Sectional Analysis for HB 86

Section 1: Amends AS 29.10.200, Limitation of Home Rule Powers, by adding a new paragraph which adds payment in lieu of taxes as an exception to prohibitions for which home rule municipalities may take action.

Section 2: Adds new sections to AS 29.60, State Programs. Under Article 9, Sec. 29.60.700 establishes the payments in lieu of taxes program in the Department of Community and Regional Affairs. The department will annually distribute payments received from the federal government for federal designated areas in the unorganized borough to eligible home rule and general law cities within the unorganized borough. Sec. 29.60.710 states that payments received by the state for a federally designated area in the unorganized borough will be distributed by the department to each eligible home rule and general law city located in that area based on population. Distributions will be made on November 1 of the state fiscal year. Funds may be used by a city for any purpose authorized by federal law for which the city has the power to expend funds. Sec. 29.60.720 outlines eligibility criteria for cities in the unorganized borough in order that they may receive funds under the program. Sec. 29.60.750 defines unorganized borough. This definition is in current statute under AS 29.03.010 which states that "areas of the state that are not within the boundaries of an unorganized borough constitute a single unorganized borough."

Section 3: Establishes an immediate effective date.