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, sponsor HB 361, testified in support of HB 361. He noted that the legislation was introduced at the request of the Metlakatla Indian Community. He explained that it was not clearly defined that Metlakatla which was established as an Indian Reserve under law would qualify for the Municipal Assistance Matching Grant Program. He noted that the Community received Municipal Assistance Matching Grants until FY 95. He stressed that it was the intent of the Program that Metlakatla would qualify. He observed that HB 361 establishes in statute that Metlakatla qualifies as an organized municipality for a municipal assistance matching 3 grant under AS 37.06. The legislation would clarify that Metlakatla does not qualify for a grant as an unincorporated community. He observed that they received unincorporated grants in prior years. Representative Mackie provided members with a letter from the Department of Community and Regional Affairs, dated 1/18/94 detailing grants received by Metlakatla (Attachment 1). Representative Mackie maintained that the legislation would not open the program for other tribes to receive municipal assistance matching grants. He referred to page 1, lines 7 & 8. He stated that this language would limit qualification to Metlakatla. He pointed out similarities to other communities of corresponding size. REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS stated that the legislation will provide authorization for previous grants. Representative Mackie noted that Metlakatla will not receive a grant in FY 97 unless the legislation is passed. He stressed that Metlakatla has utilized previous grants. He pointed out that Metlakatla did not receive an organized municipal grant for FY 96. Representative Parnell asked if Metlakatla receives federal funds based on being an unincorporated city. Representative Mackie stated that Metlakatla receives PL874 Funds as do other communities with Native populations. He stated that Metlakatla received a grant for $60.0 thousand dollars in FY 94 for a fire hall and $58.0 thousand dollars in FY 95 for a police department project. Their FY 96 organized municipal grant for $59.0 thousand dollars was not approved. Representative Navarre MOVED to report HB 361 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 361 was reported out of Committee with a "do pass" recommendation and with two zero fiscal notes; one by the Department of Community and Regional Affairs, dated 2/9/96; and one by the Department of Administration, dated 1/19/96.