Legislature(2019 - 2020)
2020-01-22 Senate Journal
Full Journal pdf2020-01-22 Senate Journal Page 1539 SB 158 SENATE BILL NO. 158 BY THE SENATE 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 information was published today: Fiscal Note No. 1, zero, Department of Natural Resources Fiscal Note No. 2, indeterminate, Department of Environmental Conservation Governor's transmittal letter dated January 21: Dear President Giessel: 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 2020-01-22 Senate Journal Page 1540 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