Alaska Legislative Research FY 2015

7/21/2019 Alaska Legislative Research FY 2015

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LEGISLATIVE RESEARCH SERVICES

29thAlaska Legislature (907) 465-3991 phone

Research Summaries (907) 465-3908 fax

Published July 22, 2015 [email protected]

Research Summaries

Fiscal Year 2015

This document provides summaries, organized by topic, of many of the publicly available reports produced by

Legislative Research Services in fiscal year 2015 (July 1, 2014June 30, 2015). Full text is available through the

links embedded in each report title below.1 Reports from previous fiscal years, numbering in the thousands,

are available through our searchable online database athttp://w3.legis.state.ak.us/laa/research/public.cgi.

Cant find what you need? We can help! Each year only a fraction of our work is released from confidentiality

requirements, so the reports listed here represent just a sample of our catalog and expertise.2 Feel free to use

the contact information listed above to get in touch with us directly.

Commerce

15.005 Disclosure Requirements for Real Estate Transactions

Estimating the value of real property is important for real estate financing, listing real estate for sale, property assessments

and taxation, investment analysis, and property insurance. In most states, documents must be filed with local officials,

including the local property tax assessor, after a real estate transaction. In states that require full disclosure, the sales price is

recorded on the deed or similar document and/or it is listed on the real estate transfer tax documents, which are then filed

with the local assessors office. At least 39 states and the District of Columbia require public disclosure of this information.Alaska is one of six states that do not have a law that requires price information to be provided to a taxing entity as part of a

real estate sales transaction. These states are known as non-disclosure states. Another five states require that the sales price

be given to a government entity, but the information must be kept confidential and is not available to the public. These states

are also sometimes referred to as non-disclosure states because they do not mandate public disclosure of real estate sales

prices. (2 pages plus attachments, July 22, 2014.)

15.051 States that Regulate Precious Metal Dealers

Typically, people use pawnbrokers or secondhand dealers, sometimes known as precious metal dealers, to sell used jewelry

and other items made of gold, silver, platinum, and mounted or unmounted precious or semiprecious stones. Thieves also

use pawnbrokers and secondhand dealers to dispose of stolen goods. Most states, including Alaska, regulate pawnbrokers. In

order to protect consumers and to help law enforcement retrieve stolen property, pawnbrokers are required to maintain a

detailed record of all purchases and to hold pledged property for a certain period of time. Many jurisdictions also regulatesecondhand dealers to varying degrees, but often not to the same extent as pawnbrokers. For example, some states,

including Alaska, do not require secondhand dealers to hold items for a specific time period before they can be sold or altered.

Thus, stolen jewelry could be altered, sold, or disposed of immediately after purchase. In order to address this issue, at least

1Where a single summary covers more than one report, the first report listed will be linked, the others can be accessed by entering the report

number listed with a dash in place of the period. For instance, search for report 15.001 by entering the search term 15-001.

2Pursuant to AS 24.20.100, research requests by legislators and staff are confidential unless requesters direct that our reports be made

publicly available. In FY 2015, as an example, reports on approximately 110 of the roughly 560 requests we received were released.
mailto:[email protected]:[email protected]://w3.legis.state.ak.us/laa/research/public.cgihttp://w3.legis.state.ak.us/laa/research/public.cgihttp://w3.legis.state.ak.us/laa/research/public.cgihttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-005m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-005m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-005m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-051m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-051m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-051m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-051m.pdfhttp://archives2.legis.state.ak.us/PublicImageServer.cgi?lra/2015/15-005m.pdfhttp://w3.legis.state.ak.us/laa/research/public.cgimailto:[email protected]


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LEGISLATIVERESEARCHSERVICES JULY22,2015PAGE2

FISCALYEAR2015RESEARCHSUMMARIES

22 states have specifically defined precious metal dealers and require those businesses to follow many of the same rules as

pawnbrokers. (4 pages plus attachments, October 1, 2014.)

15.069 Industrial Hemp in Alaska

Alaska law does not allow the growing or cultivation of industrial hemp. A search of legislative history from 1982 to the

present indicates that no bills were introduced during that time to legalize cultivation. Twice, however, Alaska voters have

rejected ballot initiatives that would have legalized the use of marijuana and the production of hemp in Alaska. BallotMeasure 2, which legalized recreational marijuana in the state, is silent on industrial hemp and thus, the cultivation of

industrial hemp will presumably remain illegal in Alaska. Recently, Congress approved the growing of hemp for research

purposes by universities and state agriculture departments in states that allow hemp cultivation. The Agricultural Act of 2014,

also known as the Farm Bill, requires that the growing sites used by universities be certified by and registered with the state

department of agriculture. Because the Act does not allow for the commercial production of hemp, even in those states that

allow commercial production, growers without a federal permit could still face the possibility of federal charges, despite

having a state-issued permit. For example, in Colorado, where the commercial production of hemp is allowed, farmers may

register with the states Department of Agriculture to grow hemp. As part of the application, farmers must acknowledge they

understand that under federal law, growing industrial hemp is illegal, except by universities and the state as allowed under the

Farm Bill of 2014. (3 pages, October 9, 2014.)

15.099 Establishing Mechanisms for the Regulation of Marijuana in Alaska

This report compares numerous aspects of Ballot Measure 2, which legalized recreational marijuana in Alaska, with similar

initiatives and laws in other states. Among the issues reviewed are regulation of retail marijuana businesses, the legislatures

role in implementing the initiative, the composition and duties of a prospective Marijuana Control Board, regulation of

marketing, packaging, and availability, licensing issues, the role of municipalities in regulation, projected tax revenues, and

laws on driving under the influence of marijuana. (10 pages plus attachments, November 28, 2014.)

15.162 Regulation of State-Owned Banks in Relation to Legalized Recreational Marijuana

The Bank of North Dakota (BND) is currently the only state-owned bank in the United States. The BND is designated a

financial institution under federal law because the typical banking activities it offersmaking loans, accepting deposits,

clearing checks, servicing debit and credit cards, etc.are subject to broad federal regulation. Any other state bank that

might be established would be similarly regulated if it conducts any of the broad array of financial services typically associatedwith financial institutions. As a result, absent changes in federal law, it is unlikely that a state-owned bank in Alaska could help

alleviate the regulatory challenges likely to be faced by licensed marijuana vendors in obtaining banking services. (4 pages plus

attachment, January 30, 2015.)

15.277 Warranty Reimbursement Laws in Other States

Most manufacturers or suppliers require that their authorized dealers provide post-sale warranty service. Typically,

manufacturers have written warranty policies describing how they pay the dealers for the labor and replacement parts used

during the warranty service. Most policies apply to all warranty work, regardless of where the dealer is located. At least 37

states, however, have enacted warranty reimbursement laws for certain products that specify how the manufacturer will pay

dealers for warranty service in that state. Warranty reimbursement laws may require that manufacturers reimburse dealers

for labor using the same hourly rate that the dealers charge for non-warranty service, or the prevailing wage rate in thedealers market. Some states require dealers to notify the manufacturer of their current labor rates in advance. Many states

also require that manufacturers pay dealers the cost of all warranty parts plus an additional amount ranging from 15 to 30

percent to cover shipping and handling of parts and/or to provide a profit margin for the dealer. (8 pages, March 4, 2015.)

15.335 Daylight Saving Time: Commercial Concerns and Time Zone Changes

Tensions over Alaska time zones in the 1970s and early 1980s occurred in the context of capital move proposals. The

compromise negotiated by Governor Bill Sheffield, resulting in the current time zone system, was intended to ease the

tension between Southeast and the Railbelt. Throughout discussions of time zone and daylight saving changes in Alaska, the
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salient arguments have focused on personal disorientation, difficulties in interstate commerce and tourism, and possibly

increased or decreased traffic accidents. If a state petitions the U.S. Department of Transportation (DOT) to evaluate the time

zone(s) in which a state or portion of the state is placed, the standard used by the DOT hinges on convenience of commerce.

Generally a state must choose as a whole to observe or not observe daylight saving time across the entire state. An exception

is allowed, however, if a state is split into more than one time zone, in which case a split observance is permitted, as occurred

in Indiana for many years. (3 pages plus attachments, March 26, 2015.)

Criminal & Civil Justice

15.001 Zero Tolerance Per Se Drugged Driving Laws

Per se drugged driving laws make having any amount of a controlled substance in ones body while operating a motor vehicle

a criminal offense. In states with such laws it is not necessary to prove that the drug use impaired the drivers ability to

operate a motor vehicle; the presence of the substance (tetrahydrocannabinol [THC] in the case of marijuana) is enough for a

conviction. We identified 11 states that have enacted zero tolerance per se laws that criminalize having any amount of THC in

the body while driving. Additionally, we identified nine other states with laws criminalizing having specific amounts of THC in

a drivers system. Proponents of per se laws note that such measures have been implemented in federal law for commercialdrivers in the U.S. for over 20 years and have proved effective. Opponents of per se laws argue that they are potentially unfair

because drivers can be charged and convicted of DUI for operating a motor vehicle while not actually being impaired. For

example, an individual who smokes marijuana on Friday night and gets pulled over by law enforcement while driving on

Saturday may not be impaired at that point but may still have detectable traces of THC. (4 pages, September 8, 2014.)

15.016 Justinas Law: Medical Treatment and Research Involving Wards of the State

The federal bill known as Justinas Law responds to the highly publicized and complex case of Justina Pelletier, a teenager

from Connecticut who was the subject of a medical custody battle between the State of Massachusetts and her parents

following disagreements among medical teams regarding her diagnosis and treatment. Addressing accusations that Justina

was used as a human guinea pig and subjected to risky experimental treatment while under state custody, Justinas Law

seeks to prevent such situations from occurring by prohibiting federal funding for risky experimental treatment or research

involving wards of the state. At a state level, Texas and Wisconsin have laws that specifically address the participation inresearch studies by wards of the state. These laws could provide model language explicitly preventing wards of the state from

being enrolled in potentially harmful research studies. (4 pages plus attachments, September 3, 2014.)

15.106 Nonprobate Transfer on Death (TOD) Provisions for Cars, Boats, and Planes

Among the 15 states that explicitly address the nonprobate transfer of title to cars, 11 do so through their vehicle registration

statutes, while four do so through their probate codes. At least five states specifically include TOD provisions for boats,

although one specifies that eligibility is limited to vessels that are not documented (registered) with the U.S. Coast Guard. We

found no state with a TOD provision for planes, likely due to the federal system for registering and recording instruments of

title to aircraft with the Federal Aviation Administration. (1 page plus attachments, December 23, 2014.)

15.118 Driving Under the Influence of Marijuana

In most cases, if a motorist is pulled over by law enforcement in Alaska and the officer believes the driver is affected by

marijuana or any other controlled substance, a court order is required to obtain a blood or urine sample. There is currently no

chemical test that can be used in the field to detect marijuana impairment. Alaska, like four other states (Alabama,

Massachusetts, New Jersey, and West Virginia), does not extend the concept of implied consent to driving under the

influence of a controlled substance except in instances of crashes involving serious injury or death. (4 pages plus attachments,

January 6, 2015.)
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15.128 Clergy as Mandated Reporters of Child Abuse and Neglect

All 50 states have statutes regarding the mandatory reporting of child abuse and neglect. In 18 statesnot including Alaska

any person who suspects child abuse is required to report. Twenty-seven statesagain, not including Alaskahave statutes

that specifically require clergy to report child maltreatment under certain circumstances. (2 pages, January 2, 2015.)

15.165 Documents Related to the Rescinded Suspensions of Prosecuting Attorneys in the Case against Senator Ted

Stevens

This report includes a compilation of court documents, investigation reports, U.S. Department of Justice memoranda and

letters, and a statement from Senator Lisa Murkowski regarding the prosecutorial misconduct, suspension, and rescinded

suspensions of attorneys in the criminal case against Senator Ted Stevens. (3 pages plus voluminous attachments, January 23,

2015.)

15.171 Processing Rape Kits in Alaska

Following a sexual assault, a victim has the option to have a forensic examination by a trained professional. During a forensic

medical exam, a sexual assault evidence collection kit (rape kit) may be used. The kit affords the opportunity to collect any

DNA that may have been left by the suspect. The rape kit contains many tools that may be used by the examiner for evidence

collection during the forensic medical exam. Of the kits collected, many are untested, which is an ongoing issue throughout

the United States. A number of factors have been cited as contributing to the backlog of untested kits, including the cost oftest analysis. Also, law enforcement agencies sometimes pursue testing only in cases with the best chances of being solved or

where the alleged rapist is a stranger to the victim. While nearly all rape kits submitted to the Alaska State Crime Lab are

processed, it is unclear how many kits law enforcement may have that are not sent to the Lab. Protocols are being developed

to track kits more closely. The cost to analyze each kit in Alaska is typically between $3,000 and $5,000. A number of states

have enacted legislation in the last few years that attempt to address the backlog of untested rape kits. These laws tend to fall

into the following categories: those that require audits, inventories, and/or tracking of kits; and those that mandate testing.

We found very little information on how successful or costly these legislative attempts have been, largely because most of the

measures have only recently been implemented. (4 pages, February 13, 2015.)

15.180 Court Authority for Probation Officers

We identified twelve statesAlabama, Arizona, Colorado, Hawaii, Indiana, Kansas, Massachusetts, Michigan, Nebraska, NewJersey, South Dakota, and West Virginiawhere probationers may be supervised by an officer of a court. We summarize the

probation model in each of the twelve states and attach various state statutes that define the courts responsibility for

providing probation services. (2 pages plus attachments, February 3, 2015.)

15.283 Credit Checks and Foster Children

In 2011, Congress passed the Child and Family Services Improvement and Innovation Act, which, among other things, requires

that for any youth in foster care at age 16 or older, the state must annually obtain the childs credit report, provide it to the

youth at no cost, and provide the youth with an explanation of what is in the report and appropriate guidance. (1 page,

February 25, 2015.)

15.367Legal Decisions on Drones and Privacy

We located no court case that is precedential with regard specifically to the interaction between unmanned aircraft systems

(UAS), or drones, and privacy rights. The American Civil Liberties Union (ACLU) is among the organizations advocating for

stricter regulation of drones to ensure citizens privacy rights are not infringed upon by the extraordinarily powerful

surveillance systems on board certain UAS. In a 2011 report on the topic, the ACLU reviewed U.S. Supreme Court decisions on

the use of manned aircraft and other methods of surveillance, and the variations from those decisions the Court may make in

future cases involving UAS. Discussion of the ACLU report and case citations are included. (2 pages, April 6, 2015.)
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15.062 Alaska Laws Addressing Child Identity Theft

Those aged 20-29 are the most frequently victimized group for identity theft, but child identity theft is an increasing problem.

One of the most common methods of child identity fraud is to combine a childs social security number with a different date

of birth. Many youth victims may not learn their identity has been inappropriately used until they apply for credit on their

own. In response, a number of states have strengthened criminal penalties for identity fraud perpetuated against children.

Several states require that foster children who are at least 16 years of age be given a copy of their credit report annually.

There are no measures in Alaska law that require credit reports for children in foster care or that allow parents or guardians torequest security freezes on behalf of their children. Likewise, Alaskas criminal penalties addressing identity theft do not

include provisions to increase penalties based on the age of the victim. Under current law, however, a parent or guardian

could contact the credit reporting agencies and have all accounts with their childs name removed, since any such account

would be fraudulent. (2 pages, October 6, 2014.)

Demographics

15.025 Immigration in Alaska

According to the U.S. Census Bureaus American Community Survey, foreign-born persons comprise about 7 percent (about49,341 persons) of Alaskas population. Of this group, 52 percent are naturalized U.S. citizens and 48 percent are not U.S.

citizens. Non-citizens include both legal and unauthorized immigrants; however, like the rest of the country, the majority of

immigrants in Alaska are here legally. The Pew Hispanic Trust estimates that unauthorized immigrants make up less than one

percent of Alaskas population. Immigrants from Asian countries form a greater proportion of the foreign-born population in

Alaska than they do in the U.S. overall. State and local governments often bear much of the costs of providing services to

immigrants who reside in their jurisdictions. However, it is important to note that immigrants also contribute to state and

local governments by working, and by paying excise, sales, and property taxes. The use of public assistance and the cost of

education for immigrants are a fraction of what the state provides for resident U.S. citizens. (10 pages plus attachments,

September 19, 2014.)

Education

15.111 Education Assessments for Students with Disabilities

The U. S. Department of Educations decision to phase out the authority of states to use an alternate assessment based on

modified academic achievement standards to assess students with disabilities did not impact Alaska because Alaska did not

develop an alternate assessment based on modified achievement standards. Instead, Alaska based its alternate assessments

on alternate achievement standards, which are not affected by the changes to federal regulations. (1 page, December 12,

2014.)

15-245 High School Graduates in Alaska, 1959-2014

From Alaskas first graduating class in 1959 through the class of 2014, the number of students who have graduated from the

states public high schools is 287,315. The largest graduating class in Alaska was in 2010, with 8,245 graduates. The smallest

graduating class was, not surprisingly, in 1959, when 944 students received their diplomas. (2 pages, February 26, 2015)

15-312 University Administration Costs

We compared the University of Alaska systems administrative costs with those in seven other states (Hawaii, Maine,

Montana, Nevada, North Dakota, Oregon, and South Dakota). The percentage of overall university budgets that these states


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expend on administrative costs is quite similar at between 7 percent and 11 percent. While timeframes precluded a 50-state

search, our review identified no other states with significantly lower administrative costs than Alaska (9 percent). (2 pages,

March 25, 2015.)

Employment / Labor

15.068 Occupations that Require a Criminal Background Check for State Licensure or Certification

Many employers and licensing agencies are required under federal and state laws to conduct criminal background checks on

prospective employees or licensees, particularly in those professions that involve direct contact with children, the elderly, and

disabled persons. In Alaska, at least 14 occupations require a criminal background check for licensure or certification. Most of

these occupations require a national criminal background check, which involves a search of both state and Federal Bureau of

Investigations (FBI) criminal records. The Alaska Department of Public Safetys Criminal Records and Identification Bureau is

the designated central repository for criminal justice information in the State of Alaska and, as such, is the agency authorized

to submit fingerprints and background requests to the FBI. Criminal background checks are required for positions that involve

supervisory or disciplinary power over a minor or dependent adult. Examples of such jobs include social workers, youth and

adult corrections officers, and probation and parole officers. In addition, programs that are administered by or receivefunding from the Department of Health and Social Services are required to submit fingerprints and obtain a criminal

background check for prospective employees who will have direct contact with vulnerable populations or have access to

personal and financial information. These entities submit fingerprints to the Alaska Background Check Program. (3 pages,

October 14, 2014.)

15.157 Exempting Student Internships and Externships from the Alaska Wage and Hour Act

Numerous college or university degree programs require that students complete an unpaid practicum, also known as a

preceptorship, externship, or internship, to obtain a professional degree. The purpose of such a program is to bridge the gap

between the classroom and the practice area by providing hands-on experience. The majority of schools that offer these

degree programs are accredited through a professional organization that has adopted standards that the school or college

must follow to maintain its accreditation. A common accreditation standard for many of these professions is a certain

number of hours in clinical rotations, in both on and off-campus facilities for which the students may not receive monetarycompensation. A college or university cannot allow a student to be paid while participating in a practicum for which the

student is receiving college credit. In 2004, Alaska exempted an employer from vicarious liability for students participating in a

University of Alaska practicum, and exempted such students from the Alaska Wage and Hour Act. Consequently, students

from other schools would not be exempt from the Wage and Hour Act, and would therefore not be allowed to take part in an

unpaid practicum in a private business in Alaska. We identified no other state that restricts student internships in the same

way that Alaska does. We identified at least two statesAlabama and Indianathat specifically exempt from the states

minimum wage act students who are taking for credit a practicum that combines academic instruction with work experience.

Neither of these states, however, limits the exemption to students at certain schools as does Alaska. (4 pages plus an

attachment, January 27, 2015.)

15.187 Programs for Veterans: Business Tax Credits and Hiring Preferences

A tax incentive program meant to encourage hiring of military veterans currently under consideration in Washington State

differs only marginally from a corporate income tax credit already codified in Alaska Statute. The taxes to which the credits

apply in the two states are not directly analogous, and there do not otherwise appear to be provisions of the proposed

measure in Washington that, if adopted into Alaska law, would dramatically increase the appeal of the tax credit to businesses

here. Since that incentive became available at the onset of fiscal year 2013, no credits have been claimed. Research shows

that public sector programs have increased veteran hire rates, particularly at the federal level, and it is reasonable to expect

some degree of similar benefit would be realized by private sector preferences. However, poorly designed or inconsistently

applied programs risk running afoul of federal equal employment laws. (4 pages plus attachments, February 4, 2015.)
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Energy Production & Consumption

15.008 A History of Major Energy Appropriations, Including the Railbelt Energy Fund

Major funding for energy projects began in 1976, with an appropriation of $2.5 million to the water resources revolving loan

fund. We provide a history of the Railbelt Energy Fund (REF), a brief history of Alaskas energy expenditures, and a brief

discussion of other major projects. We also include several tables that show a chronological history of major energyappropriations, appropriations to and from the REF, and expenditures for the Power Cost Equalization (PCE) program. We

also briefly discuss the Renewable Energy Grant Fund. (17 pages plus attachments, August 14, 2014.)

15.034, 15.189, 15.371, 15.372, and 15.373 ConocoPhillips Geographic Distribution of Net Income

ConocoPhillips is unique among the major petroleum producers in Alaska in that the company reports it income and

production in the state separately from that of other jurisdictions. As a result, there remains ongoing interest by legislators in

the companys financial results, and in comparing those to other oil provinces. In general, this series of reports variously

demonstrates that Alaska operations generate substantial profits for ConocoPhillips and results in the state compare

favorably to other geographic areas both in aggregate and on a barrel of oil equivalent (BOE) basis. (Numbers of pages and

dates of publication vary.)

15.082 Alaska Housing Finance Corporation Energy Programs

The Alaska Housing Finance Corporation (AHFC) is the primary administrator of housing loans in the state of Alaska. The

Alaska Housing Finance Revolving Fund finances a variety of loan programs for individuals, organizations, and other entities,

including two loan programs related to energy efficiency. The AHFC also administers a weatherization program and two

home energy rebate programs, one for new homes and one for existing homes. (1 page, October 16, 2014.)

15.206 Relationship of Crude Oil Costs to Retail Gasoline Pricing

Gasoline prices are comprised of the costs of the components that make up retail pricescrude oil, taxes, refining,

distribution and marketing, and profits at each step in the process of bringing gas to consumers and by market forces in

place at any given locality. Gasoline costs in Alaska are determined by the states unique circumstances, which include a small

market, few participants in the areas of refining and distribution, geographic isolation, long distances from competitive

markets, and high transportation costs. Two separate investigations by Attorneys General in Alaska found no significant illegal

activity with regard to fuel pricing in the state. Barring major changes in the market forces and structure of gasoline supply to

the state, prices at the pump in Alaska are likely to exceed national averages and consumers here will not receive the benefits

of falling crude oil prices to the same extent as do those in other states. (5 pages, February 2, 2015.)

15.081 Funding of Alaska Rural Energy Assistance Programs

Our research indicates there are least 14 state energy programs that are designed primarily to provide grants, loans, or direct

economic assistance to eligible individuals, communities, and businesses in rural Alaska. From fiscal year 2005 through 2014,

the State spent about $1.3 billion on these programs. The vast majority of these expenditures have been for the Power Cost

Equalization (PCE) program, the PCE endowment fund, and the Renewable Energy Fund. The PCE program and endowment

fund accounted for more than two-thirds of the total funding, including deposits of $182.7 million and $400 million during the

last decade to capitalize the endowment fund. Since it was created in FY 2009, the Renewable Energy Fund has received$227.5 million to fund energy projects in rural Alaska. The bulk fuel program, which operates as a revolving loan fund to assist

small communities in purchasing fuel, received about $13.5 million in appropriations during this time period. (5 pages,

October 16, 2014.)


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Environment

15.199 Neonicotinoids in Alaska Agriculture

Neonicotinoids are a relatively new class of insecticide that affect the central nervous system of insects, resulting in paralysis

and death. They include imidacloprid, acetamiprid, clothianidin, dinotefuran, nithiazine, thiacloprid, and thiamethoxam. The

Environmental Protection Agency and other entities have expressed concern regarding the potential environmental impactsof neonicotinoid pesticides, particularly as they affect pollinatorsspecifically the bee population. We surveyed more than

120 Alaska farmers as to whether they use neonicotinoid pesticides, and received 98 responses. None of these Alaska

farmers currently use neonicotinoids, although a few said they may in future. Many respondents voiced concern over how

neonicotinoids may affect bee colonies and, as a result, their crops and those of their fellow farmers. (2 pages, February 16,

2015.)

15.222 Public Sector Paper Reduction Legislation in Other States

Relatively few states compel public agencies to publish documents online and prohibit publishing hard copies of reports

except upon request or as otherwise required by law, as is contemplated by HB 68. Among the few state statutes that do so is

Oregons, which makes explicit the intent to reduce paper usage. A less expansive Kentucky law generally prohibits state

agencies from mailing hard-copy documents except by request. Further, any report required to be submitted to the Kentucky

Legislature on an annual or biennial basis must be provided online rather than in paper form. (2 pages plus attachments,February 9, 2015.)

Government

15.029 Constitutional Authority for Police to Enforce Motor Vehicle Laws and Associated Issues

Police powers predate the U.S. Constitution but are implied by provisions of that document, including Article 1, Section 8, and

are limited by the Fourth Amendments protection against unreasonable searches and seizures. These authorities are passed

to the states by the Tenth Amendment. Modern police power has been largely shaped by Congress, states legislatures, and

the Judiciary. Unless otherwise specified, a legal standard of reasonable suspicion is required for police to stop motorists for

traffic violations. Alaska law requires that officers actually witness a motorists failure to wear a seatbelt in order to make a

stop for that violation. Seatbelt requirements are delineated in Alaska law. Parking violations are generally under the purview

of municipalities. (3 pages, September 2, 2014.)

15.115 Creation of Executive Branch Departments

Alaskas constitution gives the primary authority for establishing departments to the legislature; however, the governor has

the authority to make changes to the organization or the assignment of functions through the use of the executive order,

unless the legislature disapproves of the action through passage of a special concurrent resolution. In a 1984 executive order,

the governor established the Department of Corrections from what had been the Division of Adult Corrections in the

Department of Health and Social Services. In 2009, bills to consolidate the various energy agencies into a Department of

Energy were heard but did not advance to a floor vote. (2 pages, December 4, 2014.)

15.150 Confidentiality Agreements between Executive Branch Agencies and Private Entities

Alaskas Public Records Act, codified at AS 40.25, makes information held by government and its proceedings accessible to

citizens by default. This policy is made explicit in AS 40.25.110(a), which reads, unless specifically provided otherwise, the

public records of all public agencies are open to inspection. The right of public access must be balanced, however, with the

privacy rights provided in the state constitution, and with the need for government officials to engage in policy deliberation

without undue interference. To this end, AS 40.25.120 includes a number of exceptions to public records requirements. For

instance, adoption proceedings, medical and public health records, and information that could interfere with law

enforcement proceedings, among others, are not considered public records. In addition, there are sections making

confidential specific types of records in at least 34 of Alaskas 47 statute titles. We identified seven (7) statutes that allow or


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require executive and/or legislative branch officers and employees to enter into confidentiality agreements. (6 pages plus

attachments, January 22, 2015.)

15.151 Combined State of the State and State of the Budget Addresses

Governors delivered separate State of the State and State of the Budget addresses in 11 of the 12 years from 1987 through

1998. From 1999 through 2014, however, Governors delivered combined addresses in 15 of the 16 years. (1 page, January 12,

2015.)

15.155 Confidentiality Provisions in State Corporations and Entities

Both the Alaska Administrative Procedures Act and the Public Records Act include a number of exceptions to public meeting

and public records requirements, respectively. Most commonly, these exceptions mandate confidentiality for certain types of

information, such as medical and juvenile court records. This report focuses on those exceptions to public records and public

meeting laws that allow confidentiality. Generally, entities are exempted from open meetings requirements only to the

extent that they discuss protected information, and entities are exempted from open records requirements only to the extent

that they hold records that are protected. We identified only a few statutes that explicitly grant a state entity permission to

enter into a confidentiality agreement, generally for the purpose of safeguarding trade secrets. (5 pages, March 5, 2015.)

15.156, 15.248 State Agency Reports Required by Alaska Statute

We identified 189 Alaska statutes that require state agencies to provide reports. While many of the reports are accounts of

an entitys annual activities and finances, the topics, scope, and frequency of the information required vary considerably. We

provide, for each requirement, the entity that is responsible for preparing the report and the date the information is due. A

number of statutes indicate a specific date for publication, such as the 30th day of the legislative session, while others require

reports to be submitted annually, biennially, or quarterly. (20 pages, January 22, 2015 and February 11, 2015.)

15.193 Legislature Defined as an Agency in Statute

Generally, agency is used to refer to a subdivision of the executive, judicial, or legislative branch of government and never to

a branch of government as a whole. We searched Alaska statutes for all definitions of agency, alone or in combination and

found no definition that includes the Legislature as a whole within it. Many definitions of agency in statute include only

specific entities, while other definitions refer only to subdivisions of the executive branch. In some statutes, agency isdefined to include subdivisions of the Legislature. (1 page, January 29, 2015.)

15.231 Special Sessions of the Alaska Legislature: Dates, Duration, Subjects, and Daily and Total Costs, 2003 - 2014

From statehood through the date of the report, the legislature had met in special session 36 times, with the governor having

called all but six. In 1997, the Legislative Affairs Agency began tracking these costs separately from other legislative expenses.

For special sessions held from 2003 through 2014, costs totaled about $6.6 million, with a daily average cost of just over

$30,000. (3 pages, February 5, 2015.)

15.237 State Spending and Government Efficiency Commissions

Many policymakers cite the Texas Performance Review, launched in 1991, as the contemporary model for state government

efficiency commissions. In the last decade, many other states have created similar performance reviews or government

efficiency commissions. As of 2013, about 31 states had active or recently concluded commissions, many of which have

published reports that are currently available online. (2 pages, February 9, 2015.)

15.252 Appointments of Members of Boards and Commissions by the Alaska Senate President

There are 17 boards, commissions, and similar organization in Alaska to which the President of the Alaska Senate is required

by statute to appoint members. The appointees to 11 of these boards are required to be sitting senators, and on nine of

those 11 boards legislators serve in an ad-hoc, ex-officio, or non-voting capacity. The legislator appointed to the Exxon Valdez
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Oil Spill Trustee Council must be approved by the entire Senate; however, the authority for this appointment is provided by

litigation settlement agreements rather than Alaska Statute. (2 pages, February 13, 2015.)

15.293 Proposals for an Elected Attorney General in Alaska

Determined to create an executive branch that would be unified, efficient and accountable, constitutional convention

delegates rebuffed several efforts to weaken the governor's control over the attorney general, including proposals to make

the position elective. Since that time, two advisory votes and 41 resolutions, have been proposed to amend Article III, Section25 of the constitution. Most have died in the first committee, many without a hearing; only five have reached a floor vote.

Arguments in favor of an elected attorney general cite objectivity and independence when the states interests do not

coincide with a governors political values. Arguments for the status quo point out that, as politicians, elected attorneys

general cannot be free from political influences and as such, the relationship between the governor and an elected attorney

general may be adversarial as well as inefficient. (2 pages plus attachments, March 2, 2015.)

15.294, 15.311 Ted Stevens Service in the Alaska State Legislature

Theodore (Ted) Fulton Stevens served in the Fourth (1965-1966) and Fifth (1967-1968) Alaska State Legislatures.

Representative Stevens served as House majority leader during the Fifth Legislature. During this time he also served on the

Rules Committee. Noteworthy pieces of legislation sponsored or cosponsored by Stevens during the 1967 Legislative session

include the Alaska Nonprofit Corporation Act; the adoption of the state motto, North to the Future; establishing therequirements for admission to the Alaska Bar; establishing the requirements for voting in presidential elections; and allowing

incorporated municipalities to establish ordinances governing the sale and possession of liquor. (Number of pages varies,

March 6, 2015, and March 10, 2015.)

15.298 Registration to Vote as Requirement for Board or Commission AppointmentLegislative History and

Constitutionality

Alaska law (AS 39.05.100) requires that a person appointed to a board or commission of the state government must be a

registered voter in Alaska. The law further specifies that residency outside of the state, employment elsewhere for six-

months, physical absence of a year or more, or registration as a voter outside of Alaska effectively discontinues residence and

terminates membership on the board or commission. Although no Alaska court has directly addressed this requirement,

opinions of the Attorney General issued in 1979 and 1987 trace the history and conclude that, by adding to the qualifications

listed in Article III, Section 26, of the constitution, the requirement may impinge on the doctrine of separation of powers, and,further, it may be vulnerable to challenges based on equal protection and the right of interstate travel. (1 page plus

attachments, March 4, 2015).

15.339 State Regulations that Reference Federal Legislation

Although Alaska has received federal funds for education since before Statehood, the passage of the Elementary and

Secondary Education Act of 1965 largely established the role of the federal government in K-12 public education. The No

Child Left Behind (NCLB) Act of 2001 substantially increased that involvement by placing numerous requirements on states

that accepted federal funds. In 2013, after receiving a waiver from the NCLB Act, the Alaska State Board of Education and

Early Development promulgated regulations to implement new school and district accountability measures. Through a search

of the Alaska Administrative Code, we identified 1,155 state regulations that reference the United States Code and/or the

Code of Federal Regulations. (4 pages, March 30, 2015.)

15.382 Constitutional Convention DelegatesPreference for a Strong Executive Influence over State Spending

Determined to avoid the decentralized and often unresponsive administration of government experienced by Alaskans in the

Territory, convention delegates created a strong and accountable executive to balance a strong legislature and an

independent judiciary. To that end, delegates determined that a legislative override of the governors veto on a budget item

should be the supermajority three-quarters vote, rather than the two-thirds required to override a veto of other matters,

because you cannot exercise a strong executive arm unless you have a strong control on the purse strings. (1 page plus

attachments, April 10, 2015.)
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Health Care

15.234 Dialysis Technicians in Alaska

We identified eight dialysis facilities in Alaska: four in Anchorage, and one each in Fairbanks, Juneau, Soldotna, and Wasilla.

Currently, 62 dialysis technicians are employed in these eight facilities. Of these, 47 are employed in Anchorage, six in

Fairbanks, two in Juneau, three in Soldotna, and four in Wasilla. (1 page, February 27, 2015.)

15.243 Affordable Care Act: Identity Fraud Committed by Health Care Navigators

Health Care Navigators are individuals employed by one of the many organizations across the country that received federal

grant funding to operate consumer education programs. We found no instance in Alaska or elsewhere in the country of a

licensed Navigator being directly accused or convicted of fraud involving identity theft or misuse of personal information

gained through interactions with consumers seeking coverage under the Affordable Care Act. (2 pages, February 16, 2015.)

Natural Resources

15.061 Firefighting in Alaska

Alaska is home to thousands of volunteer and professional firefighters serving in communities across the state, each with its

own extensive history. Generally, fire departments formed and expanded in response to the needs of a growing population in

the territory and state of Alaska. Today, Alaska firefighters are training to respond to a variety of emergencies in addition to

fires, notably emergency medical service and rescue calls. On a national level, as well as in some other states, firefighters are

honored in conjunction with Fire Prevention Week in October. Firefighters are also typically honored on September 11 in

commemorations across the country, including in Alaska. (5 pages plus attachments, October 16, 2014.)

15.178 Legislative History of the Commercial Fisheries Entry Commission

At statehood, Alaska took on the management of a greatly depleted salmon fishery. The decline was temporarily arrested

during the 1960s, but increased participation led to efforts to restrict the number of participants in the fishery, all of which

failed to pass constitutional muster. By the early 1970s, salmon runs again declined to record low levels, driving home the

difficulty of managing the salmon fisheries. Confronted with a serious economic crisis that threatened the livelihood of

fishermen and the viability of fisheries, a constitutional means of limiting the number of participants became imperative. In

1971, the Alaska Legislature proposed a constitutional amendment, which Alaska voters overwhelmingly approved in 1972,

paving the way for a limited entry program. In 1973, the Alaska Legislature enacted the Limited Entry Act, creating the first

comprehensive limited entry program in the country. The Act created the Commercial Fisheries Entry Commission (CFEC) as

a regulatory and quasi-judicial agency to implement and administer the program. A full-time commission was viewed as the

best means of implementing a complicated regulatory program that would need to fairly adjudicate claims raised by individual

applicants during the limitation process. (3 pages, February 2, 2015.)

15.186 Brief Overview of Arctic Fisheries Management and Policies

The Arctic Ocean marine area includes state and federal waters north of the Bering Strait that extend from Alaskas coastline

to 200 miles offshore, including the Chukchi and Beaufort Seas and Kotzebue Sound. Fisheries that occur in the Exclusive

Economic Zone (EEZ), which extends from 3 to 200 miles, are managed by the National Marine Fisheries Service (NMFS)

within the National Oceanic and Atmospheric Administration (NOAA) and the North Pacific Fisheries Management Council

(NPFMC). The Alaska Department of Fish and Game (ADF&G) is responsible for managing fisheries in state waters, which

extend three miles from Alaskas coastline. Historically, there has been no commercial fishing in EEZ waters of the Arctic. Ice

conditions have made the waters relatively inaccessible and not much is known about the marine areas. However, in recent

years warming ocean temperatures, the loss of seasonal ice cover, and migrating fish stocks are creating conditions that could

lead to the development of commercial fisheries in the Arctic. In 2009, the NPFMC decided, as a precautionary approach, to


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prohibit commercial fisheries until sufficient information is available to manage commercial fishing in the area. The ADF&G

manages commercial, subsistence, personal-use, and sport fisheries based on decisions by the Alaska Board of Fisheries. Two

management districtsKotzebue Sound and the Arcticare located in state waters of the Arctic Management Area.

Generally, fisheries harvests in state waters in the Arctic Management Area have been very low and are used primarily for

subsistence by local residents. (2 pages plus an attachment, January 29, 2015.)

15.257 Federal Lands in Alaska and Land Transfers under the Statehood ActThere are currently approximately 222 million acres of land within Alaska under federal ownership. Roughly 96.6 million acres

of federal land in Alaska are outside of national wildlife refuges, parks, historic sites, and military facilities. Under the Alaska

Statehood Act (P.L. 85-508), the federal government granted to Alaska 28 percent of total land area within its borders, with

additional land grants for schools, universities, and the Mental Health Trust. All land grants combined provided the new state

the authority to select approximately 105 million acres. According to DNR, the state has received patent to about 99.5 million

acres of that total amount and awaits transfer of the remaining 5.5 million acres. (1 page, February 19, 2015.)

15.267 Federal Land Ownership in Alaska and Visits to the State by Sitting U.S. Presidents

There are currently approximately 222 million acres of land within Alaska under federal ownership, comprising roughly 61

percent of the states land area. Federal lands in Alaska represent approximately 35 percent of all federal land, nationwide.

Excluding Alaska, the federal government controls about 20 percent of land within the states. At the minimum, 11 presidentshave touched Alaska soil while in office. (1 page plus attachment, February 23, 2015.)

Property

15.004 Reimbursement for the Impact of Public Works Projects on Private Property or Private Business

Eminent domain is the power of a government to take private property for a public purpose; unreasonable interference with

the use or value of private property is a de facto taking. Both the state and federal constitutions require that no person may

be deprived of the use or value of property without due process of law and that just compensation must be made for a taking.

Private or business property owners are not entitled to compensation as long as the impacts of a new regulation or publicworks project are reasonable. Upon an owners lawsuit for inverse condemnation, a court would determine if the impact to

the owner was so unreasonable as to constitute a taking for which compensation would be required. (2 pages plus

attachments, July 15, 2014.)

15.211 Alaska Industrial Development and Export Authority: Acquisition of Real Property and Local Property

Taxation

By law, the real and personal property, assets, income, and receipts of the Alaska Industrial Development and Export

Authority (AIDEA) are exempt from taxation. Whether any of the properties AIDEA would acquire under the proposed

purchase of Pentex, the parent company of Fairbanks Natural Gas, would be exempt from taxation would depend on the final

structure of the agreement; however, one of AIDEAs goals is to increase the tax base of the municipalities and the State, an d

historically, the corporation has generally neither operated nor removed acquired assets from tax rolls. (1 page plus

attachments, February 2, 2015.)
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Public Finance

15.050 Performance-Based Contracting in Public Procurement

Performance-Based Contracting (PBC) is a methodology that focuses on outcomes and results rather than the requirements

for specific inputs and processes. The federal government mandated a broad expansion in the use of PBC in the early- to mid-

2000s. The processes and standardization developed over that period have increasingly adopted in the public and privatesectors. Although the promise of improvements through PBC appears to be widely agreed upon, those positive aspects occur

only through careful contract structuring and management. Further, PBC may not be suitable for all circumstances,

particularly where the sensitivity, complexity, and risks involved with a given product or service dictate prescriptive contract

language and strong contractor oversight. Agencies of the State of Alaska utilize PBC when deemed appropriate by

procurement officials; however, no laws or policies on its use have been codified. (6 pages plus attachments, October 7,

2014.)

15.058 Alaska Bidder Preference and Local Hire

The procurement code of Alaska provides a preference for bids submitted by resident-owned businesses. We found no

connection between the Alaska bidder preference and any requirement that contractors hire a certain number of the states

residents. More generally, Alaska lawmakers have on a number of occasions considered and enacted laws to compel winners

of state contracts to employ state residents. Some of these laws, or portions thereof, have been found unconstitutional, butcertain provisions of an Alaska hire law remain in effect. Recently, however, findings by the commissioner of the Alaska

Department of Labor and Workforce Development have reduced the permissible scope of resident hire provisions. It is not

clear whether applying resident hire provisions to the Alaska bidder preferences would survive constitutional scrutiny. (4

pages plus attachment, October 14, 2014.)

15.065 Mercer Consulting Settlement: Investment Returns and Valuation of Hypothetical Litigation Awards

Mercer Human Resources Consulting, Inc., agreed in June 2010 to pay the State of Alaska (SOA) $500 million to settle a

malpractice lawsuit related to actuarial services provided for SOA pension funds. The suit originally sought at least $2.8 billion.

Attorney fees for the SOA totaled roughly $93 million. The remainder of the settlement, totaling $402,980,450.81, was

divided among funds as follows: Public Employees Retirement System (PERS) Health Care Trust: $358,986,672.01; and

Teachers Retirement System (TRS) Health Care Trust: $43,993,778.80. The PERS and TRS Health Trusts earned aggregate

investment returns of 56.73 percent and 57.12 percent, respectively, between August 10, 2010, and June 30, 2014. Based on

these returns, the total valuation of the settlement funds would have been roughly $632 million at the end of this time period.

(2 pages, September 30, 2014.)

15.072 Performance-Based Contracting by Alaska State Agencies

We polled executive branch agencies on their use of performance-based contracting (PBC). This report contains their

responses. Of the agencies that responded, six do not employ PBC methodology. Administration typically uses PBC only for

long-term contracts for services that are relatively routine in nature. Corrections, Environmental Conservation, and the Court

System frequently use performance-based measures and incentives in their contracts, but do not necessarily employ the

precise term performance-based contracting. None of the responding agencies have published policies or guidelines on PBC

beyond the parameters set in the broad procurement rules delineated in Alaska law and those published by the Division of

General Services (DGS). (5 pages, November 14, 2014.)

15.077 Scrap Metal or Recycling Tax Credits in Other States

We identified at least 22 states that have enacted tax incentive programs for the recycling industry. Most of the programs

offer sales, income, or property tax credits or exemptions for the purchase of equipment or machinery used in recycling or

pollution control. At least seven statesFlorida, Iowa, Kentucky, Minnesota, New Jersey, South Carolina, and Wisconsin

provide a sales tax exemption for the purchase of recycling equipment and machinery. Credits against state income tax are

the primary form of statutory tax relief. Some states have made tax credits dependent on the number of jobs created or the

amount of capital invested, while other programs focus on the amount of post-consumer waste that is recycled. The federal
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Recycling Investment Saves Energy (RISE) Act allows taxpayers to claim a 50 percent accelerated depreciation in the first year

for purchases of machinery or equipment used to collect, distribute, or recycle scrap paper, metal, plastic, glass, textiles,

rubber, packaging, and electronics. (4 pages plus attachments, October 30, 2014.)

15.143 Spending on Information Technology Equipment by the State of Alaska, FY 2009 FY 2015

Information technology (IT) equipment purchased by the State of Alaska is primarily accounted for in two categories: 1) capital

outlay for IT networks and larger computer systems; and 2) business equipment valued under $5,000, such as personalcomputers, monitors, and cables. We used financial reports provided by the Division of Finance, Department of

Administration, to extract data on these items for fiscal years (FY) 2009 to 2014 and the first half of FY 2015. According to our

calculations, the State spent a total of approximately $178 million on IT equipment during this period, about $77 million on

small equipment and $101 million on capital outlay. Although nearly 1,000 different vendors provided IT products to the

State of Alaska during these years, about two-thirds of the spending on IT equipment since FY 2009 has been to just six

vendors, primarily Chicago Dell Marketing L.P., to which the State paid about $53 million. (4 pages, January 26, 2015.)

15.169 Constitutionally Mandated Budget Items

In 1985, the legislature asked the Office of Management and Budget (OMB) to identify the legal derivation of mandated

programs. In response, the OMB categorized all operating budget programs by whether they were required explicitly or

implicitly by constitutional provisions, or state or federal statute. These materials were prepared at a time when the state wasalso facing a drastic downturn in revenue because of collapsing oil prices. As the report discusses, the Alaska Constitution

provides relatively broad mandates such as the provision of public education or fish and wildlife management and protection.

Despite the requirement that state programs fulfill constitutionally created functions, there is no constitutional mandate

regarding the level of service to be provided. For programs mandated by the Alaska Constitution, the legislature has

considerable discretion as to the level of funding a program receives. Courts have been asked to interpret the degree to

which certain state programs and services are mandated under the Alaska Constitution. (1 page plus attachments, January

23, 2015.)

15.188 Municipalities and Communities Currently Using Qualification-Based Selection Processes in Contracting for

Certain Professional Services

Qualifications Based Selection (QBS) is a procurement method in which the final criteria for selection of a service are

qualifications and demonstrated competence. Price and cost are not selection criteria, but they may be considered duringcontract negotiation. We identify eight municipalitiesAleutians East Borough, Municipality of Anchorage, Barrow, Bethel,

Delta Junction, City of Fairbanks, Fairbanks North Star Borough, and the North Slope Boroughthat, pursuant to municipal

code, use QBS to procure professional services such as architectural, engineering, landscape architecture, and land surveying

services. We also identified eleven communities that exclude the procurement of professional services from the competitive

bid requirement set forth in municipal code; and one communityJuneauthat does not have QBS requirements delineated

in code but does use QBS in practice. (2 pages plus attachments, February 24, 2014.)

15.210 Corporate Tax Structures and Fees in Alaska and Other States

Forty-six states levy an income tax on corporations doing business in the state. State corporate income tax structures vary

widely by jurisdiction, but most are based on federal concepts and definitions. Most states levy standard corporate income

taxes on profit, or net income (gross receipts minus expenses). A few states impose taxes on the gross receipts of businesseswith few or no deductions for expenses. Every state requires entities doing business in that state to register with a licensing

agency. Typically, states require corporations (domestic and foreign), limited liability companies (LLCs), limited partnerships

(LPs) and limited liability partnerships (LLPs) to file original formation/authorization forms and annual or biennial reports.

States charge a range of fees to process the forms and reports and for such activities as filing articles of incorporation,

certificates of authority, name changes, corrections, amendments, reinstatements, dissolution filings, articles of merger, and

annual renewals. Alaska typically charges lower filing fees to Alaskan corporations, LLCs, and LLPs. In 2014, the Alaska

Legislature required the Department of Revenue and Division of Legislative Finance to prepare biennial reports to the

Legislature on indirect expenditures. In the first report, a number of indirect expenditures related to the corporate income tax


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were identified, including the tax treatment of S-corporations, foreign royalty exclusion, federal tax credits, public utility

exemption, and reduced tax rate on capital gains. (10 pages plus attachments, February 25, 2015.)

15.275 State Recoupment of Retirement Benefit Overpayments Resulting from Administrative Errors or Omissions

Although state retirement systems generally self-insure or carry insurance for claims arising out of errors and omissions in the

administration of a benefit plan, covering erroneous overpayments to individual retirees would not impact the funds

themselves, which are generally worth billions of dollars. For this reason, states do not carry insurance to that level.Recognizing that state recoupment of long-standing overpayments could be highly onerous to retirees and their families, the

legislature several years ago established a two-year statute of limitations on the collection of State-issued retirement benefit

overpayments if the retiree or beneficiary has not contributed to causing the error. (2 pages plus attachments, March 23,

2015.)

15.374 Separate Accounting in other Oil Jurisdictions

We identified only two oil-producing statesMississippi and Oklahomathat employ separate accounting to determine

taxable income for corporations operating in those states. Most states employ an apportionment formula to determine

taxable income for companies with business activities in more than one state. The vast majority of oil-producing countries

levy a corporate income tax. The majority, if not all, of those countries use a separate accounting system to calculate taxable

income for nonresident petroleum industry corporations. (3 pages, April 13, 2015.)

Social Services

15.174 Funding for Medicaid Super-Utilizers in the Patient Protection and Affordable Care Act

Super-utilizers typically have multiple chronic conditions that often involve a combination of physical, mental, and/or

substance abuse issues, who frequently experience associated socio-economic ills such as unemployment and homelessness.

Many such individuals have historically been either uninsured or Medicaid recipients. As a result of complex health, social,

and economic factors, super-utilizers are among the five percent of Medicaid beneficiaries who account for over half of the

programs spending nationwide. Following the 2010 passage of the Patient Protection and Affordable Care Act (ACA, P.L. 11-148) during the recent U.S. recession, the federal Centers for Medicaid and Childrens Health Insurance Program Services

(CMS) and state policymakers have made efforts to address the treatment of