1991-048
Applicability of Procurement Code to insurance license test administration
Cite as Alaska Op. Att'y Gen. No. 1991-048
Honorable Glenn A. Olds
August 13, 1991
Commissioner
Department of Commerce
663-92-0061
and Economic Development
465-3600
Applicability of
Procurement Code to
insurance license test
administration
Alexis Gabay
Assistant Attorney General
Commercial Section-Juneau
You have asked whether the State Procurement Code,
AS 36.30, applies to contracts for the administration of
insurance license tests by the Division of Insurance.
You have
stated that the division does not pay the testing service any
money for the administration of the licensing examinations.
This issue was discussed in an earlier opinion
concerning the Division of Occupational Licensing. 1989 Inf. Op.
Att'y Gen. (Dec. 6; 663-89-0241).
The testing arrangements in
that situation appear to be identical to the arrangement employed
by the Division of Insurance.
In that opinion, we determined
that the State Procurement Code was not applicable.
Similarly,
because no state funds are involved in the arrangement between
the Division of Insurance and the testing service, we conclude
that the State Procurement Code does not apply.
AS 36.30.850(b) provides that the State Procurement
Code "applies to every expenditure of state money by the state,
acting through an agency, under a contract . . . ."
"State money" is defined as "any money appropriated to
an agency or spent by an agency irrespective of its source,
including federal assistance except as otherwise specified in AS
36.30.890, but does not include money held in trust by an agency
for a person." AS 36.30.990(20).
As you have described the testing arrangement, the
division does not pay any money to the testing service. Instead,
all test fees are paid by the applicants directly to the testing
service.
Therefore, these fees paid do not fit within the
definition of state money, and the State Procurement Code does
not apply to the division's arrangement with the testing service.
I hope this adequately addresses your concerns. Please
let me know if I can be of further assistance.
AG:prm