00                            SENATE BILL NO. 226                                                                         
01 "An Act relating to the municipal endowment program."                                                                   
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 29.60 is amended by adding new sections to read:                                                  
04                  Article 10. Municipal Endowment Program.                                                             
05            Sec. 29.60.800. Municipal endowment fund. (a) There is in the general fund                                 
06       the municipal endowment fund consisting of money appropriated to it. Money                                        
07       appropriated to the fund does not lapse. The Department of Revenue shall manage the                               
08       fund so as to yield competitive market rates, as provided in AS 37.10.070. Income                                 
09       earned on money in the fund shall be accounted for separately and may be                                          
10       appropriated into the fund annually.                                                                              
11            (b)  On July 1 each fiscal year, the Department of Revenue shall transfer an                                 
12       amount equal to six percent of the value of the municipal endowment fund at the end                               
13       of the immediately preceding fiscal year to the Department of Commerce,                                           
14       Community, and Economic Development for distribution within 30 days as municipal                                  
15       endowment payments.                                                                                               

01            Sec. 29.60.810. Municipal endowment payments. (a) For each fiscal year,                                    
02       each municipality and, subject to (b) of this section, each reserve is eligible for a                             
03       municipal endowment payment of $50,000. Subject to (b) of this section, each                                      
04       community is eligible for a municipal endowment payment of $25,000. If the amount                                 
05       transferred under AS 29.60.800(b) is not sufficient to fully fund all endowment                                   
06       payments for a fiscal year, the department shall reduce each payment on a pro rata                                
07       basis.                                                                                                            
08            (b)  The department, with advice from the Department of Law, shall determine                                 
09       whether there is, in each reserve or community, an incorporated nonprofit entity or a                             
10       Native village council that will agree to receive and spend the municipal endowment                               
11       payment for the benefit of the reserve or community. If there is more than one                                    
12       qualified entity in a reserve or community, the department shall pay the endowment                                
13       money to the entity that the department finds most qualified to receive and spend the                             
14       money. The department may not make a payment for a reserve or community unless                                    
15       the incorporated nonprofit entity or Native village council waives immunity from suit                             
16       for claims arising out of activities of the corporation or council related to the                                 
17       municipal endowment payment. A waiver of immunity from suit under this subsection                                 
18       must be on a form provided by the Department of Law. If there is not a qualified                                  
19       incorporated nonprofit entity or Native village council in a reserve or community that                            
20       is willing to receive and spend the municipal endowment payment for the benefit of                                
21       the reserve or community, the payment may not be made.                                                            
22            Sec. 29.60.820. Increased payments. (a) If the amount transferred under                                    
23       AS 29.60.800(b) exceeds that which is sufficient to fully fund municipal endowment                                
24       payments under AS 29.60.810 for a fiscal year, the department shall increase the                                  
25       payment for each reserve and municipality by an equal amount for each person who                                  
26       resides in the reserve or municipality.                                                                           
27            (b)  For purposes of determining the amount of an increased payment, the                                     
28       population of the reserve or municipality shall be determined by using the number of                              
29       permanent fund dividend recipients or other population data that the department                                   
30       determines is reliable. In determining the population of a borough, the population of                             
31       each city in the borough shall be deducted from the total population of the borough.                              

01            Sec. 29.60.829. Definitions. In AS 29.60.800 - 29.60.829,                                                  
02                 (1)  "community" means a place in the unorganized borough that is not                                   
03       incorporated as a city and in which 25 or more persons reside as a social unit;                                   
04                 (2)  "reserve" means a place that is organized under federal law as an                                  
05       Indian reserve that existed before enactment of 43 U.S.C. 1618(a) and is continued in                             
06       existence under that subsection.                                                                                  
07    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
08 read:                                                                                                                   
09       TRANSITION. On July 1, 2007, the Department of Revenue shall make the first                                       
10 transfer of money for distribution as municipal endowment payments under AS 29.60.800(b),                               
11 added by sec. 1 of this Act.