SB 215: "An Act relating to the Legislative Budget and Audit Committee; requiring state departments, agencies, municipalities, school districts, Native corporations, the University of Alaska, and other entities that receive state funds to report on federal receipts; and relating to the increase of an appropriation item based on additional federal or program receipts."
00 SENATE BILL NO. 215 01 "An Act relating to the Legislative Budget and Audit Committee; requiring state 02 departments, agencies, municipalities, school districts, Native corporations, the 03 University of Alaska, and other entities that receive state funds to report on federal 04 receipts; and relating to the increase of an appropriation item based on additional 05 federal or program receipts." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 SHORT TITLE. This Act may be known as the Federal Receipts Fiscal Accountability 10 Act. 11 * Sec. 2. AS 24.20.206 is amended to read: 12 Sec. 24.20.206. Duties. The Legislative Budget and Audit Committee shall 13 (1) annually review the long-range operating plans of all agencies of
01 the state that perform lending or investment functions; 02 (2) review periodic reports from all agencies of the state that perform 03 lending or investment functions; 04 (3) prepare a complete report of investment programs, plans, 05 performance, and policies of all agencies of the state that perform lending or 06 investment functions and notify the legislature on or before the first day of each 07 regular session that the report is available; 08 (4) in conjunction with the finance committee of each house, 09 recommend annually to the legislature the investment policy for the general fund 10 surplus and for the income from the permanent fund; 11 (5) provide for an annual post audit and annual operational and 12 performance evaluation of the Alaska Permanent Fund Corporation investments and 13 investment programs; 14 (6) provide for an annual operational and performance evaluation of 15 the Alaska Housing Finance Corporation and the Alaska Industrial Development and 16 Export Authority; the performance evaluation must include, but is not limited to, a 17 comparison of the effect on various sectors of the economy by public and private 18 lending, the effect on resident and nonresident employment, the effect on real wages, 19 and the effect on state and local operating and capital budgets of the programs of the 20 Alaska Housing Finance Corporation and the Alaska Industrial Development and 21 Export Authority; 22 (7) provide assistance to the trustees of the trust established in 23 AS 37.14.400 - 37.14.450 in carrying out their duties under AS 37.14.415; 24 (8) review the annual report submitted by the office of 25 management and budget under AS 37.05.215(e) for the preceding fiscal year at 26 the next regular meeting of the committee and recommend to the legislature 27 whether to make, reduce, or repeal any appropriations based on the report. 28 * Sec. 3. AS 37.05 is amended by adding a new section to article 2 to read: 29 Sec. 37.05.215. Federal receipts reporting requirements. (a) Except as 30 provided in (b) of this section relating to a principal department, on or before 31 October 31 each year, each municipality, state agency, school district, corporation
01 organized under 43 U.S.C. 1601 et seq. as amended (Alaska Native Claims Settlement 02 Act), and any other entity that receives state funds shall prepare and submit a report to 03 the office of management and budget on a form prescribed by the office of 04 management and budget that 05 (1) states the total amount of federal receipts received for the previous 06 state fiscal year that were not appropriated by the legislature; 07 (2) identifies all conditions or requirements that must be met to receive 08 the federal receipts not appropriated by the legislature; 09 (3) states whether the federal receipts received for the previous state 10 fiscal year that were not appropriated by the legislature require a match, supplement, 11 or replacement upon acceptance of the receipts or when the receipts diminish; 12 (4) states the percentage of the entity's total budget that the federal 13 receipts not appropriated by the legislature represented for the previous state fiscal 14 year; and 15 (5) if the federal receipts not appropriated by the legislature 16 represented five percent or more of the total budget of the entity for the previous state 17 fiscal year, describes an operating plan if there is a reduction of 18 (A) between five and 25 percent in the amount of federal 19 receipts received; and 20 (B) more than 25 percent in the amount of federal receipts 21 received. 22 (b) On or before October 31 each year, a principal department of the state 23 shall prepare and submit a report to the office of management and budget on a form 24 prescribed by the office of management and budget that describes a plan created for 25 operating the department if there is a reduction of 26 (1) between five and 25 percent in the amount of federal receipts 27 received by the department; and 28 (2) more than 25 percent in the amount of federal receipts received by 29 the department. 30 (c) For a municipality that is a school district, separate reports for the 31 municipality and school district shall be prepared and submitted under (a) of this
01 section. 02 (d) If a municipality applies for federal receipts on behalf of another public 03 entity, the municipality shall be responsible for preparing the report required under (a) 04 of this section. A municipality that has a population of fewer than 200 people may 05 seek assistance from the division in the Department of Commerce, Community, and 06 Economic Development that handles community and regional affairs in preparing the 07 report required under (a) of this section. 08 (e) By November 30 of each year, the office of management and budget shall 09 prepare and submit a report to the Legislative Budget and Audit Committee and the 10 finance committee of each house of the legislature that 11 (1) compiles and summarizes the information submitted under (a) of 12 this section; and 13 (2) identifies municipalities and state agencies that did not submit the 14 information required in (a) of this section. 15 (f) In this section, 16 (1) "federal receipts" means financial assistance that a state agency or 17 municipality receives in the form of grants, loans, loan guarantees, property, 18 cooperative agreements, interest subsidies, insurance, food commodities, direct 19 appropriations, incentives, or other assistance from the federal government that is 20 reported as part of a single audit; 21 (2) "public entity" has the meaning given in AS 37.23.900; 22 (3) "school district" has the meaning given in AS 14.30.350; 23 (4) "state agency" means a department, institution, board, commission, 24 division, authority, public corporation, the University of Alaska, or other 25 administrative unit of the executive branch of state government; "state agency" does 26 not include an office or entity in the judicial or legislative branch of state government. 27 * Sec. 4. AS 37.07.080(h) is amended to read: 28 (h) The increase of an appropriation item based on additional federal or other 29 program receipts not specifically appropriated by the full legislature may be expended 30 in accordance with the following procedures: 31 (1) the governor shall submit a revised program to the Legislative
01 Budget and Audit Committee for review; 02 (2) 45 days shall elapse before commencement of expenditures under 03 the revised program unless the Legislative Budget and Audit Committee earlier 04 recommends that the state take part in the federally or otherwise funded activity; 05 (3) should the Legislative Budget and Audit Committee recommend 06 within the 45-day period that the state not initiate the additional activity, the governor 07 shall again review the revised program and submit a newly revised program to the 08 Legislative Budget and Audit Committee; 09 (4) if the governor submits a newly revised program under (3) of 10 this subsection, the Legislative Budget and Audit Committee must recommend 11 that the state initiate additional activity under the newly revised program 12 [DETERMINES TO AUTHORIZE THE EXPENDITURE, THE GOVERNOR 13 SHALL PROVIDE THE LEGISLATIVE BUDGET AND AUDIT COMMITTEE 14 WITH A STATEMENT OF THE GOVERNOR'S REASONS] before commencement 15 of expenditures [UNDER THE REVISED PROGRAM].