02/15/1996 01:41 AM House FIN

  HOUSE BILL NO. 361                                                           
                                                                               
       "An Act  relating to municipal capital project matching                 
       grants  for a municipality  organized under federal law                 
       as an Indian  reserve; and  providing for an  effective                 
       date."                                                                  
                                                                               
  REPRESENTATIVE  JERRY Mackie,  sponsor HB 361,  testified in                 
  support  of  HB 361.    He  noted that  the  legislation was                 
  introduced  at   the  request   of  the  Metlakatla   Indian                 
  Community.   He explained that  it was  not clearly  defined                 
  that Metlakatla which  was established as an  Indian Reserve                 
  under  law  would  qualify  for  the  Municipal   Assistance                 
  Matching  Grant  Program.    He  noted  that  the  Community                 
  received Municipal Assistance  Matching Grants until  FY 95.                 
  He  stressed  that it  was the  intent  of the  Program that                 
  Metlakatla  would  qualify.     He  observed  that   HB  361                 
  establishes  in  statute  that  Metlakatla  qualifies as  an                 
  organized municipality for  a municipal assistance  matching                 
                                                                               
                                3                                              
                                                                               
                                                                               
  grant under AS  37.06.  The  legislation would clarify  that                 
  Metlakatla does not qualify for a grant as an unincorporated                 
  community.   He observed  that they  received unincorporated                 
  grants in prior years.                                                       
                                                                               
  Representative  Mackie provided  members with a  letter from                 
  the  Department  of Community  and  Regional  Affairs, dated                 
  1/18/94 detailing grants received by Metlakatla  (Attachment                 
  1).                                                                          
                                                                               
  Representative Mackie maintained that the legislation  would                 
  not open the program for  other tribes to receive  municipal                 
  assistance matching grants.  He referred  to page 1, lines 7                 
  & 8.  He stated that this language would limit qualification                 
  to  Metlakatla.    He  pointed  out  similarities  to  other                 
  communities of corresponding size.                                           
                                                                               
  REMOND  HENDERSON,  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT  OF  COMMUNITY  AND  REGIONAL  AFFAIRS                 
  stated that the  legislation will provide  authorization for                 
  previous grants.                                                             
  Representative Mackie noted that Metlakatla will not receive                 
  a  grant  in FY  97 unless  the legislation  is passed.   He                 
  stressed that Metlakatla  has utilized previous grants.   He                 
  pointed out  that Metlakatla  did not  receive an  organized                 
  municipal grant for FY 96.                                                   
                                                                               
  Representative Parnell asked if  Metlakatla receives federal                 
  funds based on being an unincorporated city.  Representative                 
  Mackie stated  that Metlakatla  receives PL874  Funds as  do                 
  other communities with  Native populations.  He  stated that                 
  Metlakatla received a grant for $60.0 thousand dollars in FY                 
  94 for a fire hall and $58.0 thousand dollars in FY 95 for a                 
  police department project.  Their  FY 96 organized municipal                 
  grant for $59.0 thousand dollars was not approved.                           
                                                                               
  Representative  Navarre  MOVED  to  report  HB  361  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  HB  361  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with  two zero fiscal  notes; one by  the                 
  Department of Community and Regional Affairs,  dated 2/9/96;                 
  and one by the Department of Administration, dated 1/19/96.