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HCS CSSSSB 20(FIN): "An Act relating to certain programs of state aid to municipalities and recipients in the unorganized borough; and providing for an effective date."

00HOUSE CS FOR CS FOR SS FOR SENATE BILL NO. 20(FIN) 01 "An Act relating to certain programs of state aid to municipalities and 02 recipients in the unorganized borough; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.10.200(50) is amended to read: 05  (50) AS 29.60.120(a) and (c) (priority revenue sharing [STATE AID] 06 for health facilities and hospitals); 07 * Sec. 2. AS 29.20.640(b) is amended to read: 08  (b) Compliance with the provisions of this section is a prerequisite to receipt 09 of municipal tax resource equalization assistance under AS 29.60.010 - 29.60.080 and 10 priority revenue sharing [STATE AID] for [MISCELLANEOUS] municipal services 11 under AS 29.60.100 - 29.60.180. If a municipality does not comply with this section, 12 the department shall withhold the allocations until the required reports are filed. 13 * Sec. 3. AS 29.45.020 is amended to read: 14  Sec. 29.45.020. TAXPAYER NOTICE. (a) If a municipality levies and

01 collects property taxes, the governing body shall provide the following notice: 02 "NOTICE TO TAXPAYER 03 For the current fiscal year the (city)(borough) has been allocated the following amount 04 of state aid for school and municipal purposes under the applicable financial assistance 05 Acts: 06 PUBLIC SCHOOL FOUNDATION PROGRAM 07 ASSISTANCE (AS 14.17) $ 08 STATE AID FOR RETIREMENT OF SCHOOL 09  CONSTRUCTION DEBT (AS 14.11.100) $ 10 MUNICIPAL TAX RESOURCE EQUALIZATION 11  [ASSISTANCE] (AS 29.60.010 - 29.60.080) $ 12 PRIORITY REVENUE SHARING [STATE 13 AID] FOR [MISCELLANEOUS] MUNICIPAL 14  SERVICES (AS 29.60.100 - 29.60.180) $ 15 REVENUE SHARING FOR COMMUNITIES 16  (AS 29.60.350 - 29.60.375) $ 17 TOTAL AID $ 18 The millage equivalent of this state aid, based on the dollar value of a mill in the 19 municipality during the current assessment year and for the preceding assessment year, 20 is: 21 MILLAGE EQUIVALENT 22 PREVIOUS YEAR THIS YEAR 23 PUBLIC SCHOOL FOUNDATION 24  PROGRAM ASSISTANCE . . . . MILLS . . . . MILLS 25 STATE AID FOR RETIREMENT 26   OF SCHOOL CONSTRUCTION 27  DEBT . . . .MILLS . . . .MILLS 28 MUNICIPAL TAX RESOURCE 29  EQUALIZATION [ASSISTANCE] . . . .MILLS . . . .MILLS 30 PRIORITY REVENUE SHARING 31 [STATE AID] FOR [MISCELLANEOUS]

01 MUNICIPAL SERVICES . . . .MILLS . . . .MILLS 02 REVENUE SHARING FOR 03 COMMUNITIES . . . .MILLS . . . .MILLS 04 TOTAL MILLAGE 05 EQUIVALENT . . . .MILLS . . . .MILLS" 06 Notice shall be provided 07  (1) by furnishing a copy of the notice with tax statements mailed for 08 the fiscal year for which aid is received; or 09  (2) by publishing in a newspaper of general circulation in the 10 municipality a copy of the notice once each week for a period of three successive 11 weeks, with publication to occur not later than 45 days after the final adoption of the 12 municipality's budget. 13  (b) Compliance with the provisions of this section is a prerequisite to receipt 14 of municipal tax resource equalization [ASSISTANCE] under AS 29.60.010 - 15 29.60.080 and priority revenue sharing [STATE AID] for [MISCELLANEOUS] 16 municipal services under AS 29.60.100 - 29.60.180. The department shall withhold 17 annual allocations under those sections until municipal officials demonstrate that the 18 requirements of this section have been met. 19 * Sec. 4. AS 29.45.660(b) is amended to read: 20  (b) Compliance with the provisions of this section is a prerequisite to receipt 21 of municipal tax resource equalization [ASSISTANCE] under AS 29.60.010 - 22 29.60.080 and priority revenue sharing [STATE AID] for [MISCELLANEOUS] 23 municipal services under AS 29.60.100 - 29.60.180. The department shall withhold 24 annual allocations under those sections until municipal officials demonstrate that the 25 requirements of this section have been met. 26 * Sec. 5. AS 29.60.100 is amended to read: 27  Sec. 29.60.100. PRIORITY REVENUE SHARING FOR MUNICIPAL 28 SERVICES [REVENUE SHARING PAYABLE]. In addition to the equalization 29 entitlements paid under AS 29.60.010 - 29.60.080, during each fiscal year the 30 department shall pay priority revenue sharing for municipal services to [AID] 31  (1) [TO] a municipality or other eligible recipient that has the power

01 to provide the services described in AS 29.60.110 - 29.60.130 and exercises the power 02 in the manner required by AS 29.60.100 - 29.60.180; 03  (2) [TO] an unincorporated community under AS 29.60.140. 04 * Sec. 6. AS 29.60.140(a) is amended to read: 05  (a) The department shall pay to each unincorporated community an entitlement 06 each fiscal year to be used for a public purpose. The department with advice from the 07 Department of Law shall determine whether there is in each unincorporated community 08 a nonprofit corporation organized under the laws of the state [AN 09 INCORPORATED NONPROFIT ENTITY OR A NATIVE VILLAGE COUNCIL] that 10 will agree to receive and spend the entitlement. If there is more than one qualified 11 nonprofit corporation [ENTITY] in an unincorporated community, the department 12 shall pay the money under the entitlement to the nonprofit corporation [ENTITY] 13 that the department finds most qualified to receive and spend the money. [THE 14 DEPARTMENT MAY NOT PAY MONEY UNDER AN ENTITLEMENT TO A 15 NATIVE VILLAGE COUNCIL UNLESS THE COUNCIL WAIVES IMMUNITY 16 FROM SUIT FOR CLAIMS ARISING OUT OF ACTIVITIES OF THE COUNCIL 17 RELATED TO THE ENTITLEMENT. A WAIVER OF IMMUNITY FROM SUIT 18 UNDER THIS SUBSECTION MUST BE ON A FORM PROVIDED BY THE 19 DEPARTMENT OF LAW.] If there is no qualified nonprofit corporation 20 [INCORPORATED NONPROFIT ENTITY OR NATIVE VILLAGE COUNCIL] in 21 an unincorporated community that is willing to receive money under an entitlement, 22 the entitlement for that unincorporated community may not be paid. [NEITHER THIS 23 SUBSECTION NOR ANY ACTION TAKEN UNDER IT ENLARGES OR 24 DIMINISHES THE GOVERNMENTAL AUTHORITY OR JURISDICTION OF A 25 NATIVE VILLAGE COUNCIL.] If at least $41,472,000 is appropriated for all 26 entitlements under AS 29.60.010 - 29.60.310 for a fiscal year, the entitlement for each 27 unincorporated community under this subsection for that year equals $40,000. 28 Otherwise, the entitlement equals $25,000. 29 * Sec. 7. AS 29.60.170 is amended to read: 30  Sec. 29.60.170. MUNICIPAL [MISCELLANEOUS] SERVICES ACCOUNT. 31 The municipal [MISCELLANEOUS] services account is established. Money to carry

01 out the provisions of AS 29.60.100 - 29.60.180 shall be allocated by the department 02 to the account in accordance with AS 29.60.280. If amounts in the account are 03 insufficient to pay each municipality's or other recipient's share authorized under 04 AS 29.60.100 - 29.60.180, the amounts that are available shall be distributed pro rata 05 among eligible municipalities and other recipients. 06 * Sec. 8. AS 29.60.280(b) is amended to read: 07  (b) Money in the municipal [MISCELLANEOUS] services account established 08 in AS 29.60.170 that exceeds the amount required to fully fund distributions authorized 09 by AS 29.60.100 - 29.60.180 shall be reallocated to the tax equalization account 10 established in AS 29.60.060 and distributed according to the provisions of 11 AS 29.60.010 - 29.60.080. 12 * Sec. 9. AS 29.60.350 is amended to read: 13  Sec. 29.60.350. COMMUNITIES [MUNICIPAL ASSISTANCE] FUND. (a) 14 To implement the revenue sharing for communities program, there [THERE] is 15 established in the department the communities [MUNICIPAL ASSISTANCE] fund 16 consisting of the base amount account and the per capita account. The legislature 17 may appropriate to the communities [MUNICIPAL ASSISTANCE] fund during each 18 fiscal year a total [AN] amount equal to or greater than 30 percent of the income tax 19 revenue received by the state under AS 43.20.011(e) for the previous fiscal year. 20 Unless otherwise provided in the appropriation, the department shall allocate one- 21 third of the money appropriated to the base amount account and two-thirds to the per 22 capita account. 23  (b) The department shall distribute money from the communities 24 [MUNICIPAL ASSISTANCE] fund to each municipality on an annual basis as 25 provided in AS 29.60.360 and 29.60.370 and as adjusted under AS 29.60.373. A 26 municipality may not receive payment until it submits to the department a resolution 27 approved by the governing body of the municipality that requests the money. 28 Distribution of money from the communities [MUNICIPAL ASSISTANCE] fund to 29 all municipalities must be made on July 31 [FEBRUARY 1] of the state fiscal year 30 for which the appropriation to the fund is made. A municipality that incorporates after 31 July 1 [DECEMBER 31] of a state fiscal year is not eligible for a distribution under

01 this section until the following state fiscal year. 02 * Sec. 10. AS 29.60.350 is amended by adding new subsections to read: 03  (c) Money from the revenue sharing for communities program distributed to 04 a municipality shall be used by that municipality only for the following services in the 05 following ranking of priority: 06  (1) police protection and related public safety services; 07  (2) fire protection and emergency medical services; 08  (3) water and sewer services not offset by user fees; 09  (4) solid waste management; 10  (5) other services determined by the governing body to have the highest 11 priority. 12  (d) Subsection (c) of this section may not be construed to require a 13 municipality to fund all requests it receives for services in a category with a higher 14 ranking of priority before funding services in a category with a lower ranking of 15 priority. 16 * Sec. 11. AS 29.60.360 is amended to read: 17  Sec. 29.60.360. BASE AMOUNT ACCOUNT DISTRIBUTIONS [OF 18 ASSISTANCE]. (a) The base amount to be distributed from the base amount 19 account [MUNICIPAL ASSISTANCE FUND] to each municipality for the fiscal year 20 shall be the amount received by the municipality during fiscal year 1978 under 21 AS 43.70.080 as that section provided before the 1978 amendment. A city 22 incorporated within a borough after June 30, 1977, shall receive as a base amount a 23 share of the amount distributed to the borough in which it is located based on the ratio 24 of population in the city to the total population in the borough. A city incorporated 25 outside a borough after June 30, 1977, shall receive as a base amount the amount 26 received by the city in the state most closely approximating it in population at the time 27 of its incorporation. A borough incorporated after June 30, 1977, shall receive as a 28 base amount the amount received by the borough in the state most clearly 29 approximating it in population at the time of its incorporation, excluding each 30 borough with a per capita full and true property value exceeding $500,000. The 31 base amount to be distributed to each municipality organized under federal law shall

01 be the amount received as a base amount by the city most closely approximating it in 02 population on June 30, 1977. 03  (b) If the amount in the base amount account from allocation of 04 appropriations [APPROPRIATED] to the communities [MUNICIPAL 05 ASSISTANCE] fund [BY THE LEGISLATURE] during a fiscal year is insufficient 06 for distribution of the full base amount to each municipality, the department shall 07 prorate the amount available for distribution [ON THE BASIS OF AMOUNTS 08 RECEIVED DURING THE FISCAL YEAR 1978 UNDER AS 43.70.080]. 09 * Sec. 12. AS 29.60.370(a) is amended to read: 10  Sec. 29.60.370. PER CAPITA ACCOUNT DISTRIBUTION [INCREASED 11 ASSISTANCE]. (a) The [IF THE] amount allocated to the per capita account in 12 the communities [MUNICIPAL ASSISTANCE] fund [AT THE TIME OF 13 DISTRIBUTION EXCEEDS THE BASE AMOUNT TO BE DISTRIBUTED UNDER 14 AS 29.60.360, THE EXCESS AMOUNT] shall be distributed to each municipality on 15 the basis of population. Population for the purpose of this section shall be as certified 16 by the commissioner of community and regional affairs. In determining the population 17 of a borough, the population of all cities in the borough shall be deducted from the 18 total population of the borough. 19 * Sec. 13. AS 29.60 is amended by adding new sections to read: 20  Sec. 29.60.372. MINIMUM PAYMENT. If a municipality qualifies for a 21 payment during a fiscal year under AS 29.60.010 - 29.60.080, 29.60.100 - 29.60.180, 22 29.60.290, or 29.60.350 and if the total amount payable to the municipality under those 23 sections is less than $40,000, the department shall pay to the municipality a minimum 24 payment in an amount equal to the difference between the total amount payable under 25 those sections and $40,000 as adjusted under AS 29.60.373. 26  Sec. 29.60.373. ADJUSTMENT OF PAYMENTS. Adjustment of payments 27 shall be determined by prorating amounts payable under AS 29.60.360, 29.60.370, and 28 29.60.372 by a factor that, when applied, reduces all payments in equal proportion so 29 that total payments equal the amount appropriated to the communities fund. 30 * Sec. 14. AS 29.60.370(b) is repealed. 31 * Sec. 15. This Act takes effect July 1, 1996.