Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                             Bill Version:                    HB 376
 2018 Legislative Session
                                                                                             Fiscal Note Number:              3
                                                                                             (H) Publish Date:                4/16/2018
 Identifier:        HB376-DCCED-DBS-04-11-18                                   Department:       Department of Commerce, Community and
 Title:             ESTABLISH THE ALASKA STATE BANK                                              Economic Development
 Sponsor:           TUCK                                                       Appropriation: Banking and Securities
 Requester: (H) Labor & Commerce                                               Allocation:       Banking and Securities
                                                                               OMB Component Number:              2808
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                               (Thousands of Dollars)
                                                 Included in
                                    FY2019       Governor's
                                Appropriation      FY2019                                           Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2019        FY 2019       FY 2020                     FY 2021           FY 2022            FY 2023        FY 2024
 Personal Services                       575.0                        575.0                      575.0             575.0              575.0          575.0
 Travel                                   60.0                         60.0                        60.0              60.0               60.0          60.0
 Services                                300.0                        205.0                      205.0             205.0              205.0          205.0
 Commodities                              82.5                          7.5                         7.5               7.5                7.5            7.5
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                       1,017.5            0.0         847.5                       847.5             847.5             847.5           847.5
 Fund Source (Operating Only)
 1004 Gen Fund (UGF)                         1,017.5                            847.5             847.5             847.5             847.5           847.5
 Total                                       1,017.5              0.0           847.5             847.5             847.5             847.5           847.5
 Positions
 Full-time                                        5.0                                 5.0            5.0                5.0              5.0             5.0
 Part-time
 Temporary
 Change in Revenues
 1250 UGF Rev (UGF)                          1,017.5                            847.5             847.5             847.5             847.5           847.5
 Total                                       1,017.5              0.0           847.5             847.5             847.5             847.5           847.5
 Estimated SUPPLEMENTAL (FY2018) cost:            0.0                    (separate supplemental appropriation required)
 (discuss reasons and fund source(s) in analysis section)
 Estimated CAPITAL (FY2019) cost:                 0.0                    (separate capital appropriation required)
 (discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                07/01/19
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:              Kristy Naylor, Acting Director                                                          Phone:         (907)269-7675
 Division:                 Banking and Securities                                                                  Date:          04/11/2018
 Approved By:              Catherine Reardon, Director                                                             Date:          04/12/18
 Agency:                   Division of Administrative Services, DCCED
Printed 4/16/2018                                                       Page 1 of 2                                                        Control Code: qQuwB
                                                                                                                   HB 376 - Fiscal Note 3
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                   BILL NO. HB 376
2018 LEGISLATIVE SESSION
Analysis
   The Division of Banking and Securities anticipates the following fiscal impact from this legislation for the regulatory
   oversight and quarterly examinations of the Alaska State Bank (ASB).
   The bill creates a new public corporation within the Department of Commerce, Community, and Economic Development.
   The ASB will promote infrastructure, education, science, technology, and other economic development projects in Alaska.
   This fiscal note addresses only the regulation and examination of the ASB. Costs for the creation and capitalization of the
   ASB, as well as other department costs, are addressed in separate fiscal notes.
   The bill exempts the ASB from regulation under the Alaska Banking Code and requires quarterly examinations be
   conducted. The Division of Banking and Securities (DBS) conducts examinations of state chartered financial institutions
   under the Alaska Banking Code and regulations on a specific cycle established in statute. Examination cycles currently
   include annual, every eighteen months, and as needed for compliance. No DBS programs currently require quarterly
   examination and further analysis will be necessary to determine the potential impact to the division's overall operations.
   Regulations will need to be drafted and adopted to establish the basis for conducting examinations and reports that will
   be made public under this legislation. DBS anticipates an intensive and lengthy regulation process that will require legal
   services from the Department of Law. Higher legal costs are reflected in the services lines for year one with a decrease
   once regulations are adopted for future years.
   Five new Financial Examiner III, range 21, positions will be dedicated to the regulation and examination of the Bank. The
   focus of the first year will be to research, draft, and develop proposed regulations and attend multiweek trainings,
   typically held in the Washington, D.C. area, specific to the examination and regulation of the banking industry. Annual
   training will be required. With regulations adopted and Bank operations underway, the examiners will be dedicated to
   conducting quarterly examinations and issuing reports on the condition of the Bank. DBS anticipated hiring senior level
   examiners who have a solid foundation in the banking industry. The examiners will be required to participate in schools
   and/or classes to obtain certification in additional specialized industries as the Bank expands its scope of operations.
   Travel, lodging, per diem, registration fees, and educational materials costs are included.
   This fiscal note includes costs for the five examiners including personal services, travel, training, office space, furniture,
   computers, telephones, supplies, and other costs. An increase in staff will impact the division's share of allocated costs for
   core central services levied by the Department of Administration including computer services, telephone services, Human
   Resources, Risk Management, Central Mail Services and the department's internal allocation of Management and
   Administrative Services cost.
(Revised 9/26/17 OMB/LFD)                                                                                            Page 2 of 2
HB376-DCCED-DBS-04-11-18                                        Page 2 of 2                                                  Control Code: qQuwB
Statutes affected: 
HB0376A, AM HB 376, introduced 02/21/2018: 06.60.015, 44.90.010, 36.30.990, 18.55.996, 18.57.020, 39.25.110, 39.50.200, 44.90.100, 45.45.010, 45.45.090, 44.90.020, 44.90.030, 44.90.110, 44.90.120, 44.90.130, 44.90.140, 44.90.150, 44.90.610, 44.90.160, 44.90.170, 40.25.110, 40.25.121, 44.90.700, 44.90.180, 44.90.190, 44.90.200, U.S.C, 44.90.210, 44.90.220, 44.90.230, 44.90.240, 44.90.250, 43.23.058, 44.90.300, 44.90.310, 44.90.350, 44.90.360, 44.90.370, 44.90.380, 36.05.005, 36.05.110, 36.05.010, 36.95.010, 44.90.390, 44.90.400, 44.90.410, 44.90.420, 44.90.430, 44.90.440, 44.90.500, 37.25.010, 44.90.510, 44.90.600, 44.90.620, 44.90.710, C.F.R, 44.90.720, 44.90.730, 44.62.310, 44.62.319, 44.62.040, 44.62.320, 44.90.740, 44.90.750, 44.90.760, 44.90.770, 24.20.400, 24.20.460, 44.90.800, 44.90.810, 44.90.820, 44.90.990, 44.90.995, 45.55.990, 45.08.103, 45.55.070, 14.40.802