00 CS FOR SENATE BILL NO. 29(CRA)                                                                                          
01 "An Act relating to certain programs of state aid to municipalities and recipients                                      
02 in the unorganized borough; and providing for an effective date."                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.10.200(50) is amended to read:                                                                   
05   (50)  AS 29.60.120(a) and (c) (priority revenue sharing [STATE AID]                                                
06 for health facilities and hospitals);                                                                                   
07    * Sec. 2.  AS 29.20.640(b) is amended to read:                                                                       
08  (b)  Compliance with the provisions of this section is a prerequisite to receipt                                      
09 of municipal tax resource equalization assistance under AS 29.60.010 - 29.60.080 and                                   
10 priority revenue sharing [STATE AID] for [MISCELLANEOUS] municipal services                                            
11 under AS 29.60.100 - 29.60.180.  If a municipality does not comply with this section,                                   
12 the department shall withhold the allocations until the required reports are filed.                                     
13    * Sec. 3.  AS 29.45.020 is amended to read:                                                                          
14  Sec. 29.45.020.  Taxpayer notice.  (a)  If a municipality levies and collects                                         
01 property taxes, the governing body shall provide the following notice:                                                  
02 "NOTICE TO TAXPAYER                                                                                                     
03 For the current fiscal year the (city)(borough) has been allocated  the following amount                               
04 of state aid for school and municipal purposes under the applicable financial assistance                                
05 Acts:                                                                                                                   
06 PUBLIC SCHOOL FOUNDATION PROGRAM                                                                                      
07     ASSISTANCE (AS 14.17)                                                     $                                         
08 STATE AID FOR RETIREMENT OF SCHOOL                                                                                    
09   CONSTRUCTION DEBT (AS 14.11.100)                                          $                                         
10   MUNICIPAL TAX RESOURCE EQUALIZATION                                                                                   
11   [ASSISTANCE] (AS 29.60.010 - 29.60.080)                                   $                                         
12 PRIORITY REVENUE SHARING [STATE                                                                                     
13     AID] FOR [MISCELLANEOUS] MUNICIPAL                                                                                  
14   SERVICES (AS 29.60.100 - 29.60.180)                                       $                                         
15 REVENUE SHARING FOR SAFE COMMUNITIES                                                                                
16   (AS 29.60.350 - 29.60.375)                                            $                                         
17        TOTAL AID                                                              $                                         
18 The millage equivalent of this state aid, based on the dollar value of a mill in the                                   
19 municipality during the current assessment year and for the preceding assessment year,                                  
20 is:                                                                                                                     
21                                                             MILLAGE EQUIVALENT                                          
22                                                        PREVIOUS YEAR      THIS YEAR                                     
23 PUBLIC SCHOOL FOUNDATION                                                                                              
24   PROGRAM ASSISTANCE   . . . . MILLS    . . . . MILLS                                                                 
25 STATE AID FOR RETIREMENT                                                                                              
26    OF SCHOOL CONSTRUCTION                                                                                             
27   DEBT      . . . .MILLS      . . . .MILLS                                                                            
28 MUNICIPAL TAX RESOURCE                                                                                                
29    EQUALIZATION [ASSISTANCE]  . . . .MILLS      . . . .MILLS                                                           
30 PRIORITY REVENUE SHARING                                                                                            
31     [STATE AID] FOR [MISCELLANEOUS]                                                                                     
01     MUNICIPAL SERVICES     . . . .MILLS      . . . .MILLS                                                               
02   REVENUE SHARING FOR SAFE                                                                                            
03     COMMUNITIES    . . . .MILLS      . . . .MILLS                                                                   
04     TOTAL MILLAGE                                                                                                       
05     EQUIVALENT             . . . .MILLS      . . . .MILLS"                                                              
06 Notice shall be provided                                                                                               
07   (1)   by furnishing a copy of the notice with tax statements mailed for                                              
08 the fiscal year for which aid is received; or                                                                           
09   (2)   by publishing in a newspaper of general circulation in the                                                     
10 municipality a copy of the notice once each week for a period of three successive                                       
11 weeks, with publication to occur not later than 45 days after the final adoption of the                                 
12 municipality's budget.                                                                                                  
13     (b)  Compliance with the provisions of this section is a prerequisite to receipt                                   
14 of municipal tax resource equalization [ASSISTANCE] under AS 29.60.010  -                                               
15 29.60.080 and priority revenue sharing [STATE AID] for [MISCELLANEOUS]                                                
16 municipal services under AS 29.60.100  - 29.60.180.  The department shall withhold                                      
17 annual allocations under those sections until municipal officials demonstrate that the                                  
18 requirements of this section have been met.                                                                             
19    * Sec. 4.  AS 29.45.660(b) is amended to read:                                                                       
20  (b)  Compliance with the provisions of this section is a prerequisite to receipt                                      
21 of municipal tax resource equalization [ASSISTANCE] under AS 29.60.010 -                                                
22 29.60.080 and priority revenue sharing [STATE AID] for [MISCELLANEOUS]                                                
23 municipal services under AS 29.60.100 - 29.60.180.  The department shall withhold                                       
24 annual allocations under those sections until municipal officials demonstrate that the                                  
25 requirements of this section have been met.                                                                             
26    * Sec. 5.  AS 29.60.100 is amended to read:                                                                          
27  Sec. 29.60.100.  Priority revenue sharing for municipal services [REVENUE                                           
28 SHARING PAYABLE].  In addition to the equalization entitlements paid under                                              
29 AS 29.60.010 - 29.60.080, during each fiscal year the department shall pay priority                                    
30 revenue sharing for municipal services to [AID]                                                                        
31   (1)  [TO] a municipality or other eligible recipient that has the power                                              
01 to provide the services described in AS 29.60.110 - 29.60.130 and exercises the power                                   
02 in the manner required by AS 29.60.100 - 29.60.180;                                                                     
03   (2)  [TO] an unincorporated community under AS 29.60.140.                                                            
04    * Sec. 6.  AS 29.60.170 is amended to read:                                                                          
05  Sec. 29.60.170.  Municipal [MISCELLANEOUS] services account.  The                                                  
06 municipal [MISCELLANEOUS] services account is established.  Money to carry out                                         
07 the provisions of AS 29.60.100 - 29.60.180 shall be allocated by the department to the                                  
08 account in accordance with AS 29.60.280.  If amounts in the account are insufficient                                    
09 to pay each municipality's or other recipient's share authorized under AS 29.60.100 -                                   
10 29.60.180, the amounts that are available shall be distributed pro rata among eligible                                  
11 municipalities and other recipients.                                                                                    
12    * Sec. 7.  AS 29.60.280(b) is amended to read:                                                                       
13  (b)  Money in the municipal [MISCELLANEOUS] services account established                                            
14 in AS 29.60.170 that exceeds the amount required to fully fund distributions authorized                                 
15 by AS 29.60.100 - 29.60.180 shall be reallocated to the tax equalization account                                        
16 established in AS 29.60.060 and distributed according to the provisions of                                              
17 AS 29.60.010 - 29.60.080.                                                                                               
18    * Sec. 8.  AS 29.60.350 is amended to read:                                                                          
19  Sec. 29.60.350.  Safe communities [MUNICIPAL ASSISTANCE] fund.  (a)                                                
20 To implement the revenue sharing for safe communities program, there [THERE]                                           
21 is established in the department the safe communities [MUNICIPAL ASSISTANCE]                                          
22 fund consisting of the base amount account and the per capita account.  The                                           
23 legislature may appropriate to the safe communities [MUNICIPAL ASSISTANCE]                                            
24 fund during each fiscal year a total [AN] amount equal to or greater than 30 percent                                  
25 of the income tax revenue received by the state under AS 43.20.011(e) for the previous                                  
26 fiscal year.  Unless otherwise provided in the appropriation, the department shall                                     
27 allocate one-third of the money appropriated to the base amount account and                                             
28 two-thirds to the per capita account.                                                                                  
29  (b)  The department shall distribute money from the safe communities                                                
30 [MUNICIPAL ASSISTANCE] fund to each municipality on an annual basis as                                                  
31 provided in AS 29.60.360 and 29.60.370 and as adjusted under AS 29.60.373.  A                                         
01 municipality may not receive payment until it submits to the department a resolution                                    
02 approved by the governing body of the municipality that requests the money.                                             
03 Distribution of money from the safe communities [MUNICIPAL ASSISTANCE] fund                                           
04 to all municipalities must be made on July 31 [FEBRUARY 1] of the state fiscal year                                   
05 for which the appropriation to the fund is made.  A municipality that incorporates after                               
06 July 1 [DECEMBER 31] of a state fiscal year is not eligible for a distribution under                                   
07 this section until the following state fiscal year.                                                                     
08    * Sec. 9.  AS 29.60.350 is amended by adding new subsections to read:                                                
09  (c)  Money from the revenue sharing for the safe communities program                                                  
10 distributed to a municipality shall be used by that municipality only for the following                                 
11 services in the following ranking of priority:                                                                          
12   (1)  police protection and related public safety services;                                                           
13   (2)  fire protection and emergency medical services;                                                                 
14   (3)  water and sewer services not offset by user fees;                                                               
15   (4)  solid waste management;                                                                                         
16   (5)  other services determined by the governing body to have the highest                                             
17 priority.                                                                                                               
18  (d)  Subsection (c) of this section may not be construed to require a                                                 
19 municipality to fund all requests it receives for services in a category with a higher                                  
20 ranking of priority before funding services in a category with a lower ranking of                                       
21 priority.                                                                                                               
22    * Sec. 10.  AS 29.60.360 is amended to read:                                                                         
23  Sec. 29.60.360.  Base amount account distributions [OF ASSISTANCE].                                                 
24 (a)  The base amount to be distributed from the base amount account [MUNICIPAL                                        
25 ASSISTANCE FUND] to each municipality for the fiscal year shall be the amount                                           
26 received by the municipality during fiscal year 1978 under AS 43.70.080 as that                                         
27 section provided before the 1978 amendment.  A city incorporated within a borough                                       
28 after June 30, 1977, shall receive as a base amount a share of the amount distributed                                   
29 to the borough in which it is located based on the ratio of population in the city to the                               
30 total population in the borough.  A city incorporated outside a borough after June 30,                                  
31 1977, shall receive as a base amount the amount received by the city in the state most                                  
01 closely approximating it in population at the time of its incorporation.  A borough                                     
02 incorporated after June 30, 1977, shall receive as a base amount the amount received                                    
03 by the borough in the state most closely approximating it in population at the time of                                  
04 its incorporation, excluding each borough with a per capita full and true property                                     
05 value exceeding $500,000.  The base amount to be distributed to each municipality                                      
06 organized under federal law shall be the amount received as a base amount by the city                                   
07 most closely approximating it in population on June 30, 1977.                                                           
08  (b)  If the amount in the base amount account from allocation of                                                     
09 appropriations [APPROPRIATED] to the safe communities [MUNICIPAL                                                     
10 ASSISTANCE] fund [BY THE LEGISLATURE] during a fiscal year is insufficient                                              
11 for distribution of the full base amount to each municipality, the department shall                                     
12 prorate the amount available for distribution [ON THE BASIS OF AMOUNTS                                                  
13 RECEIVED DURING THE FISCAL YEAR 1978 UNDER AS 43.70.080].                                                               
14    * Sec. 11.  AS 29.60.365 is amended to read:                                                                         
15  Sec. 29.60.365.  Municipalities organized under federal law.  To qualify to                                           
16 receive money under AS 29.60.350 - 29.60.375 [AS 29.60.350 - 29.60.370], a                                            
17 municipality organized under federal law as an Indian reserve that existed before                                       
18 enactment of 43 U.S.C. 1618(a) and is continued in existence under that subsection                                      
19 shall form a community development corporation with authority to determine how                                          
20 money received under AS 29.60.350 - 29.60.375 [AS 29.60.350 - 29.60.370] will be                                      
21 used.  The charter must require that the governing board of the corporation shall be                                    
22 elected at an annual election open to all residents of the municipality who are                                         
23 registered and qualified to vote in state elections.  The department may distribute                                     
24 money for the municipality only to a corporation organized in accordance with this                                      
25 section and only after the corporation has delivered a written waiver of sovereign                                      
26 immunity from legal action by the state to recover all or a portion of the money                                        
27 distributed under AS 29.60.350 - 29.60.375 [AS 29.60.350 - 29.60.370].                                                
28    * Sec. 12.  AS 29.60.370(a) is amended to read:                                                                      
29  Sec. 29.60.370.  Per capita account distribution [INCREASED                                                         
30 ASSISTANCE].  (a)  The [IF THE] amount allocated to the per capita account in                                       
31 the safe communities [MUNICIPAL ASSISTANCE] fund [AT THE TIME OF                                                      
01 DISTRIBUTION EXCEEDS THE BASE AMOUNT TO BE DISTRIBUTED UNDER                                                            
02 AS 29.60.360, THE EXCESS AMOUNT] shall be distributed to each municipality on                                           
03 the basis of population.  Population for the purpose of this section shall be as certified                              
04 by the commissioner of community and regional affairs.  In determining the population                                   
05 of a borough, the population of all cities in the borough shall be deducted from the                                    
06 total population of the borough.                                                                                        
07    * Sec. 13.  AS 29.60 is amended by adding new sections to read:                                                      
08  Sec. 29.60.372.  Minimum payment.  If a municipality qualifies for a payment                                          
09 during a fiscal year under AS 29.60.010 - 29.60.080, 29.60.100 - 29.60.180, 29.60.290,                                  
10 or 29.60.350 and if the total amount payable to the municipality under those sections                                   
11 is less than $40,000, the department shall pay to the municipality a minimum payment                                    
12 in an amount equal to the difference between the total amount payable under those                                       
13 sections and $40,000 as adjusted under AS 29.60.373.                                                                    
14    Sec. 29.60.373.  Adjustment of payments.  Adjustment of payments shall be                                           
15 determined by prorating amounts payable under AS 29.60.360, 29.60.370, and                                              
16 29.60.372 by a factor that, when applied, reduces all payments in equal proportion so                                   
17 that total payments equal the amount appropriated to the safe communities fund.                                         
18    * Sec. 14.  AS 29.60.375 is amended to read:                                                                         
19  Sec. 29.60.375.  Definition.  In AS 29.60.350 - 29.60.375 [AS 29.60.350 -                                           
20 29.60.370] "municipality" includes a municipality organized under federal law as an                                     
21 Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in                                   
22 existence under that subsection.                                                                                        
23    * Sec. 15.  AS 29.60.370(b) is repealed.                                                                             
24    * Sec. 16.  This Act takes effect July 1, 1997.