00 CS FOR HOUSE BILL NO. 398(CRA) 01 "An Act relating to disposition of revenue from certain charges collected on valuable 02 mineral deposits on land belonging to the state and subject to location, license, lease, 03 discovery, or the right to prospect for the extraction of natural resources under the 04 Alaska Land Act, and to aid to municipalities to offset the anticipated effect of lessees' 05 exploration or location activities on land made subject to extraction of valuable mineral 06 deposits; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 37.05 is amended by adding a new section to read: 09 Sec. 37.05.535. State mineral lease assistance special revenue fund. (a) The 10 state mineral lease assistance special revenue fund is established as a separate fund in 11 the general fund. The fund consists of money deposited into it from amounts 12 accounted for under AS 38.05.035(a)(10) and from appropriations made from other 13 sources. 01 (b) The legislature may appropriate money in the state mineral lease assistance 02 special revenue fund to pay state aid to a municipality 03 (1) in which is located any part of an oil or gas exploration license 04 issued under AS 38.05.131 - 38.05.134, a nonconventional gas lease subject to 05 AS 38.05.177, an oil and gas lease or gas only lease issued under AS 38.05.180, a coal 06 lease entered into under AS 38.05.150, a lease containing a deposit subject to 07 disposition as described in AS 38.05.145, or a right to deposits of minerals set out in 08 AS 38.05.185 - 38.05.275; or 09 (2) that is proximate to any part of an oil or gas exploration license 10 issued under AS 38.05.131 - 38.05.134, a nonconventional gas lease subject to 11 AS 38.05.177, an oil and gas lease or gas only lease issued under AS 38.05.180, a coal 12 lease entered into under AS 38.05.150, a lease containing a deposit subject to 13 disposition as described in AS 38.05.145, or a right to deposits of minerals set out in 14 AS 38.05.185 - 38.05.275, and that, in the judgment of the commissioner of 15 commerce, community, and economic development, is reasonably likely to be affected 16 by exploration or development activities on the licensed or leased tracts. 17 (c) The Department of Commerce, Community, and Economic Development 18 (1) shall use appropriations made by the legislature from the state 19 mineral lease assistance special revenue fund to make grants to municipalities under 20 (b) of this section that are located in areas of the state that in the judgment of the 21 commissioner of commerce, community, and economic development, 22 (A) may qualify for state assistance for commercial 23 development of mineral resources under AS 19.30.020 - 19.30.051; for 24 purposes of making the determination required by this subparagraph, in the 25 application of the standards set out in AS 19.30.020 - 19.30.051, the restriction 26 against providing state assistance under AS 19.30.020 to facilitate the 27 commercial development of oil and gas does not apply; and 28 (B) have few or no resource extraction activities currently 29 operating within or proximate to the municipality; 30 (2) shall include terms and conditions in a grant made under this 31 subsection to require use of the proceeds of the grant by the municipality to offset or 01 defray the effects within the municipality of exploration or development activities 02 under the related licenses or leases; the proceeds of the grant may be used only for 03 (A) planning; and 04 (B) construction, maintenance, and operation of essential 05 public facilities by the municipality; 06 (3) may impose additional reasonable terms and conditions on the use 07 of amounts provided as grants under this subsection; and 08 (4) may not make grants to a municipality from the fund established in 09 this section for more than five consecutive state fiscal years. 10 * Sec. 2. AS 38.05.035(a)(10) is amended to read: 11 (10) account for the fees, licenses, taxes, or other money received in 12 the administration of this chapter including the sale or leasing of land, identify their 13 source, and promptly transmit them to the proper fiscal department after crediting 14 them to the proper fund; receipts from land application filing fees, licenses and 15 license fees, lease fees, and other money received, except royalties due and 16 payable under this chapter and except as otherwise specifically provided in this 17 paragraph, shall be separately accounted for and deposited as required by 18 AS 38.05.138, and receipts from charges for copies of maps and records shall be 19 deposited immediately in the general fund of the state [BY THE DIRECTOR]; 20 * Sec. 3. AS 38.05 is amended by adding a new section to read: 21 Sec. 38.05.138. Mineral receipts account. (a) The mineral receipts account is 22 established in the general fund. Ten percent of the revenue derived as fees, charges, 23 and miscellaneous receipts from the location, license, or lease activities and activities 24 involving discovery and the right to prospect for and develop minerals on state land 25 under this chapter that are identified in AS 37.05.535(b) shall be deposited in the 26 account. 27 (b) The legislature may appropriate money deposited into the account to the 28 fund established in AS 37.05.535 or for any other public purpose. 29 * Sec. 4. This Act takes effect July 1, 2006.