Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                               Bill Version:                      SB 69
 2019 Legislative Session
                                                                                               Fiscal Note Number:                1
                                                                                               (S) Publish Date:                  2/22/2019
 Identifier:        2019200098-DOR-TAX-2-18-2019                                 Department:       Department of Revenue
 Title:             EXEMPT CHARITABLE GAMING FROM                                Appropriation: Taxation and Treasury
                    PERMIT/FEES                                                  Allocation:       Tax Division
 Sponsor:           RLS BY REQUEST OF THE GOVERNOR                               OMB Component Number:              2476
 Requester: Governor
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                   (Thousands of Dollars)
                                                 Included in
                                    FY2020       Governor's
                                Appropriation      FY2020                                             Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2020        FY 2020       FY 2021                       FY 2022           FY 2023              FY 2024        FY 2025
 Personal Services                                    (212.2)       (212.2)                       (212.2)           (212.2)              (212.2)        (212.2)
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            0.0       (212.2)       (212.2)                       (212.2)           (212.2)              (212.2)         (212.2)
 Fund Source (Operating Only)
 1061 CIP Rcpts (Other)                                       (212.2)            (212.2)          (212.2)           (212.2)              (212.2)         (212.2)
 Total                                            0.0         (212.2)            (212.2)          (212.2)           (212.2)              (212.2)         (212.2)
 Positions
 Full-time                                                      (2.0)              (2.0)             (2.0)                (2.0)            (2.0)            (2.0)
 Part-time
 Temporary
 Change in Revenues
 1004 Gen Fund (UGF)                            (8.0)                              (8.0)             (8.0)                (8.0)            (8.0)            (8.0)
 Total                                          (8.0)             0.0              (8.0)             (8.0)                (8.0)            (8.0)            (8.0)
 Estimated SUPPLEMENTAL (FY2019) cost:                                    50.0             (separate supplemental appropriation required)
 Estimated CAPITAL (FY2020) cost:                                         0.0              (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - 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?                                  12/31/19
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version based on the 2-13-19 Governor's FY2020 request.
 Prepared By:             Colleen M. Glover, Director                                                                Phone:           (907)269-1033
 Division:                Tax Division                                                                               Date:            02/21/2019 12:00 AM
 Approved By:             Brad Ewing, Administrative Services Director                                               Date:            02/21/19
 Agency:                  Office of Management and Budget
Printed 2/22/2019                                                        Page 1 of 2                                                           Control Code: VquPQ
                                                                                                                      SB 69 - Fiscal Note 1
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                    BILL NO. LL00098
2019 LEGISLATIVE SESSION
Analysis
   Background
   This bill would amend existing charitable gaming permit statutes to create a threshold in which the municipality or
   qualified organization would no longer have to apply for a permit, nor pay the annual fee, if their gross receipts are
   $20,000 or less per year. This bill also eliminates the requirement for an applicant that did not hold a permit the
   preceding year from paying the $20 fee. This bill effects those municipalities and qualified organizations that have less
   than $20,000 gross receipts. This has been about 38% of the total permittees, or about 400 permittees, but only about
   15% of the annual permit fees paid. This will reduce the cost and the work requirement for these small charitable gaming
   entities. The Tax Division's FY20 budget assumed the passage of this bill and eliminated two charitable gaming positions.
   If this bill does not pass, then these positions will need to be added back to the FY20 budget.
   Revenue Impact
   The Department of Revenue estimates that this legislation would reduce the charitable gaming revenues by $8,000 per
   year.
   Implementation Cost
   This legislation would require the Department of Revenue to update its Tax Revenue Management System (TRMS). The
   update would consist of reprogramming the public facing portal of TRMS--Revenue Online (ROL) to ask new questions
   about a potential permittee (e.g., "What was the entity's gross receipts in the prior year?", "Will this be the entities first
   year gaming?"). The questions will allow us to identify which entities won't require a permit and then guide them to
   register in ROL to file their annual statement of compliance instead. We would need to develop a way to accept the
   annual statement and test the new rules to verify that they function as expected. The supplemental fiscal note figure of
   $50.0 in FY19 is to cover the costs of having our contractor update TRMS. We do not anticipate any continuing costs or
   additional staff needs. After the implementation of the changes, this legislation would not cause any additional
   administrative burden on the Tax Division.
(Revised 9/05/18 OMB/LFD)                                                                                              Page 2 of 2
2019200098-DOR-TAX-2-18-2019                                     Page 2 of 2                                                Control Code: VquPQ
Statutes affected: 
SB0069A, AM SB 69, introduced 02/22/2019: 05.15.115, 05.15.185, AS.05.15, 05.15.100, 05.15.055, 05.15.020