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30th Legislature(2017-2018)

Bill Text 30th Legislature


00 Enrolled SB 100                                                                                                         
01 Relating to municipal liens; relating to service areas in second class boroughs; relating to a                          
02 municipal tax exemption or deferral for economic development property; relating to a                                    
03 municipal tax exemption for a fire protection system; and providing for an effective date.                              
04                           _______________                                                                               
05    * Section 1. AS 09.45.169(2) is amended to read:                                                                     
06                 (2)  "nonconsensual common law lien" means a lien on real or personal                                   
07       property that                                                                                                     
08                      (A)  is not provided for by a specific state or federal statute or                               
09            municipal ordinance;                                                                                       
10                      (B)  does not depend on the consent of the owner of the                                            
11            property affected for its existence; and                                                                     
12                      (C)  is not an equitable, constructive, or other lien imposed by a                                 
13            court recognized under state or federal law;                                                                 
01    * Sec. 2. AS 11.46.560(a) is amended to read:                                                                        
02            (a)  A person commits the crime of offering a false instrument for recording in                              
03       the second degree if                                                                                              
04                 (1)  under AS 40.17, the person presents a lien to the recorder for                                     
05       registration, filing, or recording with reckless disregard that the lien is not                                   
06                      (A)  provided for by a specific state or federal statute or                                      
07            municipal ordinance; or                                                                                    
08                      (B)  a lien imposed or authorized by a court recognized under                                      
09            state or federal law;                                                                                        
10 (2)  under a law authorizing the receipt and filing of a document, the                                                  
11 person presents a lien to a department or person having responsibility to accept a lien                                 
12       for filing with reckless disregard that the lien is not                                                           
13 (A)  provided for by a specific state or federal statute or                                                           
14            municipal ordinance; or                                                                                    
15 (B)  a lien imposed or authorized by a court recognized under                                                           
16            state or federal law; or                                                                                     
17 (3)  the person presents to the recorder a notice of the pendency of an                                                 
18 action affecting title to real property or the right to possession of real property with                                
19 reckless disregard of the fact that the action specified does not concern the title to or                               
20 right to possession of the real property referred to in the notice, or with reckless                                    
21 disregard of the fact that there is no pending action concerning the title to or right to                               
22       possession of the real property referred to in the notice.                                                        
23    * Sec. 3. AS 29.35.010 is amended to read:                                                                           
24 Sec. 29.35.010. General powers. All municipalities have the following                                                   
25       general powers, subject to other provisions of law:                                                               
26 (1)  to establish and prescribe a salary for an elected or appointed                                                    
27       municipal official or employee;                                                                                   
28                 (2)  to combine two or more appointive or administrative offices;                                       
29 (3)  to establish and prescribe the functions of a municipal department,                                                
30       office, or agency;                                                                                                
31 (4)  to require periodic and special reports from a municipal department                                                
01       to be submitted through the mayor;                                                                                
02                 (5)  to investigate an affair of the municipality and make inquiries into                               
03       the conduct of a municipal department;                                                                            
04                 (6)  to levy a tax or special assessment, and impose a lien for its                                     
05       enforcement;                                                                                                      
06                 (7)  to enforce an ordinance and to prescribe a penalty for violation of                                
07       an ordinance;                                                                                                     
08                 (8)  to acquire, manage, control, use, and dispose of real and personal                                 
09       property, whether the property is situated inside or outside the municipal boundaries;                            
10 this power includes the power of a borough to expend, for any purpose authorized by                                     
11 law, money received from the disposal of land in a service area established under                                       
12       AS 29.35.450;                                                                                                     
13 (9)  to expend money for a community purpose, facility, or service for                                                  
14 the good of the municipality to the extent the municipality is otherwise authorized by                                  
15 law to exercise the power necessary to accomplish the purpose or provide the facility                                   
16       or service;                                                                                                       
17 (10)  to regulate the operation and use of a municipal right-of-way,                                                    
18       facility, or service;                                                                                             
19                 (11)  to borrow money and issue evidences of indebtedness;                                              
20 (12)  to acquire membership in an organization that promotes                                                            
21       legislation for the good of the municipality;                                                                     
22 (13)  to enter into an agreement, including an agreement for                                                            
23 cooperative or joint administration of any function or power with a municipality, the                                   
24       state, or the United States;                                                                                      
25                 (14)  to sue and be sued;                                                                               
26 (15)  to provide facilities or services for the confinement and care of                                                 
27 prisoners and enter into agreements with the state, another municipality, or any person                                 
28       relating to the confinement and care of prisoners;                                                                
29 (16)  to receive grants from and contract with the Department of Public                                                 
30       Safety under AS 18.65.670;                                                                                      
31 (17)  to provide by ordinance for the creation, recording, and                                                        
01 notice of a lien on real or personal property to secure payment of past due utility                                   
02 fees, costs incurred by the municipality in the abatement of an unsafe or                                             
03 dangerous building, and other fees and charges provided for by ordinance;                                             
04 except as otherwise provided by state law, when recorded, a municipal lien under                                      
05       this paragraph has priority over all other liens except                                                         
06                      (A)  liens for property taxes, special assessments, and sales                                    
07            and use taxes;                                                                                             
08                      (B)  liens that were perfected before the recording of the lien                                  
09            under this paragraph;                                                                                      
10 (C)  liens that, under state law, are prior, paramount, and                                                           
11            superior to all other liens; and                                                                           
12 (D)  mechanics' and materialmen's liens for which claims of                                                           
13 lien under AS 34.35.070 or notices of right to lien under AS 34.35.064 have                                           
14            been recorded before the recording of the lien under this paragraph.                                       
15    * Sec. 4. AS 29.35.490 is amended by adding a new subsection to read:                                                
16 (d)  A second class borough may establish a service area for the provision of                                           
17 emergency services within a state highway corridor if no voters reside in the service                                   
18 area. A second class borough may provide emergency services in a service area                                           
19 established under this subsection by ordinance. Notwithstanding any other provision                                     
20 of law, a second class borough may not authorize or levy a property tax for the                                         
21 provision of emergency services in a service area established under this subsection.                                    
22 The boundaries of a service area established under this subsection may only include                                     
23 the highway corridor and publicly owned property adjacent to the highway corridor                                       
24       necessary to house emergency response equipment and personnel for the service area.                               
25    * Sec. 5. AS 29.45.050(m) is amended to read:                                                                        
26 (m)  A municipality may by ordinance partially or totally exempt all or some                                            
27 types of economic development property from taxation for a designated period.                                         
28 Except as otherwise provided by an ordinance enacted by the municipality before                                       
29 January 1, 2017 [UP TO FIVE YEARS. THE MUNICIPALITY MAY PROVIDE                                                       
30 FOR RENEWAL OF THE EXEMPTION UNDER CONDITIONS ESTABLISHED                                                               
31 IN THE ORDINANCE. HOWEVER, UNDER A RENEWAL], a municipality that is                                                     
01 a school district may only exempt all or a portion of the amount of taxes that exceeds                                  
02 the amount levied on other property for the school district's required local                                          
03 contribution under AS 14.17.410(b)(2) [DISTRICT]. A municipality may by                                               
04 ordinance permit deferral of payment of taxes on all or some types of economic                                          
05 development property for a designated period. A municipality may not apply an                                         
06 exemption or deferral under this subsection to taxes levied for special services in                                   
07 a service area that is supervised by a board under AS 29.35.460 [UP TO FIVE                                           
08 YEARS. THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE                                                                  
09 DEFERRAL UNDER CONDITIONS ESTABLISHED IN THE ORDINANCE]. A                                                              
10 municipality may adopt an ordinance under this subsection only if, before it is                                         
11 adopted, copies of the proposed ordinance made available at a public hearing on it                                      
12 contain written notice that the ordinance, if adopted, may be repealed by the voters                                    
13 through referendum. An ordinance adopted under this subsection must include specific                                    
14 eligibility requirements and require a written application for each exemption or                                        
15 deferral. In this subsection, "economic development property" means real or personal                                    
16 property, including developed property conveyed under 43 U.S.C. 1601 et seq.                                            
17       (Alaska Native Claims Settlement Act), [THAT]                                                                     
18                 (1)  to which one or more of the following apply:                                                     
19 (A)  the property has not previously been taxed as real or                                                            
20            personal property by the municipality;                                                                       
21 (B)  the property [(2)] is used in a trade or business in a way                                                       
22            that                                                                                                         
23                           (i) [(A)]  creates employment in the municipality;                                          
24 (ii) [(B)]  generates sales outside of the municipality of                                                            
25                 goods or services produced in the municipality; or                                                      
26 (iii) [(C)]  materially reduces the importation of goods or                                                           
27                 services from outside the municipality;                                                                 
28 (C)  an exemption or deferral on the property enables a                                                               
29            significant capital investment in physical infrastructure that                                             
30                           (i)  expands the tax base of the municipality; and                                          
31 (ii)  will generate property tax revenue after the                                                                    
01                 exemption expires; or                                                                                 
02 (2)  that [AND (3)] has not been used in the same trade or business in                                                
03 another municipality for at least six months before the application for deferral or                                     
04 exemption is filed; this paragraph does not apply if the property was used in the same                                  
05 trade or business in an area that has been annexed to the municipality within six                                       
06 months before the application for deferral or exemption is filed; this paragraph does                                   
07       not apply to inventories.                                                                                         
08    * Sec. 6. AS 29.45.050 is amended by adding a new subsection to read:                                                
09            (y)  A municipality may by ordinance exempt from taxation up to two percent                                  
10 of the assessed value of a structure if the structure contains a fire protection system                                 
11 that is approved under AS 18.70.081, in operating condition, and incorporated as a                                      
12 fixture or part of the structure. An exemption under this subsection is limited to an                                   
13 amount that does not exceed two percent of the value of the structure based on the                                      
14       assessment                                                                                                        
15 (1)  for 1981, if the fire protection system was a fixture of the structure                                             
16       on January 1, 1981; or                                                                                            
17 (2)  as of January 1 of the year immediately following the installation                                                 
18 of the fire protection system, if the fire protection system became a fixture of the                                    
19       structure after January 1, 1981.                                                                                  
20    * Sec. 7. AS 34.35.950(d)(2) is amended to read:                                                                     
21 (2)  "nonconsensual common law lien" means a lien on real or personal                                                   
22       property that                                                                                                     
23 (A)  is not provided for by a specific state or federal statute or                                                    
24            municipal ordinance;                                                                                       
25 (B)  does not depend on the consent of the owner of the                                                                 
26            property affected for its existence; and                                                                     
27 (C)  is not an equitable, constructive, or other lien imposed by a                                                      
28            court recognized under state or federal law;                                                                 
29    * Sec. 8. AS 29.45.030(l) is repealed.                                                                               
30    * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).                                                   
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