CSHB 371(CRA): "An Act relating to a community dividend program; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 371(CRA) 01 "An Act relating to a community 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. Community Dividend Program. 06 Sec. 29.60.800. Community dividend program. (a) There is established in 07 the department the community dividend program. The department may adopt 08 regulations under AS 44.62 to carry out the purposes of the program. 09 (b) The legislature may appropriate amounts deposited into the Alaska capital 10 income fund (AS 37.05.565) or from other sources to the program. Grants under the 11 program shall be awarded as described in (c) - (i) of this section. 12 (c) From the first $10,000,000 appropriated for a fiscal year for grants under 13 the program, the department shall 14 (1) award a base grant amount to each municipality, as follows:

01 (A) to each borough, $50,000; 02 (B) to each city or reserve qualified under AS 29.60.810(a) 03 with a population of 04 (i) less than 100 persons, $25,000; 05 (ii) at least 100 but not more than 249 persons, $30,000; 06 (iii) at least 250 but not more than 500 persons, 07 $35,000; 08 (iv) more than 500 persons, $40,000; 09 (2) award a base grant of $25,000 for each community qualified under 10 AS 29.60.810(b); and 11 (3) distribute any remaining portion as an additional base grant to 12 municipalities on a per capita basis. 13 (d) If the amount appropriated for grants under the program for a fiscal year is 14 insufficient to award the full amount under (c)(1) and (c)(2) of this section to each 15 municipality and community, the department shall prorate the amount available for 16 grants under (c)(1) and (c)(2) of this section. 17 (e) Following the grant awards made under (c) of this section, from the 18 remaining amount appropriated for grants under the program for the fiscal year, the 19 department shall distribute organizational grants of 20 (1) $1,000,000 to each borough that first organized after the effective 21 date of this section and is less than two years old at the time of the award; and 22 (2) $500,000 to each borough that first organized after the effective 23 date of this section and is not more than three years old at the time of the award. 24 (f) Subsection (e) of this section does not apply to a borough incorporated by 25 consolidation or to a unified municipality that occupies the area formerly occupied by 26 another borough. 27 (g) If the amount appropriated for grants under the program is insufficient to 28 award the full amount of organizational grants under (e) of this section to each eligible 29 borough, the department shall prorate the amount available for award under (e) of this 30 section. 31 (h) After the grant awards are made under (c) and (e) of this section, the

01 department shall distribute any remaining amount appropriated for grants under the 02 program for the fiscal year as supplemental grants on a per capita basis to the 03 boroughs that received a grant under (c)(1)(A) of this section. 04 (i) For purposes of grant awards under the program, 05 (1) the population of a municipality is the population as certified by the 06 department; 07 (2) in determining the population of a borough for purposes of 08 additional base grants under (c)(3) of this section, the department shall first deduct the 09 population of all cities in the borough. 10 (j) Grant money awarded under the program to a municipality may be used 11 only for property tax relief or for the following public services: 12 (1) police protection and related public safety services; 13 (2) fire protection and emergency medical services; 14 (3) infrastructure maintenance; 15 (4) public education; 16 (5) fuel costs. 17 Sec. 29.60.810. Qualifications. (a) To qualify to receive grant money under 18 AS 29.60.800 - 29.60.849, a reserve shall form a community development corporation 19 with authority to determine how grant money received under AS 29.60.800 - 20 29.60.849 will be used. The charter must require that the governing board of the 21 corporation shall be elected at an annual election open to all residents of the reserve 22 who are registered and qualified to vote in state elections. The department may 23 distribute grant money for the reserve only to a corporation organized in accordance 24 with this subsection and only after the corporation has delivered a written waiver of 25 sovereign immunity from legal action by the state to recover all or a portion of the 26 grant money distributed under AS 29.60.800 - 29.60.849. 27 (b) The department, with advice from the Department of Law, shall determine 28 whether there is, in a community, an incorporated nonprofit entity or a Native village 29 council that will agree to receive grant money under AS 29.60.800 - 29.60.849 and 30 spend the money for a public purpose. If there is more than one qualified entity in a 31 community, the department shall pay the money under the entitlement to the entity

01 that the department finds most qualified to receive and spend the money. The 02 department may not pay money to a Native village council unless the council waives 03 immunity from suit for claims arising out of activities of the council related to the 04 grant. A waiver of immunity from suit under this subsection must be on a form 05 provided by the Department of Law. If there is no qualified incorporated nonprofit 06 entity or Native village council in a community that is willing to receive money under 07 a grant, the grant for that community may not be paid. Neither this subsection nor any 08 action taken under it enlarges or diminishes the governmental authority or jurisdiction 09 of a Native village council. 10 Sec. 29.60.849. Definitions. In AS 29.60.800 - 29.60.849, unless the context 11 otherwise requires, 12 (1) "borough," in addition to the meaning given in AS 29.71.800, 13 includes a unified municipality; 14 (2) "community" means a place that is not incorporated as a city or 15 organized as a reserve, in which 25 or more individuals reside as a social unit, and that 16 is located in the unorganized borough or in an organized borough, including a unified 17 municipality; 18 (3) "municipality," in addition to the meaning given in AS 29.71.800, 19 includes a reserve; 20 (4) "program" means the community dividend program established in 21 AS 29.60.800; 22 (5) "reserve" means an Indian reserve organized under federal law that 23 existed before enactment of 43 U.S.C. 1618(a) and is continued in existence under 43 24 U.S.C. 1618(a). 25 * Sec. 2. This Act takes effect July 1, 2006.