00                              HOUSE BILL NO. 64                                                                          
01 "An Act relating to new borough grants; and providing for an effective date."                                           
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 29.05 is amended by adding a new subsection to read:                                              
04            Sec. 29.05.205. New borough grants. (a) Subject to (b) of this section, for the                            
05       purpose of providing for financial stability, each borough or unified municipality                                
06       incorporated during the period that begins on July 1, 2007, and ends on June 30, 2011,                            
07       is entitled to a new borough grant in addition to organization grants under                                       
08       AS 29.05.190. The amount of the new borough grant for a borough or unified                                        
09       municipality that is entitled to at least 15,000 acres of general grant land under                                
10       AS 29.65.030 is $12,500,000. Otherwise, the amount of the new borough grant is                                    
11       $15,000,000.                                                                                                      
12            (b)  New borough grant money may only be used for investments by the                                         
13       municipality that receives it. The municipality may use realized income from the                                  
14       investments for any of its municipal purposes.                                                                    
15            (c)  This section does not apply to a borough incorporated by consolidation or                               
01       to a unified municipality that occupies the area formerly occupied by a borough.                                  
02       Furthermore, this section only applies to a newly organized borough or unified                                    
03       municipality with boundaries identical to those of a model borough identified in the                              
04       Local Boundary Commission February 2003 report entitled "Unorganized Areas of                                     
05       Alaska that Meet Borough Incorporation Standards."                                                                
06            (d)  The department may adopt regulations to implement this section. The                                     
07       department shall disburse new borough grant money within 30 days after it is                                      
08       appropriated and available for the purpose. Before August 31 of each fiscal year, the                             
09       department shall submit a report to the office of management and budget identifying                               
10                 (1)  each borough or unified municipality expected to qualify to receive                                
11       a new borough grant during the next fiscal year;                                                                  
12                 (2)  the amount of money needed to fund expected new borough grants;                                    
13       and                                                                                                               
14                 (3)  the amount of money needed to fund any remaining unpaid new                                        
15       borough grant amounts from prior fiscal year entitlements.                                                        
16    * Sec. 2. This Act takes effect July 1, 2007.