05/02/1996 11:30 AM Senate FIN

                                                                               
  HOUSE BILL NO. 361                                                           
                                                                               
       An Act relating  to municipal capital  project matching                 
       grants for a  municipality organized under federal  law                 
       as an Indian  reserve; and  providing for an  effective                 
       date.                                                                   
                                                                               
  REPRESENTATIVE JERRY MACKIE came before committee in support                 
  of his bill and acknowledged a companion bill in the Senate,                 
  introduced by Senator Zharoff.  The Representative explained                 
  that the bill attempts to address  a problem relating to the                 
  capital matching grant program as  it applies to Metlakatla.                 
  Metlakatla is not  defined as other municipalities  since it                 
  is a municipality  organized under federal law  as an Indian                 
  reserve.  Although Metlakatla had received grants until last                 
  year, it is unclear whether language qualifies the community                 
  to receive  capital matching grants.  The community was thus                 
  denied grants other than an unincorporated matching grant.                   
                                                                               
  HB 361 would  allow Metlakatla  to receive capital  matching                 
  grants.  The  community continues to receive state  funds in                 
  other  revenue  sharing and  municipal  assistance programs.                 
  The proposed bill is drafted with  the same language used in                 
  other  municipal funding.   The administration  supports the                 
  bill; there has been no opposition.                                          
                                                                               
                                                                               
  Representative Mackie acknowledged questions raised in other                 
  committees asking if  passage of the proposed  bill allowing                 
  an Indian reserve to receive the funds would "open the doors                 
                                                                               
                                                                               
  to  tribes   that  claim   sovereignty"  and  other   Native                 
  organizations that are not municipalities.   He advised that                 
  the answer  is,  "No."   He further  referenced an  attorney                 
  general's opinion  to that  effect, pointed  to language  at                 
  Page 1, lines 6 through 8, and stressed that it applies only                 
  to  Metlakatla.   The  bill is  accompanied  by zero  fiscal                 
  notes.                                                                       
                                                                               
  Senator  Zharoff  noted  that the  administration's  capital                 
  matching grant  program includes  "passage of  this bill  as                 
  well."  Co-chairman Frank directed that  the bill be held in                 
  committee pending return of Co-chairman Halford.                             
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was recessed at approximately 1:07 p.m.