CSSB 88(CRA): "An Act relating to grants to municipalities, named recipients, and unincorporated communities; establishing capital project matching grant programs for municipalities and unincorporated communities; establishing a local share requirement for capital project grants to municipalities, named recipients, and unincorporated communities; and providing for an effective date."
00CS FOR SENATE BILL NO. 88(CRA) 01 "An Act relating to grants to municipalities, named recipients, and unincorporated 02 communities; establishing capital project matching grant programs for municipalities 03 and unincorporated communities; establishing a local share requirement for capital 04 project grants to municipalities, named recipients, and unincorporated communities; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. PURPOSE. (a) The legislature recognizes the continued need for state-funded capital projects (1) 08 that are of regional or statewide significance, (2) that meet basic 09 needs, such as educational facility projects constructed under AS 14.11 and village safe water 10 projects, or (3) for which costs will exceed the amount available to a municipality or a 11 community under the capital project matching grant program. The legislature also recognizes 12 the continued need for legislatively directed funding of other capital projects. 13 (b) It is the purpose of this Act to 14 (1) provide a capital project funding system that is equitable to municipalities,
01 unincorporated communities, and named grant recipients throughout the state; 02 (2) enhance the role of communities in initiating and prioritizing the 03 construction of capital projects; 04 (3) encourage a sense of local ownership in capital projects by requiring local 05 participation in the funding of those projects; and 06 (4) improve the process for making grants for capital projects by providing a 07 more orderly and thoughtful planning process that involves the local community, the executive 08 branch, and the legislature. 09 * Sec. 2. AS 36.10.180(a) is amended to read: 10 (a) The preferences established in AS 36.10.150 - 36.10.175 apply to work 11 performed 12 (1) under a contract for construction, repair, preliminary surveys, 13 engineering studies, consulting, maintenance work, or any other retention of services 14 necessary to complete a given project that is let by the state or an agency of the state, 15 a department, office, state board, commission, public corporation, or other 16 organizational unit of or created under the executive, legislative, or judicial branch of 17 state government, including the University of Alaska and the Alaska Railroad 18 Corporation, or by a political subdivision of the state including a regional school board 19 with respect to an educational facility under AS 14.11.020; 20 (2) on a public works project under a grant to a municipality under 21 AS 37.05.315 or AS 37.06.010; 22 (3) on a public works project under a grant to a named recipient under 23 AS 37.05.316; 24 (4) on a public works project under a grant to an unincorporated 25 community under AS 37.05.317 or AS 37.06.020; and 26 (5) on any other public works project or construction project that is 27 funded in whole or in part by state money. 28 * Sec. 3. AS 37.05.315(a) is amended to read: 29 (a) When an amount is appropriated or allocated as a grant to a municipality, 30 the Department of Administration shall promptly notify the municipality of the 31 availability of the grant. When the Department of Administration receives an
01 agreement executed by the municipality which provides that the municipality (1) will 02 spend the grant for the purposes specified in the appropriation or allocation; (2) will 03 allow, on request, an audit by the state of the uses made of the grant; and (3) assures 04 that, to the extent consistent with the purpose of the appropriation or allocation, the 05 facilities and services provided with the grant will be available for the use of the 06 general public, the Department of Administration shall pay the grant directly to the 07 municipality. The agreement executed by a municipality under this section shall be 08 on a form furnished by the Department of Administration and shall be executed within 09 60 days after the effective date of the appropriation or allocation. As provided in 10 AS 37.06.030, for each grant to a municipality under this section for a capital 11 project, as defined in AS 37.07.120, the municipality shall contribute a local share 12 of the cost of the capital project for which the grant is made. 13 * Sec. 4. AS 37.05.316(a) is amended to read: 14 (a) When an amount is appropriated or allocated to a department as a grant for 15 a named recipient that is not a municipality, the department to which the appropriation 16 or allocation is made shall promptly notify the named recipient of the availability of 17 the grant and request the named recipient to submit a proposal to provide the goods 18 or services specified in the appropriation act for which the appropriation or allocation 19 is made. At the same time, the department may issue a request for proposals from 20 other qualified persons to provide the same goods or services in the same area. The 21 department shall award the grant to the named recipient unless the Office of the 22 Governor, with due regard for the local expertise or experience of those making 23 proposals, determines that an award to a different party would better serve the public 24 interest. If the grant is awarded to a party other than that named by the legislature, 25 the basis of that action shall be stated in writing at the time the grant is issued and a 26 copy of the written statement shall be sent to the Legislative Budget and Audit 27 Committee. A grant agreement must be executed within 60 days after the effective 28 date of the appropriation or allocation. As provided in AS 37.06.030, for each grant 29 made under this section for a capital project, as defined in AS 37.07.120, the 30 named grant recipient shall contribute a local share of the cost of the capital 31 project for which the grant is made.
01 * Sec. 5. AS 37.05.317(a) is amended to read: 02 (a) When an amount is appropriated or allocated as a grant under this section 03 to an unincorporated community, it shall be disbursed as follows: 04 (1) Within 45 days after the effective date of the appropriation or 05 allocation, the Department of Community and Regional Affairs shall notify the 06 governing body of the unincorporated community, if any, that a grant is available. 07 (2) The Department of Community and Regional Affairs shall 08 determine if there is a qualified incorporated entity in the community area that will 09 agree to receive the grant and administer it, subject to terms generally applicable to 10 private grantees. If there is more than one such entity, the Department of Community 11 and Regional Affairs shall select the most qualified and the grant shall be awarded to 12 that incorporated entity for the purposes specified in the appropriation act. However, 13 the Department of Community and Regional Affairs shall give preference to a 14 nonprofit corporation organized by a community for receipt of the grant. 15 (3) If there is no incorporated entity qualified to receive the grant, the 16 grant may not be awarded [DEPARTMENT OF COMMUNITY AND REGIONAL 17 AFFAIRS SHALL ADMINISTER THE PROGRAM AS SPECIFIED IN THE 18 APPROPRIATION ACT DIRECTLY OR THROUGH AGENTS OR CONTRACTORS 19 WITH WHOM IT MAY CONTRACT IN THE COMMUNITY AREA]. 20 * Sec. 6. AS 37.05.317 is amended by adding a new subsection to read: 21 (c) As provided in AS 37.06.030, for each grant to an unincorporated 22 community under this section for a capital project, as defined in AS 37.07.120, the 23 incorporated entity to whom the grant is awarded shall contribute a local share of the 24 cost of the capital project for which the grant is made. 25 * Sec. 7. AS 37.05.318 is repealed and reenacted to read: 26 Sec. 37.05.318. ADOPTION OF REGULATIONS. (a) The Department of 27 Administration for grants under AS 37.05.315, the Department of Community and 28 Regional Affairs for grants under AS 37.05.317, and a department that administers a 29 grant under AS 37.05.316 30 (1) may adopt regulations that impose additional requirements or 31 procedures to implement, interpret, make specific, or otherwise carry out the applicable
01 provisions of AS 37.05.315 - 37.05.317 for grants administered by the department; 02 (2) shall adopt regulations providing for periodic audits of the use of 03 money for grants administered by the department, including audit of the department's 04 determination of the value of, and adequacy of the verification of the actual use of, 05 locally funded or contributed labor under AS 37.06.030 on capital projects funded 06 under AS 37.05.315 - 37.05.317. 07 * Sec. 8. AS 37.05.321 is amended by adding a new subsection to read: 08 (b) No more than 10 percent of the total amount of money spent on a capital 09 project funded in whole or in part with money granted under AS 37.05.315 - 37.05.317 10 may be used for administrative expenses. 11 * Sec. 9. AS 37 is amended by adding a new chapter to read: 12 CHAPTER 06. CAPITAL PROJECT MATCHING GRANT PROGRAMS. 13 Sec. 37.06.010. MUNICIPAL CAPITAL PROJECT MATCHING GRANT 14 PROGRAM. (a) The municipal capital project matching grant program is established 15 in the department. Grants to municipalities under this program shall be administered 16 as provided in this section. 17 (b) The municipal capital project matching grant fund is established in the 18 department and consists of appropriations to the fund. Appropriations to the fund do 19 not lapse except as provided in (f) of this section. The money in the fund is held by 20 the department in custody under this subsection for each municipality. The department 21 shall establish, for each municipality, an individual grant account within the fund. As 22 provided in this subsection, each fiscal year the department shall allocate, to the 23 individual grant accounts, appropriations to the fund. The department shall credit 24 interest earned on money in an individual grant account to that account. Except as 25 provided in (c) of this section, the amount allocated under this subsection to an 26 individual grant account in a fiscal year is determined by multiplying the total amount 27 appropriated to the fund during that fiscal year by a fraction, 28 (1) the numerator of which equals for a municipality with a population 29 (A) under 1,000, the amount equal to that population multiplied 30 by 1.5; 31 (B) of at least 1,000 but less than 5,000, the amount equal to
01 that population multiplied by 1.4; 02 (C) of at least 5,000 but not greater than 10,000, the amount 03 equal to that population multiplied by 1.2; 04 (D) of over 10,000, the amount equal to that population; and 05 (2) the denominator of which equals the sum of the numerators 06 calculated for all municipalities under (1)(A) - (D) of this subsection. 07 (c) A minimum of $25,000 shall be allocated to each municipality's individual 08 grant account each fiscal year under (b) of this section. The department shall reduce 09 allocations under (b) of this section on a pro rata basis, based upon the population of 10 the municipalities, if necessary to fund the minimum amount for each municipality. 11 If appropriations are not sufficient to fully fund the minimum amount for each 12 municipality, the amount appropriated shall be allocated equally among the 13 municipality individual grant accounts. 14 (d) By October 1 of each fiscal year, each municipality shall submit to the 15 governor a prioritized list of capital projects and estimated costs to be financed with 16 money from the municipality's individual grant account established under (b) of this 17 section. The list must include the amount and source of the local share required by 18 AS 37.06.030. The governor shall include in the capital improvements program 19 presented to the legislature under AS 37.07.060 the projects submitted by each 20 municipality that the governor recommends for funding. If, in the capital 21 improvements program, the governor includes projects in other than the priority order 22 submitted by a municipality, the governor shall provide the legislature with a written 23 statement of the reasons for that action. 24 (e) The legislature may make appropriations, from a municipality's individual 25 grant account established under (b) of this section, to the municipality for capital 26 projects under this section. Subject to appropriations under this subsection and to the 27 local share requirements of AS 37.06.030, each municipality may draw amounts from 28 its individual grant account for planning, design, and construction of a capital project, 29 in accordance with an appropriation for that project. In accepting a draw, the 30 municipality covenants with the state that it will operate and maintain the capital 31 project for which the draw is used for the practical life of the project, and that the
01 municipality will not rely on the state to operate or maintain the capital project or pay 02 for its operation or maintenance. This requirement does not apply to use of money 03 from a draw for repair or improvement of an existing facility that is operated or 04 maintained by the state at the time that the draw is made if the repair or improvement 05 for which the draw is used will not substantially increase the operating or maintenance 06 costs to the state. No more than 10 percent of the total amount of money spent on a 07 capital project funded in whole or in part with money appropriated under this 08 subsection may be used for administrative expenses. The municipality, and its agents, 09 contractors, and subcontractors shall comply with the hiring preferences under 10 AS 36.10 in hiring employees to be paid wholly or in part with money from a draw. 11 (f) A municipality shall repay to the department money drawn from its 12 individual grant account if substantial, ongoing work on the capital project is not 13 started within five years after the effective date of the appropriation from which the 14 draw is funded. Money repaid shall be deposited into the general fund. Money from 15 an allocation to a municipality's individual grant account that has not been drawn out 16 by the municipality within five years after the effective date of the appropriation from 17 which the allocation is funded lapses into the general fund. 18 (g) For purposes of this section, in calculating the population of a borough the 19 population of each city in the borough is excluded. The determination of population 20 shall be based upon data used by the Department of Community and Regional Affairs 21 under AS 14.17.140, AS 29.45.110, and AS 29.60.140 - 29.60.150. 22 (h) The provisions of AS 37.05.321 apply to a grant and draws made under 23 this section, and to earnings from the grant and draws. 24 (i) In this section, unless specified otherwise, "department" means the 25 Department of Administration. 26 Sec. 37.06.020. UNINCORPORATED COMMUNITY CAPITAL PROJECT 27 MATCHING GRANT PROGRAM. (a) The unincorporated community capital project 28 matching grant program is established in the department. Grants to unincorporated 29 communities under the program shall be administered as provided in this section. 30 (b) The unincorporated community capital project matching grant fund is 31 established in the department and consists of appropriations to the fund.
01 Appropriations to the fund do not lapse except as provided in (h) of this section. The 02 money in the fund is held by the department in custody under this subsection for each 03 unincorporated community eligible for an allocation under this subsection. The 04 department shall establish an individual grant account within the fund for each 05 unincorporated community that was entitled to receive state aid under AS 29.60.140 06 during the preceding fiscal year. As provided in this subsection, each fiscal year the 07 department shall allocate, to the individual grant accounts, appropriations to the fund. 08 An unincorporated community is eligible for an allocation in a fiscal year if the 09 community was eligible to receive state aid under AS 29.60.140 during the preceding 10 fiscal year. The department shall credit interest earned on money in an individual 11 grant account to that account. Except as provided in (c) of this section, the amount 12 allocated under this subsection to an individual grant account in a fiscal year is 13 determined by dividing the total amount appropriated to the fund during that fiscal year 14 by the number of unincorporated communities eligible for an allocation during that 15 fiscal year. 16 (c) A minimum of $25,000 shall be allocated to each eligible unincorporated 17 community's grant account each fiscal year under (b) of this section. If appropriations 18 are not sufficient to fully fund the minimum amount for each eligible unincorporated 19 community, the amount appropriated shall be allocated equally among the eligible 20 unincorporated communities. 21 (d) The department shall designate, in each eligible unincorporated community, 22 an incorporated nonprofit entity or a Native village council that agrees to receive and 23 spend grant money allocated to the unincorporated community's individual grant 24 account under (b) of this section. If there is more than one qualified entity in a 25 community, the department shall designate the entity that the department finds most 26 qualified to make draws from that unincorporated community's individual grant 27 account and spend the money. If there is no qualified incorporated nonprofit entity or 28 Native village council in an unincorporated community that will agree to receive and 29 spend money allocated to the community under (b) of this section, draws may not be 30 made from the unincorporated community's individual grant account and the amount 31 allocated to the account lapses into the general fund.
01 (e) By October 1 of each fiscal year, the incorporated nonprofit entity or 02 Native village council designated by the department under (d) of this section shall 03 submit to the governor a prioritized list of capital projects and estimated costs to be 04 financed with money from the community's individual grant account established under 05 (b) of this section. The list must include the amount and source of the local share 06 required by AS 37.06.030. The governor shall include in the capital improvements 07 program presented to the legislature under AS 37.07.060 the projects submitted by 08 designated entities under this subsection that the governor recommends for funding. 09 If, in the capital improvements program, the governor includes projects in other than 10 the priority order submitted by a designated entity, the governor shall provide the 11 legislature with a written statement of the reasons for that action. 12 (f) The legislature may make appropriations, from an unincorporated 13 community's individual grant account established under (b) of this section, for the 14 unincorporated community for capital projects under this section. Subject to 15 appropriations under this subsection and to the local share requirements of 16 AS 37.06.030, an entity designated by the department under (d) of this section may 17 draw, on behalf of the unincorporated community, amounts from that community's 18 individual grant account for planning, design, and construction of a capital project, in 19 accordance with an appropriation for that project. In accepting a draw, an entity 20 designated by the department under (d) of this section acknowledges that the state is 21 not responsible for operating or maintaining a capital project for which the draw is 22 used, or for paying for its operation or maintenance. The acknowledgment does not 23 apply to use of money from a draw for repair or improvement of an existing facility 24 that is operated or maintained by the state at the time that the draw is made if the 25 repair or improvement for which the draw is used will not substantially increase the 26 operating or maintenance costs to the state. No more than 10 percent of the total 27 amount of money spent on a capital project funded in whole or in part with money 28 appropriated under this subsection may be used for administrative expenses. The 29 designated entity, and its agents, contractors, and subcontractors shall comply with the 30 hiring preferences under AS 36.10 in hiring employees to be paid wholly or in part 31 with money from a draw.
01 (g) An entity designated by the department under (d) of this section that is a 02 Native village council may not draw money from an unincorporated community's 03 individual grant account unless the council waives immunity from suit for claims 04 arising out of activities of the council related to the draw. A waiver of immunity from 05 suit under this subsection must be on a form provided by the Department of Law. 06 Neither this subsection nor any action taken under it enlarges or diminishes the 07 governmental authority or jurisdiction of a Native village council. 08 (h) An entity designated by the department under (d) of this section shall repay 09 to the department money it has drawn from an unincorporated community's individual 10 grant account if substantial, ongoing work on the project is not started within five 11 years after the effective date of the appropriation from which the draw is funded. 12 Money repaid shall be deposited into the general fund. Money from an allocation to 13 an unincorporated community's individual grant account that has not been drawn out 14 by a designated entity within five years after the effective date of the appropriation 15 from which the allocation is funded lapses into the general fund. 16 (i) The limitations of AS 44.47.140 do not apply to a grant made under this 17 section. 18 (j) The provisions of AS 37.05.321 apply to a grant and draws made under this 19 section, and to earnings from the grant and draws. 20 (k) In this section, unless specified otherwise, "department" means the 21 Department of Community and Regional Affairs. 22 Sec. 37.06.030. LOCAL SHARE REQUIREMENTS. (a) For each capital 23 project grant for a municipality under AS 37.05.315, each draw made by a 24 municipality under AS 37.06.010, and each grant made to a named grant recipient 25 under AS 37.05.316, the municipality or named grant recipient shall contribute a local 26 share to the cost of the capital project for which the grant or draw is made. The 27 amount of the local share equals the local share percentage as calculated under (1) or 28 (2) of this subsection, divided by the state share percentage as calculated under (3) of 29 this subsection, multiplied by the amount of the grant or draw. For purposes of this 30 subsection, 31 (1) if the effective date of the appropriation from which the grant or
01 draw is funded is no later than July 1, 1994, the local share percentage is 02 (A) 30 percent for a municipality with, or a named grant 03 recipient located in a municipality with, a population of 5,000 or more; 04 (B) 15 percent for a municipality with, or a named grant 05 recipient located in a municipality with, a population of 1,000 - 4,999; 06 (C) five percent for a municipality with, or a named grant 07 recipient located in a municipality with, a population of under 1,000; 08 (D) five percent for a named grant recipient located in an 09 unincorporated community; 10 (2) if the effective date of the appropriation from which the grant or 11 draw is funded is after July 1, 1994, the local share percentage is 12 (A) 50 percent for a municipality with, or a named grant 13 recipient located in a municipality with, a population of 5,000 or more; 14 (B) 25 percent for a municipality with, or a named grant 15 recipient located in a municipality with, a population of 1,000 - 4,999; 16 (C) eight percent for a municipality with, or a named grant 17 recipient located in a municipality with, a population of under 1,000; 18 (D) eight percent for a named grant recipient located in an 19 unincorporated community; 20 (3) the state share percentage equals one minus the local share 21 percentage; 22 (4) the local share to be contributed by a municipality may be satisfied 23 with (A) federal, municipal, or local money; (B) labor used directly in the construction 24 of the project, land, materials, or equipment; the department shall determine the value 25 of a contribution under this subparagraph; (C) money from another nonstate source; 26 (D) money received by the municipality under AS 29.60.010 - 29.60.375; (E) state 27 taxes refunded or reimbursed to the municipality whose use for the purposes of this 28 subsection is not prohibited; and (F) allocations of state aid for the costs of school 29 construction debt under AS 14.11.100; except as provided in this paragraph, the local 30 share may not be satisfied with money from, or with the portion of an asset that was 31 obtained with money from, an appropriation, allocation, entitlement, grant, or other
01 payment from the state; 02 (5) the local share to be contributed by a named grant recipient may 03 be satisfied from (A) federal, municipal, or local money; (B) labor used directly in the 04 construction of the project, land, materials, or equipment; the department shall 05 determine the value of a contribution under this subparagraph; or (C) money from 06 another nonstate source; the local share may not be satisfied with money from, or with 07 the portion of an asset that was obtained with money from, an appropriation, 08 allocation, entitlement, grant, or other payment from the state; 09 (b) For each grant to an unincorporated community under AS 37.05.317 and 10 each draw made under AS 37.06.020, the incorporated entity or Native village council 11 that receives the grant or makes the draw shall contribute a local share of the cost of 12 the capital project for which the grant or draw is made. The amount of the local share 13 equals the local share percentage as calculated under (1) of this subsection, divided by 14 the state share percentage as calculated under (2) of this subsection, multiplied by the 15 amount of the grant or draw. For purposes of this subsection, 16 (1) the local share percentage is 5 percent if the effective date of the 17 appropriation from which the grant or draw is funded is no later than July 1, 1994, and 18 8 percent if the effective date is after July 1, 1994; 19 (2) the state share percentage equals one minus the local share 20 percentage; 21 (3) the local share may be satisfied from (A) federal or local money; 22 (B) locally funded or contributed labor used directly in the construction of the project, 23 land, materials, or equipment; the department shall determine the value of a 24 contribution under this subparagraph; (C) money from another nonstate source; or (D) 25 money received by the unincorporated community under AS 29.60.010 - 29.60.375; 26 except for money received under AS 29.60.010 - 29.60.375, the local share may not 27 be satisfied with money from, or with the portion of an asset that was obtained with 28 money from, an appropriation, allocation, entitlement, grant, or other payment from the 29 state. 30 (c) For purposes of (a) of this section, in calculating the population of a 31 borough the population of each city in the borough is excluded. The determination of
01 population shall be based upon data used by the Department of Community and 02 Regional Affairs under AS 14.17.140, AS 29.45.110, and AS 29.60.140 - 29.60.150. 03 Sec. 37.06.080. ADOPTION OF REGULATIONS. The Department of 04 Administration for grants under AS 37.06.010 and the Department of Community and 05 Regional Affairs for grants under AS 37.06.020 06 (1) may adopt regulations that impose additional requirements or 07 procedures to implement, interpret, make specific, or otherwise carry out the applicable 08 provisions of this chapter for grants administered by the department; 09 (2) shall adopt regulations providing for periodic audits of the use of 10 money for grants administered by the department under this chapter, including audit 11 of the department's determination of the value of, and adequacy of the verification of 12 the actual use of, locally funded or contributed labor on projects funded by a grant 13 under this chapter. 14 Sec. 37.06.090. DEFINITION. In this chapter, "capital project" has the 15 meaning given in AS 37.07.120. 16 * Sec. 10. TRANSITION. Notwithstanding the date set out in AS 37.06.010(d), enacted 17 by sec. 9 of this Act, for capital project grants under AS 37.06.010 for fiscal year 1994 each 18 municipality shall submit to the governor its prioritized list by March 1, 1993, or by the 19 effective date of this Act, whichever is later. Notwithstanding the date set out in 20 AS 37.06.020(e), enacted by sec. 9 of this Act, for capital project grants under AS 37.06.020 21 for fiscal year 1994 the incorporated entity or Native village council designated by the 22 Department of Community and Regional Affairs for each unincorporated community shall 23 submit to the governor its prioritized list by March 1, 1993, or by the effective date of this 24 Act, whichever is later. 25 * Sec. 11. IMPLEMENTATION; APPLICABILITY. (a) Notwithstanding sec. 12 of this 26 Act, a grant for a capital project may not be disbursed or drawn upon under AS 37.05.315 - 27 37.05.317 or AS 37.06, as amended or enacted by this Act, until after June 30, 1993. 28 (b) The changes made by this Act do not apply to a grant awarded under AS 37.05 29 before the effective date of this Act. 30 * Sec. 12. This Act takes effect immediately under AS 01.10.070(c).