HB 28: "An Act relating to the municipal dividend program; and providing for an effective date."

00 HOUSE BILL NO. 28 01 "An Act relating to the municipal dividend program; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.60 is amended by adding new sections to read: 05 Article 10. Municipal Dividend Program. 06 Sec. 29.60.800. Municipal dividend fund. There is established in the 07 department the municipal dividend fund consisting of money transferred to the fund 08 under AS 37.13.145(e). Subject to appropriations for the purpose, the amount 09 transferred to the fund shall be distributed by the department as dividends to 10 municipalities for each fiscal year. 11 Sec. 29.60.810. Amount of municipal dividends. (a) The amount of a 12 municipal dividend for a fiscal year equals $250 for each resident of the municipality. 13 The population of each municipality shall be determined annually by using the latest 14 numbers of permanent fund dividend recipients or other population data that, in the

01 judgment of the department, is reliable. In determining the population of a borough, 02 the population of all cities in the borough and of all municipalities described under (d) 03 of this section in the borough shall be deducted from the total population of the 04 borough. 05 (b) Notwithstanding (a) of this section, the minimum amount of a municipal 06 dividend for each municipality is $40,000. 07 (c) If the amount appropriated is not sufficient to fully fund municipal 08 dividends for a fiscal year under (a) and (b) of this section, the amount of each 09 dividend shall be reduced on a pro-rata basis. 10 (d) In this section, "municipality" includes a municipality organized under 11 federal law as an Indian reserve that existed before enactment of 43 U.S.C. 1618(a) 12 and is continued in existence under that subsection. 13 * Sec. 2. AS 37.13.145 is amended by adding a new subsection to read: 14 (e) After the transfers under (b) and (c) of this section, on June 30 of each 15 year, the corporation shall transfer from the earnings reserve account to the municipal 16 dividend fund established under AS 29.60.800 the amount needed to fund municipal 17 dividends for the next fiscal year, or the balance in the earnings reserve account, 18 whichever is less. 19 * Sec. 3. This Act takes effect June 30, 2005.