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Enrolled HB 316: 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.

00Enrolled HB 316 01 Relating to military facility zones in the state; relating to the development of housing in 02 military facility zones; relating to the financing of projects in military facility zones; and 03 providing for an effective date. 04 _______________ 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, community, and economic 22 development; 23 (3) the executive director of the Alaska Industrial Development and 24 Export Authority; 25 (4) the executive director of the Alaska Housing Finance Corporation; 26 (5) the public; the notice under this paragraph shall be made by posting 27 on the Alaska Online Public Notice System (AS 44.62.175). 28 (e) The adjutant general shall solicit comments on the application. Notice of 29 the solicitation shall be placed on the Alaska Online Public Notice System 30 (AS 44.62.175). 31 Sec. 26.30.020. Criteria for designation as a military facility zone; priority

01 considerations. (a) The adjutant general may designate an area as a military facility 02 zone only if the area in the state 03 (1) is in close proximity to a facility; 04 (2) directly supports the military application of a facility; 05 (3) is zoned for industrial or economic development, residential use, 06 and workforce training or education beneficial to the facility; and 07 (4) is in an area with inadequate infrastructure to support the continued 08 or expanded operations of the facility. 09 (b) The adjutant general may give priority consideration to an area for 10 designation as a military facility zone if the area is of strategic importance to the 11 economic development interests of the municipality. 12 (c) The adjutant general shall consider the following factors before 13 designating an area as a military facility zone: 14 (1) whether the proposed military facility zone designation is 15 consistent with the comprehensive plan of the municipality; 16 (2) whether it is feasible to develop sites within the proposed zone for 17 purposes of industrial or economic development, residential use, and workforce 18 training or education beneficial to the facility; 19 (3) whether the municipality has targeted the area for revitalization in a 20 plan or ordinance; 21 (4) the relationship between the area and a military facility subject to 22 realignment or closure under 10 U.S.C. 2687, as amended, or a successor statute or the 23 effect of the realignment or closure on the area; 24 (5) the availability, cost, and condition of existing business and 25 educational facilities to support the military facility or facility of a civilian agency; 26 (6) the difference between the median annual income of residents of 27 the area and the median annual income of residents of the state and region, and the 28 number of residents who receive public assistance; 29 (7) the number of residents of the area who receive unemployment, 30 and the ability of the municipality to improve social and economic conditions of the 31 area;

01 (8) the need for financing for small businesses that would improve 02 social and economic conditions in the area; 03 (9) any plans or financial commitments of municipalities to improve 04 the area; 05 (10) any plans or financial commitments of private entities to improve 06 the area; 07 (11) the municipality's participation in economic development 08 activities, including proposals for public or private development; 09 (12) support from community or business organizations in the area; 10 (13) the availability of workforce readiness programs, including 11 workforce recruiting and training support or educational research and curriculum 12 support in the area; 13 (14) the availability or plans for the creation of workforce housing 14 options for residents of the area; and 15 (15) the fiscal effect on the state if the area were to be designated a 16 military facility zone. 17 Sec. 26.30.030. Designation of military facility zones. (a) Within 60 days 18 after receiving an application under AS 26.30.010 submitted in compliance with this 19 chapter, after considering comments under AS 26.30.010(e), the adjutant general may 20 designate a military facility zone. The adjutant general shall specify the location and 21 boundaries of the military facility zone. 22 (b) The designation of an area as a military facility zone is effective for 20 23 years, beginning on the date the adjutant general designates the area as a military 24 facility zone. 25 (c) Unless the area of the municipality exceeds 500 square miles, only two 26 military facility zones may be in effect in a municipality at one time. 27 (d) The decision of the adjutant general on an application to designate a 28 military facility zone is a final administrative order subject to appeal to the superior 29 court for review in the manner provided under AS 44.62.560. 30 Sec. 26.30.040. Expansion of a military facility zone. (a) Within 60 days 31 after receiving an application for expansion of a zone submitted by a municipality in

01 compliance with AS 26.30.010, the adjutant general may expand the zone, if the 02 applicant demonstrates that the expanded area meets the requirements of 03 AS 26.30.020. 04 (b) The adjutant general may grant up to two applications for expansion of a 05 military facility zone in each calendar year for an area that 06 (1) meets the requirements of AS 26.30.020; and 07 (2) has strategic importance to the economic development of the 08 municipality. 09 (c) The limit in AS 26.30.030(c) does not apply to an expansion of a military 10 facility zone that does not exceed 50 percent of the area of the existing zone or to an 11 expansion of a zone under (b) of this section. 12 Sec. 26.30.050. Military facility zone authorities. (a) If a military facility 13 zone is within the boundaries of only one municipality, the municipality may create a 14 military facility zone authority for the zone. 15 (b) If a military facility zone includes areas within the boundaries of more 16 than one municipality, the municipalities may, by agreement, create a military facility 17 zone authority for the zone. 18 Sec. 26.30.060. Benefits in military facility zones. (a) A municipality in 19 which a military facility zone is located or a military facility zone authority for a 20 military facility zone may receive 21 (1) financing for one or more projects in the military facility zone from 22 the Alaska Industrial Development and Export Authority or the Alaska Housing 23 Finance Corporation; 24 (2) funding for one or more projects from any other available source of 25 federal, state, or local public or private funding, credit, or guarantee programs. 26 (b) A municipality in which a military facility zone is located, a military 27 facility zone authority for a military facility zone, or a business entity located in a zone 28 may receive priority consideration for financial assistance for projects or operations in 29 the zone from the Department of Military and Veterans' Affairs and from any other 30 appropriate state program, if available under the law establishing the program. 31 Sec. 26.30.070. Regulations. The adjutant general may adopt regulations

01 under AS 44.62 to carry out the provisions of this chapter, including specifying criteria 02 and procedures for applications, approvals, and the monitoring of eligibility under this 03 chapter. 04 Sec. 26.30.900. Definitions. In this chapter, unless the context otherwise 05 requires, 06 (1) "adjutant general" means the principal executive officer of the 07 Department of Military and Veterans' Affairs appointed under AS 26.05.160; 08 (2) "area" means a geographic area described by a closed perimeter 09 boundary within one or more municipalities in the state; 10 (3) "facility" means a facility of 11 (A) an Alaska military or civilian agency serving a subdivision 12 of the Alaska National Guard, the United States Army, the United States Navy, 13 the United States Marine Corps, the United States Air Force, or the United 14 States Coast Guard, including reserve units of those entities; 15 (B) the National Aeronautics and Space Administration; or 16 (C) a public corporation within the Department of Military and 17 Veterans' Affairs; 18 (4) "military facility zone" means an area that 19 (A) meets the requirements of AS 26.30.020; and 20 (B) is designated as a military facility zone by the adjutant 21 general under AS 26.30.030; 22 (5) "military facility zone authority" means a public corporation 23 established by one or more municipalities to administer a military facility zone located 24 in the municipalities in the state; 25 (6) "zone" means a military facility zone. 26 * Sec. 2. AS 44.62.175(a) is amended to read: 27 (a) The lieutenant governor shall develop and supervise the Alaska Online 28 Public Notice System, to be maintained on the state's site on the Internet. The 29 lieutenant governor shall prescribe the form of notices posted on the system by state 30 agencies. The Alaska Online Public Notice System must include 31 (1) notices of proposed actions given under AS 44.62.190(a);

01 (2) notices of state agency meetings required under AS 44.62.310(e), 02 even if the meeting has been held; 03 (3) notices of solicitations to bid issued under AS 36.30.130; 04 (4) notices of state agency requests for proposals issued under 05 AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; AS 38.05.120; and 06 AS 43.40.010; 07 (5) executive orders and administrative orders issued by the governor; 08 (6) written delegations of authority made by the governor or the head 09 of a principal department under AS 44.17.010; 10 (7) the text or a summary of the text of a regulation or order of repeal 11 of a regulation for which notice is given under AS 44.62.190(a), including an 12 emergency regulation or repeal regardless of whether it has taken effect; 13 (8) notices required by AS 44.62.245(b) regarding an amended version 14 of a document or other material incorporated by reference in a regulation; 15 (9) a summary of the text of recently issued formal opinions and 16 memoranda of advice of the attorney general; 17 (10) a list of vacancies on boards, commissions, and other bodies 18 whose members are appointed by the governor; [AND] 19 (11) in accordance with AS 39.52.240(h), advisory opinions of the 20 attorney general; and 21 (12) notices required by AS 26.30.010(d) and (e) regarding 22 applications for military facility zones. 23 * Sec. 3. AS 44.88.900(9) is amended to read: 24 (9) "project" means 25 (A) a plant or facility used or intended for use in connection 26 with making, processing, preparing, transporting, or producing in any manner, 27 goods, products, or substances of any kind or nature or in connection with 28 developing or utilizing a natural resource, or extracting, smelting, transporting, 29 converting, assembling, or producing in any manner, minerals, raw materials, 30 chemicals, compounds, alloys, fibers, commodities and materials, products, or 31 substances of any kind or nature;

01 (B) a plant or facility used or intended for use in connection 02 with a business enterprise; 03 (C) commercial activity by a business enterprise; 04 (D) a plant or facility demonstrating technological advances of 05 new methods and procedures and prototype commercial applications for the 06 exploration, development, production, transportation, conversion, and use of 07 energy resources; 08 (E) infrastructure for a new tourism destination facility or for 09 the expansion of a tourism destination facility; in this subparagraph, "tourism 10 destination facility" does not include a hotel or other overnight lodging facility; 11 (F) a plant or facility, other than a plant or facility described in 12 (D) of this paragraph, for the generation, transmission, development, 13 transportation, conversion, or use of energy resources; 14 (G) a plant or facility that enhances, provides for, or promotes 15 economic development with respect to transportation, communications, 16 community public purposes, technical innovations, prototype commercial 17 applications of intellectual property, or research; 18 (H) a plant or facility used or intended for use as a federal 19 facility, including a United States military, national guard, or coast guard 20 facility; 21 (I) infrastructure for an area that is designated as a 22 military facility zone under AS 26.30; 23 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: REGULATIONS. The Department of Military and Veterans' Affairs 26 may immediately adopt regulations necessary to implement the changes made by this Act. 27 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before 28 July 1, 2012. 29 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 30 * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect July 1, 2012.