00                       CS FOR SENATE BILL NO. 135(RES)                                                                   
01 "An Act relating to the sharing of tax revenue from the fisheries business tax and                                      
02 fishery resource landing tax with municipalities; relating to municipal reports on the                                  
03 shared tax revenue; and providing for an effective date."                                                               
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 section                          
06 to read:                                                                                                                
07       LEGISLATIVE INTENT. It is the intent of the legislature that a municipality use the                               
08 additional revenue distributed under this Act to help maintain and improve the municipality's                           
09 harbor facilities, if the municipality operates harbor facilities.                                                      
10    * Sec. 2. AS 43.75.130(a) is amended to read:                                                                      
11            (a)  Subject to appropriation by the legislature, and except [EXCEPT] as                                 
12       provided in (d) of this section, the commissioner shall pay                                                       
13                 (1)  to each unified municipality and to each city located in the                                       
14       unorganized borough, 60 [50] percent of the amount of tax revenue collected in the                            
01       municipality from taxes levied under this chapter;                                                                
02                 (2)  to each city located within a borough, 35 [25] percent of the                                  
03       amount of tax revenue collected in the city from taxes levied under this chapter; and                             
04                 (3)  to each borough                                                                                    
05                      (A)  60 [50] percent of the amount of tax revenue collected in                                 
06 the area of the borough outside cities from taxes levied under this chapter; and                                        
07 (B)  35 [25] percent of the amount of tax revenue collected in                                                      
08            cities located within the borough from taxes levied under this chapter.                                      
09    * Sec. 3. AS 43.75.130(a), as amended by sec. 2 of this Act, is amended to read:                                   
10 (a)  Subject to appropriation by the legislature, and except as provided in (d) of                                      
11       this section, the commissioner shall pay                                                                          
12 (1)  to each unified municipality and to each city located in the                                                       
13 unorganized borough, 50 [60] percent of the amount of tax revenue collected in the                                  
14       municipality from taxes levied under this chapter;                                                                
15 (2)  to each city located within a borough, 25 [35] percent of the                                                  
16       amount of tax revenue collected in the city from taxes levied under this chapter; and                             
17                 (3)  to each borough                                                                                    
18 (A)  50 [60] percent of the amount of tax revenue collected in                                                      
19            the area of the borough outside cities from taxes levied under this chapter; and                             
20 (B)  25 [35] percent of the amount of tax revenue collected in                                                      
21            cities located within the borough from taxes levied under this chapter.                                      
22    * Sec. 4. AS 43.75.130(d) is amended to read:                                                                      
23 (d)  Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and                                    
24       subject to appropriation by the legislature, the commissioner shall pay                                       
25 (1)  to each city that is located in a borough incorporated after June 16,                                              
26 1987, the following percentages of the tax revenue collected in the city from taxes                                 
27       levied under this chapter:                                                                                        
28 (A)  55 [45] percent of the taxes collected during the calendar                                                     
29            year in which the borough is incorporated;                                                                   
30 (B)  50 [40] percent of the taxes collected during the first                                                        
31            calendar year after the calendar year in which the borough is incorporated;                                  
01                      (C)  45 [35] percent of the taxes collected during the second                                  
02 calendar year after the calendar year in which the borough is incorporated; and                                         
03 (D)  40 [30] percent of the taxes collected during the third                                                        
04 calendar year after the calendar year in which the borough is incorporated; and                                         
05 (2)  to each borough that is incorporated after June 16, 1987, the                                                  
06 following percentages of the tax revenue collected in the cities located within the                                     
07       borough from taxes levied under this chapter:                                                                     
08                      (A)  7.5 [5] percent of the taxes collected during the calendar                                
09            year in which the borough is incorporated;                                                                   
10 (B)  15 [10] percent of the taxes collected during the first                                                        
11            calendar year after the calendar year in which the borough is incorporated;                                  
12 (C)  25 [15] percent of the taxes collected during the second                                                       
13            calendar year after the calendar year in which the borough is incorporated; and                              
14 (D)  30 [20] percent of the taxes collected during the third                                                        
15            calendar year after the calendar year in which the borough is incorporated.                                  
16    * Sec. 5. AS 43.75.130(d), as amended by sec. 4 of this Act, is amended to read:                                   
17 (d)  Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and                                        
18       subject to appropriation by the legislature, the commissioner shall pay                                           
19 (1)  to each city that is located in a borough incorporated after June 16,                                              
20 1987, the following percentages of the tax revenue collected in the city from taxes                                     
21       levied under this chapter:                                                                                        
22 (A)  45 [55] percent of the taxes collected during the calendar                                                     
23            year in which the borough is incorporated;                                                                   
24 (B)  40 [50] percent of the taxes collected during the first                                                        
25            calendar year after the calendar year in which the borough is incorporated;                                  
26 (C)  35 [45] percent of the taxes collected during the second                                                       
27            calendar year after the calendar year in which the borough is incorporated; and                              
28 (D)  30 [40] percent of the taxes collected during the third                                                        
29            calendar year after the calendar year in which the borough is incorporated; and                              
30 (2)  to each borough that is incorporated after June 16, 1987, the                                                      
31 following percentages of the tax revenue collected in the cities located within the                                     
01       borough from taxes levied under this chapter:                                                                     
02                      (A)  five [7.5] percent of the taxes collected during the calendar                             
03            year in which the borough is incorporated;                                                                   
04                      (B)  10 [15] percent of the taxes collected during the first                                   
05            calendar year after the calendar year in which the borough is incorporated;                                  
06                      (C)  15 [25] percent of the taxes collected during the second                                  
07 calendar year after the calendar year in which the borough is incorporated; and                                         
08 (D)  20 [30] percent of the taxes collected during the third                                                        
09            calendar year after the calendar year in which the borough is incorporated.                                  
10    * Sec. 6. AS 43.75.130 is amended by adding a new subsection to read:                                              
11 (i)  A municipality that receives a payment under this section shall use 10                                             
12 percent of the funds received under this section to support or enhance commercial                                       
13       fishing.                                                                                                          
14    * Sec. 7. AS 43.75.137 is amended to read:                                                                         
15 Sec. 43.75.137. Additional refund. Subject to appropriation by the                                                  
16 legislature [TO THE EXTENT THAT APPROPRIATIONS ARE AVAILABLE FOR                                                    
17 THE PURPOSE, AND NOTWITHSTANDING THE REQUIREMENT OF                                                                     
18 AS 37.07.080(e) THAT APPROVAL OF THE OFFICE OF MANAGEMENT AND                                                           
19 BUDGET IS REQUIRED], an amount equal to 75 [50] percent of the tax revenue that                                     
20 is collected under this chapter from fisheries businesses and that is not subject to                                
21 division with a municipality under AS 43.75.130 shall be paid by [TRANSMITTED                                       
22 EACH FISCAL YEAR, WITHOUT THE APPROVAL OF THE OFFICE OF                                                                 
23 MANAGEMENT AND BUDGET, BY THE DEPARTMENT TO] the Department of                                                          
24 Commerce, Community, and Economic Development [FOR DISBURSAL] to eligible                                               
25       municipalities under AS 29.60.450.                                                                              
26    * Sec. 8. AS 43.75.137, as amended by sec. 7 of this Act, is amended to read:                                      
27 Sec. 43.75.137. Additional refund. Subject to appropriation by the legislature,                                       
28 an amount equal to 50 [75] percent of the tax revenue that is collected under this                                  
29 chapter from fisheries businesses and that is not subject to division with a municipality                               
30 under AS 43.75.130 shall be paid by the Department of Commerce, Community, and                                          
31       Economic Development to eligible municipalities under AS 29.60.450.                                               
01    * Sec. 9. AS 43.75 is amended by adding a new section to article 3 to read:                                        
02 Sec. 43.75.150. Municipal reports to the legislature. (a) Except as provided                                          
03 in (c) of this section, not more than 30 days after the convening of each regular                                       
04 legislative session, a municipality that receives tax revenue under AS 43.75.130 -                                      
05       43.75.137 shall prepare and submit to the legislature a report that describes                                     
06                 (1)  how those funds were used by the municipality in the previous                                      
07       fiscal year; and                                                                                                  
08                 (2)  any harbor maintenance or improvement projects that were funded                                    
09       in whole or in part by the tax revenue collected under AS 43.75.130 - 43.75.137, if the                           
10       municipality operates a harbor.                                                                                   
11 (b)  The report required under (a) of this section may be made jointly with the                                         
12       report required under AS 43.77.060(f).                                                                            
13 (c)  A report is not required under this section if the total tax revenue a                                             
14       municipality receives under AS 43.75.130 - 43.75.137 is less than $10,000.                                        
15    * Sec. 10. AS 43.77.060(a) is amended to read:                                                                     
16 (a)  Subject to appropriation by the legislature and except as provided in (b) of                                       
17       this section, the commissioner shall pay to each                                                                  
18 (1)  unified municipality and to each city located in the unorganized                                                   
19 borough 75 [, 50] percent of the amount of tax revenue collected from taxes levied                                  
20 under this chapter on the fishery resource landed in the municipality and accounted for                                 
21       under AS 43.77.050(b);                                                                                            
22 (2)  city located within a borough 35 [, 25] percent of the amount of the                                           
23 tax revenue collected from taxes levied under this chapter on fishery resources landed                                  
24       in the city and accounted for under AS 43.77.050(b); and                                                          
25                 (3)  borough                                                                                            
26 (A)  75 [50] percent of the amount of the tax revenue collected                                                     
27 from taxes levied under this chapter on fishery resources landed in the area of                                         
28            the borough outside cities and accounted for under AS 43.77.050(b); and                                      
29 (B)  35 [25] percent of the amount of the tax revenue collected                                                     
30 from taxes levied under this chapter on fishery resources landed in cities                                              
31            located within the borough and accounted for under AS 43.77.050(b).                                          
01    * Sec. 11. AS 43.77.060(a), as amended by sec. 10 of this Act, is amended to read:                                 
02            (a)  Subject to appropriation by the legislature and except as provided in (b) of                            
03       this section, the commissioner shall pay to each                                                                  
04 (1)  unified municipality and to each city located in the unorganized                                                   
05 borough 50 [75] percent of the amount of tax revenue collected from taxes levied                                    
06 under this chapter on the fishery resource landed in the municipality and accounted for                                 
07       under AS 43.77.050(b);                                                                                            
08                 (2)  city located within a borough 25 [35] percent of the amount of the                             
09       tax revenue collected from taxes levied under this chapter on fishery resources landed                            
10       in the city and accounted for under AS 43.77.050(b); and                                                          
11                 (3)  borough                                                                                            
12 (A)  50 [75] percent of the amount of the tax revenue collected                                                     
13 from taxes levied under this chapter on fishery resources landed in the area of                                         
14            the borough outside cities and accounted for under AS 43.77.050(b); and                                      
15 (B)  25 [35] percent of the amount of the tax revenue collected                                                     
16 from taxes levied under this chapter on fishery resources landed in cities                                              
17            located within the borough and accounted for under AS 43.77.050(b).                                          
18    * Sec. 12. AS 43.77.060(b) is amended to read:                                                                     
19 (b)  Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and                                        
20       subject to appropriation by the legislature, the commissioner shall pay to each                                   
21 (1)  city that is located in a borough incorporated after January 1, 1994,                                              
22 the following percentages of the tax revenue collected from taxes levied under this                                     
23 chapter on fishery resources landed in the city and accounted for under                                                 
24       AS 43.77.050(b):                                                                                                  
25 (A)  50 [45] percent of the tax revenue collected during the                                                        
26            calendar year in which the borough is incorporated;                                                          
27 (B)  50 [40] percent of the tax revenue collected during the first                                                  
28            calendar year after the calendar year in which the borough is incorporated;                                  
29 (C)  50 [35] percent of the tax revenue collected during the                                                        
30 second calendar year after the calendar year in which the borough is                                                    
31            incorporated; and                                                                                            
01                      (D)  50 [30] percent of the tax revenue collected during the third                             
02 calendar year after the calendar year in which the borough is incorporated; and                                         
03 (2)  borough that is incorporated after January 1, 1994, the following                                                  
04 percentages of the tax revenue collected from taxes levied under this chapter on                                        
05 fishery resources landed in the cities located within the borough and accounted for                                     
06       under AS 43.77.050(b):                                                                                            
07                      (A)  10 [FIVE] percent of the tax revenue collected during the                                 
08            calendar year in which the borough is incorporated;                                                          
09                      (B)  20 [10] percent of the tax revenue collected during the first                             
10            calendar year after the calendar year in which the borough is incorporated;                                  
11 (C)  25 [15] percent of the tax revenue collected during the                                                        
12 second calendar year after the calendar year in which the borough is                                                    
13            incorporated; and                                                                                            
14 (D)  35 [20] percent of the tax revenue collected during the third                                                  
15            calendar year after the calendar year in which the borough is incorporated.                                  
16    * Sec. 13. AS 43.77.060(b), as amended by sec. 12 of this Act, is amended to read:                                 
17 (b)  Notwithstanding the provisions of (a)(2) and (a)(3)(B) of this section, and                                        
18       subject to appropriation by the legislature, the commissioner shall pay to each                                   
19 (1)  city that is located in a borough incorporated after January 1, 1994,                                              
20 the following percentages of the tax revenue collected from taxes levied under this                                     
21 chapter on fishery resources landed in the city and accounted for under                                                 
22       AS 43.77.050(b):                                                                                                  
23 (A)  45 [50] percent of the tax revenue collected during the                                                        
24            calendar year in which the borough is incorporated;                                                          
25 (B)  40 [50] percent of the tax revenue collected during the first                                                  
26            calendar year after the calendar year in which the borough is incorporated;                                  
27 (C)  35 [50] percent of the tax revenue collected during the                                                        
28 second calendar year after the calendar year in which the borough is                                                    
29            incorporated; and                                                                                            
30 (D)  30 [50] percent of the tax revenue collected during the third                                                  
31            calendar year after the calendar year in which the borough is incorporated; and                              
01 (2)  borough that is incorporated after January 1, 1994, the following                                                  
02 percentages of the tax revenue collected from taxes levied under this chapter on                                        
03 fishery resources landed in the cities located within the borough and accounted for                                     
04       under AS 43.77.050(b):                                                                                            
05                      (A)  five [10] percent of the tax revenue collected during the                                 
06            calendar year in which the borough is incorporated;                                                          
07                      (B)  10 [20] percent of the tax revenue collected during the first                             
08            calendar year after the calendar year in which the borough is incorporated;                                  
09                      (C)  15 [25] percent of the tax revenue collected during the                                   
10 second calendar year after the calendar year in which the borough is                                                    
11            incorporated; and                                                                                            
12 (D)  20 [35] percent of the tax revenue collected during the third                                                  
13            calendar year after the calendar year in which the borough is incorporated.                                  
14    * Sec. 14. AS 43.77.060(d) is amended to read:                                                                     
15 (d)  Subject to appropriation by the legislature [TO THE EXTENT THAT                                                
16 APPROPRIATIONS ARE AVAILABLE FOR THE PURPOSE, AND                                                                       
17 NOTWITHSTANDING THE REQUIREMENT OF AS 37.07.080(e) THAT                                                                 
18 APPROVAL OF THE OFFICE OF MANAGEMENT AND BUDGET IS                                                                      
19 REQUIRED], an amount equal to 75 [50] percent of the tax revenue that is collected                                  
20 under this chapter and that is not subject to division with a municipality under (a) - (c)                          
21 of this section shall be paid by [TRANSMITTED EACH FISCAL YEAR,                                                     
22 WITHOUT THE APPROVAL OF THE OFFICE OF MANAGEMENT AND                                                                    
23 BUDGET, BY THE DEPARTMENT TO] the Department of Commerce, Community,                                                    
24 and Economic Development [FOR DISBURSAL] to eligible municipalities under                                               
25       AS 29.60.450.                                                                                                     
26    * Sec. 15. AS 43.77.060(d), as amended by sec. 14 of this Act, is amended to read:                                 
27 (d)  Subject to appropriation by the legislature, an amount equal to 50 [75]                                        
28 percent of the tax revenue that is collected under this chapter and that is not subject to                              
29 division with a municipality under (a) - (c) of this section shall be paid by the                                       
30 Department of Commerce, Community, and Economic Development to eligible                                                 
31       municipalities under AS 29.60.450.                                                                                
01    * Sec. 16. AS 43.77.060 is amended by adding new subsections to read:                                              
02 (f)  Except as provided in (c) of this section, not more than 30 days after the                                         
03 convening of each regular legislative session, a municipality that receives tax revenue                                 
04 under this section shall prepare and submit to the legislature a report that describes                                  
05 how those funds were used by the municipality in the previous fiscal year and that                                      
06 details any harbor maintenance or improvement projects that were funded in whole or                                     
07 in part by that tax revenue, if the municipality operates harbor facilities. The report                                 
08       may be made jointly with the report required under AS 43.75.150.                                                  
09 (g)  A report is not required under this section if the total tax revenue a                                             
10       municipality receives under this section is less than $10,000.                                                    
11            (h)  A municipality that receives a payment under this section shall use 10                                  
12       percent of the funds received under this section to support or enhance commercial                                 
13       fishing.                                                                                                          
14    * Sec. 17. AS 43.75.130(i) and AS 43.77.060(g) are repealed.                                                       
15    * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to                         
16 read:                                                                                                                   
17       APPLICABILITY. This Act applies to tax revenue collected by the Department of                                     
18 Revenue under AS 43.75 and AS 43.77 for the 2025 tax year and later tax years.                                          
19    * Sec. 19. Sections 9 and 16 of this Act take effect February 1, 2026.                                             
20    * Sec. 20. Sections 3, 5, 8, 11, 13, 15, and 17 of this Act take effect July 1, 2035.                              
21    * Sec. 21. Except as provided in secs. 19 and 20 of this Act, this Act takes effect January 1,                     
22 2026.