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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HB 306                                                                                                         
01 Relating to the review and administration of tax credit programs; requiring the Department of                           
02 Revenue to report indirect expenditures; relating to the duties of state agencies; requiring the                        
03 legislative finance division to analyze certain indirect expenditures; relating to lapse dates for                      
04 appropriations for capital projects; relating to lapse dates for capital budget grants; relating to                     
05 capital expenditures; relating to unexpended balances of capital projects; repealing the capital                        
06 projects funds; repealing the insurance tax education credit, the income tax education credit,                          
07 the oil or gas producer education credit, the property tax education credit, the mining business                        
08 education credit, the fisheries business education credit, the fisheries business tax credit for                        
09 scholarship contributions, the fisheries business salmon product development tax credit, the                            
10 fisheries business salmon utilization tax credit, the fisheries business landing tax credit for                         
11 scholarship contributions, the fisheries resource landing tax credit for the fisheries resource                         
01 harvested under the community development quota, the fisheries resource landing tax                                     
02 education credit, and the film production tax credit; providing for an effective date by                                
03 repealing the effective dates in sec. 7, ch. 57, SLA 2003, the effective date in sec. 57, ch. 92,                       
04 SLA 2010, and the effective dates in secs. 40 - 42, ch. 51, SLA 2012; and providing for an                              
05 effective date.                                                                                                         
06                           _______________                                                                               
07    * Section 1. AS 21.06.110 is amended to read:                                                                      
08            Sec. 21.06.110. Director's annual report. As early in each calendar year as is                             
09       reasonably possible, the director shall prepare and deliver an annual report to the                               
10       commissioner, who shall notify the legislature that the report is available, showing,                             
11       with respect to the preceding calendar year,                                                                      
12                 (1)  a list of the authorized insurers transacting insurance in this state,                             
13       with a summary of their financial statement as the director considers appropriate;                                
14                 (2)  the name of each insurer whose certificate of authority was                                        
15       surrendered, suspended, or revoked during the year and the cause of surrender,                                    
16       suspension, or revocation;                                                                                        
17                 (3)  the name of each insurer authorized to do business in this state                                   
18       against which delinquency or similar proceedings were instituted and, if against an                               
19       insurer domiciled in this state, a concise statement of the facts with respect to each                            
20       proceeding and its present status;                                                                                
21                 (4)  a statement in regard to examination of rating organizations,                                      
22       advisory organizations, joint underwriters, and joint reinsurers as required by                                   
23       AS 21.39.120;                                                                                                     
24                 (5)  the receipt and expenses of the division for the year;                                             
25                 (6)  recommendations of the director as to amendments or                                                
26       supplementation of laws affecting insurance or the office of director;                                            
27                 (7)  statistical information regarding health insurance, including the                                  
28       number of individual and group policies sold or terminated in the state; this paragraph                           
29       does not authorize the director to require an insurer to release proprietary information;                         
01                 (8)  the annual percentage of health claims paid in the state that meets                                
02       the requirements of AS 21.36.495(a) and (d);                                                                      
03                 (9)  the total amount of contributions reported and the total amount of                                 
04       credit claimed under AS 21.96.075 [AS 21.96.070 AND 21.96.075]; and                                           
05                 (10)  other pertinent information and matters the director considers                                    
06       proper.                                                                                                           
07    * Sec. 2. AS 21.09.210(j) is amended to read:                                                                      
08            (j)  The provisions of AS 21.96.075 [AS 21.96.070 AND 21.96.075] apply to a                              
09       taxpayer who is required to pay a tax due under this section.                                                     
10    * Sec. 3. AS 24.20.231 is amended to read:                                                                         
11            Sec. 24.20.231. Duties. The legislative finance division shall                                             
12                 (1)  analyze the budget and appropriation requests of each department,                                  
13       institution, bureau, board, commission, or other agency of state government;                                      
14                 (2)  analyze the revenue requirements of the state;                                                     
15                 (3)  provide the finance committees of the legislature with                                             
16       comprehensive budget review and fiscal analysis services;                                                         
17                 (4)  cooperate with the office of management and budget in establishing                                 
18       a comprehensive system for state budgeting and financial management as set out in                                 
19       AS 37.07 (Executive Budget Act);                                                                                  
20                 (5)  complete studies and prepare reports, memoranda, or other                                          
21       materials as directed by the Legislative Budget and Audit Committee;                                              
22                 (6)  with the governor's permission, designate the legislative fiscal                                   
23       analyst to serve ex officio on the governor's budget review committee; [AND]                                      
24                 (7)  identify the actual reduction in state expenditures in the first fiscal                            
25       year following a review under AS 44.66.040 resulting from that review and inform the                              
26       Legislative Budget and Audit Committee of the amount of the reduction; and                                    
27                 (8)  not later than the first legislative day of each first regular                                 
28       session of each legislature, conduct a review in accordance with AS 24.20.235 of                              
29       the report provided to the division under AS 43.05.095.                                                       
30    * Sec. 4. AS 24.20 is amended by adding a new section to read:                                                     
31            Sec. 24.20.235. Indirect expenditure report. (a) Every two years, the                                      
01       legislative finance division shall deliver to the chair of the finance committee in each                          
02       house of the legislature a report analyzing the indirect expenditure report created                               
03       under AS 43.05.095 for the appropriate agencies listed in this subsection. The first                              
04       review shall occur in the calendar year set out after each agency's name, as follows,                             
05       and subsequent reviews of each agency shall occur every six years:                                                
06                 (1)  Department of Commerce, Community, and Economic                                                    
07       Development, 2015;                                                                                                
08                 (2)  Department of Fish and Game, 2015;                                                                 
09                 (3)  Department of Health and Social Services, 2015;                                                    
10                 (4)  Department of Labor and Workforce Development, 2015;                                               
11                 (5)  Department of Revenue, 2015;                                                                       
12                 (6)  Alaska Court System, 2017;                                                                         
13                 (7)  Department of Administration, 2017;                                                                
14                 (8)  Department of Education and Early Development, 2017;                                               
15                 (9)  Department of Environmental Conservation, 2017;                                                    
16                 (10)  Department of Natural Resources, 2017;                                                            
17                 (11)  Department of Transportation and Public Facilities, 2017;                                         
18                 (12)  all remaining agencies, 2019.                                                                     
19            (b)  The report prepared under this section must provide                                                     
20                 (1)  an estimate of the revenue foregone by the state because of the                                    
21       indirect expenditure;                                                                                             
22                 (2)  an estimate of the monetary benefit of the indirect expenditure to                                 
23       the recipients of the benefit of the indirect expenditure;                                                        
24                 (3)  a determination of whether the legislative intent of the indirect                                  
25       expenditure is being met and, if necessary, a determination of why the legislative                                
26       intent of the indirect expenditure is not being met;                                                              
27                 (4)  a recommendation as to whether each indirect expenditure should                                    
28       be continued, modified, or terminated, a basis for the recommendation, and the                                    
29       expected effect on the economy of the state if the recommendation is executed; and                                
30                 (5)  an explanation of the methodology and assumptions used in                                          
31       preparing the report.                                                                                             
01    * Sec. 5. AS 37.05.315(b) is amended to read:                                                                      
02            (b)  An appropriation or allocation for a grant to a municipality [FOR                                       
03       CONSTRUCTION OF A PUBLIC FACILITY] lapses if substantial, ongoing work on                                         
04       the project has not begun within five years after the effective date of the appropriation                         
05       or allocation.                                                                                                    
06    * Sec. 6. AS 37.05.316 is amended by adding a new subsection to read:                                              
07            (c)  An appropriation or allocation for a grant to a named recipient that is not a                           
08       municipality lapses if substantial, ongoing work on the project has not begun within                              
09       five years after the effective date of the appropriation or allocation.                                           
10    * Sec. 7. AS 37.05.317 is amended by adding a new subsection to read:                                              
11            (c)  An appropriation or allocation for a grant to an unincorporated community                               
12       lapses if substantial, ongoing work on the project has not begun within five years after                          
13       the effective date of the appropriation or allocation.                                                            
14    * Sec. 8. AS 37.07.062(a) is amended to read:                                                                      
15            (a)  Each appropriation bill authorizing capital expenditures required to be                                 
16       submitted to the legislature in AS 37.07.020(a) must be accompanied by documents                                  
17       supporting the expenditures [FOR EACH OF THE CAPITAL PROJECTS FUNDS                                               
18       (AS 44.42.080)]. The documents must list, for each project, the                                                   
19                 (1)  project identification number;                                                                     
20                 (2)  project title;                                                                                     
21                 (3)  source of funding;                                                                                 
22                 (4)  amount expended on the project during the preceding fiscal year,                                   
23       the amount authorized for the current fiscal year, [AND] the amount proposed to be                                
24       expended during the succeeding fiscal year, and the amount proposed to be                                     
25       expended each year until project completion;                                                                  
26                 (5)  estimated start for construction;                                                                  
27                 (6)  cost of each subsequent phase with estimated construction start                                
28       and completion dates, for projects that will be completed in phases; and                                      
29                 (7)  schedule of bond elections pertaining to the appropriation,                                    
30       including elections previously held. [THE TOTAL APPROPRIATION TO EACH                                             
31       CAPITAL PROJECTS FUND MUST BE REFLECTED IN THE BALANCE SHEET                                                      
01       OF EACH FUND AS OF JUNE 30 OF EACH FISCAL YEAR.]                                                                  
02    * Sec. 9. AS 37.15.420(a) is amended to read:                                                                      
03            (a)  There is established [A CAPITAL PROJECT FUND KNOWN AS] the                                              
04       "International Airports Construction Fund," into which shall be paid the proceeds of                              
05       the sale of the bonds (except any accrued interest paid on them, which shall be paid                              
06       into the bond redemption fund) and grant or other money that is legally provided for                              
07       the same purposes for which the bonds are authorized. The money in the construction                               
08       fund shall be used to pay the costs of acquiring, equipping, constructing, and installing                     
09       additions and improvements to and extensions of and facilities for the airports and                               
10       costs incidental thereto, including costs of the authorization, issuance, and sale of the                     
11       bonds. To the extent provided in the bond resolution, money in the construction fund                              
12       may also be used for the payment of interest on the bonds during the period of actual                             
13       construction, and for a further period, not exceeding one year after the period of                                
14       construction, that may be provided in the bond resolution. Money in the construction                              
15       fund may also be transferred to the bond redemption fund, to the extent provided in                               
16       the bond resolution, to establish a reserve for the payment of the principal of and                               
17       interest on the bonds.                                                                                            
18    * Sec. 10. AS 37.25.020 is amended to read:                                                                        
19            Sec. 37.25.020. Unexpended balances of appropriation for capital projects.                                 
20       An appropriation made for a capital project is valid for the life of the project, and the                     
21       unexpended balance shall be carried forward to subsequent fiscal years if substantial,                        
22       ongoing work on the project has begun within five years after the effective date of                           
23       the appropriation. Between July 1 and August 31 of each fiscal year, a statement                              
24       supporting the amount of the unexpended balance required to complete the projects for                             
25       which the initial appropriation was made and the amount that may be lapsed shall be                               
26       recorded with the Department of Administration. The office of management and                                  
27       budget, in coordination with the Department of Administration, shall deliver to                               
28       the house and senate finance committees a report of unexpended balances of                                    
29       appropriations for capital projects not later than the 15th day of each regular                               
30       session of the legislature.                                                                                   
31    * Sec. 11. AS 43.05 is amended by adding a new section to read:                                                    
01            Sec. 43.05.095. Indirect expenditure report. (a) The commissioner shall, not                             
02       later than July 1 before the first regular session of each legislature, submit a report to                        
03       the chair of the finance committee of each house of the legislature and to the                                    
04       legislative finance division that states, for each indirect expenditure made by the state,                        
05                 (1)  the name of the indirect expenditure;                                                              
06                 (2)  a brief description of the indirect expenditure;                                                   
07                 (3)  the statutory authority for the indirect expenditure;                                              
08                 (4)  the date the statute authorizing the indirect expenditure is to be                                 
09       repealed, if applicable;                                                                                          
10                 (5)  the intent of the legislature in enacting the statute authorizing the                              
11       indirect expenditure;                                                                                             
12                 (6)  the public purpose served by the indirect expenditure;                                             
13                 (7)  the estimated annual effect on revenue of the indirect expenditure                                 
14       for the previous five fiscal years, excluding the fiscal year immediately preceding the                           
15       date the report is due;                                                                                           
16                 (8)  the estimated cost to administer the indirect expenditure, if                                      
17       applicable;                                                                                                       
18                 (9)  the number of beneficiaries of the indirect expenditure.                                           
19            (b)  For purposes of (a) of this section, federal tax credits adopted under                                  
20       AS 43.20.021 shall be reported in the aggregate.                                                                  
21            (c)  A department, agency, or public corporation of the state shall, upon the                                
22       request of the commissioner, provide the records, reports, data analysis, or other                                
23       information necessary for the commissioner to complete the report required by this                                
24       section. The commissioner may enter into a confidentiality agreement if necessary to                              
25       obtain information or a record required to prepare the report under this section.                                 
26            (d)  In this section, "indirect expenditure" means an express provision of state                             
27       law that results in foregone revenue for the state by providing                                                   
28                 (1)  a tax credit or other credit;                                                                      
29                 (2)  an exemption, but does not include federal tax exemptions adopted                                  
30       by reference in AS 43.20.021;                                                                                     
31                 (3)  a discount;                                                                                        
01                 (4)  a deduction, but does not include costs incurred in the ordinary                                   
02       course of business that are deducted in the calculation of a tax under this title or in the                       
03       calculation of a royalty or net profit share payment for a lease issued under AS 38;                              
04                 (5)  a differential allowance.                                                                          
05    * Sec. 12. AS 43.75.035(e) is amended to read:                                                                     
06            (e)  Qualified investment costs upon which a tax credit is claimed under this                                
07       section may not be considered for another tax credit in this title. A tax credit applied                          
08       under this section [TOGETHER WITH A TAX CREDIT APPLIED UNDER                                                      
09       AS 43.75.036] may not exceed 50 percent of the taxpayer's tax liability incurred for                              
10       the processing of salmon during the tax year.                                                                     
11    * Sec. 13. AS 43.75.035(h) is amended to read:                                                                     
12            (h)  The amount of a tax credit recaptured under (g)(1) - (3) of this section may                            
13       not be included in the determination of the amount of that tax credit that is allowable                           
14       under this section [OR AS 43.75.036].                                                                             
15    * Sec. 14. AS 43.75.130(f) is amended to read:                                                                     
16            (f)  For purposes of this section, tax revenue collected under AS 43.75.015                                  
17       from a person entitled to a credit under AS 43.75.035 [, 43.75.036,] or AS 43.98.030                              
18       shall be calculated as if the person's tax were collected without applying the credit; tax                        
19       revenue collected does not include the amount of a tax credit recaptured under                                    
20       AS 43.75.035(g) [OR 43.75.036(g)].                                                                                
21    * Sec. 15. AS 43.75.130(f), as amended by sec. 14 of this Act, is amended to read:                                 
22            (f)  For purposes of this section, tax revenue collected under AS 43.75.015                                  
23       from a person entitled to a credit under AS 43.75.035 [OR AS 43.98.030] shall be                                  
24       calculated as if the person's tax were collected without applying the credit; tax revenue                         
25       collected does not include the amount of a tax credit recaptured under                                            
26       AS 43.75.035(g).                                                                                                  
27    * Sec. 16. AS 43.77.050(b) is amended to read:                                                                     
28            (b)  The tax collected under this chapter shall be paid into a separate account in                           
29       the general fund. The annual balance in the account may be appropriated by the                                    
30       legislature for revenue sharing under AS 43.77.060. [THE AMOUNT OF ALL TAX                                        
31       CREDITS APPROVED BY THE COMMISSIONER UNDER AS 43.77.040(b)                                                        
01       SHALL BE DEDUCTED FROM AMOUNTS PAID TO MUNICIPALITIES UNDER                                                       
02       AS 43.77.060(a) - (c).]                                                                                           
03    * Sec. 17. AS 43.77.060(e) is amended to read:                                                                     
04            (e)  For purposes of this section, tax revenue collected under AS 43.77.010                                  
05       from a person entitled to a credit under AS 43.77.045 [AS 43.77.035, 43.77.045,] or                           
06       AS 43.98.030 shall be calculated as if the person's tax had been collected without                                
07       applying the credits.                                                                                             
08    * Sec. 18. AS 43.77.060(e), as amended by sec. 17 of this Act, is amended to read:                                 
09            (e)  For purposes of this section, tax revenue collected under AS 43.77.010                                  
10       from a person entitled to a credit under [AS 43.77.045 OR] AS 43.98.030 shall be                                  
11       calculated as if the person's tax had been collected without applying the credits.                                
12    * Sec. 19. AS 37.07.062(b), 37.07.062(c), 37.07.062(d); and AS 44.42.080 are repealed.                             
13    * Sec. 20. AS 43.75.032, 43.75.036, 43.75.130(b); and AS 43.77.035 are repealed.                                   
14    * Sec. 21. AS 21.66.110(b); AS 21.96.070, 21.96.075(c)(2); AS 43.05.010(15);                                       
15 AS 43.20.014; AS 43.55.019; AS 43.56.018; AS 43.65.018; AS 43.75.018, 43.75.130(g);                                     
16 AS 43.77.045, and 43.77.060(e) are repealed.                                                                            
17    * Sec. 22. AS 43.75.035 and 43.75.130(f) are repealed.                                                             
18    * Sec. 23. AS 43.77.040 is repealed.                                                                               
19    * Sec. 24. AS 24.20.271(12); AS 43.98.030; AS 44.25.100, 44.25.105, 44.25.110,                                     
20 44.25.115, 44.25.120, 44.25.125, 44.25.130, 44.25.135, 44.25.140, 44.25.145, 44.25.150,                                 
21 44.25.190; and AS 44.33.231(c) are repealed.                                                                            
22    * Sec. 25. Sections 31, 32, and 33, ch. 51, SLA 2012, are repealed.                                                
23    * Sec. 26. Sections 3, 5, 7, 10, 14, 16, 18, 21, 23, 25, 28, 30, 32, 35, 37, 39, 42, 44, 46, 49,                   
24 51, 53, and 55, ch. 92, SLA 2010, sec. 14, ch. 7, FSSLA 2011, and secs. 15, 17, 19, 21, 23,                             
25 and 25, ch. 74, SLA 2012, are repealed.                                                                                 
26    * Sec. 27. Section 3, ch. 57, SLA 2003, is repealed.                                                               
27    * Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                   
29       TRANSITION. (a) A taxpayer that accrues a credit authorized by a statute repealed by                              
30 secs. 19 - 24 of this Act before the effective date of the repeal of the credit under this Act, but                     
31 whose tax year ends on or after the effective date of the repeal of the credit under this Act,                          
01 may take the tax credit in the tax year the taxpayer accrues the credit, or, if the credit may be                       
02 carried forward, the credit may be carried forward in accordance with the statute under which                           
03 it was accrued.                                                                                                         
04       (b)  For purposes of AS 43.75.130, tax revenue collected under AS 43.75.015 from a                                
05 person entitled to a credit under AS 43.75.035, 43.75.036, or AS 43.98.030 shall be calculated                          
06 as if the person's tax were collected without applying the credit; tax revenue collected does                           
07 not include the amount of a tax credit recaptured under AS 43.75.035(g) or 43.75.036(g). For                            
08 purposes of AS 43.77.060, tax revenue collected under AS 43.77.010 from a person entitled to                            
09 a credit under AS 43.77.035, 43.77.045, or AS 43.98.030 shall be calculated as if the person's                          
10 tax had been collected without applying the credits.                                                                    
11       (c)  Subject to AS 43.98.030, secs. 24 and 37 of this Act do not prohibit the film office                         
12 from determining the qualified expenditures of a film production, awarding a tax credit, or                             
13 reviewing a tax credit for a production that has received a notice of qualification under                               
14 AS 44.25.120(b) before December 31, 2016, or the Department of Revenue from providing a                                 
15 transferable film production tax credit to a producer under AS 43.98.030(a), by applying the                            
16 provisions repealed by sec. 24 of this Act, the regulations adopted by the Department of                                
17 Commerce, Community, and Economic Development under AS 44.25.100 - 44.25.190, and                                       
18 the regulations adopted by the Department of Revenue under AS 43.98.030.                                                
19    * Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to                         
20 read:                                                                                                                   
21       CONTINGENT EFFECT. Sections 22, 27, and 32 of this Act take effect only if the                                    
22 Twenty-Eighth Alaska State Legislature passes a bill that becomes law that further delays the                           
23 repeal of AS 43.75.035 under sec. 3, ch. 57, SLA 2003, and sec. 7, ch. 57, SLA 2003, as                                 
24 amended by sec. 4, ch. 3, SLA 2006, sec. 4, ch. 8, SLA 2008, and sec. 3, ch. 102, SLA 2010,                             
25 beyond January 1, 2019.                                                                                                 
26    * Sec. 30. Sections 40 - 42, ch. 51, SLA 2012, are repealed.                                                       
27    * Sec. 31. Section 57, ch. 92, SLA 2010, as amended by sec. 15, ch. 7, FSSLA 2011, and                             
28 sec. 32, ch. 74, SLA 2012, are repealed.                                                                                
29    * Sec. 32. Section 7, ch. 57, SLA 2003, as amended by sec. 4, ch. 3, SLA 2006, sec. 4, ch. 8,                      
30 SLA 2008, and sec. 3, ch. 102, SLA 2010, is repealed.                                                                   
31    * Sec. 33. Sections 5 - 10 and 19 of this Act take effect July 1, 2014.                                            
01    * Sec. 34. Sections 12 - 14, 17, 20, 25, and 30 of this Act take effect December 31, 2016.                         
02    * Sec. 35. If secs. 22, 27, and 32 of this Act take effect under sec. 29 of this Act, they take                    
03 effect December 31, 2020.                                                                                               
04    * Sec. 36. Sections 16 and 23 of this Act take effect December 31, 2020.                                           
05    * Sec. 37. Sections 1, 2, 15, 18, 21, 24, 26, and 31 of this Act take effect December 31,                          
06 2018.                                                                                                                   
07    * Sec. 38. Except as provided in secs. 33 - 37 of this Act, this Act takes effect immediately                      
08 under AS 01.10.070(c).                                                                                                  
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