SB 159: "An Act relating to the new business incentive program."
00SENATE BILL NO. 159 01 "An Act relating to the new business incentive program." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 44.88.080 is amended by adding a new paragraph to read: 04 (26) to screen potential applicants for a new business incentive grant 05 and approve the award of the grants under AS 45.81.020. 06 * Sec. 2. AS 45 is amended by adding a new chapter to read: 07 Chapter 81. New Business Incentive Program. 08 Sec. 45.81.010. New business incentive fund. There is established in the 09 department the new business incentive fund consisting of appropriations to the fund 10 from money available under AS 44.88.088 or from other sources. The amount 11 appropriated to the fund each fiscal year may equal $3,000,000. The department may 12 use money in the fund for new business incentive grants. On June 30 of each fiscal 13 year, the unexpended and unobligated balance in the fund lapses into the general fund. 14 Sec. 45.81.020. Eligibility for grants. (a) A new business or a business that
01 is opening a new branch in the state is eligible for a new business incentive grant if 02 the business 03 (1) is primarily engaged in manufacturing a product for export outside 04 of the state; 05 (2) will not directly compete with an existing business that is located 06 in the state as determined by the department; 07 (3) is located in a municipality that has provided financial support to 08 the business in a form and in an amount acceptable to the department; 09 (4) is primarily financed by the private sector; 10 (5) is receiving financing from the Alaska Industrial Development and 11 Export Authority; and 12 (6) has been approved for a business incentive grant by the Alaska 13 Industrial Development and Export Authority. 14 (b) The department shall prescribe the form and procedure for submitting new 15 business incentive grant applications. Subject to the availability of money in the new 16 business incentive fund, the department may award a grant to an eligible applicant in 17 an amount that does not exceed the amount approved by the Alaska Industrial 18 Development and Export Authority for that applicant. 19 Sec. 45.81.030. Use of grant money. After awarding a new business incentive 20 grant, the department may pay money from the grant to the recipient business only as 21 reimbursement for one or more of the following costs incurred and paid by the 22 business: 23 (1) cost of relocating key personnel and of moving and installing 24 equipment and initial inventory; 25 (2) up to 50 percent of the cost of site preparation and installation of 26 utilities for a new facility; 27 (3) work force training costs for a period of up to 36 months in an 28 amount not to exceed $5,000 for each employee receiving training during a 12-month 29 period if the costs are not covered by another governmental program; 30 (4) up to 50 percent of the costs of business feasibility analyses, market 31 studies, and business facility designs.
01 Sec. 45.81.040. Grant conditions. (a) A business that receives a new 02 business incentive grant must continue to operate in the state for at least five years 03 after the date the grant is awarded or must, within 90 days after ceasing to operate, 04 repay the grant money together with interest on the money in an amount established 05 by the department. A business that is a branch or subsidiary of another business may 06 not receive a grant unless that other business agrees, in a form acceptable to the 07 department, to be responsible for the obligation to repay grant money and interest 08 under this subsection. 09 (b) The department may set additional terms and conditions for the award of 10 new business incentive grants and for the payment of grant money. 11 Sec. 45.81.050. Definition. For purposes of AS 45.81.010 - 45.81.050, 12 "department" means the Department of Commerce and Economic Development.