00 HOUSE CS FOR CS FOR SENATE BILL NO. 72(FIN) 01 "An Act relating to the community revenue sharing program; repealing certain 02 programs providing state payments to municipalities and other entities; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 18.70.075(a) is amended to read: 06 (a) A fire officer of a municipal fire department or a fire department registered 07 with the state fire marshal [UNDER AS 29.60.130], while providing fire protection 08 or other emergency services, has the authority to 09 (1) control and direct activities at the scene of a fire or emergency; 10 (2) order a person to leave a building or place in the vicinity of a fire or 11 emergency, for the purpose of protecting the person from injury; 12 (3) blockade a public highway, street, or private right-of-way 13 temporarily while at the scene of a fire or emergency; 14 (4) trespass upon property at or near the scene of a fire or emergency at 01 any time of the day or night; 02 (5) enter a building, including a private dwelling, or premises where a 03 fire is in progress, or where there is reasonable cause to believe a fire is in progress, to 04 extinguish the fire; 05 (6) enter a building, including a private dwelling, or premises near the 06 scene of a fire for the purpose of protecting the building or premises or for the purpose 07 of extinguishing the fire that is in progress in another building or premises; 08 (7) upon 24-hour notice to the owner or occupant, conduct a prefire 09 planning survey in all buildings, structures, or other places within the municipality or 10 the registered fire department's district, except the interior of a private dwelling, where 11 combustible material is or may become dangerous as a fire menace to the building; 12 (8) direct the removal or destruction of a fence, house, motor vehicle, 13 or other thing judged necessary to prevent the further spread of a fire. 14  * Sec. 2. AS 29.20.640(b) is amended to read: 15 (b) Compliance with the provisions of this section is a prerequisite to receipt 16 of community revenue sharing under AS 29.60.850 - 29.60.879 [MUNICIPAL 17 TAX RESOURCE EQUALIZATION ASSISTANCE UNDER AS 29.60.010 - 18 29.60.080 AND PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES 19 UNDER AS 29.60.100 - 29.60.180]. If a municipality does not comply with this 20 section, the department shall withhold the allocations until the required reports are 21 filed. 22  * Sec. 3. AS 29.45.020 is amended to read: 23 Sec. 29.45.020. Taxpayer notice. (a) If a municipality levies and collects 24 property taxes, the governing body shall provide the following notice: 25 "NOTICE TO TAXPAYER 26 For the current fiscal year the (city)(borough) has been allocated the 27 following amount of state aid for school and municipal purposes under 28 the applicable financial assistance Acts: 29 PUBLIC SCHOOL FUNDING 30 PROGRAM (AS 14.17) $ 31 STATE AID FOR RETIREMENT 01 OF SCHOOL CONSTRUCTION 02 DEBT (AS 14.11.100) $ 03 COMMUNITY REVENUE SHARING  04 PROGRAM (AS 29.60.850 - 29.60.879) $ 05 [MUNICIPAL TAX RESOURCE 06 EQUALIZATION 07 (AS 29.60.010 - 29.60.080) $ 08 PRIORITY REVENUE SHARING 09 FOR MUNICIPAL SERVICES 10 (AS 29.60.100 - 29.60.180) $ 11 REVENUE SHARING FOR 12 SAFE COMMUNITIES 13 (AS 29.60.350 - 29.60.375) $] 14 TOTAL AID $ 15 The millage equivalent of this state aid, based on the dollar value of a 16 mill in the municipality during the current assessment year and for the 17 preceding assessment year, is: 18 MILLAGE EQUIVALENT 19 PREVIOUS YEAR THIS YEAR 20 PUBLIC SCHOOL FUNDING 21 PROGRAM ASSISTANCE . . . .MILLS . . . .MILLS 22 STATE AID FOR RETIREMENT OF 23 SCHOOL CONSTRUCTION DEBT . . . .MILLS . . . .MILLS 24 COMMUNITY REVENUE  25 SHARING PROGRAM . . . .MILLS . . . .MILLS 26 [MUNICIPAL TAX RESOURCE 27 EQUALIZATION . . . .MILLS . . . .MILLS 28 PRIORITY REVENUE SHARING 29 FOR MUNICIPAL SERVICES . . . .MILLS . . . .MILLS 30 REVENUE SHARING FOR 31 SAFE COMMUNITIES . . . .MILLS . . . .MILLS] 01 TOTAL MILLAGE EQUIVALENT . . . .MILLS . . . .MILLS" 02 Notice shall be provided by 03 (1) furnishing a copy of the notice with tax statements mailed for the 04 fiscal year for which aid is received; or 05 (2) publishing in a newspaper of general circulation in the municipality 06 a copy of the notice once each week for a period of three successive weeks, with 07 publication to occur not later than 45 days after the final adoption of the municipality's 08 budget. 09 (b) Compliance with the provisions of this section is a prerequisite to receipt 10 of community revenue sharing under AS 29.60.850 - 29.60.879 [MUNICIPAL 11 TAX RESOURCE EQUALIZATION UNDER AS 29.60.010 - 29.60.080 AND 12 PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES UNDER 13 AS 29.60.100 - 29.60.180]. The department shall withhold annual allocations under 14 those sections until municipal officials demonstrate that the requirements of this 15 section have been met. 16  * Sec. 4. AS 29.45.660(b) is amended to read: 17 (b) Compliance with the provisions of this section is a prerequisite to receipt 18 of community revenue sharing under AS 29.60.850 - 29.60.879 [MUNICIPAL 19 TAX RESOURCE EQUALIZATION UNDER AS 29.60.010 - 29.60.080 AND 20 PRIORITY REVENUE SHARING FOR MUNICIPAL SERVICES UNDER 21 AS 29.60.100 - 29.60.180]. The department shall withhold annual allocations under 22 those sections until municipal officials demonstrate that the requirements of this 23 section have been met. 24  * Sec. 5. AS 29.60.810 is amended to read: 25 Sec. 29.60.810. Grant applications. A municipality that owns a harbor facility 26 may submit to the Department of Transportation and Public Facilities an application 27 for a municipal harbor facility grant to be used for construction, expansion, major 28 repair, or major maintenance of a harbor facility. The application must include 29 information about the project requested by the department. For a proposed project to 30 be eligible for a grant, the municipality must provide evidence acceptable to the 31 department that the 01 (1) proposed project is a capital improvement project and not part of a 02 preventive maintenance program or regular custodial care program; 03 (2) municipality will provide 50 percent of the total project cost as 04 matching funds for the state grant and that money received by the municipality from 05 the state will not be used for the matching funds except money received under 06 (A) AS 29.60.850 - 29.60.879 (community revenue sharing  07 program) [AS 29.60.010 - 29.60.080 (MUNICIPAL TAX RESOURCE 08 EQUALIZATION); 09 (B) AS 29.60.350 - 29.60.375 (SAFE COMMUNITIES 10 PROGRAM)]; and 11 (B) [(C)] AS 29.60.450, AS 43.75.130, and 43.75.137 (shared 12 fisheries business taxes); 13 (3) municipality has secured and will maintain adequate property loss 14 insurance for the replacement cost of the harbor facility or has an adequate program of 15 insurance; 16 (4) municipality has a preventive maintenance plan for the harbor 17 facility and will be adequately adhering to the preventive maintenance plan after 18 completion of the proposed project. 19  * Sec. 6. AS 29.60 is amended by adding new sections to read: 20 Article 11. Community Revenue Sharing Program.  21 Sec. 29.60.850. Community revenue sharing fund. (a) The community 22 revenue sharing fund is established in the general fund for the purpose of making 23 community revenue sharing payments as grants to municipalities, reserves, and 24 communities for any public purpose. The fund consists of appropriations. Income 25 earned on money in the fund may be appropriated to the fund. Money in the fund does 26 not lapse. 27 (b) Each fiscal year, the legislature may appropriate to the community revenue 28 sharing fund an amount equal to 20 percent of the money received by the state during 29 the previous calendar year under AS 43.55.011(g). The amount may not exceed 30 (1) $60,000,000; or 31 (2) the amount that, when added to the fund balance on June 30 of the 01 previous fiscal year, equals $180,000,000. 02 (c) The balance in the community revenue sharing fund shall be determined on 03 June 30 of each year. If the fund balance is at least $60,000,000, without further 04 appropriation, the department shall distribute one-third of that amount as community 05 revenue sharing payments for the immediately following fiscal year. Otherwise, no 06 payments may be made. 07 (d) Notwithstanding the guidelines in (b) of this section, the legislature may 08 appropriate any amount to the community revenue sharing fund. Nothing in this 09 section creates a dedicated fund. 10 Sec. 29.60.855. Basic community revenue sharing payments. (a) The 11 department shall calculate the basic amount used for determining the basic community 12 revenue sharing payment for a fiscal year by applying the following formula: the 13 amount available for payments for that fiscal year under AS 29.60.850(c), minus 14 60,000,000, divided by 60,000,000, plus one, multiplied by 384,000. However, if the 15 amount calculated is less than $220,000, the basic amount for that fiscal year is 16 $220,000. 17 (b) The basic community revenue sharing payment for a fiscal year equals, for 18 each 19 (1) unified municipality, the sum of the amounts calculated under (2) 20 and (3) of this subsection, rounded to the nearest $1,000; 21 (2) borough, the basic amount, rounded to the nearest $1,000; 22 (3) city and eligible reserve, one-fourth of the basic amount, rounded 23 to the nearest $100; 24 (4) eligible community in the unorganized borough, one-twelfth of the 25 basic amount, rounded to the nearest $100; 26 (5) eligible community in a unified municipality or borough, one- 27 nineteenth of the basic amount, rounded to the nearest $100. 28 Sec. 29.60.860. Per capita payment increases. (a) Subject to (b) of this 29 section, if the amount available for distribution under AS 29.60.850(c) exceeds the 30 amount needed to fully fund all the basic community revenue sharing payments, the 31 balance shall be distributed on a per capita basis to municipalities, to reserves, and to 01 communities in the unorganized borough. 02 (b) The per capita amount distributed to each community in the unorganized 03 borough may not, when added to the basic community revenue sharing payment for 04 that community, exceed the basic amount calculated under AS 29.60.855(b)(3). If the 05 per capita distribution for a community exceeds the basic amount calculated under 06 AS 29.60.855(b)(3), the excess amount shall be distributed on a per capita basis to 07 other communities in the unorganized borough. 08 (c) For purposes of this section, the population of a municipality, reserve, or 09 community shall be determined by using the numbers of permanent fund dividend 10 recipients or other population data that the department determines is reliable. For 11 purposes of determining the population of a borough, the population of each city in the 12 borough shall be deducted from the total borough population. 13 Sec. 29.60.865. Eligibility requirements for reserves and communities. (a)  14 The department, with advice from the Department of Law, shall determine whether 15 there is in each community or reserve an incorporated nonprofit entity or a Native 16 village council that will agree to receive and spend the community revenue sharing 17 payment. If there is more than one qualified entity in a reserve or community in the 18 unorganized borough, the department shall pay the money to the entity that the 19 department finds most qualified to receive and spend the money on behalf of the 20 reserve or community. The department may not make a community revenue sharing 21 payment to a Native village council unless the council waives immunity from suit for 22 claims arising out of activities of the council related to the payment. A waiver of 23 immunity from suit under this section must be on a form provided by the Department 24 of Law. If there is no qualified incorporated nonprofit entity or Native village council 25 in a reserve or community that is willing to receive the community revenue sharing 26 payment and use the payment on behalf of that reserve or community, the payment for 27 that reserve or community may not be paid. Neither this section nor any action taken 28 under it enlarges or diminishes the governmental authority or jurisdiction of a Native 29 village council. 30 (b) The department may make a community revenue sharing payment on 31 behalf of a community in a borough or unified municipality only to the municipality 01 for payment by the municipality to an incorporated nonprofit entity or Native village 02 council that has been approved by the assembly and meets the requirements of (a) of 03 this section. The department shall have written evidence of the assembly approval. If 04 there is more than one qualified entity in a community in a borough or unified 05 municipality, one of the entities may receive the entire payment, or the payment may 06 be shared between two or more of the qualified entities, as determined by the 07 assembly. 08 (c) A community in a borough or unified municipality is eligible for a 09 community revenue sharing payment only if at least three of the following services are 10 generally available to all residents of the community and each of the three services, in 11 any combination, are provided by one or more qualifying incorporated nonprofit 12 entities or a Native village council or are substantially paid for by the residents of the 13 community through taxes, charges, or assessments levied or authorized by the borough 14 or unified municipality: 15 (1) fire protection; 16 (2) emergency medical; 17 (3) water and sewer; 18 (4) solid waste management; 19 (5) public road or ice road maintenance; 20 (6) public health; 21 (7) search and rescue. 22 Sec. 29.60.879. Definitions. In AS 29.60.850 - 29.60.879, 23 (1) "community" means a place in the unorganized borough, in a 24 borough, or in a unified municipality that is not incorporated as a municipality, that is 25 not a reserve, and in which 25 or more individuals reside as a social unit; 26 (2) "reserve" means a place that is organized under federal law as an 27 Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in 28 existence under that subsection. 29  * Sec. 7. AS 37.06.010(g) is amended to read: 30 (g) For purposes of this section, in calculating the population of a borough, the 31 population of each city in the borough is excluded. The determination of population 01 shall be based on the latest figures of the United States Bureau of the Census or  02 other population data that [UPON DATA USED BY] the Department of 03 Commerce, Community, and Economic Development determines is reliable 04 [UNDER AS 29.60.020]. 05  * Sec. 8. AS 37.06.020(b) is amended to read: 06 (b) The unincorporated community capital project matching grant fund is 07 established in the department and consists of appropriations to the fund. 08 Appropriations to the fund do not lapse except as provided in (h) of this section. The 09 money in the fund is held by the department in custody under this subsection for each 10 unincorporated community eligible for an allocation under this subsection. The 11 department shall establish an individual grant account within the fund for each 12 unincorporated community that was entitled to receive state aid under AS 29.60.855 13 [AS 29.60.140] during the preceding fiscal year. As provided in this subsection, each 14 fiscal year, the department shall allocate, to the individual grant accounts, 15 appropriations to the fund. An unincorporated community is eligible for an allocation 16 in a fiscal year if the community was eligible to receive state aid under AS 29.60.855 17 [AS 29.60.140] during the preceding fiscal year. The department shall credit interest 18 earned on money in an individual grant account to that account. Except as provided in 19 (c) of this section, the amount allocated under this subsection to an individual grant 20 account in a fiscal year is determined by dividing the total amount appropriated to the 21 fund during that fiscal year by the number of unincorporated communities eligible for 22 an allocation during that fiscal year. 23  * Sec. 9. AS 37.06.030 is amended to read: 24 Sec. 37.06.030. Local share requirements. (a) For each draw made by a 25 municipality under AS 37.06.010, the municipality shall contribute a local share to the 26 cost of the capital project for which the draw is made. The amount of the local share 27 equals the local share percentage as calculated under (1) of this subsection, divided by 28 the state share percentage as calculated under (2) of this subsection, multiplied by the 29 amount of the draw. For purposes of this subsection, 30 (1) the local share percentage is 31 (A) 30 percent for a municipality with a population of 5,000 or 01 more; 02 (B) for a municipality with a population of 1,000 - 4,999, the 03 greater of 04 (i) 15 percent; or 05 (ii) the percentage obtained by dividing the amount that 06 would be received by the municipality from a property tax levy of 07 1/1000th of a mill for each [PER] $1,000 of grant funds received by 08 the sum of that first amount plus the amount of the grant or draw, but 09 not more than 30 percent; 10 (C) for a municipality with a population of under 1,000, the 11 greater of 12 (i) five percent; or 13 (ii) the percentage obtained by dividing the amount that 14 would be received by the municipality from a property tax levy of 15 1/1000th of a mill for each [PER] $1,000 of grant funds received by 16 the sum of that first amount plus the amount of the grant or draw, but 17 not more than 30 percent; 18 (2) the state share percentage equals one minus the local share 19 percentage; 20 (3) the local share to be contributed by a municipality may be satisfied 21 with (A) federal, municipal, or local money; (B) labor, materials, or equipment used 22 directly in the construction of the project, or land, including land transferred by the 23 state to the municipality; the department shall determine the value of a contribution 24 under this subparagraph; (C) money from another nonstate source; (D) money 25 received by the municipality under AS 29.60.850 - 29.60.879 [AS 29.60.010 - 26 29.60.375]; (E) state taxes refunded or reimbursed to the municipality whose use for 27 the purposes of this subsection is not prohibited; (F) allocations of state aid for the 28 costs of school construction debt under AS 14.11.100; and (G) money obtained from 29 the sale or lease of land or other assets transferred by the state to the municipality; 30 except as provided in this paragraph, the local share may not be satisfied with money 31 from, or with the portion of an asset that was obtained with money from, an 01 appropriation, allocation, entitlement, grant, or other payment from the state. 02 (b) For each draw made by an entity or council under AS 37.06.020, the 03 incorporated entity or Native village council that makes the draw shall contribute a 04 local share of the cost of the capital project for which the draw is made. The amount of 05 the local share equals the local share percentage as calculated under (1) of this 06 subsection, divided by the state share percentage as calculated under (2) of this 07 subsection, multiplied by the amount of the draw. For purposes of this subsection, 08 (1) the local share percentage is five percent; 09 (2) the state share percentage equals one minus the local share 10 percentage; 11 (3) the local share may be satisfied from (A) federal or local money; 12 (B) labor, materials, or equipment used directly in the construction of the project, or 13 land, including land transferred by the state; the department shall determine the value 14 of a contribution under this subparagraph; (C) money from another nonstate source; 15 (D) money received by the unincorporated community under AS 29.60.850 -  16 29.60.879 [AS 29.60.010 - 29.60.375]; or (E) money obtained from the sale or lease of 17 land or other assets transferred by the state; except as provided in this paragraph, the 18 local share may not be satisfied with money from, or with the portion of an asset that 19 was obtained with money from, an appropriation, allocation, entitlement, grant, or 20 other payment from the state. 21 (c) For purposes of (a) of this section, in calculating the population of a 22 borough the population of each city in the borough is excluded. The determination of 23 population shall be based on the latest figures of the United States Bureau of the  24 Census or other population data that [UPON DATA USED BY] the Department of 25 Commerce, Community, and Economic Development determines is reliable 26 [UNDER AS 29.60.020]. 27  * Sec. 10. AS 41.15.180(d) is amended to read: 28 (d) From the percentage of the unorganized borough national forest receipts 29 fund allocated to public roads under (b) of this section, the commissioner shall pay to 30 each 31 (1) home rule city, first class city, or second class city that exercises 01 road powers, that is located within the unorganized borough and within a national 02 forest or within 20 miles of a national forest, a share of the income from the roads 03 allocation of the fund; a home rule city, first class city, or second class city's share 04 shall be calculated as the proportion of the number of road miles within municipal 05 boundaries over which the community exercises road powers plus the number of state 06 road miles maintained by the municipality under agreement with the state compared to 07 the total number of road miles maintained by state or local governments in the 08 unorganized borough and within the national forest or within 20 miles of the national 09 forest; 10 (2) municipality organized under federal law as an Indian reserve that 11 existed before the enactment of 43 U.S.C. 1618(a) and is continued in existence under 12 that subsection and that has formed a community development corporation under (n)  13 of this section [AS 29.60.365], that exercises road powers and that is located within 14 the unorganized borough and within the national forest or within 20 miles of the 15 national forest a share of the income from the roads allocation of the fund; the share 16 due a municipality organized under federal law that exercises road powers shall be 17 calculated as the proportion of the number of road miles within municipal boundaries 18 over which the community exercises road powers plus the number of state road miles 19 maintained by the municipality under agreement with the state compared to the total 20 number of road miles maintained by state or local governments in the unorganized 21 borough and within the national forest or within 20 miles of the national forest; 22 however, the commissioner may pay income from national forest receipts under this 23 paragraph only after the corporation has delivered a written waiver of sovereign 24 immunity from legal action by the state to recover all or a portion of the money 25 distributed under this section. 26  * Sec. 11. AS 41.15.180 is amended by adding a new subsection to read: 27 (n) To qualify to receive money under (d)(2) of this section, a municipality 28 organized under federal law as an Indian reserve shall form a community development 29 corporation with authority to determine how the money will be used. The charter must 30 require that the governing board of the corporation shall be elected at an annual 31 election open to all residents of the municipality organized under federal law who are 01 registered and qualified to vote in state elections. The department may distribute 02 money for the municipality organized under federal law only to a corporation 03 organized in accordance with this subsection and only after the corporation has 04 delivered a written waiver of sovereign immunity from legal action by the state to 05 recover all or a portion of the money distributed under (d)(2) of this section. 06  * Sec. 12. AS 42.45.110(b) is amended to read: 07 (b) An eligible electric utility is entitled to receive power cost equalization 08 (1) for sales of power to local community facilities, calculated in the 09 aggregate for each community served by the electric utility, for actual consumption of 10 not more than 70 kilowatt-hours a [PER] month for each resident of the community; 11 the number of community residents shall be determined annually by the latest  12 figures of the United States Bureau of the Census or other population data that  13 the Department of Commerce, Community, and Economic Development  14 determines is reliable [UNDER AS 29.60.020]; and 15 (2) for actual consumption of not more than 500 kilowatt-hours a 16 [PER] month sold to each residential customer. 17  * Sec. 13. AS 44.88.610(a)(1) is amended to read: 18 (1) "community" means a city as defined in AS 29.71.800 or a place  19 in the unorganized borough that is not incorporated as a city and in which 25 or  20 more individuals reside as a social unit [AN UNINCORPORATED COMMUNITY 21 AS DEFINED IN AS 29.60.140]; and 22  * Sec. 14. AS 29.10.200(59), 29.10.200(60); AS 29.60.010, 29.60.020, 29.60.030, 23 29.60.040, 29.60.050, 29.60.060, 29.60.070, 29.60.080, 29.60.100, 29.60.110, 29.60.120, 24 29.60.130, 29.60.140, 29.60.150, 29.60.160, 29.60.170, 29.60.180, 29.60.280, 29.60.290, 25 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 26 29.60.375 are repealed. 27  * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).