SB 28: "An Act relating to the unincorporated community capital project matching grant program; and providing for an effective date."
00SENATE BILL NO. 28 01 "An Act relating to the unincorporated community capital project matching grant 02 program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.06.020(b) is amended to read: 05 (b) The unincorporated community capital project matching grant fund is 06 established in the department and consists of appropriations to the fund. Appropriations 07 to the fund do not lapse except as provided in (h) of this section. The money in the fund 08 is held by the department in custody under this subsection for each unincorporated 09 community eligible for an allocation under this subsection. The department shall 10 establish an individual grant account within the fund for each eligible unincorporated 11 community [THAT WAS ENTITLED TO RECEIVE STATE AID UNDER 12 AS 29.60.140 DURING THE PRECEDING FISCAL YEAR]. As provided in this 13 subsection, each fiscal year the department shall allocate, to the individual grant 14 accounts, appropriations to the fund. An unincorporated community is eligible for an
01 allocation in a fiscal year if the requirements of (d) are met and the community was 02 a place in the state in which 25 or more individuals resided as a social unit 03 [ELIGIBLE TO RECEIVE STATE AID UNDER AS 29.60.140] during the preceding 04 fiscal year. The department shall credit interest earned on money in an individual grant 05 account to that account. Except as provided in (c) of this section, the amount allocated 06 under this subsection to an individual grant account in a fiscal year is the amount 07 needed to fund the projects presented to the legislature under (e) of this section 08 [DETERMINED BY DIVIDING THE TOTAL AMOUNT APPROPRIATED TO THE 09 FUND DURING THAT FISCAL YEAR BY THE NUMBER OF UNINCORPORATED 10 COMMUNITIES ELIGIBLE FOR AN ALLOCATION DURING THAT FISCAL 11 YEAR]. 12 * Sec. 2. AS 37.06.020(c) is amended to read: 13 (c) A maximum [MINIMUM] of $25,000 may [SHALL] be allocated to each 14 eligible unincorporated community's grant account each fiscal year under (b) of this 15 section. If appropriations are not sufficient to fully fund the [MINIMUM] amount for 16 each eligible unincorporated community, the amount appropriated shall be allocated on 17 a pro rata basis [EQUALLY] among the eligible unincorporated communities. If 18 appropriations exceed the amount necessary to fully fund the amount for each 19 eligible unincorporated community, the excess amount lapses into the general fund. 20 * Sec. 3. AS 37.06.020(d) is amended to read: 21 (d) The department shall designate, in each eligible unincorporated community, 22 a [AN INCORPORATED] nonprofit corporation [ENTITY OR A NATIVE VILLAGE 23 COUNCIL] that agrees to receive and spend grant money allocated to the unincorporated 24 community's individual grant account under (b) of this section. If the community is 25 located in a borough or a unified municipality, the department may only designate 26 the corporation that has been approved by the assembly and the department must 27 have written evidence of that approval. If there is more than one qualified 28 corporation [ENTITY] in a community in the unorganized borough, the department 29 shall designate the corporation [ENTITY] that the department finds most qualified to 30 make draws from that unincorporated community's individual grant account and spend 31 the money. If there is no qualified [INCORPORATED] nonprofit corporation [ENTITY
01 OR NATIVE VILLAGE COUNCIL] in an unincorporated community that will agree to 02 receive and spend money allocated to the community under (b) of this section, draws 03 may not be made from the unincorporated community's individual grant account and the 04 amount allocated to the account lapses into the general fund. A corporation qualifies 05 for designation under this subsection only if it 06 (1) was formed to serve a public or civic purpose; 07 (2) is registered and in good standing with the Department of 08 Commerce and Economic Development; 09 (3) agrees to use the grant money for a public purpose; 10 (4) provides the residents of the community with a public facility or 11 service; 12 (5) has held a public meeting to give residents of the community the 13 opportunity to express their preferences and ideas for use of the grant money; and 14 (6) agrees to make a facility provided with grant money available to 15 every person in the community. 16 * Sec. 4. AS 37.06.020(e) is amended to read: 17 (e) By October 1 of each fiscal year, the [INCORPORATED] nonprofit 18 corporation [ENTITY OR NATIVE VILLAGE COUNCIL] designated by the 19 department under (d) of this section shall submit to the governor a prioritized list of 20 capital projects and estimated costs to be financed with money from the community's 21 individual grant account established under (b) of this section. The list must include the 22 amount and source of the local share required by AS 37.06.030. If the community is 23 located in a borough or unified municipality, the list is subject to approval of the 24 assembly and must be accompanied by written evidence of that approval. The 25 governor shall include in the capital improvements program presented to the legislature 26 under AS 37.07.060 the projects submitted by designated corporations [ENTITIES] 27 under this subsection that the governor recommends for funding. If, in the capital 28 improvements program, the governor includes projects in other than the priority order 29 submitted by a designated corporation [ENTITY], the governor shall provide the 30 legislature with a written statement of the reasons for that action. 31 * Sec. 5. AS 37.06.020(h) is amended to read:
01 (h) A corporation [AN ENTITY] designated by the department under (d) of this 02 section shall repay to the department money it has drawn from an unincorporated 03 community's individual grant account if substantial, ongoing work on the project is not 04 started within four [FIVE] years after the effective date of the appropriation from which 05 the draw is funded. Money repaid shall be deposited into the general fund. Money from 06 an allocation to an unincorporated community's individual grant account that has not 07 been drawn out by a designated corporation [ENTITY] within four [FIVE] years after 08 the effective date of the appropriation from which the allocation is funded lapses into the 09 general fund. 10 * Sec. 6. AS 37.06.030(b) is amended to read: 11 (b) For each draw made by a corporation [AN ENTITY OR COUNCIL] under 12 AS 37.06.020, the nonprofit corporation [INCORPORATED ENTITY OR NATIVE 13 VILLAGE COUNCIL] that makes the draw shall contribute a local share of the cost of 14 the capital project for which the draw is made. The amount of the local share for an 15 unincorporated community in a borough or unified municipality is the amount of 16 the local share for that borough or unified municipality as calculated under (a) of 17 this section. The amount of the local share for an unincorporated community in the 18 unorganized borough equals the local share percentage as calculated under (1) of this 19 subsection, divided by the state share percentage as calculated under (2) of this 20 subsection, multiplied by the amount of the draw. For purposes of this subsection, 21 (1) the local share percentage is five percent; 22 (2) the state share percentage equals one minus the local share 23 percentage; 24 (3) the local share may be satisfied from (A) federal or local money; (B) 25 labor, materials, or equipment used directly in the construction of the project, or land, 26 including land transferred by the state; the department shall determine the value of a 27 contribution under this subparagraph; (C) money from another nonstate source; (D) 28 money received by the unincorporated community under AS 29.60.010 - 29.60.375; or 29 (E) money obtained from the sale or lease of land or other assets transferred by the state; 30 except as provided in this paragraph, the local share may not be satisfied with money 31 from, or with the portion of an asset that was obtained with money from, an
01 appropriation, allocation, entitlement, grant, or other payment from the state. 02 * Sec. 7. TRANSITION. A Native village council that has made a draw before the effective 03 date of this Act from an unincorporated community's individual grant account for a capital 04 project that has not been completed by the effective date of this Act may continue to make 05 draws for that project. For purposes of this section, AS 37.06.020(b) - (e) and (g) and 06 37.06.030(b) apply as they read immediately before the effective date of this Act. 07 * Sec. 8. AS 37.06.020(g) is repealed. 08 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).