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SB 110: "An Act relating to the community assistance fund and to community assistance; repealing the civil legal services fund, power cost equalization endowment fund, power cost equalization and rural electric capitalization fund, curriculum improvement and best practices fund, and Alaska higher education investment fund; disposing of proceeds; and providing for an effective date."

00 SENATE BILL NO. 110 01 "An Act relating to the community assistance fund and to community assistance; 02 repealing the civil legal services fund, power cost equalization endowment fund, power 03 cost equalization and rural electric capitalization fund, curriculum improvement and 04 best practices fund, and Alaska higher education investment fund; disposing of 05 proceeds; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.43.825(f) is amended to read: 08 (f) Payment of a scholarship is subject to appropriation [AND THE 09 AVAILABILITY OF FUNDS FOR EXPENDITURE UNDER AS 37.14.750]. If 10 insufficient funds are appropriated [OR AVAILABLE] in a fiscal year to pay all 11 eligible scholarships, the commission may not award a scholarship to a new applicant, 12 and the commission shall pay existing awards on a pro rata basis for that fiscal year. 13 * Sec. 2. AS 14.43.915(a) is amended to read:

01 (a) The Alaska education grant account is created as an account in the general 02 fund. The department may seek appropriations to fund grants and awards from 03 this account [MONEY MAY BE APPROPRIATED TO THE ACCOUNT FROM 04 THE ALASKA HIGHER EDUCATION INVESTMENT FUND UNDER 05 AS 37.14.750 AND FROM OTHER SOURCES]. The commission may use the 06 money in the account to pay grants awarded under AS 14.43.400 - 14.43.420 and to 07 pay the cost of administration of the Alaska education grant program created under 08 AS 14.43.400. 09 * Sec. 3. AS 14.43.915(b) is amended to read: 10 (b) The Alaska performance scholarship award account is created as an 11 account in the general fund. The department may seek appropriations to fund 12 awards from this account [MONEY MAY BE APPROPRIATED TO THE 13 ACCOUNT FROM THE ALASKA HIGHER EDUCATION INVESTMENT FUND 14 UNDER AS 37.14.750 AND FROM OTHER SOURCES]. The commission may use 15 the money in the account to pay scholarships awarded to students under AS 14.43.810 16 - 14.43.849. 17 * Sec. 4. AS 14.43.915(c) is amended to read: 18 (c) Of the total amount available annually to the commission for payment of 19 grants under AS 14.43.400 - 14.43.420 and for payment of scholarships under 20 AS 14.43.810 - 14.43.849, one-third of the combined amount in the accounts 21 established under (a) and (b) of this section shall be available solely for payment of 22 grants awarded under AS 14.43.400 - 14.43.420. The commission shall annually 23 allocate to all qualified applicants for scholarships awarded under AS 14.43.810 - 24 14.43.849 two-thirds of the combined amount in the accounts. If an insufficient 25 number of qualified applicants are awarded grants under AS 14.43.400 - 14.43.420 or 26 scholarships under AS 14.43.810 - 14.43.849, or both, before the end of that fiscal 27 year, the commissioner shall redeposit the remaining funds into the relevant account 28 [INTO THE ALASKA HIGHER EDUCATION INVESTMENT FUND 29 ESTABLISHED UNDER AS 37.14.750]. 30 * Sec. 5. AS 29.60.850 is repealed and reenacted to read: 31 Sec. 29.60.850. Community assistance. The legislature may appropriate funds

01 for the purpose of community assistance. 02 * Sec. 6. AS 29.60.855(a) is amended to read: 03 (a) The basic amount used for determining the basic community assistance 04 payment for a fiscal year is $300,000. However, if the amount appropriated 05 [AVAILABLE] for payments for that fiscal year under AS 29.60.850 06 [AS 29.60.850(c)] is less than the amount necessary to make the payments under (b) 07 of this section, the department shall reduce the basic amount pro rata. 08 * Sec. 7. AS 29.60.860(a) is amended to read: 09 (a) Subject to (b) of this section, if the amount appropriated [AVAILABLE] 10 for distribution under AS 29.60.850 [AS 29.60.850(c)] exceeds the amount needed to 11 fully fund all the basic community assistance payments, the excess amount 12 [BALANCE] shall be distributed on a per capita basis to municipalities, to reserves, 13 and to communities in the unorganized borough. 14 * Sec. 8. AS 37.05.530(g) is amended to read: 15 (g) The provisions of this subsection apply to amounts received by the state 16 under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508, as follows: 17 (1) amounts received and not appropriated for grants to municipalities 18 under (d) of this section shall be deposited at the end of each fiscal year as follows: 19 (A) 25 percent of amounts received by the state during that 20 fiscal year under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508 to the principal 21 of the Alaska permanent fund; and 22 (B) .5 percent of amounts received by the state during that 23 fiscal year under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508 to the public 24 school trust fund (AS 37.14.110); 25 (2) if, after making the grants under (d) of this section, the amounts 26 remaining are insufficient to make payment in full of the deposits required by (1)(A) 27 and (B) of this subsection, the deposits shall be allocated pro rata between the fund 28 deposits; 29 (3) the amounts remaining after the making of the payment of the 30 deposits in full to the Alaska permanent fund and the public school trust fund under 31 (2) of this subsection may be appropriated

01 [(A) FIRST,] to each of the funds described in (1)(A) and (B) 02 of this subsection to recover amounts not paid to those funds on or after 03 September 1, 2006, because of deficiencies in making the payments required 04 by (2) of this subsection; [AND 05 (B) AFTER APPROPRIATIONS AUTHORIZED BY (A) OF 06 THIS PARAGRAPH, TO THE POWER COST EQUALIZATION AND 07 RURAL ELECTRIC CAPITALIZATION FUND (AS 42.45.100);] 08 (4) the amounts remaining [AFTER ANY APPROPRIATION TO 09 THE POWER COST EQUALIZATION AND RURAL ELECTRIC 10 CAPITALIZATION FUND] shall lapse into the general fund for use by the state for 11 the following facilities and services: planning; construction, maintenance, and 12 operation of essential public facilities; and other necessary public services. 13 * Sec. 9. AS 42.05.141(b) is amended to read: 14 (b) The commission shall perform the duties assigned to it under 15 AS 42.45.100 - 42.45.180 [AS 42.45.100 - 42.45.190]. 16 * Sec. 10. AS 42.45.100 is repealed and reenacted to read: 17 Sec. 42.45.100. Power cost equalization and rural electric capitalization 18 program. The legislature may appropriate funds for the purpose of equalizing power 19 cost a kilowatt-hour statewide at a cost close to or equal to the mean of the cost a 20 kilowatt-hour in Anchorage, Fairbanks, and Juneau by paying money to eligible 21 electric utilities in the state. 22 * Sec. 11. AS 42.45.180(a) is amended to read: 23 (a) The authority may make a grant from legislative appropriations [THE 24 FUND] for an eligible utility for a small power project that will reduce the cost of 25 generating or transmitting power to the customers of the utility. The amount of the 26 grant may not exceed 75 percent of the cost of the project. The authority may not 27 make a grant under this section unless the eligible utility has secured financing for 25 28 percent of the cost of the project [FROM A SOURCE OTHER THAN THE POWER 29 COST EQUALIZATION AND RURAL ELECTRIC CAPITALIZATION FUND], as 30 provided under (c) of this section. 31 * Sec. 12. AS 42.45.180(c) is amended to read:

01 (c) In determining whether an eligible utility has secured financing for 25 02 percent of the cost of the project [FROM A SOURCE OTHER THAN THE POWER 03 COST EQUALIZATION AND RURAL ELECTRIC CAPITALIZATION FUND], 04 the authority shall accept solicited and unsolicited proposals for third party financing 05 or for a joint venture between the utility and an entity from the private sector provided 06 that the private sector participant has 07 (1) a valid state business license; 08 (2) a resolution or letter of agreement executed by the eligible utility 09 agreeing to participation by the private sector participant; 10 (3) a business plan that illustrates how the proposed project will reduce 11 the cost of generating or transmitting power to the customers of the utility. 12 * Sec. 13. AS 43.77.045(a), as amended by sec. 32, ch. 101, SLA 2018, is amended to read: 13 (a) A person engaged in a floating fisheries business is allowed a credit 14 against the tax due under this chapter for contributions of cash or equipment accepted 15 for 16 (1) direct instruction, research, and educational support purposes, 17 including library and museum acquisitions, and contributions to endowment, by an 18 Alaska university foundation, by a nonprofit, public or private, Alaska two-year or 19 four-year college accredited by a national or regional accreditation association, or by a 20 public or private nonprofit elementary or secondary school in the state; 21 (2) secondary school level vocational education courses, programs, and 22 facilities by a school district in the state; 23 (3) vocational education courses, programs, and facilities by a state- 24 operated vocational technical education and training school; 25 (4) a facility by a nonprofit, public or private, Alaska two-year or four- 26 year college accredited by a national or regional accreditation association or by a 27 public or private nonprofit elementary or secondary school in the state; 28 (5) Alaska Native cultural or heritage programs and educational 29 support, including mentoring and tutoring, provided by a nonprofit agency for public 30 school staff and for students who are in grades kindergarten through 12 in the state; 31 (6) education, research, rehabilitation, and facilities by an institution

01 that is located in the state and that qualifies as a coastal ecosystem learning center 02 under the Coastal America Partnership established by the federal government; 03 (7) [THE ALASKA HIGHER EDUCATION INVESTMENT FUND 04 UNDER AS 37.14.750; 05 (8)] funding a scholarship awarded by a nonprofit organization to a 06 dual-credit student to defray the cost of a dual-credit course, including the cost of 07 (A) tuition and textbooks; 08 (B) registration, course, and programmatic student fees; 09 (C) on-campus room and board at the postsecondary institution 10 in the state that provides the dual-credit course; 11 (D) transportation costs to and from a residential school 12 approved by the Department of Education and Early Development under 13 AS 14.16.200 or the postsecondary school in the state that provides the dual- 14 credit course; and 15 (E) other related educational and programmatic costs; 16 (8) [(9)] constructing, operating, or maintaining a residential housing 17 facility by a residential school approved by the Department of Education and Early 18 Development under AS 14.16.200; 19 (9) [(10)] childhood early learning and development programs and 20 educational support to childhood early learning and development programs provided 21 by a nonprofit corporation organized under AS 10.20, a tribal entity, or a school 22 district in the state, by the Department of Education and Early Development, or 23 through a state grant; 24 (10) [(11)] science, technology, engineering, and math programs 25 provided by a nonprofit agency or a school district for school staff and for students in 26 grades kindergarten through 12 in the state; and 27 (11) [(12)] the operation of a nonprofit organization dedicated to 28 providing educational opportunities that promote the legacy of public service 29 contributions to the state and perpetuate ongoing educational programs that foster 30 public service leadership for future generations of residents of the state. 31 * Sec. 14. AS 14.07.182; AS 37.05.146(c)(70), 37.05.590; AS 37.14.750; AS 42.45.070,

01 42.45.080, 42.45.085, 42.45.099, 42.45.180(b), 42.45.190; AS 43.20.014(a)(7); 02 AS 43.55.019(a)(7); AS 43.56.018(a)(7); AS 43.65.018(a)(7); AS 43.75.018(a)(7); and 03 AS 43.77.045(a)(7) are repealed. 04 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 (a) The department of revenue shall make a good faith attempt to return unexpended 07 donations to the Alaska higher education investment fund, repealed in sec. 14 of this Act, the 08 power cost equalization fund, repealed in sec. 14 of this Act, and the power cost equalization 09 and rural electric capitalization fund, repealed in sec. 10 of this Act, to the original donors. 10 (b) The department of revenue shall place any unexpended amounts from the 11 remaining funds, repealed by secs. 5 and 14 of this Act, into the general fund. 12 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION. (a) Litigation, hearings, investigations, and other proceedings related 15 to funds repealed by this Act continue in effect and may be completed notwithstanding the 16 repeal. 17 (b) Regulations adopted to implement a fund repealed by this Act remain in effect as 18 issued, or until revoked, vacated, or otherwise modified under the provisions of this Act. 19 (c) Contracts, rights, liabilities, and obligations created by a fund repealed by this Act, 20 and in effect of the effective date of this Act, remain in effect notwithstanding this Act's 21 taking effect. 22 * Sec. 17. This Act takes effect July 1, 2019.