00                             SENATE BILL NO. 138                                                                         
01 "An Act relating to transfers or changes between allocations by state agencies."                                        
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 37.07.080(e) is amended to read:                                                                   
04 (e)  Except as provided in (i) of this section, transfers [TRANSFERS] or                                            
05 changes between objects of expenditures or between allocations may be made by the                                       
06 head of an agency upon approval of the office. Transfers may not be made between                                        
07 appropriations, including transfers made through the use of a reimbursable service                                      
08 agreement or other agreement, except as provided in an act making the transfers                                         
09 between appropriations. However, a reimbursable service agreement or other                                              
10       agreement may be used to finance the provision of a service if                                                    
11                 (1)  the agency that requires the service has, by law, the authority to                                 
12       obtain or provide the service and has an appropriation that may be used for that                                  
13       purpose; and                                                                                                      
14                 (2)  the agency that provides the service bills the agency administering                                
15       the available funds based on                                                                                      
01                      (A)  the actual cost to provide the service; or                                                    
02                      (B)  a cost allocation method approved by the office.                                              
03    * Sec. 2. AS 37.07.080 is amended by adding a new subsection to read:                                              
04            (i)  A transfer or change made under (e) of this section                                                     
05                 (1)  may not increase the total of an allocation for a capital project as                               
06       defined in AS 37.06.090 by more than 10 percent or the total of an allocation for an                              
07       operating expense by more than 50 percent.                                                                        
08                 (2)  may increase the total of an allocation for an operating expense by                                
09       more than 10 percent but not more than 50 percent in accordance with the following                                
10       procedures:                                                                                                       
11 (A)  the governor shall submit a request for the transfer or                                                            
12            change to the Legislative Budget and Audit Committee for review;                                             
13 (B)  45 days shall elapse before commencement of the transfer                                                           
14 or change unless the Legislative Budget and Audit Committee earlier                                                     
15            recommends the transfer or change;                                                                           
16 (C)  should the Legislative Budget and Audit Committee                                                                  
17 recommend within the 45-day period that the state not initiate the transfer or                                          
18 change, the governor shall again review the transfer or change and if the                                               
19 governor determines to authorize the transfer or change, the governor shall                                             
20 provide the Legislative Budget and Audit Committee with a statement of the                                              
21            governor's reasons before commencement of the transfer or change.