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CCS HB 75: "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date."

00CONFERENCE CS FOR HOUSE BILL NO. 75 01 "An Act making appropriations for the operating and loan program expenses of 02 state government, for certain programs, and to capitalize funds; making 03 appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from 04 the constitutional budget reserve fund; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. ALASKA CLEAN WATER FUND. The sum of $8,815,400 is appropriated 07 to the Alaska clean water fund (AS 46.03.032) for the Alaska clean water loan program from 08 the following sources: 09 General fund $1,469,200 10 Federal receipts 7,346,200 11 * Sec. 2. ALASKA HOUSING FINANCE CORPORATION. (a) The sum of $77,600,000 12 from the available unrestricted cash in the general account of the Alaska housing finance 13 revolving fund (AS 18.56.082) is anticipated to be transferred to the general fund during the 14 fiscal year 1998 by the direction of the board of directors of the Alaska Housing Finance

01 Corporation. 02 (b) All unrestricted mortgage loan interest payments, mortgage loan commitment fees, 03 and all other unrestricted receipts received by or accrued to the Alaska Housing Finance 04 Corporation during fiscal year 1998 and all income earned on assets of the corporation during 05 that period are appropriated to the Alaska Housing Finance Corporation to hold as corporate 06 receipts for the purposes described in AS 18.56. The corporation shall allocate its corporate 07 receipts among the Alaska housing finance revolving fund (AS 18.56.082), housing assistance 08 loan fund (AS 18.56.420), and senior housing revolving fund (AS 18.56.710) in accordance 09 with procedures adopted by the board of directors. 10 (c) The following amounts are appropriated to the Alaska Housing Finance 11 Corporation (AHFC) from the sources indicated and for the following purposes: 12 PURPOSE AMOUNT SOURCE 13 Housing loan programs $350,000,000 AHFC corporate receipts 14 not subsidized by the Alaska 15 Housing Finance Corporation 16 Housing loan programs 50,000,000 AHFC corporate receipts 17 and projects subsidized derived from arbitrage 18 by the Alaska Housing earnings 19 Finance Corporation 20 * Sec. 3. ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY. The 21 sum of $16,000,000 from the available unrestricted cash in the Alaska Industrial Development 22 and Export Authority revolving fund (AS 44.88.060) is anticipated to be transferred to the 23 general fund as directed by the Alaska Industrial Development and Export Authority. The 24 transferred money shall be deposited in the general fund when received during fiscal year 25 1998. 26 * Sec. 4. ALASKA PERMANENT FUND CORPORATION. (a) The amount authorized 27 for transfer by the Alaska Permanent Fund Corporation under AS 37.13.145(b) is appropriated 28 from the earnings reserve account (AS 37.13.145) to the dividend fund (AS 43.23.045(a)) for 29 the payment of permanent fund dividends and administrative and associated costs. 30 (b) After money is transferred to the dividend fund under (a) of this section, the 31 amount calculated under AS 37.13.145 to offset the effect of inflation on the principal of the

01 Alaska permanent fund is appropriated from the earnings reserve account (AS 37.13.145) to 02 the principal of the Alaska permanent fund. 03 (c) The amount required to be deposited under AS 37.13.010(a)(1) and (2) during 04 fiscal year 1998 is appropriated to the principal of the Alaska permanent fund in satisfaction 05 of that requirement. 06 (d) The interest earned during fiscal year 1998 on revenue from the sources set out 07 in AS 37.13.010 while the revenue is held in trust, escrow, or otherwise before receipt by the 08 state is appropriated to the principal of the Alaska permanent fund. 09 * Sec. 5. ALASKA PUBLIC UTILITIES COMMISSION. The unexpended and 10 unobligated balance on June 30, 1997, of the Alaska Public Utilities Commission receipts 11 account for regulatory cost charges under AS 42.05.254 and AS 42.06.286 for fiscal year 1997 12 is appropriated to the Alaska Public Utilities Commission for fiscal year 1998 expenditures. 13 * Sec. 6. ALASKA SEAFOOD MARKETING INSTITUTE. Contingent on the Alaska 14 Seafood Marketing Institute having no employees who are located outside Alaska whose 15 positions are classified at more than Range 21 on the state salary schedule under 16 AS 39.27.011, an amount equal to the unexpended and unobligated balance on June 30, 1997, 17 of the fiscal year 1997 general fund receipts from the salmon marketing tax (AS 43.76.110), 18 from the seafood marketing assessment (AS 16.51.120), and from the fishery resource landing 19 tax (AS 43.77.010) is appropriated from the general fund to the Alaska Seafood Marketing 20 Institute for marketing Alaska seafood products during fiscal year 1998. 21 * Sec. 7. DISASTER RELIEF AND FIRE SUPPRESSION. (a) Federal receipts received 22 for disaster relief are appropriated to the disaster relief fund (AS 26.23.300). 23 (b) It is the intent of the legislature that funding necessary to meet the disaster relief 24 responsibilities of the Department of Military and Veterans' Affairs and the fire suppression 25 responsibilities of the Department of Natural Resources will continue to be made available 26 through the disaster declaration process. If fiscal year 1998 disaster relief and fire suppression 27 costs are not adequately funded by this Act, the Department of Military and Veterans' Affairs 28 or the Department of Natural Resources, respectively, shall submit a supplemental 29 appropriation request during the 1998 legislative session. 30 * Sec. 8. FEDERAL AND OTHER PROGRAM RECEIPTS. (a) Federal receipts and 31 receipts of or from the trust established by AS 37.14.400 - 37.14.450 (Exxon Valdez oil spill

01 trust) that exceed the amounts appropriated by this Act are appropriated conditioned on 02 compliance with the program review provisions of AS 37.07.080(h). 03 (b) Contingent on the passage by the First Regular Session of the Twentieth Alaska 04 State Legislature and enactment into law of a bill defining "designated program receipts," 05 designated program receipts as defined by law that exceed the amounts appropriated by this 06 Act are appropriated conditioned on compliance with the program review provisions of 07 AS 37.07.080(h). 08 (c) It is the intent of the legislature that requests for approval of revised programs may 09 be submitted to the Legislative Budget and Audit Committee through the program review 10 process established under AS 37.07.080(h), and that the revised programs be limited to only 11 those items of an emergency nature, such as the loss of funds if action is not taken until the 12 next session of the legislature. Unless the legislature has expressly provided through 13 legislative intent that a revised program be submitted to the Legislative Budget and Audit 14 Committee for a particular agency or program, the Legislative Budget and Audit Committee 15 program review process should not be used to restore funding for budget reductions made by 16 the Twentieth Alaska State Legislature or for program enhancements that must be considered 17 by the full legislature at the next session of the legislature. Requests for capital budget items 18 should be limited to requests for review of emergency items, such as flood damage repair 19 from new federal funds. The Legislative Budget and Audit Committee program review 20 process should not be used to establish new capital projects or to change funding sources for 21 existing capital projects; such requests should be held for consideration by the full legislature 22 during the regular capital appropriation process. 23 (d) If federal or other program receipts as defined in AS 37.05.146 exceed the 24 estimates appropriated by this Act, the appropriations from state funds for the affected 25 program may be reduced by the excess if the reductions are consistent with applicable federal 26 statutes. 27 (e) If federal or other program receipts as defined in AS 37.05.146 fall short of the 28 estimates appropriated by this Act, the affected appropriation is reduced by the amount of the 29 shortfall in receipts. 30 * Sec. 9. FISH AND GAME ENFORCEMENT. (a) To increase enforcement of the fish 31 and game laws of the state, the amount deposited in the general fund during the fiscal year

01 ending June 30, 1997, from criminal fines, penalties, and forfeitures imposed for violation of 02 AS 16 and its implementing regulations and from the sale of forfeited property or alternative 03 damages collected under AS 16.05.195 is appropriated to the fish and game fund 04 (AS 16.05.100). 05 (b) Appropriations totaling the estimated amount of the deposits described in (a) of 06 this section are made in sec. 39 of this Act to the Departments of Public Safety and Law for 07 increased enforcement, investigation, and prosecution of state fish and game laws. If the 08 receipts appropriated to the fish and game fund (AS 16.05.100) from the sources described in 09 (a) of this section during fiscal year 1998 fall short of the estimates appropriated by this Act, 10 each department's appropriation set out in sec. 39 of this Act is reduced proportionately. 11 * Sec. 10. FOUR DAM POOL TRANSFER FUND. The amount available in the four dam 12 pool transfer fund (AS 42.45.050) during fiscal year 1998 is appropriated to the following 13 funds in the following percentages for the purposes set out in AS 42.45.050: 14 Power cost equalization and rural electric 40 percent 15 capitalization fund (AS 42.45.100) 16 Southeast energy fund (AS 42.45.040) 40 percent 17 Power project fund (AS 42.45.010) 20 percent 18 * Sec. 11. INFORMATION SERVICES FUND. (a) The sum of $55,000 is appropriated 19 to the information services fund (AS 44.21.045) for the Department of Administration, 20 division of information services programs, from designated program receipts. 21 (b) It is the intent of the legislature that charges billed by the division of information 22 services to each agency for data processing and telecommunications services shall be based 23 on the actual costs of the services used by the agency. 24 * Sec. 12. INSURANCE AND BOND CLAIMS. (a) The amount necessary to fund the 25 uses of the state insurance catastrophe reserve account described in AS 37.05.289(a) is 26 appropriated from that account to the Department of Administration for those uses. 27 (b) Amounts received in settlement of insurance claims for losses and recovery for 28 losses are appropriated from the general fund to the state insurance catastrophe reserve account 29 (AS 37.05.289). 30 (c) Amounts received in settlement of claims against bonds guaranteeing the 31 reclamation of state land are appropriated from the general fund to the agency secured by the

01 bond for the purpose covered by the bond. 02 (d) The appropriations made by (b) and (c) of this section are contingent upon 03 compliance with the program review provisions of AS 37.07.080(h). 04 * Sec. 13. MARINE HIGHWAY SYSTEM FUND. The sum of $26,937,200 is 05 appropriated from the general fund to the Alaska marine highway system fund (AS 19.65.060). 06 * Sec. 14. MOTOR FUEL TAX. The following estimated amounts from the unreserved 07 special accounts in the general fund are included within the general fund amounts appropriated 08 by this Act: 09 Highway fuel tax account (AS 43.40.010(g)) $21,300,000 10 Aviation fuel tax account (AS 43.40.010(e)) 8,200,000 11 * Sec. 15. OCCUPATIONAL LICENSING. The unexpended and unobligated balance on 12 June 30, 1997, of the Department of Commerce and Economic Development, division of 13 occupational licensing, designated program receipts from occupational licensing fees under 14 AS 08.01.065 is appropriated to the division of occupational licensing for operating costs for 15 the fiscal year ending June 30, 1998. 16 * Sec. 16. OIL AND HAZARDOUS SUBSTANCE RELEASE PREVENTION 17 ACCOUNT. The following amounts are appropriated to the oil and hazardous substance 18 release prevention account (AS 46.08.010(a)(1)) in the oil and hazardous substance release 19 prevention and response fund (AS 46.08.010) from the sources indicated: 20 (1) the balance of the oil and hazardous substance release prevention mitigation 21 account (AS 46.08.020(b)) in the general fund on July 1, 1997, not otherwise appropriated by 22 this Act; 23 (2) the amount collected for the fiscal year ending June 30, 1997, estimated 24 to be $13,300,000, from the surcharge levied under AS 43.55.300. 25 * Sec. 17. OIL AND HAZARDOUS SUBSTANCE RELEASE RESPONSE ACCOUNT. 26 The following amounts are appropriated to the oil and hazardous substance release response 27 account (AS 46.08.010(a)(2)) in the oil and hazardous substance release prevention and 28 response fund (AS 46.08.010) from the following sources: 29 (1) the balance of the oil and hazardous substance release response mitigation 30 account (AS 46.08.025(b)) in the general fund on July 1, 1997, not otherwise appropriated by 31 this Act;

01 (2) the amount collected for the fiscal year ending June 30, 1997, from the 02 surcharge levied under AS 43.55.201. 03 * Sec. 18. RETAINED FEES. The amount retained to compensate the collector or trustee 04 of fees, licenses, taxes, or other money belonging to the state during the fiscal year ending 05 June 30, 1998, is appropriated for that purpose to the agency authorized by law to generate 06 the revenue. 07 * Sec. 19. SAFETY ADVISORY COUNCIL. The amount appropriated for the 1997 08 annual governor's safety conference (sec. 21, ch. 117, SLA 1996), plus the fiscal year 1997 09 program receipts of the Alaska Safety Advisory Council (AS 18.60.830), less the amount 10 expended or obligated for the 1997 annual governor's safety conference, is appropriated from 11 the designated program receipts to the Alaska Safety Advisory Council for costs of the 1998 12 annual governor's safety conference. 13 * Sec. 20. SALMON ENHANCEMENT TAX. The salmon enhancement tax collected 14 under AS 43.76.010 - 43.76.030 in calendar year 1996 and deposited in the general fund under 15 AS 43.76.025(c) is appropriated from the general fund to the Department of Commerce and 16 Economic Development for payment in fiscal year 1998 to qualified regional associations 17 operating within a region designated under AS 16.10.375. 18 * Sec. 21. SHARED TAXES AND FEES. The amount necessary to refund to local 19 governments their share of taxes and fees collected in the listed fiscal years under the 20 following programs is appropriated to the Department of Revenue from the general fund for 21 payment in fiscal year 1998: 22 REVENUE SOURCE FISCAL YEAR COLLECTED 23 fisheries taxes (AS 43.75) 1997 24 fishery resource landing tax (AS 43.77) 1997 25 amusement and gaming taxes (AS 43.35) 1998 26 aviation fuel tax (AS 43.40.010) 1998 27 electric and telephone cooperative tax (AS 10.25.570) 1998 28 liquor license fee (AS 04.11) 1998 29 * Sec. 22. STATE DEBT AND OTHER OBLIGATIONS. (a) The amount required to pay 30 interest on revenue anticipation notes issued by the commissioner of revenue under AS 43.08 31 is appropriated from the general fund to the Department of Revenue for payment of the

01 interest on those notes. 02 (b) The amount required to be paid by the state for principal and interest on all issued 03 and outstanding state-guaranteed bonds is appropriated from the general fund to the state bond 04 committee for payment of principal and interest on those bonds. 05 (c) The sum of $72,270,700 is appropriated from the general fund to the Alaska debt 06 retirement fund (AS 37.15.011). 07 (d) The sum of $10,342,390 is appropriated from the Alaska debt retirement fund 08 (AS 37.15.011) to the state bond committee for trustee fees and lease payments to the City 09 of Seward, the City of Kenai, the City of Palmer, the Department of Natural Resources, and 10 the Alaska Court System. 11 (e) The sum of $14,251,658 is appropriated from the Alaska debt retirement fund 12 (AS 37.15.011) to the state bond committee for payment of debt service and trustee fees on 13 state general obligation bonds. 14 (f) The sum of $5,837,534 is appropriated from the International Airports Revenue 15 Fund (AS 37.15.430) to the state bond committee for payment of debt service and trustee fees 16 on outstanding international airports revenue bonds. 17 (g) The sum of $62,288,400 is appropriated from the Alaska debt retirement fund 18 (AS 37.15.011) to the Department of Education for state aid for costs of school construction 19 under AS 14.11.100. 20 * Sec. 23. STATE TRAINING AND EMPLOYMENT PROGRAM. The lapsing balance 21 of the employment assistance and training program account (AS 23.15.625) on June 30, 1997, 22 is appropriated to the unemployment compensation fund (AS 23.20.130). 23 * Sec. 24. STATUTORY BUDGET RESERVE FUND. If the unrestricted state revenue 24 available for appropriation in fiscal year 1998 is insufficient to cover the general fund 25 appropriations made for fiscal year 1998, the amount necessary to balance revenue and general 26 fund appropriations is appropriated to the general fund from the budget reserve fund 27 (AS 37.05.540). 28 * Sec. 25. STORAGE TANK ASSISTANCE FUND. (a) The fiscal year 1998 general 29 fund receipts of the tank registration fee program under AS 46.03.385 are appropriated to the 30 storage tank assistance fund (AS 46.03.410). 31 (b) The sum of $2,910,600 is appropriated from the oil and hazardous substance

01 release prevention account (AS 46.08.010(a)(1)) to the storage tank assistance fund 02 (AS 46.03.410) for the fiscal year ending June 30, 1998. 03 * Sec. 26. STUDENT LOAN PROGRAM. The amount from student loan borrowers of 04 the Alaska Commission on Postsecondary Education that is assessed for loan origination fees 05 for the fiscal year ending June 30, 1998, is appropriated to the origination fee account 06 (AS 14.43.120(u)) within the student loan fund of the Alaska Student Loan Corporation for 07 the purposes specified in AS 14.43.120(u). 08 * Sec. 27. DIVISION OF INSURANCE. The unexpended and unobligated balance on 09 June 30, 1997, of the Department of Commerce and Economic Development, division of 10 insurance, designated program receipts from insurance fees under AS 21.06.250 is appropriated 11 to the Department of Commerce and Economic Development, division of insurance, for 12 operating costs for the fiscal year ending June 30, 1998. 13 * Sec. 28. ALASKA SCIENCE AND TECHNOLOGY FOUNDATION. The unexpended 14 and unobligated balance in the Alaska science and technology endowment earnings reserve 15 on June 30, 1997, is appropriated to the Alaska Science and Technology Foundation to award 16 as grants under AS 37.17.030(d) for the fiscal year ending June 30, 1998. 17 * Sec. 29. (a) Subject to (b) of this section, the sum of $30,000,000 is appropriated from 18 the general fund to the Department of Health and Social Services for medical assistance and 19 allocated equally for Medicaid non-facility and Medicaid facilities components, and the 20 appropriation from federal receipts made by sec. 39 of this Act to the Department of Health 21 and Social Services for medical assistance and allocated for the Medicaid non-facility and 22 Medicaid facilities components is reduced by a total of $30,000,000. 23 (b) The appropriation made by (a) of this section takes effect only if the federal 24 medical assistance percentage under the Medicaid program in effect on January 31, 1998, is 25 the same as the percentage in effect on March 15, 1997. 26 * Sec. 30. Revenues generated or retained by the Alaska Railroad Corporation before or 27 during the fiscal year ending June 30, 1998, and income earned on revenues generated or 28 retained by the Alaska Railroad Corporation before or during the fiscal year ending 29 June 30, 1998, are appropriated to the Alaska Railroad Corporation for railroad and related 30 purposes for the fiscal year ending June 30, 1998. This appropriation does not authorize the 31 expenditure of funds appropriated by sec. 145, ch. 208, SLA 1990 (Locomotives, rolling stock

01 - $9,000,000) or the expenditure of interest earned on those funds. 02 * Sec. 31. (a) Federal funds received by the Alaska Railroad Corporation before or during 03 the fiscal year ending June 30, 1997, are appropriated to the Alaska Railroad Corporation for 04 the purposes for which the funds were received by the corporation. 05 (b) Federal funds received by the Alaska Railroad Corporation during the fiscal year 06 ending June 30, 1998, are appropriated to the Alaska Railroad Corporation for the purposes 07 for which the funds are received by the corporation, subject to the program review provisions 08 of AS 37.07.080(h). 09 * Sec. 32. The sum of $433,000 is appropriated from the general fund to the Department 10 of Administration for purchase of information technologies and distributed environment for 11 state executive branch agencies, including the University of Alaska, for the fiscal year ending 12 June 30, 1998. It is the intent of the legislature that the commissioner of administration shall 13 follow the advice and recommendations of the Telecommunications Information Council in 14 expending the funds authorized by this appropriation and that the commissioner (1) direct cost- 15 effective expenditure of the funds authorized by this appropriation to those agencies that 16 cannot meet the minimum information technology standards adopted by the 17 Telecommunications Information Council; and (2) expend funds authorized by this 18 appropriation for information technology for an agency when technology is nonexistent and 19 necessary or where full use of existing information technology has been achieved in accord 20 with the recommendations of Compass America, Inc. 21 * Sec. 33. INTERNATIONAL TRADE AND BUSINESS ENDOWMENT. (a) The 22 unexpended and unobligated balance of the appropriation made by sec. 25, ch. 95, SLA 1987, 23 page 129, lines 21 - 22 (SB 219 - Alaska Center for International Business - $2,500,000) is 24 reappropriated to the international trade and business endowment (AS 37.17.440). 25 (b) Notwithstanding sec. 101(a)(13), ch. 103, SLA 1995, the unexpended and 26 unobligated balance of the appropriation made by sec. 141(b), ch. 173, SLA 1988 (Alaska 27 Center for International Business endowment - $2,450,000) is reappropriated to the 28 international trade and business endowment (AS 37.17.440). 29 (c) The appropriations made by this section are contingent upon the passage by the 30 First Regular Session of the Twentieth Alaska State Legislature and the enactment into law 31 of a bill that creates the international trade and business endowment.

01 * Sec. 34. DESIGNATED PROGRAM RECEIPTS. (a) If legislation defining "designated 02 program receipts" is passed by the First Regular Session of the Twentieth Alaska State 03 Legislature and enacted into law, the funds described as designated program receipts in this 04 Act that are not consistent with the definition of "designated program receipts" established by 05 law are general fund program receipts. The legislative fiscal analyst shall revise the funding 06 source information for the appropriations made by this Act in accordance with this subsection 07 and provide the revised funding information to the office of management and budget. 08 (b) If legislation defining "designated program receipts" is not passed by the First 09 Regular Session of the Twentieth Alaska State Legislature, the funds appropriated by this Act 10 that are described in this Act as "designated program receipts" are general fund program 11 receipts. The legislative fiscal analyst shall revise the funding source information for the 12 appropriations made by this Act in accordance with this subsection and provide the revised 13 funding information to the office of management and budget. 14 * Sec. 35. CONSTITUTIONAL BUDGET RESERVE FUND. (a) Amounts equal to the 15 deposits in the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) for 16 fiscal year 1997 that were made by operation of art. IX, sec. 17(d) to repay appropriations 17 from the budget reserve fund are appropriated from the budget reserve fund to the funds and 18 accounts from which they were transferred. 19 (b) If the unrestricted state revenue available for appropriation in fiscal year 1998 is 20 insufficient to cover the general fund appropriations made for fiscal year 1998, the amount 21 necessary to balance revenue and general fund appropriations is appropriated to the general 22 fund from the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska). 23 (c) The appropriations in (a) and (b) of this section are made under art. IX, sec. 17(c), 24 Constitution of the State of Alaska. 25 * Sec. 36. NONLAPSE OF APPROPRIATIONS. The appropriations made by secs. 1, 2, 26 7, 9, 10, 11, 12(b), 13, 16, 17, 23, 25(a), 26, and 33 of this Act are for the capitalization of 27 funds and do not lapse under AS 37.25.010. 28 * Sec. 37. CAPITAL LAPSE. The appropriation made by sec. 32 of this Act is for a 29 capital project and lapses under AS 37.25.020. 30 * Sec. 38. EFFECTIVE DATES FOR SECTIONS 29(a) AND 33. (a) If sec. 29(a) of this 31 Act takes effect under sec. 29(b) of this Act, it takes effect on February 1, 1998.

01 (b) Section 33 of this Act takes effect immediately under AS 01.10.070(c). 02 (SECTION 39 OF THIS ACT BEGINS ON PAGE 16)