04/07/2022 03:30 PM Senate STATE AFFAIRS

        SB 215-REVIEW & REPORTING OF FED. RECEIPTS; LB&A                                                                    
                                                                                                                                
4:02:49 PM                                                                                                                    
VICE CHAIR  REINBOLD announced the  consideration of  SENATE BILL                                                               
NO.  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."                                                                                                              
                                                                                                                                
VICE  CHAIR  REINBOLD,  speaking  as sponsor,  presented  SB  215                                                               
paraphrasing the sponsor statement that read as follows:                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     SB  215  also known  as  the  "Federal Receipts  Fiscal                                                                    
     Accountability Act."  The Legislative Budget  and Audit                                                                    
     Committee shall annually review  a report and recommend                                                                    
     to the  legislature whether to make,  reduce, or repeal                                                                    
     any  appropriations   based  on  the   report.  Federal                                                                    
     Receipts reporting by  agencies creates transparency in                                                                    
     Federal  Funds received  that the  legislature did  not                                                                    
     appropriate.  Agencies   must  report   program  plans,                                                                    
     should there  be a reduction  of federal funds.  SB 215                                                                    
     creates  transparency  in  the budget  process  so  the                                                                    
     legislature can fulfill constitutional duties.                                                                             
                                                                                                                                
4:05:53 PM                                                                                                                    
KELLI   TOTH,  Staff,   Senator  Lora   Reinbold,  Alaska   State                                                               
Legislature,  Juneau, Alaska,  presented  the sectional  analysis                                                               
for SB 215 that read as follows:                                                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Section One: Adds a new  section, short title: This act                                                                  
     may   be  known   as   the   Federal  Receipts   Fiscal                                                                    
     Accountability Act.                                                                                                        
                                                                                                                                
     Section  Two: AS  24.20.206 is  amended  to read:  Sec.                                                                  
     24.30.206 Duties  of the  Legislative Budget  and Audit                                                                    
     Committee is amended to read:  Review the annual report                                                                    
     submitted by  the Office of  Management and  Budget for                                                                    
     the preceding  fiscal year at the  next regular meeting                                                                    
     of  the  committee  and recommend  to  the  legislature                                                                    
     whether to  make, reduce, or repeal  any appropriations                                                                    
     based on the report.                                                                                                       
                                                                                                                                
     Section  Three:  AS  37.05  is  amended  adding  a  new                                                                  
     section to  article 2 to  read: Sec.  37.05.215 Federal                                                                    
     receipts reporting requirements, adds  a new section to                                                                    
     article  2 to  read: Each  municipality, state  agency,                                                                    
     school  district, corporation  organized  under 43  USC                                                                    
     1602  et   seq.  as   amended  (Alaska   Native  Claims                                                                    
     Settlement  Act) and  any  other  entity that  receives                                                                    
     state funds  shall prepare and  submit a report  to the                                                                    
     Office of  Management and Budget  on a  form prescribed                                                                    
     by the Office of Management  and Budget that states the                                                                    
     total  amount  of  federal receipts  received  for  the                                                                    
     previous   year,    identifies   all    conditions   or                                                                    
     requirements that  must be met  to receive  the federal                                                                    
     receipts  not appropriated  by the  legislature, states                                                                    
     whether the federal receipts  received for the previous                                                                    
     state  fiscal year  that were  not appropriated  by the                                                                    
     legislature   require    a   match,    supplement,   or                                                                    
     replacement  upon acceptance  of the  receipts or  when                                                                    
     the  receipts diminish,  states the  percentage of  the                                                                    
     entity's  total budget  that the  federal receipts  not                                                                    
     appropriated the  previous year describes  an operating                                                                    
     plan if  there is  a reduction of  between five  and 25                                                                    
     percent  in the  amount of  federal receipts  and, more                                                                    
     than  25  percent in  the  amount  of federal  receipts                                                                    
     received.  On  or  before  October   31  each  year,  a                                                                    
     principal  department of  the state  shall prepare  and                                                                    
     submit a report to the  Office of Management and Budget                                                                    
     on a form  that describes a plan  created for operating                                                                    
     the department  if there  is a  reduction of  between 5                                                                    
     and 25  percent in the  amount of federal  receipts and                                                                    
     more than 25 percent in  the amount of federal receipts                                                                    
     by the department.                                                                                                         
                                                                                                                                
     For a municipality that is  a school district, separate                                                                    
     reports for the municipality  and school district shall                                                                    
     be prepared and submitted.  If the municipality applies                                                                    
     for federal  receipts on behalf of  another entity, the                                                                    
     municipality  shall be  responsible  for preparing  the                                                                    
     report. If  the municipality has less  than 200 people,                                                                    
     they  may  seek  assistance   from  the  Department  of                                                                    
     Commerce, Community and Economic Development.                                                                              
                                                                                                                                
     The Office  of Management and Budget  shall prepare and                                                                    
     submit a compiled report to  the Legislative Budget and                                                                    
     Audit committee  and identify municipalities  and state                                                                    
     agencies that  did not submit the  information required                                                                    
     in this section.                                                                                                           
                                                                                                                                
4:09:34 PM                                                                                                                    
     Section 4: Sec.  37.07.080 (b) is amended  to read: (3)                                                                  
     should  the  Legislative  Budget  and  Audit  Committee                                                                    
     recommend within  the 45-day period that  the state not                                                                    
     initiate  the additional  activity, the  governor shall                                                                    
     again  review the  revised program  and submit  a newly                                                                    
     revised  program to  the Legislative  Budget and  Audit                                                                    
     Committee. (4) If the governor  submits a newly revised                                                                    
     program under  (3) of this subsection,  the legislative                                                                    
     Budget  and Audit  Committee  must  recommend that  the                                                                    
     state  initiate  additional  activity under  the  newly                                                                    
     revised program, before commencement of expenditures.                                                                      
                                                                                                                                
VICE CHAIR REINBOLD asked if there were questions.                                                                              
                                                                                                                                
4:10:39 PM                                                                                                                    
SENATOR HOLLAND  asked if any  stakeholders had come  out against                                                               
this or  previous iterations of  the legislation and, if  so, for                                                               
what reasons.                                                                                                                   
                                                                                                                                
VICE CHAIR  REINBOLD replied there  has been objection  from some                                                               
stakeholders who don't show the  source of all their funding. She                                                               
noted that  the Alaska  Municipal League  sent a  letter opposing                                                               
this  concept several  years  ago. However,  she  believes it  is                                                               
imperative   that   the   legislature,    the   body   with   the                                                               
constitutional authority  of appropriation,  know the  amounts of                                                               
federal  funding  and  where  it   is  going  so  there  is  more                                                               
transparency and thus a better budget process.                                                                                  
                                                                                                                                
SENATOR HOLLAND called the goal  noble, and said his only concern                                                               
was the potential personnel burden this might impose.                                                                           
                                                                                                                                
VICE CHAIR  REINBOLD advised that municipalities  already have to                                                               
account  for federal  funds so  it would  simply be  a matter  of                                                               
reporting that information to the legislature.                                                                                  
                                                                                                                                
VICE  CHAIR  REINBOLD  said  the  Legislative  Budget  and  Audit                                                               
Committee meets year round so  the legislature could receive this                                                               
information during the interim.                                                                                                 
                                                                                                                                
4:15:16 PM                                                                                                                    
VICE  CHAIR  REINBOLD  held  SB   215  in  committee  for  future                                                               
consideration.