00 SENATE BILL NO. 29 01 "An Act relating to the reporting and analysis of certain information relating to tax 02 credits, deductions, exclusions, exemptions, deferrals, and other tax expenditures; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 37.07.020(a) is amended to read: 06 (a) After considering the tax expenditure report prepared by the  07 Department of Revenue under AS 43.05.090, the [THE] governor shall prepare a 08 budget for the succeeding fiscal year that must cover all estimated receipts, including 09 all grants, loans, and money received from the federal government and all proposed 10 expenditures of the state government. The budget shall be organized so that the 11 proposed expenditures for each agency are presented separately. The budget must be 12 accompanied by the information required under AS 37.07.050 and by the following 13 separate bills: (1) an appropriation bill authorizing the operating and capital 14 expenditures of the state's integrated comprehensive mental health program under 01 AS 37.14.003(a); (2) an appropriation bill authorizing state operating expenditures 02 other than those included in the state's integrated comprehensive mental health 03 program; (3) an appropriation bill authorizing capital expenditures other than those 04 included in the state's integrated comprehensive mental health program; and (4) a bill 05 or bills covering recommendations, if any, in the budget for new or additional revenue. 06 The budget for the succeeding fiscal year and each of the bills shall become public 07 information on December 15 at which time the governor shall submit copies to the 08 legislature and make copies available to the public. The bills, identical in content to 09 the copies released on December 15, shall be delivered to the rules committee of each 10 house before the fourth legislative day of the next regular session for introduction. 11  * Sec. 2. AS 37.07.020(b) is amended to read: 12 (b) In addition to the budget and bills submitted under (a) of this section, the 13 governor shall submit a capital improvements program covering the succeeding six 14 fiscal years. The governor shall also submit a fiscal plan with estimates of significant 15 sources and uses of funds for the succeeding 10 fiscal years. The fiscal plan 16 (1) must include sufficient details to identify 17 (A) significant sources of funds; 18 (B) significant uses of funds, including lump sum projections 19 of 20 (i) operating expenditures; 21 (ii) capital expenditures; 22 (iii) debt service expenditures; 23 (iv) fund capitalizations; 24 (v) appropriations of income of the Alaska permanent 25 fund (art. IX, sec. 15, Constitution of the State of Alaska), if any; 26 (2) must balance sources and uses of funds held while providing for 27 essential state services and protecting the economic stability of the state; 28 (3) must include projected balances of significant funds held in 29 separate accounts, including the budget reserve fund (art. IX, sec. 17, Constitution of 30 the State of Alaska), the public education fund (AS 14.17.300), and the Alaska capital 31 income fund (AS 37.05.565); 01 (4) must set out significant assumptions used in the projections with 02 sufficient detail to enable the legislature to rely on the fiscal plan in understanding, 03 evaluating, and resolving issues of state budgeting, including information that supports 04 major areas of operating increases, such as population demographics that affect the 05 need for particular government services;  06 (5) must address any issues raised by the tax expenditure report  07 prepared by the Department of Revenue under AS 43.05.090. 08  * Sec. 3. AS 43.05.090 is amended to read: 09 Sec. 43.05.090. Preparation and publication of reports and statistics. The 10 department shall prepare and annually publish statistics of the revenues derived under 11 the tax laws administered by it and a report analyzing tax revenue losses due to tax  12 expenditures. 13  * Sec. 4. AS 43.05.090 is amended by adding new subsections to read: 14 (b) The report of tax expenditures must include 15 (1) the statutory authority for each type of tax expenditure and a 16 summary of the legislative history of the statute; 17 (2) the annual sum of tax expenditures for the prior fiscal year, 18 separately calculated for each type of expenditure, and the total number of taxpayers 19 who benefitted from each type of expenditure; 20 (3) an estimate of tax expenditures for the current fiscal year, 21 separately calculated for each type of expenditure; 22 (4) an estimate of the public and private costs of administering the tax 23 expenditures; 24 (5) a determination of whether each statute authorizing a tax 25 expenditure has achieved the purpose for which it was enacted; 26 (6) a determination of whether each statute authorizing a tax 27 expenditure provides the most fiscally effective means of achieving the purpose for 28 which it was enacted and whether it results in a fair and equitable distribution of the 29 tax burden on taxpayers; and 30 (7) as to each statute authorizing a tax expenditure that is scheduled to 31 be repealed in the next fiscal year, a recommendation in support of repeal or extension 01 of the authorizing statute. 02 (c) The department shall annually transmit an electronic copy of the tax 03 expenditure report to each member of the legislature and make the report available to 04 the public on the department's Internet website. 05 (d) In this section, "tax expenditure" means a tax deduction, tax credit, 06 exclusion, exemption, deferral, or other loss of state and local tax revenue due to either 07 an express provision of state tax law or resulting from the overall operation of state tax 08 law. 09  * Sec. 5. This Act takes effect July 1, 2013.