2004-06-22                     House Journal                      Page 4456
HB 1003                                                                                           
HOUSE BILL NO. 1003 by the House Rules Committee by request of                                      
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the income of and appropriations from the                                  
     Alaska permanent fund under art. IX, sec. 15(b), Constitution of                               
     the State of Alaska, and making conforming amendments; relating                                
     to permanent fund dividend payments of at least $1,000; relating                               
     to the determination of net income of the mental health trust fund;                            
     and providing for an effective date."                                                          
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    

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The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Revenue                                                                          
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated June 21, 2004, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the income of and appropriations from                               
the Alaska permanent fund under art. IX, sec. 15(b), Constitution of                                
the State of Alaska, and making conforming amendments.  This bill is                                
substantially the same as CSHB 298(FIN) am, which passed the House                                  
during the second regular session, but with a few new provisions.                                   
                                                                                                    
                                                                                                    
I have separately transmitted to you a joint resolution proposing a                                 
"percent of market value" (POMV) amendment to the Alaska                                            
Constitution.  This bill would make conforming amendments to the                                    
enabling act of the Alaska Permanent Fund Corporation necessary to                                  
implement that amendment.  This bill also would make allocations of                                 
the amount available for appropriation from the permanent fund after                                
the POMV amendment is adopted.  These allocations make provision                                    
for aid to municipalities and other communities, public education, and                              
the permanent fund dividend.  The allocation provisions would give                                  
moral force to the legislature's intent to pay for these important public                           
purposes.  A new provision has been added that would adjust the                                     
allocation of amounts available for appropriation from the permanent                                
fund so that the dividend will be kept at $1,000 or more each year.                                 
The bill also contains provisions that will conform the mental health                               
trust fund revenue availability and accounting provisions to those                                  
proposed for the permanent fund.  The mental health trust fund is                                   
invested by the Alaska Permanent Fund Corporation and it will be                                    
more efficient if the computation of revenue available for                                          
appropriation is consistent for both funds.                                                         
                                                                                                    
                                                                                                    
I believe that this bill provides a vehicle the legislature can use to                              
resolve how the POMV amendment would be implemented.  By                                            

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placing the implementing provisions in statute, the legislature retains                             
the power to make necessary adjustments to meet unforeseeable                                       
events.                                                                                             
                                                                                                    
I urge your prompt and favorable consideration of this bill.                                        
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"