00 SENATE BILL NO. 304                                                                                                   
01 "An Act relating to state aid to municipalities and certain other recipients, and                                       
02 for the village public safety officer program; relating to municipal dividends;                                         
03 and relating to the public safety foundation program."                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new                                 
06 section to read:                                                                                                        
07  FINDINGS.  The legislature finds that                                                                                  
08   (1)   police, fire protection, emergency medical services, health services, and                                       
09 roads are top priorities of the citizens of the state;                                                                  
10   (2)  the public safety foundation program is a return to the historically                                             
11 successful original "revenue sharing for services" concept used from 1969 to 1980 to promote                            
12 more effective local governments and stable or reduced local taxes;                                                     
13   (3)  municipalities should be held accountable for providing specific public                                          
14 safety services with state shared revenues;                                                                             
01   (4)  the public safety foundation program is a positive incentive to incorporate                                      
02 or for a municipality to accept more responsibility for roads and other high priority public                            
03 services;                                                                                                               
04   (5)  the village public safety officer program is designed to train and employ                                        
05 individuals residing outside of municipalities as the first responders to public safety                                 
06 emergencies, such as basic law enforcement, crime prevention, emergency medical assistance,                             
07 fire protection, and search and rescue;                                                                                 
08   (6)  fully funding the municipal dividend from a portion of the excess earnings                                       
09 of the permanent fund, after funding permanent fund dividends and inflation-proofing, will not                          
10 change the current calculation for the permanent fund dividend, but will save the local                                 
11 taxpayers an average of $150 a year that would otherwise be required to support local public                            
12 services.                                                                                                               
13    * Sec. 2.  AS 18.70.075(a) is amended to read:                                                                     
14  (a)  A fire officer of a municipal fire department or a fire department registered                                    
15 under  AS 29.60.730  [AS 29.60.130], while providing fire protection or other                                         
16 emergency services, has the authority to                                                                                
17   (1)  control and direct activities at the scene of a fire or emergency;                                              
18   (2)  order a person to leave a building or place in the vicinity of a fire                                           
19 or emergency [,] for the purpose of protecting the person from injury;                                                  
20   (3)  blockade a public highway, street, or private right-of-way                                                      
21 temporarily while at the scene of a fire or emergency;                                                                  
22   (4)  trespass upon property at or near the scene of a fire or emergency                                              
23 at any time of the day or night;                                                                                        
24   (5)  enter a building, including a private dwelling, or premises where                                               
25 a fire is in progress, or where there is reasonable cause to believe a fire is in progress,                             
26 to extinguish the fire;                                                                                                 
27   (6)  enter a building, including a private dwelling, or premises near the                                            
28 scene of a fire for the purpose of protecting the building or premises or for the purpose                               
29 of extinguishing the fire that is in progress in another building or premises;                                          
30   (7)  upon 24-hour notice to the owner or occupant, conduct a prefire                                                 
31 planning survey in all buildings, structures, or other places within the municipality or                                
01 the registered fire department's district, except the interior of a private dwelling, where                             
02 combustible material is or may become dangerous as a fire menace to the building;                                       
03   (8)  direct the removal or destruction of a fence, house, motor vehicle,                                             
04 or other thing judged necessary to prevent the further spread of a fire.                                                
05    * Sec. 3.  AS 29.10.200 is amended by adding a new paragraph to read:                                              
06   (60)  AS 29.60.700 - 29.60.750 (public safety foundation program).                                                   
07    * Sec. 4.  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  entitlements under the public safety foundation program (AS 29.60.700 -                                            
10 29.60.780)  [MUNICIPAL TAX RESOURCE EQUALIZATION ASSISTANCE                                                            
11 UNDER AS 29.60.010 - 29.60.080 AND PRIORITY REVENUE SHARING FOR                                                         
12 MUNICIPAL SERVICES UNDER AS 29.60.100 - 29.60.180].  If a municipality does                                             
13 not comply with this section, the department shall withhold the  entitlements                                         
14 [ALLOCATIONS] until the required reports are filed.                                                                     
15    * Sec. 5.  AS 29.45.020 is amended to read:                                                                        
16  Sec. 29.45.020.  Taxpayer notice.  (a)  If a municipality levies and collects                                       
17 property taxes, the governing body shall provide the following notice:                                                  
18 "NOTICE TO TAXPAYER                                                                                                     
19 For the current fiscal year the (city)(borough) has been allocated the following                                      
20 amount of state aid for school and municipal purposes under the applicable                                              
21 financial assistance Acts:                                                                                              
22 PUBLIC SCHOOL FUNDING PROGRAM (AS 14.17)                                 $                                            
23 STATE AID FOR RETIREMENT OF SCHOOL                                                                                    
24    CONSTRUCTION DEBT (AS 14.11.100)                                      $                                            
25  PUBLIC SAFETY FOUNDATION PROGRAM                                                                                   
26     (AS 29.60.700 - 29.60.780)                                      $                                             
27 [MUNICIPAL TAX RESOURCE EQUALIZATION                                                                                  
28    (AS 29.60.010 - 29.60.080)                                            $                                            
29 PRIORITY REVENUE SHARING FOR                                                                                          
30    MUNICIPAL SERVICES (AS 29.60.100 - 29.60.180)                         $                                            
31 REVENUE SHARING FOR SAFE COMMUNITIES                                                                                  
01    (AS 29.60.350 - 29.60.375)                                            $]                                           
02    TOTAL AID                                                             $                                            
03 The millage equivalent of this state aid, based on the dollar value of a mill in                                      
04 the municipality during the current assessment year and for the preceding                                               
05 assessment year, is:                                                                                                    
06      MILLAGE EQUIVALENT                                                                                               
07     PREVIOUS YEAR         THIS YEAR                                                                                   
08 PUBLIC SCHOOL FUNDING                                                                                                  
09    PROGRAM ASSISTANCE  . . . .MILLS  . . . .MILLS                                                                      
10 STATE AID FOR RETIREMENT                                                                                               
11    OF SCHOOL CONSTRUCTION                                                                                              
12    DEBT     . . . .MILLS  . . . .MILLS                                                                                 
13  PUBLIC SAFETY FOUNDATION                                                                                             
14      PROGRAM     . . . .MILLS  . . . .MILLS                                                                         
15 [MUNICIPAL TAX RESOURCE                                                                                                
16    EQUALIZATION    . . . .MILLS  . . . .MILLS                                                                          
17 PRIORITY REVENUE SHARING                                                                                               
18    FOR MUNICIPAL SERVICES  . . . .MILLS  . . . .MILLS                                                                  
19 REVENUE SHARING FOR SAFE                                                                                               
20    COMMUNITIES    . . . .MILLS  . . . .MILLS]                                                                          
21 TOTAL MILLAGE EQUIVALENT . . . .MILLS  . . . .MILLS"                                                                   
22    Notice shall be provided by                                                                                         
23   (1)  furnishing a copy of the notice with tax statements mailed for the                                              
24 fiscal year for which aid is received; or                                                                               
25   (2)  publishing in a newspaper of general circulation in the municipality                                            
26 a copy of the notice once each week for a period of three successive weeks, with                                        
27 publication to occur not later than 45 days after the final adoption of the municipality's                              
28 budget.                                                                                                                 
29  (b)  Compliance with the provisions of this section is a prerequisite to receipt                                      
30 of  entitlements under the public safety program (AS 29.60.700 - 29.60.780)                                           
31 [MUNICIPAL TAX RESOURCE EQUALIZATION UNDER AS 29.60.010 -                                                               
01 29.60.080 AND PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES                                                           
02 UNDER AS 29.60.100 - 29.60.180].  The department shall withhold annual                                                  
03  entitlements  [ALLOCATIONS] under those sections until municipal officials                                           
04 demonstrate that the requirements of this section have been met.                                                        
05    * Sec. 6.  AS 29.45.660(b) is amended to read:                                                                     
06  (b)  Compliance with the provisions of this section is a prerequisite to receipt                                      
07 of  entitlements under the public safety foundation program (AS 29.60.700 -                                            
08 29.60.780)  [MUNICIPAL TAX RESOURCE EQUALIZATION UNDER AS 29.60.010                                                    
09 - 29.60.080 AND PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES                                                         
10 UNDER AS 29.60.100 - 29.60.180].  The department shall withhold annual                                                  
11  entitlements  [ALLOCATIONS] under those sections until municipal officials                                           
12 demonstrate that the requirements of this section have been met.                                                        
13    * Sec. 7.  AS 29.60 is amended by adding new sections to read:                                                     
14 Article 9.  Public Safety Foundation Program.                                                                         
15  Sec. 29.60.660.  Municipal dividend fund.  There is established in the                                              
16 department the municipal dividend fund consisting of municipal dividends appropriated                                   
17 and transferred to the fund under AS 37.13.145(e).  Each fiscal year, the legislature                                   
18 may appropriate money in the municipal dividend fund for the public safety foundation                                   
19 program (AS 29.60.700 - 29.60.780).  Any balance in the fund may be appropriated                                        
20 for capital project matching grants (AS 37.06.010 - 37.06.090).                                                         
21  Sec. 29.60.700.  Administration.  (a)  The public safety foundation program                                         
22 is established in the department.  Each fiscal year, the department shall distribute                                    
23 public safety foundation entitlements to eligible municipalities and other recipients                                   
24 under AS 29.60.710 - 29.60.780 from appropriations for the purpose from the                                             
25 municipal dividend fund.  A municipality qualifies for a public safety foundation                                       
26 entitlement for a fiscal year if the municipality meets any eligibility requirements for                                
27 the specific entitlement and                                                                                            
28   (1)  the municipality has conducted a regular election during the                                                    
29 preceding state fiscal year or when last required to do so by ordinance or charter and                                  
30 has reported the results of the election to the commissioner;                                                           
31   (2)  regular meetings of the governing body were held in the                                                         
01 municipality during the preceding state fiscal year and a record of the proceedings was                                 
02 maintained;                                                                                                             
03   (3)  a municipal budget has been adopted for the municipal fiscal year                                               
04 during which payment of the entitlement is authorized, and an audit or financial                                        
05 statement for the preceding municipal fiscal year has been furnished to the department;                                 
06 and                                                                                                                     
07   (4)  all ordinances adopted by the municipality have been codified in                                                
08 accordance with AS 29.25.050.                                                                                           
09  (b)  The department shall adopt regulations necessary to implement the public                                         
10 safety foundation program, which must include                                                                           
11   (1)  procedures and filing dates for submitting entitlement applications                                             
12 and information relating to those applications;                                                                         
13   (2)  procedures by which the department shall notify a municipality or                                               
14 other applicant in writing of the reasons for a proposed disallowance or adjustment of                                  
15 any factor bearing on the determination of the applicant's eligibility for and amount                                   
16 of entitlement.                                                                                                         
17  (c)  For purposes of the public safety foundation program, population shall be                                        
18 determined by the latest figures of the United States Bureau of the Census or other                                     
19 population data that in the judgment of the department is reliable.                                                     
20  (d)  The department shall make payments under the public safety foundation                                            
21 program no later than July 31, based on entitlement calculations made during the                                        
22 preceding fiscal year.                                                                                                  
23  Sec. 29.60.710.  Municipal minimum entitlements and supplemental                                                     
24 minimum entitlements.  (a)  Each fiscal year, the department shall distribute                                          
25 municipal minimum entitlements to each municipality.  The amount of an entitlement                                      
26 under this subsection is $25,000.                                                                                       
27  (b)  A municipality is eligible for a supplemental minimum entitlement if the                                         
28 total amount of money the municipality receives for a fiscal year under the public                                      
29 safety foundation program, excluding the entitlement under this subsection, is less than                                
30 $45,000.  The amount of an entitlement under this subsection is the amount necessary                                    
31 to equal $45,000 when added to other amounts received under the public safety                                           
01 foundation program.                                                                                                     
02  (c)  A municipality is eligible for a supplemental minimum entitlement if the                                         
03 total amount of money the municipality receives for the fiscal year under the public                                    
04 safety foundation program, excluding the entitlement under this subsection, is less than                                
05 the total amount the municipality received for fiscal year 2000 under former                                            
06 AS 29.60.010 - 29.60.375.  The amount of an entitlement under this subsection is the                                    
07 amount necessary to equal, when added to other amounts received under the public                                        
08 safety foundation program, the amount the municipality received for fiscal year 2000                                    
09 under former AS 29.60.010 - 29.60.375.                                                                                  
10  Sec. 29.60.720.  Road maintenance and driver usage entitlements.  (a)  Each                                         
11 fiscal year, the department shall distribute road maintenance entitlements to                                           
12 municipalities to be used for road maintenance except as provided in (d) of this                                        
13 section.  A municipality is eligible for a road maintenance entitlement under this                                      
14 section only if it has power to provide for road maintenance and exercises that power.                                  
15 The road maintenance entitlement is equal to $2,000 for each mile of road, street, or                                   
16 highway maintained by the municipality and used by automotive equipment, excluding                                      
17 (1) the official state highway system, (2) roads, streets, or highways not dedicated to                                 
18 public use, (3) roads, streets, or highways maintained under AS 19.30.111 - 19.30.251                                   
19 (local service road program), and (4) alleyways, as defined by regulations of the                                       
20 Department of Transportation and Public Facilities.                                                                     
21  (b)  In addition to an entitlement under (a) of this section, a municipality may                                      
22 receive an entitlement equal to $1,000 for each mile of a frozen waterway and a                                         
23 connection from an inhabited area to a frozen waterway that may be safely used for                                      
24 public transportation by automotive equipment and is so used during a portion of the                                    
25 year if the waterway and connection are maintained during the period of use by the                                      
26 municipality.  The Department of Community and Economic Development, after                                              
27 consultation with the Department of Transportation and Public Facilities, shall                                         
28 determine which waterways and connections qualify and, where the waterways or                                           
29 connections lie outside the corporate limits of a municipality and are maintained by                                    
30 a combination of municipalities, which municipalities shall receive the payments under                                  
31 this subsection, unless the municipalities involved have agreed in writing to a                                         
01 particular distribution.                                                                                                
02  (c)  Each fiscal year, the department shall distribute a driver usage entitlement                                     
03 to each municipality equal to $10 for each person residing in the municipality.  The                                    
04 population of a municipality shall be as certified by the commissioner.  In determining                                 
05 the population of a borough, the populations of all cities in the borough shall be                                      
06 subtracted from the total population of the borough.                                                                    
07  (d)  The governing body may by ordinance authorize the municipality to use                                            
08 for education the portion of each entitlement received by the municipality under (a)                                    
09 of this section that is designated in the ordinance.  The amount that may be designated                                 
10 in the ordinance may not exceed 55 percent of the entitlement.                                                          
11  Sec. 29.60.730.  Fire and emergency medical services entitlements.  (a)                                             
12 Each fiscal year, the department shall pay to a municipality that has a fire department                                 
13 registered with the state fire marshal or an organization certified by the state to provide                             
14 emergency medical services an entitlement to be used for fire or emergency medical                                      
15 services except as provided in (c) of this section.  The amount of the entitlement is                                   
16 based on the number of individuals served as determined by the department.  The                                         
17 entitlement equals $20 for each individual who receives fire protection services and                                    
18 $20 for each individual who receives emergency medical services.                                                        
19  (b)  Each fiscal year, the department shall pay to a fire department registered                                       
20 with the state fire marshal or to an organization certified by the state to provide                                     
21 emergency medical services an entitlement to be used for fire or emergency medical                                      
22 services if the area served by the fire department or organization is not also served by                                
23 a municipality.  The amount of the entitlement is based on the number of individuals                                    
24 served as determined by the department.  The entitlement equals $20 for each                                            
25 individual who receives fire protection services and $20 for each individual who                                        
26 receives emergency medical services.                                                                                    
27  (c)  The governing body may by ordinance authorize the municipality to use                                            
28 for education the portion of each entitlement received by the municipality under (a)                                    
29 of this section that is designated in the ordinance.  The amount that may be designated                                 
30 in the ordinance may not exceed 55 percent of the entitlement.                                                          
31  Sec. 29.60.740.  Police protection services entitlements.  Each fiscal year, the                                    
01 department shall pay to a municipality that provides police protection services an                                      
02 entitlement to be used for police protection services.  The amount of the entitlement                                   
03 is based on the number of individuals served as determined by the department.  The                                      
04 entitlement equals $20 for each individual who receives police protection services.                                     
05  Sec. 29.60.750.  State aid to municipalities and other eligible recipients for                                       
06 health facilities and hospitals.  (a)  The department shall pay                                                        
07   (1)  to a municipality that has the power to provide hospital facilities                                             
08 and services and that exercises that power, $167 a bed for each bed actually used for                                   
09 patient care, limited to the number of beds provided for in the construction design of                                  
10 the hospital, or $45,000 a hospital for those hospitals with 10 or more beds, or $9,000                                 
11 a hospital for those hospitals with less than 10 beds, as the municipality may elect;                                   
12 money received under this paragraph may be used only for hospitals and shall be                                         
13 apportioned among qualifying hospitals as the municipality determines;                                                  
14   (2)  on the basis set out in (1) of this subsection to a municipality for                                            
15 a nonprofit hospital not operated by a municipality if the municipality first certifies to                              
16 the department that the nonprofit hospital is in compliance with all standards for                                      
17 hospitals that have been adopted by the municipality; money may not be paid on                                          
18 behalf of a nonprofit hospital without this certification; payments to the municipality                                 
19 shall be transferred to the nonprofit hospital in accordance with the basis by which the                                
20 payment was generated by the hospital, and shall be applied to the annual cost of                                       
21 operation and maintenance of the hospital or for the provision of health care service                                   
22 at the hospital as the directors of the hospital determine;                                                             
23   (3)  to a municipality in which a health facility is operated, $360 a bed                                            
24 for each bed actually used for patient care, limited to the number of beds provided for                                 
25 in the construction design of the health facility, or $1,600 a health facility as the                                   
26 municipality determines.                                                                                                
27  (b)  A hospital may not receive payment under both (a)(1) and (a)(2) of this                                          
28 section.                                                                                                                
29  (c)  Money received by a municipality under (a)(3) of this section shall be used                                      
30 for expenses of health services or operation and maintenance of health facilities as the                                
31 municipality determines.                                                                                                
01  (d)  Before money may be distributed under this section, the commissioner of                                          
02 health and social services shall certify to the commissioner of community and                                           
03 economic development that any accumulation of assets by nonprofit corporations or                                       
04 other recipients under this section is dedicated irrevocably to a public purpose.                                       
05  (e)  In this section,                                                                                                 
06   (1)  "health facility" means a health facility that is licensed or certified                                         
07 by the state or approved under regulations adopted by the department and that is                                        
08 owned or operated or both by a municipality or by a nonprofit corporation or other                                      
09 nonprofit sponsor; in this paragraph, "facility"                                                                        
10   (A)  includes a public health center, maternity home, community                                                     
11 mental health center, facility for the mentally or physically handicapped,                                              
12 nursing home, convalescent center, domestic violence or sexual assault shelter                                          
13 qualified to receive a grant or contract under AS 18.66, or alcohol or drug                                             
14 abuse facility that meets standards established under AS 47.37; but                                                     
15   (B)  excludes a facility operated or wholly supported by the state                                                  
16 or the federal government;                                                                                              
17   (2)  "hospital" means a licensed hospital determined by the Department                                               
18 of Health and Social Services to be a general or special hospital; the term excludes a                                  
19 facility operated or wholly supported by the state or the federal government, or both.                                  
20  Sec. 29.60.760.  State aid to unincorporated communities.  (a)  The                                               
21 department shall pay to each unincorporated community $10,000 as an entitlement                                         
22 each fiscal year to be used for a public purpose.  The department with advice from the                                  
23 Department of Law shall determine whether there is in each unincorporated community                                     
24 an incorporated nonprofit entity or a Native village council that will agree to receive                                 
25 and spend the entitlement.  If there is more than one qualified entity in an                                            
26 unincorporated community, the department shall pay the money under the entitlement                                      
27 to the entity that the department finds most qualified to receive and spend the money.                                  
28 The department may not pay money under an entitlement to a Native village council                                       
29 unless the council waives immunity from suit for claims arising out of activities of the                                
30 council related to the entitlement.  A waiver of immunity from suit under this                                          
31 subsection must be on a form provided by the Department of Law.  If there is no                                         
01 qualified incorporated nonprofit entity or Native village council in an unincorporated                                  
02 community that is willing to receive money under an entitlement, the entitlement for                                    
03 that unincorporated community may not be paid.  Neither this subsection nor any                                         
04 action taken under it enlarges or diminishes the governmental authority or jurisdiction                                 
05 of a Native village council.                                                                                            
06  (b)  In this section "unincorporated community" means a place in the                                                  
07 unorganized borough that is not incorporated as a city and in which 25 or more                                          
08 persons reside as a social unit.                                                                                        
09  Sec. 29.60.770.  State aid for the village public safety officer program.  The                                      
10 Department of Community and Economic Development shall pay to the Department                                            
11 of Public Safety an entitlement each fiscal year to be used for the village public safety                               
12 officer program (AS 18.65.670).  The amount of the entitlement shall be calculated by                                   
13 multiplying $15 by the number of permanent fund dividends paid by the Department                                        
14 of Revenue during the calendar year immediately preceding the year the entitlement                                      
15 is paid.                                                                                                                
16  Sec. 29.60.780.  Applicability.  AS 29.60.700 - 29.60.750 apply to home rule                                        
17 and general law municipalities.                                                                                         
18    * Sec. 8.  AS 37.06.020(b) is amended to read:                                                                     
19  (b)  The unincorporated community capital project matching grant fund is                                              
20 established in the department and consists of appropriations to the fund.                                               
21 Appropriations to the fund do not lapse except as provided in (h) of this section.  The                                 
22 money in the fund is held by the department in custody under this subsection for each                                   
23 unincorporated community eligible for an allocation under this subsection.  The                                         
24 department shall establish an individual grant account within the fund for each                                         
25 unincorporated community that was entitled to receive state aid under  AS 29.60.760                                   
26 [AS 29.60.140] during the preceding fiscal year.  As provided in this subsection, each                                  
27 fiscal year the department shall allocate, to the individual grant accounts,                                            
28 appropriations to the fund.  An unincorporated community is eligible for an allocation                                  
29 in a fiscal year if the community was eligible to receive state aid under  AS 29.60.760                               
30 [AS 29.60.140] during the preceding fiscal year.  The department shall credit interest                                  
31 earned on money in an individual grant account to that account.  Except as provided                                     
01 in (c) of this section, the amount allocated under this subsection to an individual grant                               
02 account in a fiscal year is determined by dividing the total amount appropriated to the                                 
03 fund during that fiscal year by the number of unincorporated communities eligible for                                   
04 an allocation during that fiscal year.                                                                                  
05    * Sec. 9.  AS 37.06.030(a) is amended to read:                                                                     
06  (a)  For each draw made by a municipality under AS 37.06.010, the                                                     
07 municipality shall contribute a local share to the cost of the capital project for which                                
08 the draw is made.  The amount of the local share equals the local share percentage as                                   
09 calculated under (1) of this subsection, divided by the state share percentage as                                       
10 calculated under (2) of this subsection, multiplied by the amount of the draw. For                                      
11 purposes of this subsection,                                                                                            
12   (1)  the local share percentage is                                                                                   
13   (A)  30 percent for a municipality with a population of 5,000 or                                                    
14 more;                                                                                                                   
15   (B)  for a municipality with a population of 1,000  to and                                                         
16 including  [-] 4,999, the greater of                                                                                   
17   (i)  15 percent; or                                                                                                
18   (ii)  the percentage obtained by dividing the amount that                                                          
19 would be received by the municipality from a property tax levy of                                                       
20  1/1000  [1/1000TH] of a mill per $1,000 of grant funds received by the                                               
21 sum of that first amount plus the amount of the grant or draw, but not                                                  
22 more than 30 percent;                                                                                                   
23   (C)  for a municipality with a population of under 1,000, the                                                       
24 greater of                                                                                                              
25   (i)  five percent; or                                                                                              
26   (ii)  the percentage obtained by dividing the amount that                                                          
27 would be received by the municipality from a property tax levy of                                                       
28  1/1000  [1/1000TH] of a mill per $1,000 of grant funds received by the                                               
29 sum of that first amount plus the amount of the grant or draw, but not                                                  
30 more than 30 percent;                                                                                                   
31   (2)  the state share percentage equals one minus the local share                                                     
01 percentage;                                                                                                             
02   (3)  the local share to be contributed by a municipality may be satisfied                                            
03 with (A) federal, municipal, or local money; (B) labor, materials, or equipment used                                    
04 directly in the construction of the project, or land, including land transferred by the                                 
05 state to the municipality; the department shall determine the value of a contribution                                   
06 under this subparagraph; (C) money from another nonstate source; (D) money received                                     
07 by the municipality under  AS 29.60.660 - 29.60.780  [AS 29.60.010 - 29.60.375]; (E)                                  
08 state taxes refunded or reimbursed to the municipality whose use for the purposes of                                    
09 this subsection is not prohibited; (F) allocations of state aid for the costs of school                                 
10 construction debt under AS 14.11.100; and (G) money obtained from the sale or lease                                     
11 of land or other assets transferred by the state to the municipality; except as provided                                
12 in this paragraph, the local share may not be satisfied with money from, or with the                                    
13 portion of an asset that was obtained with money from, an appropriation, allocation,                                    
14 entitlement, grant, or other payment from the state.                                                                    
15    * Sec. 10.  AS 37.06.030(b) is amended to read:                                                                    
16  (b)  For each draw made by an entity or council under AS 37.06.020, the                                               
17 incorporated entity or Native village council that makes the draw shall contribute a                                    
18 local share of the cost of the capital project for which the draw is made.  The amount                                  
19 of the local share equals the local share percentage as calculated under (1) of this                                    
20 subsection, divided by the state share percentage as calculated under (2) of this                                       
21 subsection, multiplied by the amount of the draw. For purposes of this subsection,                                      
22   (1)  the local share percentage is five percent;                                                                     
23   (2)  the state share percentage equals one minus the local share                                                     
24 percentage;                                                                                                             
25   (3)  the local share may be satisfied from (A) federal or local money;                                               
26 (B) labor, materials, or equipment used directly in the construction of the project, or                                 
27 land, including land transferred by the state; the department shall determine the value                                 
28 of a contribution under this subparagraph; (C) money from another nonstate source;                                      
29 (D) money received by the unincorporated community under  AS 29.60.660 - 29.60.780                                    
30 [AS 29.60.010 - 29.60.375]; or (E) money obtained from the sale or lease of land or                                     
31 other assets transferred by the state; except as provided in this paragraph, the local                                  
01 share may not be satisfied with money from, or with the portion of an asset that was                                    
02 obtained with money from, an appropriation, allocation, entitlement, grant, or other                                    
03 payment from the state.                                                                                                 
04    * Sec. 11.  AS 37.13.145 is amended by adding a new subsection to read:                                            
05  (e)  At the end of the fiscal year, after the transfers under (b) and (c) of this                                     
06 section and subject to appropriation, the corporation shall transfer a municipal dividend                               
07 from the earnings reserve account to the municipal dividend fund established under                                      
08 AS 29.60.660.  The municipal dividend equals the lesser of                                                              
09   (1)  the amount calculated by multiplying $150 by the number of                                                      
10 permanent fund dividends paid by the Department of Revenue during the calendar year                                     
11 immediately preceding the year the transfer is made under this subsection; or                                           
12   (2)  the balance of the earnings reserve account on the date of the                                                  
13 transfer under this subsection.                                                                                         
14    * Sec. 12.  AS 41.15.180(d) is amended to read:                                                                    
15  (d)  From the percentage of the unorganized borough national forest receipts                                          
16 fund allocated to public roads under (b) of this section, the commissioner shall pay to                                 
17 each                                                                                                                    
18   (1)  home rule city, first class city, or second class city that exercises                                           
19 road powers, that is located within the unorganized borough and within a national                                       
20 forest or within 20 miles of a national forest, a share of the income from the roads                                    
21 allocation of the fund; a home rule city, first class city, or second class city's share                                
22 shall be calculated as the proportion of the number of road miles within municipal                                      
23 boundaries over which the community exercises road powers plus the number of state                                      
24 road miles maintained by the municipality under agreement with the state compared                                       
25 to the total number of road miles maintained by state or local governments in the                                       
26 unorganized borough and within the national forest or within 20 miles of the national                                   
27 forest;                                                                                                                 
28   (2)  municipality organized under federal law as an Indian reserve that                                              
29 existed before the enactment of 43 U.S.C. 1618(a) and is continued in existence under                                   
30 that subsection and that has formed a community development corporation under                                           
31  former  AS 29.60.365, that exercises road powers ,  and that is located within the                                 
01 unorganized borough and within the national forest or within 20 miles of the national                                   
02 forest a share of the income from the roads allocation of the fund; the share due a                                     
03 municipality organized under federal law that exercises road powers shall be calculated                                 
04 as the proportion of the number of road miles within municipal boundaries over which                                    
05 the community exercises road powers plus the number of state road miles maintained                                      
06 by the municipality under agreement with the state compared to the total number of                                      
07 road miles maintained by state or local governments in the unorganized borough and                                      
08 within the national forest or within 20 miles of the national forest; however, the                                      
09 commissioner may pay income from national forest receipts under this paragraph only                                     
10 after the corporation has delivered a written waiver of sovereign immunity from legal                                   
11 action by the state to recover all or a portion of the money distributed under this                                     
12 section.                                                                                                                
13    * Sec. 13.  AS 29.10.200(55), 29.10.200(56); AS 29.60.010, 29.60.020, 29.60.030,                                   
14 29.60.040, 29.60.050, 29.60.060, 29.60.070, 29.60.080, 29.60.100, 29.60.110, 29.60.120,                                 
15 29.60.130, 29.60.140, 29.60.150, 29.60.160, 29.60.170, 29.60.180, 29.60.280, 29.60.290,                                 
16 29.60.300, 29.60.310, 29.60.350, 29.60.360, 29.60.365, 29.60.370, 29.60.372, 29.60.373, and                             
17 29.60.375 are repealed.                                                                                                 
18    * Sec. 14.  The uncodified law of the State of Alaska is amended by adding a new section                           
19 to read:                                                                                                                
20  TRANSITION.  Notwithstanding AS 37.06.020(b), as amended in sec. 8 of this Act,                                        
21 an unincorporated community that was entitled to receive state aid for fiscal year 2000 under                           
22 former AS 29.60.140 is eligible for an allocation for fiscal year 2001 under AS 37.06.020(b).                           
23    * Sec. 15.  The uncodified law of the State of Alaska is amended by adding a new section                           
24 to read:                                                                                                                
25  REVISOR'S INSTRUCTION.  In AS 37.06.010(g), 37.06.030(c), and AS 42.45.110(b),                                         
26 the revisor of statutes shall change the statute reference from AS 29.60.020 to                                         
27 AS 29.60.700(c).