2006-01-13                     House Journal                      Page 2276
HB 371                                                                                            
HOUSE BILL NO. 371 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to a community dividend program; and providing                                
     for an effective date."                                                                        
                                                                                                    
was read the first time and referred to the Community & Regional                                    
Affairs and Finance Committees.                                                                     
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Revenue                                                                          
2.  Fiscal, Dept. of Commerce, Community & Economic Development                                     
                                                                                                    
The Governor's transmittal letter dated January 13, 2006, follows:                                  
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to a community dividend program.                                       
                                                                                                    
This bill would establish the community dividend program, under                                     
which several types of grants would be awarded to municipalities for                                

2006-01-13                     House Journal                      Page 2277
use for specified public services.  The bill provides for appropriation                             
for the program from amounts deposited into the Alaska capital                                      
income fund, established in AS 37.05.565 by ch. 49, SLA 2005.  The                                  
Alaska capital income fund is financed by the earnings on Amerada                                   
Hess settlement deposits to the Alaska permanent fund.                                              
                                                                                                    
The bill provides first for a base grant to municipalities, then for an                             
organizational grant to newly organized boroughs.  Any amounts                                      
remaining from a fiscal year's appropriation would be distributed on a                              
pro rata basis to municipalities as a supplemental grant.                                           
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                Governor"