State of Alaska
Fiscal Note
Bill Version: SB 73
2021 Legislative Session
Fiscal Note Number: 1
(S) Publish Date: 2/5/2021
Identifier: 0707-DOR-TRS-1-15-21 Department: Department of Revenue
Title: ANTICIPATION OF REVENUE; Appropriation: Taxation and Treasury
BORROWING;CREDIT Allocation: Treasury Division
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number: 121
Requester: Governor
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2022 Governor's
Appropriation FY2022 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2022 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2021) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2022) 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? No
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
No applicable, initial version.
Prepared By: Pamela Leary, Director Phone: (907)465-3751
Division: Treasury Date: 01/15/2021 04:30 PM
Approved By: Brian Fechter, Administrative Services Director Date: 01/15/2021
Agency: Department of Revenue
Printed 2/5/2021 Page 1 of 2 Control Code: lAljx
 SB 73 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO.
2021 LEGISLATIVE SESSION
Analysis
The proposed legislation updates the current statute (AS 43.08) to clarify that borrowing in anticipation of revenue
collections includes entering into line of credit agreements as well as revenue anticipation notes. The proposed legislation
creates flexibility to enter into line of credit agreements when the Commissioner of the Department of Revenue considers
it to be in the best financial interest of the State to do so. Having this tool available is useful when cash available in the
general fund is insufficient to pay state expenditures as a result of a disparity in timing between revenues received and
when funds need to be disbursed. A line of credit allows access to a preset borrowing limit that can be used at any time to
cover short term needs, thus reducing the need to draw on other funds to provide state services.
Low fees are paid to have access to a line of credit and higher fees are paid on amounts borrowed. Fees paid would be
offset by allowing state funds to continue to be invested, earning returns, rather than being borrowed to cover cash flow
needs. The Treasury Division in the Department of Revenue would be responsible for securing and managing the line of
credit.
There is no fiscal impact to the Treasury Division. Section 43.08.35 of the proposed legislation provides for an
appropriation each fiscal year from the general fund for the amount necessary for the payment of interest on money
borrowed.
(Revised 1/13/2021 OMB/LFD) Page 2 of 2
0707-DOR-TRS-1-15-21 Page 2 of 2 Control Code: lAljx


Statutes affected:
SB0073A, AM SB 73, introduced 02/05/2021: 43.08.010, 43.08.020, 43.08.030, 43.08.035, 43.08.040, 43.08.050