HB 358: "An Act relating to use by municipalities of money received under certain state aid programs; and providing for an effective date."
00 HOUSE BILL NO. 358 01 "An Act relating to use by municipalities of money received under certain state aid 02 programs; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.10.200 is amended by adding new paragraphs to read: 05 (64) AS 29.60.110 (aid for roads); 06 (65) AS 29.60.290(e) (minimum aid payments). 07 * Sec. 2. 29.60.050(a) is amended to read: 08 (a) An equalization entitlement generated by the tax levy of a taxing unit may 09 be used only for roads, schools, police protection, or fire protection and only to the 10 extent that the use is an authorized expenditure [EXPENDITURES] of that taxing 11 unit, but up to 15 percent of the payment of an equalization entitlement generated by 12 areawide revenue of a municipality may be used by the municipality for areawide or 13 nonareawide purposes at the discretion of its governing body. This subsection applies 14 to home rule and general law municipalities.
01 * Sec. 3. AS 29.60.110 is amended to read: 02 Sec. 29.60.110. State aid to municipalities for roads. (a) The department 03 shall pay to a municipality that has power to provide for road maintenance and 04 exercises that power [,] an entitlement based on each mile of road, street, or highway 05 maintained by the municipality, excluding (1) the official state highway system, (2) 06 roads, streets, or highways not dedicated to public use, (3) roads, streets, or highways 07 maintained under AS 19.30.111 - 19.30.251 (local service road program), and (4) 08 alleyways, in accordance with regulations adopted by the Department of 09 Transportation and Public Facilities. A payment may not be made under this 10 subsection for maintenance of a road that is not used by automotive equipment. If at 11 least $41,472,000 is appropriated for all entitlements under AS 29.60.010 - 29.60.310 12 for a fiscal year, the entitlement for each municipality under this subsection for that 13 year equals $3,000 a [PER] mile. Otherwise, the entitlement equals $2,500 a [PER] 14 mile. Money received under this subsection may be used by the municipality only 15 for road maintenance. 16 (b) A frozen waterway and a connection from an inhabited area to a waterway 17 that may be safely used for public transportation by automotive equipment and is so 18 used during a portion of a year is eligible for payment of $1,500 a [PER] mile if the 19 waterway and connection are maintained during the period of use by a municipality or 20 combination of municipalities. The department, after consultation with the Department 21 of Transportation and Public Facilities, shall determine which waterways and 22 connections qualify and, where the waterways or connections lie outside the corporate 23 limits of a municipality, which municipalities shall receive the payments under this 24 subsection, unless the municipalities involved have agreed in writing to a particular 25 distribution. Money received under this subsection may be used by a municipality 26 only for maintenance of a frozen waterway and connection from an inhabited 27 area to the waterway. 28 * Sec. 4. AS 29.60.110 is amended by adding a new subsection to read: 29 (c) This section applies to home rule and general law municipalities. 30 * Sec. 5. AS 29.60.290(e) is amended to read: 31 (e) Payments under this section shall be made from the money allocated to the
01 tax equalization account established in AS 29.60.060 and may be used only for 02 roads, schools, police protection, and fire protection. This subsection applies to 03 home rule and general law municipalities. 04 * Sec. 6. This Act takes effect July 1, 2006.