwelling, or premises where a 03 fire is in progress, or where there is reasonable cause to believe a fire is in progress, to 04 extinguish the fire; 05 (6) enter a building, including a private dwelling, or premises near the 06 scene of a fire for the purpose of protecting the building or premises or for the purpose 07 of extinguishing the fire that is in progress in another building or premises; 08 (7) upon 24-hour notice to the owner or occupant, conduct a prefire 09 planning survey in all buildings, structures, or other places within the municipality or 10 the registered fire department's district, except the interior of a private dwelling, where 11 combustible material is or may become dangerous as a fire menace to the building; 12 (8) direct the removal or destruction of a fence, house, motor vehicle, 13 or other thing judged necessary to prevent the further spread of a fire. 14 * Sec. 2. AS 29.20.640(b) is amended to read: 15 (b) Compliance with the provisions of this section is a prerequisite to receipt 16 of community revenue sharing under AS 29.60.850 - 29.60.879 [MUNICIPAL 17 TAX RESOURCE EQUALIZATION ASSISTANCE UNDER AS 29.60.010 - 18 29.60.080 AND PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES 19 UNDER AS 29.60.100 - 29.60.180]. If a municipality does not comply with this 20 section, the department shall withhold the allocations until the required reports are 21 filed. 22 * Sec. 3. AS 29.45.020 is amended to read: 23 Sec. 29.45.020. Taxpayer notice. (a) If a municipality levies and collects 24 property taxes, the governing body shall provide the following notice: 25 "NOTICE TO TAXPAYER 26 For the current fiscal year the (city)(borough) has been allocated the 27 following amount of state aid for school and municipal purposes under 28 the applicable financial assistance Acts: 29 PUBLIC SCHOOL FUNDING 30 PROGRAM (AS 14.17) $ 31 STATE AID FOR RETIREMENT

01 OF SCHOOL CONSTRUCTION 02 DEBT (AS 14.11.100) $ 03 COMMUNITY REVENUE SHARING 04 PROGRAM (AS 29.60.850 - 29.60.879) $ 05 [MUNICIPAL TAX RESOURCE 06 EQUALIZATION 07 (AS 29.60.010 - 29.60.080) $ 08 PRIORITY REVENUE SHARING 09 FOR MUNICIPAL SERVICES 10 (AS 29.60.100 - 29.60.180) $ 11 REVENUE SHARING FOR 12 SAFE COMMUNITIES 13 (AS 29.60.350 - 29.60.375) $] 14 TOTAL AID $ 15 The millage equivalent of this state aid, based on the dollar value of a 16 mill in the municipality during the current assessment year and for the 17 preceding assessment year, is: 18 MILLAGE EQUIVALENT 19 PREVIOUS YEAR THIS YEAR 20 PUBLIC SCHOOL FUNDING 21 PROGRAM ASSISTANCE . . . .MILLS . . . .MILLS 22 STATE AID FOR RETIREMENT OF 23 SCHOOL CONSTRUCTION DEBT . . . .MILLS . . . .MILLS 24 COMMUNITY REVENUE 25 SHARING PROGRAM . . . .MILLS . . . .MILLS 26 [MUNICIPAL TAX RESOURCE 27 EQUALIZATION . . . .MILLS . . . .MILLS 28 PRIORITY REVENUE SHARING 29 FOR MUNICIPAL SERVICES . . . .MILLS . . . .MILLS 30 REVENUE SHARING FOR 31 SAFE COMMUNITIES . . . .MILLS . . . .MILLS]

01 TOTAL MILLAGE EQUIVALENT . . . .MILLS . . . .MILLS" 02 Notice shall be provided by 03 (1) furnishing a copy of the notice with tax statements mailed for the 04 fiscal year for which aid is received; or 05 (2) publishing in a newspaper of general circulation in the municipality 06 a copy of the notice once each week for a period of three successive weeks, with 07 publication to occur not later than 45 days after the final adoption of the municipality's 08 budget. 09 (b) Compliance with the provisions of this section is a prerequisite to receipt 10 of community revenue sharing under AS 29.60.850 - 29.60.879 [MUNICIPAL 11 TAX RESOURCE EQUALIZATION UNDER AS 29.60.010 - 29.60.080 AND 12 PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES UNDER 13 AS 29.60.100 - 29.60.180]. The department shall withhold annual allocations under 14 those sections until municipal officials demonstrate that the requirements of this 15 section have been met. 16 * Sec. 4. AS 29.45.660(b) is amended to read: 17 (b) Compliance with the provisions of this section is a prerequisite to receipt 18 of community revenue sharing under AS 29.60.850 - 29.60.879 [MUNICIPAL 19 TAX RESOURCE EQUALIZATION UNDER AS 29.60.010 - 29.60.080 AND 20 PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES UNDER 21 AS 29.60.100 - 29.60.180]. The department shall withhold annual allocations under 22 those sections until municipal officials demonstrate that the requirements of this 23 section have been met. 24 * Sec. 5. AS 29.60.810 is amended to read: 25 Sec. 29.60.810. Grant applications. A municipality that owns a harbor facility 26 may submit to the Department of Transportation and Public Facilities an application 27 for a municipal harbor facility grant to be used for construction, expansion, major 28 repair, or major maintenance of a harbor facility. The application must include 29 information about the project requested by the department. For a proposed project to 30 be eligible for a grant, the municipality must provide evidence acceptable to the 31 department that the

01 (1) proposed project is a capital improvement project and not part of a 02 preventive maintenance program or regular custodial care program; 03 (2) municipality will provide 50 percent of the total project cost as 04 matching funds for the state grant and that money received by the municipality from 05 the state will not be used for the matching funds except money received under 06 (A) AS 29.60.850 - 29.60.879 (community revenue sharing 07 program) [AS 29.60.010 - 29.60.080 (MUNICIPAL TAX RESOURCE 08 EQUALIZATION); 09 (B) AS 29.60.350 - 29.60.375 (SAFE COMMUNITIES 10 PROGRAM)]; and 11 (B) [(C)] AS 29.60.450, AS 43.75.130, and 43.75.137 (shared 12 fisheries business taxes); 13 (3) municipality has secured and will maintain adequate property loss 14 insurance for the replacement cost of the harbor facility or has an adequate program of 15 insurance; 16 (4) municipality has a preventive maintenance plan for the harbor 17 facility and will be adequately adhering to the preventive maintenance plan after 18 completion of the proposed project. 19 * Sec. 6. AS 29.60 is amended by adding new sections to read: 20 Article 11. Community Revenue Sharing Program. 21 Sec. 29.60.850. Community revenue sharing fund. (a) The community 22 revenue sharing fund is established in the general fund for the purpose of making 23 community revenue sharing payments to municipalities, reserves, and communities for 24 any public purpose. The fund consists of appropriations. Income earned on money in 25 the fund may be appropriated to the fund. Money in the fund does not lapse. 26 (b) Each fiscal year, the legislature may appropriate to the community revenue 27 sharing fund an amount equal to 20 percent of the money received by the state during 28 the previous calendar year under AS 43.55.011(g). The amount may not exceed 29 (1) $60,000,000; or 30 (2) the amount that, when added to the fund balance on June 30 of the 31 previous fiscal year, equals $180,000,000.

01 (c) The balance in the community revenue sharing fund shall be determined on 02 June 30 of each year. If the fund balance is at least $60,000,000, without further 03 appropriation, the department shall distribute one-third of that amount as community 04 revenue sharing payments for the immediately following fiscal year. Otherwise, no 05 payments may be made. 06 (d) Notwithstanding the guidelines in (b) of this section, the legislature may 07 appropriate any amount to the community revenue sharing fund. Nothing in this 08 section creates a dedicated fund. 09 Sec. 29.60.855. Basic community revenue sharing payments. (a) The 10 department shall calculate the basic amount used for determining the basic community 11 revenue sharing payment for a fiscal year by applying the following formula: the 12 amount available for payments for that fiscal year under AS 29.60.850(c), minus 13 60,000,000, divided by 60,000,000, plus one, multiplied by 384,000. However, if the 14 amount calculated is less than $220,000, the basic amount for that fiscal year is 15 $220,000. 16 (b) Except as provided in (c) of this section, the basic community revenue 17 sharing payment for a fiscal year equals, for each 18 (1) unified municipality, the sum of the amounts calculated under (2) 19 and (3) of this subsection, rounded to the nearest $1,000; 20 (2) borough, the basic amount, rounded to the nearest $1,000; 21 (3) city and eligible reserve, one-fourth of the basic amount, rounded 22 to the nearest $100; 23 (4) eligible community in the unorganized borough, one-twelfth of the 24 basic amount, rounded to the nearest $100; 25 (5) eligible community in a unified municipality or borough, one- 26 nineteenth of the basic amount, rounded to the nearest $100. 27 (c) The basic revenue sharing payment amount for a succeeding municipality 28 formed when two or more municipalities merge, consolidate, or unify after January 1, 29 2002, equals the sum of the amounts each of the former municipalities would receive 30 under (b) of this section calculated as if the merger, consolidation, or unification had 31 not occurred.

01 Sec. 29.60.860. Per capita payment increases. (a) Subject to (b) of this 02 section, if the amount available for distribution under AS 29.60.850(c) exceeds the 03 amount needed to fully fund all the basic community revenue sharing payments, the 04 balance shall be distributed on a per capita basis to municipalities, to reserves, and to 05 communities in the unorganized borough. 06 (b) The per capita amount distributed to each community in the unorganized 07 borough may not, when added to the basic community revenue sharing payment for 08 that community, exceed the basic amount calculated under AS 29.60.855(b)(3). If the 09 per capita distribution for a community exceeds the basic amount calculated under 10 AS 29.60.855(b)(3), the excess amount shall be distributed on a per capita basis to 11 other communities in the unorganized borough. 12 (c) For purposes of this section, the population of a municipality, reserve, or 13 community shall be determined by using the numbers of permanent fund dividend 14 recipients or other population data that the department determines is reliable. For 15 purposes of determining the population of a borough, the population of each city in the 16 borough shall be deducted from the total borough population. 17 Sec. 29.60.865. Eligibility requirements for reserves and communities. (a) 18 The department, with advice from the Department of Law, shall determine whether 19 there is in each community or reserve an incorporated nonprofit entity or a Native 20 village council that will agree to receive and spend the community revenue sharing 21 payment. If there is more than one qualified entity in a reserve or community in the 22 unorganized borough, the department shall pay the money to the entity that the 23 department finds most qualified to receive and spend the money on behalf of the 24 reserve or community. The department may not make a community revenue sharing 25 payment to a Native village council unless the council waives immunity from suit for 26 claims arising out of activities of the council related to the payment. A waiver of 27 immunity from suit under this section must be on a form provided by the Department 28 of Law. If there is no qualified incorporated nonprofit entity or Native village council 29 in a reserve or community that is willing to receive the community revenue sharing 30 payment and use the payment on behalf of that reserve or community, the payment for 31 that reserve or community may not be paid. Neither this section nor any action taken

01 under it enlarges or diminishes the governmental authority or jurisdiction of a Native 02 village council. 03 (b) The department may make a community revenue sharing payment on 04 behalf of a community in a borough or unified municipality only to the municipality 05 for payment by the municipality to an incorporated nonprofit entity or Native village 06 council that has been approved by the assembly and meets the requirements of (a) of 07 this section. The department shall have written evidence of the assembly approval. If 08 there is more than one qualified entity in a community in a borough or unified 09 municipality, one of the entities may receive the entire payment, or the payment may 10 be shared between two or more of the qualified entities, as determined by the 11 assembly. 12 (c) A community in a borough or unified municipality is eligible for a 13 community revenue sharing payment only if at least three of the following services are 14 generally available to all residents of the community and each of the three services, in 15 any combination, are provided by one or more qualifying incorporated nonprofit 16 entities or a Native village council or are substantially paid for by the residents of the 17 community through taxes, charges, or assessments levied or authorized by the borough 18 or unified municipality: 19 (1) fire protection; 20 (2) emergency medical; 21 (3) water and sewer; 22 (4) solid waste management; 23 (5) public road or ice road maintenance; 24 (6) public health; 25 (7) search and rescue. 26 Sec. 29.60.879. Definitions. In AS 29.60.850 - 29.60.879, 27 (1) "community" means a place in the unorganized borough, in a 28 borough, or in a unified municipality that is not incorporated as a municipality, that is 29 not a reserve, and in which 25 or more individuals reside as a social unit; 30 (2) "reserve" means a place that is organized under federal law as an 31 Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in

01 existence under that subsection. 02 * Sec. 7. AS 37.06.010(g) is amended to read: 03 (g) For purposes of this section, in calculating the population of a borough, the 04 population of each city in the borough is excluded. The determination of population 05 shall be based on the latest figures of the United States Bureau of the Census or 06 other population data that [UPON DATA USED BY] the Department of 07 Commerce, Community, and Economic Development determines is reliable 08 [UNDER AS 29.60.020]. 09 * Sec. 8. AS 37.06.020(b) is amended to read: 10 (b) The unincorporated community capital project matching grant fund is 11 established in the department and consists of appropriations to the fund. 12 Appropriations to the fund do not lapse except as provided in (h) of this section. The 13 money in the fund is held by the department in custody under this subsection for each 14 unincorporated community eligible for an allocation under this subsection. The 15 department shall establish an individual grant account within the fund for each 16 unincorporated community that was entitled to receive state aid under AS 29.60.855 17 [AS 29.60.140] during the preceding fiscal year. As provided in this subsection, each 18 fiscal year, the department shall allocate, to the individual grant accounts, 19 appropriations to the fund. An unincorporated community is eligible for an allocation 20 in a fiscal year if the community was eligible to receive state aid under AS 29.60.855 21 [AS 29.60.140] during the preceding fiscal year. The department shall credit interest 22 earned on money in an individual grant account to that account. Except as provided in 23 (c) of this section, the amount allocated under this subsection to an individual grant 24 account in a fiscal year is determined by dividing the total amount appropriated to the 25 fund during that fiscal year by the number of unincorporated communities eligible for 26 an allocation during that fiscal year. 27 * Sec. 9. AS 37.06.030 is amended to read: 28 Sec. 37.06.030. Local share requirements. (a) For each draw made by a 29 municipality under AS 37.06.010, the municipality shall contribute a local share to the 30 cost of the capital project for which the draw is made. The amount of the local share 31 equals the local share percentage as calculated under (1) of this subsection, divided by

01 the state share percentage as calculated under (2) of this subsection, multiplied by the 02 amount of the draw. For purposes of this subsection, 03 (1) the local share percentage is 04 (A) 30 percent for a municipality with a population of 5,000 or 05 more; 06 (B) for a municipality with a population of 1,000 - 4,999, the 07 greater of 08 (i) 15 percent; or 09 (ii) the percentage obtained by dividing the amount that 10 would be received by the municipality from a property tax levy of 11 1/1000th of a mill for each [PER] $1,000 of grant funds received by 12 the sum of that first amount plus the amount of the grant or draw, but 13 not more than 30 percent; 14 (C) for a municipality with a population of under 1,000, the 15 greater of 16 (i) five percent; or 17 (ii) the percentage obtained by dividing the amount that 18 would be received by the municipality from a property tax levy of 19 1/1000th of a mill for each [PER] $1,000 of grant funds received by 20 the sum of that first amount plus the amount of the grant or draw, but 21 not more than 30 percent; 22 (2) the state share percentage equals one minus the local share 23 percentage; 24 (3) the local share to be contributed by a municipality may be satisfied 25 with (A) federal, municipal, or local money; (B) labor, materials, or equipment used 26 directly in the construction of the project, or land, including land transferred by the 27 state to the municipality; the department shall determine the value of a contribution 28 under this subparagraph; (C) money from another nonstate source; (D) money 29 received by the municipality under AS 29.60.850 - 29.60.879 [AS 29.60.010 - 30 29.60.375]; (E) state taxes refunded or reimbursed to the municipality whose use for 31 the purposes of this subsection is not prohibited; (F) allocations of state aid for the

01 costs of school construction debt under AS 14.11.100; and (G) money obtained from 02 the sale or lease of land or other assets transferred by the state to the municipality; 03 except as provided in this paragraph, the local share may not be satisfied with money 04 from, or with the portion of an asset that was obtained with money from, an 05 appropriation, allocation, entitlement, grant, or other payment from the state. 06 (b) For each draw made by an entity or council under AS 37.06.020, the 07 incorporated entity or Native village council that makes the draw shall contribute a 08 local share of the cost of the capital project for which the draw is made. The amount of 09 the local share equals the local share percentage as calculated under (1) of this 10 subsection, divided by the state share percentage as calculated under (2) of this 11 subsection, multiplied by the amount of the draw. For purposes of this subsection, 12 (1) the local share percentage is five percent; 13 (2) the state share percentage equals one minus the local share 14 percentage; 15 (3) the local share may be satisfied from (A) federal or local money; 16 (B) labor, materials, or equipment used directly in the construction of the project, or 17 land, including land transferred by the state; the department shall determine the value 18 of a contribution under this subparagraph; (C) money from another nonstate source; 19 (D) money received by the unincorporated community under AS 29.60.850 - 20 29.60.879 [AS 29.60.010 - 29.60.375]; or (E) money obtained from the sale or lease of 21 land or other assets transferred by the state; except as provided in this paragraph, the 22 local share may not be satisfied with money from, or with the portion of an asset that 23 was obtained with money from, an appropriation, allocation, entitlement, grant, or 24 other payment from the state. 25 (c) For purposes of (a) of this section, in calculating the population of a 26 borough the population of each city in the borough is excluded. The determination of 27 population shall be based on the latest figures of the United States Bureau of the 28 Census or other population data that [UPON DATA USED BY] the Department of 29 Commerce, Community, and Economic Development determines is reliable 30 [UNDER AS 29.60.020]. 31 * Sec. 10. AS 41.15.180(d) is amended to read:

01 (d) From the percentage of the unorganized borough national forest receipts 02 fund allocated to public roads under (b) of this section, the commissioner shall pay to 03 each 04 (1) home rule city, first class city, or second class city that exercises 05 road powers, that is located within the unorganized borough and within a national 06 forest or within 20 miles of a national forest, a share of the income from the roads 07 allocation of the fund; a home rule city, first class city, or second class city's share 08 shall be calculated as the proportion of the number of road miles within municipal 09 boundaries over which the community exercises road powers plus the number of state 10 road miles maintained by the municipality under agreement with the state compared to 11 the total number of road miles maintained by state or local governments in the 12 unorganized borough and within the national forest or within 20 miles of the national 13 forest; 14 (2) municipality organized under federal law as an Indian reserve that 15 existed before the enactment of 43 U.S.C. 1618(a) and is continued in existence under 16 that subsection and that has formed a community development corporation under (n) 17 of this section [AS 29.60.365], that exercises road powers and that is located within 18 the unorganized borough and within the national forest or within 20 miles of the 19 national forest a share of the income from the roads allocation of the fund; the share 20 due a municipality organized under federal law that exercises road powers shall be 21 calculated as the proportion of the number of road miles within municipal boundaries 22 over which the community exercises road powers plus the number of state road miles 23 maintained by the municipality under agreement with the state compared to the total 24 number of road miles maintained by state or local governments in the unorganized 25 borough and within the national forest or within 20 miles of the national forest; 26 however, the commissioner may pay income from national forest receipts under this 27 paragraph only after the corporation has delivered a written waiver of sovereign 28 immunity from legal action by the state to recover all or a portion of the money 29 distributed under this section. 30 * Sec. 11. AS 41.15.180 is amended by adding a new subsection to read: 31 (n) To qualify to receive money under (d)(2) of this section, a municipality

01 organized under federal law as an Indian reserve shall form a community development 02 corporation with authority to determine how the money will be used. The charter must 03 require that the governing board of the corporation shall be elected at an annual 04 election open to all residents of the municipality organized under federal law who are 05 registered and qualified to vote in state elections. The department may distribute 06 money for the municipality organized under federal law only to a corporation 07 organized in accordance with this subsection and only after the corporation has 08 delivered a written waiver of sovereign immunity from legal action by the state to 09 recover all or a portion of the money distributed under (d)(2) of this section. 10 * Sec. 12. AS 42.45.110(b) is amended to read: 11 (b) An eligible electric utility is entitled to receive power cost equalization 12 (1) for sales of power to local community facilities, calculated in the 13 aggregate for each community served by the electric utility, for actual consumption of 14 not more than 70 kilowatt-hours a [PER] month for each resident of the community; 15 the number of community residents shall be determined annually by the latest 16 figures of the United States Bureau of the Census or other population data that 17 the Department of Commerce, Community, and Economic Development 18 determines is reliable [UNDER AS 29.60.020]; and 19 (2) for actual consumption of not more than 500 kilowatt-hours a 20 [PER] month sold to each residential customer. 21 * Sec. 13. AS 44.88.610(a)(1) is amended to read: 22 (1) "community" means a city as defined in AS 29.71.800 or a place 23 in the unorganized borough that is not incorporated as a city and in which 25 or 24 more individuals reside as a social unit [AN UNINCORPORATED COMMUNITY 25 AS DEFINED IN AS 29.60.140]; and 26 * Sec. 14. AS 29.10.200(59), 29.10.200(60); AS 29.60.010, 29.60.020, 29.60.030, 27 29.60.040, 29.60.050, 29.60.060, 29.60.070, 29.60.080, 29.60.100, 29.60.110, 29.60.120, 28 29.60.130, 29.60.140, 29.60.150, 29.60.160, 29.60.170, 29.60.180, 29.60.280, 29.60.290, 29 29.60.300, 29.60.310, 29.60.350, 29.60.360, 29.60.365, 29.60.370, 29.60.372, 29.60.373, and 30 29.60.375 are repealed. 31 * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).