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HB 316: "An Act relating to military facility zones in the state; relating to the development of housing in military facility zones; relating to the financing of projects in military facility zones; and providing for an effective date."

00                             HOUSE BILL NO. 316                                                                          
01 "An Act relating to military facility zones in the state; relating to the development of                                
02 housing in military facility zones; relating to the financing of projects in military facility                          
03 zones; and providing for an effective date."                                                                            
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 26 is amended by adding a new chapter to read:                                                     
06                     Chapter 30. Military Facility Zones.                                                              
07            Sec. 26.30.005. Military facility zones. The Department of Military and                                    
08       Veterans' Affairs may establish military facility zones in this state in accordance with                          
09       this chapter.                                                                                                     
10            Sec. 26.30.010. Application for a military facility zone. (a) The adjutant                                 
11       general may accept applications for designation of a military facility zone or                                    
12       expansion of a military facility zone. The adjutant general shall by regulation specify                           
13       the content of, and submission requirements for, the application.                                                 
14            (b)  The chief executive officer or governing body of a municipality may apply                               
01       for an area to be designated as a military facility zone or for expansion of an existing                          
02       military facility zone as follows:                                                                                
03                 (1)  a municipality may apply for an area within its boundaries;                                        
04                 (2)  a borough may apply on behalf of a city located in the borough, for                                
05       an area within the boundaries of the city only with the prior consent of the city;                                
06                 (3)  two or more municipalities may jointly apply for an area within the                                
07       common boundaries of the municipalities.                                                                          
08            (c)  The application must contain the information and be submitted in the form                               
09       and manner required by the adjutant general and must provide                                                      
10                 (1)  a statement that the applicant has examined the feasibility of                                     
11       creating industry, development, and educational or training opportunities for                                     
12       employers and employees of business entities located or to be located in the proposed                             
13       military facility zone; and                                                                                       
14                 (2)  approval of the application by ordinance of the governing body of                                  
15       the applicant, except that, for an area in the unorganized borough that is not in a                               
16       municipality, the approval must be by law.                                                                        
17            (d)  On receiving an application under this section or an application for                                    
18       expansion under AS 26.30.040, the adjutant general shall give notice of the application                           
19       to the following:                                                                                                 
20                 (1)  the legislature;                                                                                   
21                 (2)  the commissioner of commerce and economic development;                                             
22                 (3)  the executive director of the Alaska Industrial Development and                                    
23       Export Authority;                                                                                                 
24                 (4)  the executive director of the Alaska Housing Finance Corporation;                                  
25                 (5)  the public; the notice under this paragraph shall be made by posting                               
26       on the Alaska Online Public Notice System (AS 44.62.175).                                                         
27            (e)  The adjutant general shall solicit comments on the application. Notice of                               
28       the solicitation shall be placed on the Alaska Online Public Notice System                                        
29       (AS 44.62.175).                                                                                                   
30            Sec. 26.30.020. Criteria for designation as a military facility zone; priority                             
31       considerations. (a) The adjutant general may designate an area as a military facility                           
01       zone only if the area in the state                                                                                
02                 (1)  is in close proximity to a facility;                                                               
03                 (2)  directly supports the military application of a facility;                                          
04                 (3)  is zoned for industrial or economic development, residential use,                                  
05       and workforce training or education beneficial to the facility; and                                               
06                 (4)  is in area with inadequate infrastructure to support the continued or                              
07       expanded operations of the facility.                                                                              
08            (b)  The adjutant general may give priority consideration to an area for                                     
09       designation as a military facility zone if the area is of strategic importance to the                             
10       economic development interests of the municipality.                                                               
11            (c)  The adjutant general shall consider the following factors before                                        
12       designating an area as a military facility zone:                                                                  
13                 (1)  whether the proposed military facility zone designation is                                         
14       consistent with the comprehensive plan of the municipality;                                                       
15                 (2)  whether it is feasible to develop sites within the proposed zone for                               
16       purposes of industrial or economic development, residential use, and workforce                                    
17       training or education beneficial to the facility;                                                                 
18                 (3)  whether the municipality has targeted the area for revitalization in a                             
19       plan or ordinance;                                                                                                
20                 (4)  the relationship between the area and a military facility subject to                               
21       realignment or closure under 10 U.S.C. 2687, as amended, or a successor statute or the                            
22       effect of the realignment or closure on the area;                                                                 
23                 (5)  the availability, cost, and condition of existing business and                                     
24       educational facilities to support the military facility or facility of a civilian agency;                         
25                 (6)  the difference between the median annual income of residents of                                    
26       the area and the median annual income of residents of the state and region, and the                               
27       number of residents who receive public assistance;                                                                
28                 (7)  the number of residents of the area who receive unemployment,                                      
29       and the ability of the municipality to improve social and economic conditions of the                              
30       area;                                                                                                             
31                 (8)  the need for financing for small businesses that would improve                                     
01       social and economic conditions in the area;                                                                       
02                 (9)  any plans or financial commitments of municipalities to improve                                    
03       the area;                                                                                                         
04                 (10)  any plans or financial commitments of private entities to improve                                 
05       the area;                                                                                                         
06                 (11)  the municipality's participation in economic development                                          
07       activities, including proposals for public or private development;                                                
08                 (12)  support from community or business organizations in the area;                                     
09                 (13)  the availability of workforce readiness programs, including                                       
10       workforce recruiting and training support or educational research and curriculum                                  
11       support in the area;                                                                                              
12                 (14)  the availability or plans for the creation of workforce housing                                   
13       options for residents of the area; and                                                                            
14                 (15)  the fiscal effect on the state if the area were to be designated a                                
15       military facility zone.                                                                                           
16            Sec. 26.30.030. Designation of military facility zones. (a) Within 60 days                                 
17       after receiving an application under AS 26.30.010 submitted in compliance with this                               
18       chapter, after considering comments under AS 26.30.010(e), the adjutant general may                               
19       designate a military facility zone. The adjutant general shall specify the location and                           
20       boundaries of the military facility zone.                                                                         
21            (b)  The designation of an area as a military facility zone is effective for 20                              
22       years, beginning on the date the adjutant general designates the area as a military                               
23       facility zone.                                                                                                    
24            (c)  Unless the area of the municipality exceeds 500 square miles, only two                                  
25       military facility zones may be in effect in a municipality at one time.                                           
26            (d)  The decision of the adjutant general on an application to designate a                                   
27       military facility zone is a final administrative order subject to appeal to the superior                          
28       court for review in the manner provided under AS 44.62.560.                                                       
29            Sec. 26.30.040. Expansion of a military facility zone. (a) Within 60 days                                  
30       after receiving an application for expansion of a zone submitted by a municipality in                             
31       compliance with AS 26.30.010, the adjutant general may expand the zone, if the                                    
01       applicant demonstrates that the expanded area meets the requirements of                                           
02       AS 26.30.020.                                                                                                     
03            (b)  The adjutant general may grant up to two applications for expansion of a                                
04       military facility zone in each calendar year for an area that                                                     
05                 (1)  meets the requirements of AS 26.30.020; and                                                        
06                 (2)  has strategic importance to the economic development of the                                        
07       municipality.                                                                                                     
08            (c)  The limit in AS 26.30.030(c) does not apply to an expansion of a military                               
09       facility zone that does not exceed 50 percent of the area of the existing zone or to an                           
10       expansion of a zone under (b) of this section.                                                                    
11            Sec. 26.30.050. Military facility zone authorities. (a) If a military facility                             
12       zone is within the boundaries of only one municipality, the municipality may create a                             
13       military facility zone authority for the zone.                                                                    
14            (b)  If a military facility zone includes areas within the boundaries of more                                
15       than one municipality, the municipalities may, by agreement, create a military facility                           
16       zone authority for the zone.                                                                                      
17            Sec. 26.30.060. Benefits in military facility zones. (a) A municipality in                               
18       which a military facility zone is located or a military facility zone authority for a                             
19       military facility zone may receive                                                                                
20                 (1)  financing for one or more projects in the military facility zone from                              
21       the Alaska Industrial Development and Export Authority or the Alaska Housing                                      
22       Finance Corporation;                                                                                              
23                 (2)  funding for one or more projects from any other available source of                                
24       federal, state, or local public or private funding, credit, or guarantee programs.                                
25            (b)  A municipality in which a military facility zone is located, a military                                 
26       facility zone authority for a military facility zone, or a business entity located in a zone                      
27       may receive priority consideration for financial assistance for projects or operations in                         
28       the zone from the Department of Military and Veterans' Affairs and from any other                                 
29       appropriate state program, if available under the law establishing the program.                                   
30            Sec. 26.30.070. Regulations. The adjutant general may adopt regulations                                  
31       under AS 44.62 to carry out the provisions of this chapter, including specifying criteria                         
01       and procedures for applications, approvals, and the monitoring of eligibility under this                          
02       chapter.                                                                                                          
03            Sec. 26.30.900. Definitions. In this chapter, unless the context otherwise                               
04       requires,                                                                                                         
05                 (1)  "adjutant general" means the principal executive officer of the                                    
06       Department of Military and Veterans' Affairs appointed under AS 26.05.160;                                        
07                 (2)  "area" means a geographic area described by a closed perimeter                                     
08       boundary within one or more municipalities in the state;                                                          
09                 (3)  "facility" means a facility of                                                                     
10                      (A)  an Alaska military or civilian agency serving a subdivision                                   
11            of the Alaska National Guard, the United States Army, the United States Navy,                                
12            the United States Marine Corps, the United States Air Force, or the United                                   
13            States Coast Guard, including reserve units of those entities;                                               
14                      (B)  the National Aeronautics and Space Administration; or                                         
15                      (C)  a public corporation within the Department of Military and                                    
16            Veterans' Affairs;                                                                                           
17                 (4)  "military facility zone" means an area that                                                        
18                      (A)  meets the requirements of AS 26.30.020; and                                                   
19                      (B)  is designated as a military facility zone by the adjutant                                     
20            general under AS 26.30.030;                                                                                  
21                 (5)  "military facility zone authority" means a public corporation                                      
22       established by one or more municipalities to administer a military facility zone located                          
23       in the municipalities in the state;                                                                               
24                 (6)  "zone" means a military facility zone.                                                             
25    * Sec. 2. AS 44.62.175(a) is amended to read:                                                                      
26            (a)  The lieutenant governor shall develop and supervise the Alaska Online                                   
27       Public Notice System, to be maintained on the state's site on the Internet. The                                   
28       lieutenant governor shall prescribe the form of notices posted on the system by state                             
29       agencies. The Alaska Online Public Notice System must include                                                     
30                 (1)  notices of proposed actions given under AS 44.62.190(a);                                           
31                 (2)  notices of state agency meetings required under AS 44.62.310(e),                                   
01       even if the meeting has been held;                                                                                
02                 (3)  notices of solicitations to bid issued under AS 36.30.130;                                         
03                 (4)  notices of state agency requests for proposals issued under                                        
04       AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; AS 38.05.120; and                                            
05       AS 43.40.010;                                                                                                     
06                 (5)  executive orders and administrative orders issued by the governor;                                 
07                 (6)  written delegations of authority made by the governor or the head                                  
08       of a principal department under AS 44.17.010;                                                                     
09                 (7)  the text or a summary of the text of a regulation or order of repeal                               
10       of a regulation for which notice is given under AS 44.62.190(a), including an                                     
11       emergency regulation or repeal regardless of whether it has taken effect;                                         
12                 (8)  notices required by AS 44.62.245(b) regarding an amended version                                   
13       of a document or other material incorporated by reference in a regulation;                                        
14                 (9)  a summary of the text of recently issued formal opinions and                                       
15       memoranda of advice of the attorney general;                                                                      
16                 (10)  a list of vacancies on boards, commissions, and other bodies                                      
17       whose members are appointed by the governor; [AND]                                                                
18                 (11)  in accordance with AS 39.52.240(h), advisory opinions of the                                      
19       attorney general; and                                                                                         
20                 (12)  notices required by AS 26.30.010(d) and (e) regarding                                         
21       applications for military facility zones.                                                                     
22    * Sec. 3. AS 44.88.900(9) is amended to read:                                                                      
23                 (9)  "project" means                                                                                    
24                      (A)  a plant or facility used or intended for use in connection                                    
25            with making, processing, preparing, transporting, or producing in any manner,                                
26            goods, products, or substances of any kind or nature or in connection with                                   
27            developing or utilizing a natural resource, or extracting, smelting, transporting,                           
28            converting, assembling, or producing in any manner, minerals, raw materials,                                 
29            chemicals, compounds, alloys, fibers, commodities and materials, products, or                                
30            substances of any kind or nature;                                                                            
31                      (B)  a plant or facility used or intended for use in connection                                    
01            with a business enterprise;                                                                                  
02                      (C)  commercial activity by a business enterprise;                                                 
03                      (D)  a plant or facility demonstrating technological advances of                                   
04            new methods and procedures and prototype commercial applications for the                                     
05            exploration, development, production, transportation, conversion, and use of                                 
06            energy resources;                                                                                            
07                      (E)  infrastructure for a new tourism destination facility or for                                  
08            the expansion of a tourism destination facility; in this subparagraph, "tourism                              
09            destination facility" does not include a hotel or other overnight lodging facility;                          
10                      (F)  a plant or facility, other than a plant or facility described in                              
11            (D) of this paragraph, for the generation, transmission, development,                                        
12            transportation, conversion, or use of energy resources;                                                      
13                      (G)  a plant or facility that enhances, provides for, or promotes                                  
14            economic development with respect to transportation, communications,                                         
15            community public purposes, technical innovations, prototype commercial                                       
16            applications of intellectual property, or research;                                                          
17                      (H)  a plant or facility used or intended for use as a federal                                     
18            facility, including a United States military, national guard, or coast guard                                 
19            facility;                                                                                                    
20                      (I)  infrastructure for an area that is designated as a                                        
21            military facility zone under AS 26.30;                                                                   
22    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
23 read:                                                                                                                   
24       TRANSITION: REGULATIONS. The Department of Military and Veterans' Affairs                                         
25 may immediately adopt regulations necessary to implement the changes made by this Act.                                  
26 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before                               
27 July 1, 2012.                                                                                                           
28    * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c).                                    
29    * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect July 1, 2012.