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HB 391: "An Act relating to succession to assets and liabilities of dissolved municipalities."

00HOUSE BILL NO. 391 01 "An Act relating to succession to assets and liabilities of dissolved municipalities." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 29.06.520 is amended to read: 04  Sec. 29.06.520. SUCCESSION. (a) When a municipality dissolves, the 05 Local Boundary Commission shall arrange for the assumption of the liabilities 06 and, except as provided in AS 44.47.150(f), the assets of the dissolved municipality 07 by one or more successors. Assets or liabilities may not be transferred to a 08 successor except upon terms approved in writing by the Department of Law. A 09 successor may be 10  (1) the state; 11  (2) a municipality; 12  (3) a Native council organized under federal law that is operating 13 within the entire area of the dissolved municipality; or 14  (4) a nonprofit corporation that is qualified for an entitlement

01 under AS 29.60.140 and that is operating within the entire area of the dissolved 02 municipality. 03  (b) If the state or a [A] municipality succeeds [SUCCEEDING] to assets or 04 liabilities of a dissolved municipality, the state or successor municipality succeeds 05 to all rights, powers, and duties [, ASSETS, AND LIABILITIES] of the dissolved 06 municipality necessary for the management of the assets or liabilities [. 07 OTHERWISE, THE STATE SUCCEEDS TO THOSE RIGHTS, POWERS, DUTIES, 08 ASSETS, AND LIABILITIES]. If the state succeeds to assets or liabilities of a 09 dissolved municipality, the state may enter into a contract for the performance of 10 duties or powers in the area of the dissolved municipality. 11  (c) Transfer of assets or liabilities of a dissolved municipality to an 12 organization under (a)(3) or (4) of this section or [HOWEVER,] a contract with an 13 organization for the performance of duties or powers entered into under (b) of this 14 section does not constitute recognition by the state of governmental powers of that 15 organization. 16 * Sec. 2. AS 44.47.150(a) is amended to read: 17  (a) The commissioner 18  (1) shall accept, administer, and dispose of land conveyed to the state 19 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska 20 Native Claims Settlement Act) for the purposes specified in that section; 21  (2) may, with the concurrence of an appropriate village entity 22 recognized by the commissioner under (b) of this section or, in the absence of an 23 appropriate village entity, under procedures prescribed by regulations of the 24 commissioner, accept, administer, and dispose of land conveyed in trust by a state or 25 federal agency [AND BY THE DISSOLUTION OF A MUNICIPALITY UNDER 26 AS 29.06.450 - 29.06.530].