CSHB 20(FIN): "An Act relating to organization grants to cities, to state aid to unincorporated communities, and to municipal dividends; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 20(FIN) 01 "An Act relating to organization grants to cities, to state aid to unincorporated 02 communities, and to municipal dividends; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.05.180(a) is amended to read: 05 (a) To defray the cost of transition to city government and to provide for 06 interim government operations, each city incorporated after June 30, 2002, 07 [DECEMBER 31, 1985] is entitled to [AN] organization grants [GRANT OF $50,000 08 FOR THE FIRST FULL OR PARTIAL FISCAL YEAR] after incorporation as 09 follows: 10 (1) $100,000 for the city's first full or partial fiscal year; 11 (2) $50,000 for the city's second fiscal year; and 12 (3) $25,000 for the city's third fiscal year. 13 * Sec. 2. AS 29.05.180(b) is amended to read: 14 (b) To defray the cost of reclassification, each second class city in the
01 unorganized borough incorporated before January 1, 1986, that reclassifies as a first 02 class city or adopts a home rule charter after June 30, 2002, [DECEMBER 31, 1985] 03 is entitled to [AN] organization grants [GRANT EQUAL TO $50,000 FOR THE 04 FIRST FULL OR PARTIAL FISCAL YEAR] after reclassification as follows: 05 (1) $200,000 for the city's first full or partial fiscal year; 06 (2) $100,000 for the city's second fiscal year; 07 (3) $50,000 for the city's third fiscal year. 08 * Sec. 3. AS 29.60.140 is amended to read: 09 Sec. 29.60.140. State aid to unincorporated communities. (a) Subject to 10 (c) of this section, the [THE] department shall pay to each unincorporated community 11 an entitlement each fiscal year to be used for a public purpose. The department with 12 advice from the Department of Law shall determine whether there is in each 13 unincorporated community an incorporated nonprofit entity or a Native village council 14 that will agree to receive and spend the entitlement. If the community is located in a 15 borough or a unified municipality, the department may pay the entitlement only 16 to the entity that has been approved by the assembly, and the department must 17 have written evidence of that approval. If there is more than one qualified entity in 18 an unincorporated community in the unorganized borough, the department shall pay 19 the money under the entitlement to the entity that the department finds most qualified 20 to receive and spend the money. The department may not pay money under an 21 entitlement to a Native village council unless the council waives immunity from suit 22 for claims arising out of activities of the council related to the entitlement. A waiver 23 of immunity from suit under this subsection must be on a form provided by the 24 Department of Law. If there is no qualified incorporated nonprofit entity or Native 25 village council in an unincorporated community that is willing to receive money under 26 an entitlement, the entitlement for that unincorporated community may not be paid. 27 Neither this subsection nor any action taken under it enlarges or diminishes the 28 governmental authority or jurisdiction of a Native village council. If at least 29 $41,472,000 is appropriated for all entitlements under as 29.60.010 - 29.60.310 for a 30 fiscal year, the entitlement for each unincorporated community under this subsection 31 for that year equals $40,000. Otherwise, the entitlement equals $25,000.
01 (b) In this section "unincorporated community" means a place [IN THE 02 UNORGANIZED BOROUGH] that is not incorporated as a city and in which 25 or 03 more persons reside as a social unit. 04 * Sec. 4. AS 29.60.140 is amended by adding a new subsection to read: 05 (c) The department may pay an entitlement under (a) of this section for an 06 unincorporated community in a borough only to a qualified entity that provides at least 07 three of the following services within the community: 08 (1) fire protection; 09 (2) emergency medical; 10 (3) water and sewer; 11 (4) solid waste management; 12 (5) public road or ice road maintenance; 13 (6) public health; 14 (7) search and rescue. 15 * Sec. 5. AS 29.60 is amended by adding a new section to article 3 to read: 16 Sec. 29.60.330. Municipal dividend fund. There is established in the 17 department the municipal dividend fund consisting of municipal dividends transferred 18 to the fund under AS 37.13.145(e). Each fiscal year, the legislature may appropriate 19 money in the municipal dividend fund for the organization grant program 20 (AS 29.05.200), municipal tax resource equalization program (AS 29.60.010 - 21 29.60.080), priority revenue sharing for municipal services program (AS 29.60.100 - 22 29.60.180), and revenue sharing for safe communities program (AS 29.60.350 - 23 29.60.375). Any balance in the fund may be appropriated for 24 (1) capital project matching grants (AS 37.06.010 - 37.06.090); 25 (2) payments to municipalities for costs of confinement and care of 26 state prisoners. 27 * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read: 28 (e) At the end of the fiscal year, after the transfers under (b) and (c) of this 29 section and subject to appropriation, the corporation shall transfer a municipal 30 dividend from the earnings reserve account to the municipal dividend fund established 31 under AS 29.60.330. The municipal dividend equals the lesser of
01 (1) the amount calculated by multiplying $100 by the number of 02 permanent fund dividends paid by the Department of Revenue during the calendar 03 year immediately preceding the year the transfer is made under this subsection; or 04 (2) the balance of the earnings reserve account on the date of the 05 transfer under this subsection. 06 * Sec. 7. This Act takes effect June 29, 2002.