Legislature(2019 - 2020)
2020-01-27 House JournalFull Journal pdf
2020-01-27 House Journal Page 1470 HB 217 HOUSE BILL NO. 217 by the House Rules Committee by request of the Governor, entitled: "An Act relating to fees levied by resource agencies for designated regulatory services; and providing for an effective date." was read the first time and referred to the Resources and Finance Committees. The following fiscal note(s) apply: 1. Zero, Dept. of Natural Resources 2. Indeterminate, Dept. of Environmental Conservation 2020-01-27 House Journal Page 1471 The Governor's transmittal letter dated January 21 follows: "Dear Speaker Edgmon: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to fees levied by resource agencies for designated regulatory services. Designated regulatory services include control of solid waste facilities, disposal of waste into state waters, certification for federal permits under the Clean Water Act, authorization for use of appropriation of water, administration of emission control for air quality programs, and regulation of registered pesticides and broadcast chemicals. Currently, resource agencies can only assess a fee based on the "direct costs" incurred by the agency. This bill adds "indirect costs" to the basis of the fee. Adding indirect costs more accurately reflects the real costs that an agency incurs for services rendered. Applying an indirect rate to fees for regulatory services will allow resource agencies to recover overhead costs, such as accounting, procurement, operations, information technology and centralized service costs. An indirect rate fee also allows resource agencies to recoup the full direct cost of personal services salary and benefits, which is currently capped at 149 percent of the base salary. Application of an indirect rate fee would enhance program receipt revenue, which could reduce unrestricted general fund expenditures in program areas within our resource agencies. I urge your prompt and favorable action on this bill. Sincerely, /s/ Mike Dunleavy Governor"