00SENATE BILL NO. 96                                                                                                      
01 "An Act relating to municipal activities or services mandated by state statute."                                        
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 01.10 is amended by adding a new section to read:                                                   
04  Sec. 01.10.075.  MANDATED MUNICIPAL SERVICES.  (a)  A statute                                                         
05 enacted or amended after January 1, 1996, that imposes or increases costs mandated                                      
06 by the state as a result of a new activity or service or an increase in the level of                                    
07 municipal funding for an activity or service required of municipalities by the statute                                  
08 is not effective unless the bill under which the statute was enacted or amended                                         
09   (1)  contains an appropriation for the reimbursement of those costs to                                               
10 affected municipalities; or                                                                                             
11   (2)  grants to municipalities the discretion of electing whether to comply                                           
12 with the statute.                                                                                                       
13  (b)  Each bill that applies to municipalities must include findings as to whether                                     
14   (1)  the bill would mandate a new activity or service or increase the                                                

01 level of municipal funding required for an activity or service; and                                                     
02   (2)  any mandate contained in the bill will have a significant financial                                             
03 effect on municipalities.                                                                                               
04  (c)  If a municipality disputes findings on a bill made under (b) of this section,                                    
05 it may, within 30 days after the effective date of the bill, petition the legislative audit                             
06 division for review of the action.                                                                                      
07  (d)  A municipality may elect to provide a service or perform an activity in                                          
08 accordance with a statute that is ineffective under (a) of this section using local funds                               
09 to pay costs mandated by the state.  If a municipality voluntarily provides a service or                                
10 performs an activity under this subsection, the municipality may modify the activity                                    
11 or service consistent with the policy and intent of the statute to the extent and in the                                
12 manner necessitated by the limitations of the local funding available.                                                  
13  (e)  If full state funding for an activity or service required under a statute that                                   
14 was  enacted or amended in accordance with (b)(1) of this section is not provided to                                    
15 a municipality in a subsequent year, the municipality affected by the reduction in                                      
16 funding may modify the activity or service as permitted under (d) of this section.                                      
17  (f)  For purposes of this section,                                                                                    
18   (1)  "costs mandated by the state" means any increased cost creating a                                               
19 significant financial effect that a municipality is required to incur after January 1,                                  
20 1996, as a result of a statute enacted after January 1, 1996, or a regulation adopted                                   
21 after January 1, 1996, that mandates a new activity or service or a higher level of                                     
22 municipal contribution to an activity or service; costs mandated by the state do not                                    
23 include costs of the type experienced equally by private and public entities that are                                   
24 incurred by a municipality in its proprietary capacity or costs that result from activities                             
25 or services that a municipality, although not required to do so, elects to provide;                                     
26   (2)  "new activity or service" means an activity or service that is                                                  
27 required as a result of a statute, that was not required before the enactment of the                                    
28 statute, and that results in costs mandated by the state;                                                               
29   (3)  "significant financial effect" means the employment of additional                                               
30 personnel or an increase in expenditures.