SSHB 84: "An Act relating to the Legislative Budget and Audit Committee; requiring state agencies, municipalities, and regional educational attendance areas to report on federal receipts; and relating to the increase of an appropriation item based on additional federal or program receipts."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 84 01 "An Act relating to the Legislative Budget and Audit Committee; requiring state 02 agencies, municipalities, and regional educational attendance areas to report on federal 03 receipts; and relating to the increase of an appropriation item based on additional 04 federal or program receipts." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 SHORT TITLE. This Act may be known as the Federal Receipts Fiscal Accountability 09 Act. 10 * Sec. 2. AS 24.20.206 is amended to read: 11 Sec. 24.20.206. Duties. The Legislative Budget and Audit Committee shall 12 (1) annually review the long-range operating plans of all agencies of 13 the state that perform lending or investment functions; 14 (2) review periodic reports from all agencies of the state that perform
01 lending or investment functions; 02 (3) prepare a complete report of investment programs, plans, 03 performance, and policies of all agencies of the state that perform lending or 04 investment functions and notify the legislature on or before the first day of each 05 regular session that the report is available; 06 (4) in conjunction with the finance committee of each house, 07 recommend annually to the legislature the investment policy for the general fund 08 surplus and for the income from the permanent fund; 09 (5) provide for an annual post audit and annual operational and 10 performance evaluation of the Alaska Permanent Fund Corporation investments and 11 investment programs; 12 (6) provide for an annual operational and performance evaluation of 13 the Alaska Housing Finance Corporation and the Alaska Industrial Development and 14 Export Authority; the performance evaluation must include, but is not limited to, a 15 comparison of the effect on various sectors of the economy by public and private 16 lending, the effect on resident and nonresident employment, the effect on real wages, 17 and the effect on state and local operating and capital budgets of the programs of the 18 Alaska Housing Finance Corporation and the Alaska Industrial Development and 19 Export Authority; 20 (7) provide assistance to the trustees of the trust established in 21 AS 37.14.400 - 37.14.450 in carrying out their duties under AS 37.14.415; 22 (8) review the annual report submitted by the office of 23 management and budget under AS 37.05.215(e) for the preceding fiscal year at 24 the next regular meeting of the committee and recommend to the legislature 25 whether to make, reduce, or repeal any appropriations based on the report. 26 * Sec. 3. AS 37.05 is amended by adding a new section to article 2 to read: 27 Sec. 37.05.215. Federal receipts reporting requirements. (a) On or before 28 October 31 each year, each municipality and state agency, other than a principal 29 department, shall prepare and submit a report to the office of management and budget 30 on a form prescribed by the office of management and budget that 31 (1) states the total amount of federal receipts the municipality or state
01 agency received for the previous state fiscal year that were not appropriated by the 02 legislature; 03 (2) identifies all conditions or requirements a municipality or state 04 agency must meet to receive the federal receipts not appropriated by the legislature; 05 (3) states whether the federal receipts the municipality or state agency 06 received for the previous fiscal year that were not appropriated by the legislature 07 require a match, supplement, or replacement upon acceptance of the receipts or when 08 the receipts diminish; 09 (4) states the percentage of the total budget that the federal receipts not 10 appropriated by the legislature represent for the municipality or state agency for the 11 previous state fiscal year; and 12 (5) if the federal receipts not appropriated by the legislature represent 13 five percent or more of the total budget of a municipality or state agency, describes a 14 plan created for operating the municipality or state agency if there is a reduction of 15 (A) between five and 25 percent in the amount of federal 16 receipts received by the municipality or state agency; and 17 (B) more than 25 percent in the amount of federal receipts 18 received by the municipality or state agency. 19 (b) On or before October 31 each year, a principal department of the state 20 shall prepare and submit a report to the office of management and budget on a form 21 prescribed by the office of management and budget that describes a plan created for 22 operating the department if there is a reduction of 23 (1) between five and 25 percent in the amount of federal receipts 24 received by the department; and 25 (2) more than 25 percent in the amount of federal receipts received by 26 the department. 27 (c) In addition to the report required under (a) of this section, a municipality 28 that is a school district shall prepare a separate report for the school district that 29 contains the information required under (a) of this section. 30 (d) If a municipality applies for federal receipts on behalf of another public 31 entity, the municipality shall be responsible for preparing the report required under (a)
01 of this section. A municipality that has a population of fewer than 200 people may 02 seek assistance from the division in the Department of Commerce, Community, and 03 Economic Development that handles community and regional affairs in preparing the 04 report required under (a) of this section. 05 (e) By November 30 of each year, the office of management and budget shall 06 prepare and submit a report to the Legislative Budget and Audit Committee and the 07 finance committee of each house of the legislature that 08 (1) compiles and summarizes the information submitted under (a) of 09 this section; and 10 (2) identifies municipalities and state agencies that did not submit the 11 information required in (a) of this section. 12 (f) In this section, 13 (1) "federal receipts" means financial assistance that a state agency or 14 municipality receives in the form of grants, loans, loan guarantees, property, 15 cooperative agreements, interest subsidies, insurance, food commodities, direct 16 appropriations, incentives, or other assistance from the federal government that is 17 reported as part of a single audit; 18 (2) "public entity" has the meaning given in AS 37.23.900; 19 (3) "state agency" means, notwithstanding the definition in 20 AS 37.05.990, a department, institution, board, commission, division, authority, public 21 corporation, regional educational attendance area, or other administrative unit of the 22 executive branch of state government; "state agency" does not include an office or 23 entity in the judicial or legislative branch of state government or the University of 24 Alaska. 25 * Sec. 4. AS 37.07.080(h) is amended to read: 26 (h) The increase of an appropriation item based on additional federal or other 27 program receipts not specifically appropriated by the full legislature may be expended 28 in accordance with the following procedures: 29 (1) the governor shall submit a revised program to the Legislative 30 Budget and Audit Committee for review; 31 (2) 45 days shall elapse before commencement of expenditures under
01 the revised program unless the Legislative Budget and Audit Committee earlier 02 recommends that the state take part in the federally or otherwise funded activity; 03 (3) should the Legislative Budget and Audit Committee recommend 04 within the 45-day period that the state not initiate the additional activity, the governor 05 shall again review the revised program and submit a newly revised program to the 06 Legislative Budget and Audit Committee; 07 (4) if the governor submits a newly revised program under (3) of 08 this subsection, the Legislative Budget and Audit Committee must recommend 09 that the state initiate additional activity under the newly revised program 10 [DETERMINES TO AUTHORIZE THE EXPENDITURE, THE GOVERNOR 11 SHALL PROVIDE THE LEGISLATIVE BUDGET AND AUDIT COMMITTEE 12 WITH A STATEMENT OF THE GOVERNOR'S REASONS] before commencement 13 of expenditures [UNDER THE REVISED PROGRAM].