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SB 29: "An Act relating to the reporting and analysis of certain information relating to tax credits, deductions, exclusions, exemptions, deferrals, and other tax expenditures; and providing for an effective date."

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.