SB 158: "An Act relating to fees levied by resource agencies for designated regulatory services; and providing for an effective date."
00 SENATE BILL NO. 158 01 "An Act relating to fees levied by resource agencies for designated regulatory services; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.10.052(a) is amended to read: 05 (a) Each resource agency shall, by regulation, establish a list of fixed fees for 06 standard designated regulatory services that it provides. A fixed fee adopted under this 07 subsection may not exceed the estimated average reasonable direct cost and indirect 08 cost incurred by the resource agency in providing the standard designated regulatory 09 service. The resource agency shall provide an explanation of the basis for the fixed 10 fee. The resource agency shall review the list of fixed fees at least once every four 11 years, identify any changes in the average actual and reasonable direct cost and 12 indirect cost of providing each standard designated regulatory service for which a 13 fixed fee has been established, and, by regulation, adjust the fees accordingly. The 14 agency shall include the results of its review in the report submitted under
01 AS 37.10.050(c). 02 * Sec. 2. AS 37.10.052(c) is amended to read: 03 (c) A person requiring more than one regulatory service, at least one of which 04 is a designated regulatory service, for an activity may petition the resource agency that 05 will provide the services or, if more than one resource agency will provide a 06 regulatory service, the office of management and budget to establish a single fee for 07 all regulatory services that are required for that class of activities. The resource agency 08 or office of management and budget, as appropriate, shall grant the petition if it finds 09 that the proposed fee meets the applicable requirements of this subsection and is likely 10 to be used by the resource agency or office of management and budget more than 11 once. If a petition under this subsection is granted, the resource agency or the office of 12 management and budget shall make available to the public information concerning the 13 single fee, including a list of regulatory services to be provided and the amount of the 14 fee. If the resource agency or the office of management and budget denies the petition, 15 the agency or office shall provide to the petitioner a statement setting out the agency's 16 or office's reasons for denial. The single fee under this subsection must be 17 (1) confined to the distinct economic sector in which the petitioner is 18 or proposes to be engaged; 19 (2) where necessary, limited by geography, facility size or capacity, or 20 other relevant factors so as to provide a reasonable assurance that only similarly 21 situated activities, with respect to cost, are included within the fixed fee; and 22 (3) based on the estimated average reasonable direct cost and indirect 23 cost of each designated regulatory service required for the activity and the average fee 24 customarily charged for a regulatory service other than a designated regulatory service 25 discounted by the amount of savings that may be achieved by avoiding regulatory 26 overlap and, where applicable, coordinating multi-agency review of the activity to the 27 maximum extent possible. 28 * Sec. 3. AS 37.10.052(d) is amended to read: 29 (d) Except for fees determined under (a), (b), or (c) of this section or in 30 AS 37.10.056, a fee levied by a resource agency for a designated regulatory service 31 must be based solely on the actual and reasonable direct cost and indirect cost
01 incurred by the resource agency in providing the designated regulatory service to the 02 person on whom that fee is levied, computed on a time-and-expense basis. 03 * Sec. 4. AS 37.10.054 is amended to read: 04 Sec. 37.10.054. Invoices for designated regulatory services. (a) Unless a 05 negotiated service agreement reached under AS 37.10.052(b) or (c) provides 06 otherwise, a resource agency charging a fee for providing a designated regulatory 07 service other than a standard designated regulatory service for which a fixed fee has 08 been established under AS 37.10.052(a) shall, on a monthly basis, provide the person 09 who will be billed for the service with an invoice for services performed during that 10 month. The invoice must be reasonably convenient to the reader, and reasonably 11 susceptible to audit. The invoice must set out, in time increments of not greater than 12 one-quarter hour for each employee, and separately for each expenditure, the purpose 13 of the time or expenditure in sufficient detail to permit a reasonable person to 14 determine whether the time or cost was an actual and reasonable direct cost and 15 indirect cost. 16 (b) If a person believes that an invoice rendered under (a) of this section 17 exceeds the actual and reasonable direct cost and indirect cost of providing the 18 designated regulatory service, the person may, not later than [WITHIN] 30 days after 19 receiving the invoice, request that the resource agency review the invoice. The 20 resource agency shall review the invoice under the standards of this section and issue 21 its final decision on the invoice not later than [WITHIN] 30 days of receipt of a 22 request for review. 23 * Sec. 5. AS 37.10.056 is amended to read: 24 Sec. 37.10.056. Petitions to adopt regulations. A person requiring a 25 designated regulatory service from a resource agency may petition the resource agency 26 under AS 44.62.220 and 44.62.230 to adopt regulations that would establish, for a 27 category of designated regulatory services, a fixed fee that is 28 (1) confined to the distinct economic sector in which the petitioner is 29 or proposes to be engaged; 30 (2) where necessary, limited by geography, facility size or capacity, or 31 other relevant factors so as to provide a reasonable assurance that only similarly
01 situated regulatory services, with respect to cost, are included within the fixed fee; 02 (3) likely to be used by the resource agency more than once; and 03 (4) based on the average reasonable direct cost and indirect cost 04 incurred by the agency in providing the designated regulatory service. 05 * Sec. 6. AS 37.10.058(6) is amended to read: 06 (6) "hourly rate of salary and benefits" means the sum of the hourly 07 increment of salary due the state employee under the salary schedule applicable to that 08 employee and the hourly increment of [, MULTIPLIED BY 149 PERCENT TO 09 ACCOUNT FOR] the cost of employment benefits paid by the state to or on behalf of 10 the employee; 11 * Sec. 7. AS 37.10.058 is amended by adding a new paragraph to read: 12 (11) "indirect cost" means the federal indirect cost rate developed in 13 accordance with 2 C.F.R. 200, Subpart E (200.400 - 200.475) and approved annually 14 by the responsible federal agency. 15 * Sec. 8. AS 44.46.025(a) is amended to read: 16 (a) Except as otherwise provided in AS 37.10.050 - 37.10.056, the Department 17 of Environmental Conservation may adopt regulations that prescribe reasonable fees, 18 and establish procedures for the collection of those fees, to cover the applicable direct 19 costs and indirect costs as those terms are defined in AS 37.10.058, not including 20 travel except in the case of a designated regulatory service, as that term is defined in 21 AS 37.10.058, of inspections, permit preparation and administration, plan review and 22 approval, and other services provided by the department relating to 23 (1) animals and animal products under AS 03.05; food, drugs, and 24 cosmetics under AS 17.20; and public accommodations and facilities under AS 18.35; 25 (2) certificates of inspection for motor vehicles under AS 46.14.400 or 26 46.14.510; 27 (3) drinking water systems under AS 46.03.720; 28 (4) water and wastewater operator training under AS 46.30; 29 (5) waste management and disposal authorizations under 30 AS 46.03.100; 31 (6) certification of laboratories conducting environmental analyses of
01 public drinking water systems or of oil or hazardous substances, or conducting other 02 analyses required by the department; 03 (7) certification of federal permits or authorizations under 33 U.S.C. 04 1341 (sec. 401, Clean Water Act); 05 (8) regulation of point source discharges of pollutants under the 06 program authorized by AS 46.03.020(12); 07 (9) regulation of pesticides and broadcast chemicals registered under 08 AS 46.03.320(a)(4), with a reasonable fee not to exceed $120; 09 (10) licensing of pesticide applicators under AS 46.03.320(b), with a 10 reasonable fee not to exceed $25. 11 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 APPLICABILITY. The changes made in secs. 1 - 8 of this Act apply to designated 14 regulatory services under AS 37.10.052 provided by the Department of Environmental 15 Conservation, the Department of Fish and Game, and the Department of Natural Resources 16 for designated regulatory services provided on or after the effective date of secs. 1 - 8 of this 17 Act regardless of whether the services were requested before or after the effective date of 18 secs. 1 - 8 of this Act. 19 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 TRANSITION: REGULATIONS. The Department of Environmental Conservation 22 may adopt regulations necessary to implement the changes made by this Act. The regulations 23 take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date 24 of the law implemented by the regulation. 25 * Sec. 11. Section 10 of this Act takes effect immediately under AS 01.10.070(c).