Legislature(2017 - 2018)

2017-03-15 Senate Journal

Full Journal pdf

2017-03-15                     Senate Journal                      Page 0524
SB 26                                                                                                                         
CS FOR SENATE BILL NO. 26(FIN) "An Act relating to an                                                                           
appropriation limit; relating to the budget responsibilities of the                                                             
governor; relating to the Alaska permanent fund, the earnings of the                                                            
Alaska permanent fund, and the earnings reserve account; relating to                                                            
the mental health trust fund; relating to deposits into the dividend                                                            
fund; relating to the calculation and payment of permanent fund                                                                 
dividends; and providing for an effective date" was read the third time.                                                        
                                                                                                                                
Senator Micciche moved that the bill be returned to second reading for                                                          
the purpose of all amendments offered today. Without objection, the                                                             
bill was returned to second reading.                                                                                            
                                                                                                                                
Senator Dunleavy offered Amendment No. 1:                                                                                       
                                                                                                                                
Page 1, line 5, following "dividends;":                                                                                       
     Insert "increasing the amount of the 2016 permanent fund                                                                 
dividend and directing the Department of Revenue to pay a                                                                     
supplemental dividend to eligible individuals;"                                                                               
                                                                                                                                
Page 1, line 9, following the second occurrence of "the":                                                                       
     Insert "(1)"                                                                                                               
                                                                                                                                
Page 1, line 11, following "years":                                                                                             
     Insert: ";                                                                                                                 
          (2)  sum of $683,234,813 be appropriated from the earnings                                                            
reserve account (AS 37.13.145) to the dividend fund                                                                             
(AS 43.23.045(a)) for the payment of supplemental 2016 permanent                                                                
fund dividends to eligible individuals who received a 2016 permanent                                                            
fund dividend."                                                                                                                 
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0525
Page 8, following line 15:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 19. The uncodified law of the State of Alaska is amended by                                                        
adding a new section to read:                                                                                                   
     2016 PERMANENT FUND DIVIDEND. The commissioner of                                                                          
revenue shall pay a supplemental 2016 permanent fund dividend to                                                                
each eligible individual who received a 2016 permanent fund                                                                     
dividend. The commissioner shall determine the total amount of the                                                              
dividend by dividing the amount appropriated by the Thirtieth Alaska                                                            
State Legislature from the earnings reserve account (AS 37.13.145) to                                                           
the dividend fund (AS 43.23.045(a)) for payment of supplemental                                                                 
2016 permanent fund dividends by the number of individuals who                                                                  
received a 2016 permanent fund dividend."                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, following line 21:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 21. CONTINGENCY. Section 19 of this Act is contingent on                                                           
passage by the Thirtieth Alaska State Legislature and enactment into                                                            
law before May 1, 2017, of an appropriation from the earnings reserve                                                           
account (AS 37.13.145) to the dividend fund (AS 43.23.045(a)) for the                                                           
payment of supplemental 2016 permanent fund dividends."                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, line 22:                                                                                                                
     Delete all material and insert:                                                                                            
   "* Sec. 22. Sections 19 - 21 of this Act take effect immediately                                                           
under AS 01.10.070(c)."                                                                                                         
                                                                                                                                
Page 8, line 24:                                                                                                                
     Delete "secs. 20 and 21"                                                                                                   
     Insert "secs. 22 and 23"                                                                                                   
                                                                                                                                
Senator Dunleavy moved and asked unanimous consent for the                                                                      
adoption of Amendment No. 1. Senator MacKinnon objected.                                                                        
                                                                                                                                
Senator Meyer moved to table Amendment No. 1.                                                                                   
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0526
The question being: "Shall Amendment No. 1 be tabled?" The roll was                                                             
taken with the following result:                                                                                                
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Second Reading                                                                                                                  
Lay Amendment No. 1 on the Table?                                                                                               
                                                                                                                                
YEAS:  16   NAYS:  4   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman,                                                                   
Hughes, Kelly, MacKinnon, Meyer, Micciche, Olson, Stedman,                                                                      
Stevens, von Imhof, Wilson                                                                                                      
                                                                                                                                
Nays:  Begich, Egan, Gardner, Wielechowski                                                                                      
                                                                                                                                
and so, Amendment No. 1 was tabled.                                                                                             
                                                                                                                                
Senators Wielechowski, Gardner, Begich offered Amendment No. 2:                                                                 
                                                                                                                                
Page 2, lines 12 - 17:                                                                                                          
     Delete all material and insert:                                                                                            
          "(b)  The appropriation limit in (a) of this section does not                                                         
     apply to                                                                                                                   
              (1) an appropriation                                                                                              
                   (A) to the Alaska permanent fund;                                                                            
                   (B) required to pay debt obligations of the state; or                                                        
                   (C) for a capital project; or                                                                                
              (2) a transfer for payment of permanent fund dividends."                                                          
                                                                                                                                
Page 4, line 5:                                                                                                                 
     Delete "AS 37.13.146(a)"                                                                                                   
     Insert "AS 37.13.146"                                                                                                      
                                                                                                                                
Page 5, lines 9 - 10:                                                                                                           
     Delete "an amount that does not exceed the amount available for                                                            
distribution"                                                                                                                   
     Insert "75 percent of the amount available for distribution as                                                             
calculated"                                                                                                                     
                                                                                                                                
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0527
Page 5, line 16:                                                                                                                
     Delete "Appropriations"                                                                                                  
     Insert "Transfers"                                                                                                       
     Delete "(a)"                                                                                                               
                                                                                                                                
Page 5, line 17:                                                                                                                
     Delete "legislature may appropriate"                                                                                       
     Insert "corporation shall transfer"                                                                                        
                                                                                                                                
Page 5, line 18:                                                                                                                
     Delete "general fund"                                                                                                      
     Insert "earnings reserve account"                                                                                          
                                                                                                                                
Page 5, line 20:                                                                                                                
     Delete all material.                                                                                                       
                                                                                                                                
Page 5, lines 30 - 31:                                                                                                          
     Delete "appropriated [OF INCOME OF THE ALASKA                                                                          
PERMANENT FUND TRANSFERRED]"                                                                                                    
     Insert "[OF INCOME OF THE ALASKA PERMANENT FUND]                                                                           
transferred"                                                                                                                    
                                                                                                                                
Page 6, line 25:                                                                                                                
     Delete "appropriated"                                                                                                  
     Insert "transferred"                                                                                                   
                                                                                                                                
Page 6, line 28, through page 8, line 12:                                                                                       
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, line 22:                                                                                                                
     Delete "Section 19"                                                                                                        
     Insert "Section 18"                                                                                                        
                                                                                                                                
Page 8, line 24:                                                                                                                
     Delete "secs. 20 and 21"                                                                                                   
     Insert "secs. 19 and 20"                                                                                                   
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0528
Senator Wielechowski moved and asked unanimous consent for the                                                                  
adoption of Amendment No. 2. Senator MacKinnon objected.                                                                        
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 2?                                                                                                                
                                                                                                                                
YEAS:  8   NAYS:  12   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Begich, Dunleavy, Egan, Gardner, Hughes, Olson,                                                                          
Wielechowski, Wilson                                                                                                            
                                                                                                                                
Nays:  Bishop, Coghill, Costello, Giessel, Hoffman, Kelly,                                                                      
MacKinnon, Meyer, Micciche, Stedman, Stevens, von Imhof                                                                         
                                                                                                                                
and so, Amendment No. 2 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 3:                                                                                   
                                                                                                                                
Page 1, line 5, following "dividends;":                                                                                       
     Insert "authorizing an advisory vote on legislative action that                                                          
changes the appropriation limit, changing the deposit into the                                                                
Alaska permanent fund, the calculation of the permanent fund                                                                  
dividend, the calculation of net income, and the amount available                                                             
for distribution from the earnings reserve account; making the                                                                
legislative action contingent on the advisory vote receiving an                                                               
affirmative majority vote;"                                                                                                   
                                                                                                                                
Page 6, lines 20 - 22:                                                                                                          
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, line 15:                                                                                                                
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0529
Page 8, lines 22 - 25:                                                                                                          
     Delete all material and insert:                                                                                            
"* Sec. 18. The uncodified law of the State of Alaska is amended by                                                           
adding a new section to read:                                                                                                   
     ADVISORY VOTE. At a special election to be held on                                                                         
September 12, 2017, in substantial compliance with the election laws                                                            
of the state, including absentee voting and the preparation, publication,                                                       
and mailing of an election pamphlet under AS 15.58, the lieutenant                                                              
governor shall place before the qualified voters of the state a question                                                        
advisory to the legislature and the governor. The election pamphlet for                                                         
the special election must comply with AS 15.58.020(a)(6), including                                                             
the requirement that the pamphlet contain statements that advocate                                                              
voter approval or rejection of the question. Notwithstanding                                                                    
AS 15.80.005 and other laws relating to preparation of the ballot                                                               
proposition, the question shall appear on the ballot in the following                                                           
form:                                                                                                                           
                               Q U E S T I O N                                                                                 
              Do you approve of the passage by the Alaska State                                                                
     Legislature of a bill that changes the appropriation limit,                                                                
     changes the deposit into the Alaska permanent fund,                                                                        
     changes the calculation of the permanent fund dividend,                                                                    
     and changes the calculation of net income and the amount                                                                   
     available for distribution from the earnings reserve                                                                       
     account established under AS 37.13.145?                                                                                    
                   Yes [  ]   No [  ]                                                                                           
   * Sec. 19. The uncodified law of the State of Alaska is amended by                                                         
adding a new section to read:                                                                                                   
     NOTICE TO THE REVISOR OF STATUTES. The director of                                                                         
elections shall notify the revisor of statutes when the results of the                                                          
election have been certified under AS 15.15.450 if the advisory vote                                                            
authorized in sec. 18 of this Act receives an affirmative majority vote.                                                        
   * Sec. 20. The uncodified law of the State of Alaska is amended by                                                         
adding a new section to read:                                                                                                   
     CONDITIONAL EFFECT. Sections 1 - 17 of this Act take effect                                                                
only if the director of elections notifies the revisor of statutes under                                                        
sec. 19 of this Act that the question in the advisory vote under sec. 18                                                        
of this Act received an affirmative majority vote.                                                                              
   * Sec. 21. If, under sec. 20 of this Act, secs. 1 - 17 of this Act take                                                    
effect, they take effect on July 1 in the year following the year in                                                            
which the notice is given under sec. 19 of this Act.                                                                            

2017-03-15                     Senate Journal                      Page 0530
   * Sec. 22. Sections 17 and 18 of this Act take effect immediately                                                          
under AS 01.10.070(c).                                                                                                          
   * Sec. 23. Section 8 of this Act takes effect July 1, 2020.                                                                
   * Sec. 24. Except as provided in secs. 21 - 23 of this Act, this Act                                                       
takes effect July 1, 2017."                                                                                                     
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 3.                                                                 
Senator MacKinnon objected.                                                                                                     
                                                                                                                                
The question being: "Shall Amendment No. 3 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 3?                                                                                                                
                                                                                                                                
YEAS:  7   NAYS:  13   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Begich, Dunleavy, Egan, Hughes, Olson, Wielechowski,                                                                     
Wilson                                                                                                                          
                                                                                                                                
Nays:  Bishop, Coghill, Costello, Gardner, Giessel, Hoffman, Kelly,                                                             
MacKinnon, Meyer, Micciche, Stedman, Stevens, von Imhof                                                                         
                                                                                                                                
and so, Amendment No. 3 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 4:                                                                                   
                                                                                                                                
Page 2, following line 4:                                                                                                       
     Insert new bill sections to read:                                                                                          
   "* Sec. 3. AS 37.05.540(a), as amended by sec. 2 of this Act, is                                                           
amended to read:                                                                                                                
          (a)  There is established as a separate fund in the state treasury                                                    
     the budget reserve fund. The budget reserve fund consists of                                                               
     appropriations to the fund. Money received by the state that is                                                        
     subject to the appropriation limit under (b) of this section and                                                       
     that exceeds that limit may be appropriated to the budget                                                              
     reserve fund.                                                                                                          
   * Sec. 4. AS 37.05.540 is amended by adding new subsections to                                                             
read:                                                                                                                           
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0531
          (f) Except for appropriations to the permanent fund or for                                                            
     Alaska permanent fund dividends, appropriations to the budget                                                              
     reserve fund, appropriations of revenue bond proceeds,                                                                     
     appropriations required to pay the principal and interest on general                                                       
     obligation bonds, and appropriations of money received from a                                                              
     nonstate source in trust for a specific purpose, including revenue                                                         
     of a public enterprise or public corporation of the state that issues                                                      
     revenue bonds, appropriations from the mental health trust                                                                 
     settlement income account (AS 37.14.036), and appropriations                                                               
     made to the mental health trust fund (AS 37.14.031),                                                                       
     appropriations from the treasury made in a fiscal year may not                                                             
     exceed appropriations made in the preceding fiscal year by more                                                            
     than five percent plus the change in population and inflation since                                                        
     the beginning of the preceding fiscal year. For purposes of                                                                
     applying this limit, an appropriation is considered to be made in                                                          
     the fiscal year in which it is enacted and a reappropriation remains                                                       
     attributed to the fiscal year in which the original appropriation is                                                       
     enacted. The determination of the change in population for                                                                 
     purposes of this subsection shall be based on an annual estimate of                                                        
     population by the Department of Labor and Workforce                                                                        
     Development. The determination of the change in inflation for                                                              
     purposes of this subsection shall be based on the Consumer Price                                                           
     Index for all urban consumers for Anchorage prepared by the                                                                
     United States Bureau of Labor Statistics. The amount of money                                                              
     received by the state that is subject to the appropriation limit                                                           
     includes the balance in the general fund carried forward from the                                                          
     preceding fiscal year.                                                                                                     
          (g) If the legislature determines that the money subject to the                                                       
     appropriation limit received by the state in a fiscal year is less than                                                    
     the maximum permitted to be appropriated under (f) of this                                                                 
     section, up to 25 percent of the balance of the budget reserve fund                                                        
     may be appropriated to the general fund.                                                                                   
          (h) Notwithstanding other provisions of this section,                                                                 
     appropriations may be made from the budget reserve fund needed                                                             
     by the governor to meet a disaster. In this subsection, "disaster"                                                         
     has the meaning given in AS 26.23.900."                                                                                    
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0532
Page 3, following line 13:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 8. AS 37.13.010(a), as amended by sec. 7 of this Act, is                                                              
amended to read:                                                                                                                
          (a)  Under art. IX, sec. 15, of the state constitution, there is                                                      
     established as a separate fund the Alaska permanent fund. The                                                              
     Alaska permanent fund consists of                                                                                          
              (1)  25 percent of all mineral lease rentals, royalties,                                                          
     royalty sale proceeds, net profit shares under AS 38.05.180(f) and                                                         
     (g), and federal mineral revenue sharing payments received by the                                                          
     state from mineral leases issued on or before December 1, 1979,                                                        
     and 25 percent of all bonuses received by the state from mineral                                                           
     leases issued on or before February 15, 1980;                                                                          
              (2)  50 percent of all mineral lease rentals, royalties,                                                      
     royalty sale proceeds, net profit shares under AS 38.05.180(f)                                                         
     and (g), and federal mineral revenue sharing payments                                                                  
     received by the state from mineral leases issued after                                                                 
     December 1, 1979, and 50 percent of all bonuses received by                                                            
     the state from mineral leases issued after February 15, 1980;                                                          
     and                                                                                                                        
              (3) [(2)]  any other money appropriated to or otherwise                                                       
        allocated by law or former law to the Alaska permanent fund."                                                          
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 3, following line 25:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 10. AS 37.13.140, as amended by sec. 9 of this Act, is                                                                
amended to read:                                                                                                                
          Sec. 37.13.140. Income. Net income of the fund includes                                                             
     income of the earnings reserve account established under                                                                   
     AS 37.13.145. Net [THE CORPORATION SHALL                                                                               
     DETERMINE THE NET] income of the fund shall be computed                                                                
     annually as of the last day of the fiscal year in accordance with                                                      
     generally accepted accounting principles, excluding any                                                                    
     unrealized gains or losses. Income available for distribution                                                          
     equals 21 percent of the net income of the fund for the last five                                                      
     fiscal years, including the fiscal year just ended, but may not                                                        
     exceed net income of the fund for the fiscal year just ended                                                           
     plus the balance in the earnings reserve account described in                                                          
     AS 37.13.145."                                                                                                         

2017-03-15                     Senate Journal                      Page 0533
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 4, lines 17 - 26:                                                                                                          
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 5, following line 6:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 13.  AS 37.13.145(d), as amended by sec. 12 of this Act, is                                                           
amended to read:                                                                                                                
          (d) Notwithstanding (g) of this section, income [INCOME]                                                          
     earned on money awarded in or received as a result of State v.                                                             
     Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                                               
     Judicial District), including settlement, summary judgment, or                                                             
     adjustment to a royalty-in-kind contract that is tied to the outcome                                                       
     of this case, or interest earned on the money, or on the earnings of                                                       
     the money shall be treated in the same manner as other income of                                                           
     the Alaska permanent fund, except that it is not available for                                                             
     distribution to the dividend fund or for transfers to the                                                              
     principal under (h) of this section [AS 37.13.140(b) AND (c)],                                                     
     and shall be annually deposited into the Alaska capital income                                                             
     fund (AS 37.05.565)."                                                                                                      
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 5, following line 14:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 15. AS 37.13.145 is amended by adding new subsections to                                                              
read:                                                                                                                           
          (g)  At the end of each fiscal year, the corporation shall                                                            
     transfer from the earnings reserve account to the dividend fund                                                            
     established under AS 43.23.045 50 percent of the income                                                                    
     available for distribution under AS 37.13.140.                                                                             
          (h)  After the transfer under (g) of this section, the corporation                                                    
     shall transfer from the earnings reserve account to the principal of                                                       
     the fund an amount sufficient to offset the effect of inflation on                                                         
     the principal of the fund during that fiscal year. However, none of                                                        
     the amount transferred shall be applied to increase the value of                                                           
     that portion of the principal attributed to the settlement of State v.                                                     

2017-03-15                     Senate Journal                      Page 0534
     Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                                               
     Judicial District) on July 1, 2004. The corporation shall calculate                                                        
       the amount to transfer to the principal under this subsection by                                                        
              (1)  computing the average of the monthly United States                                                           
     Consumer Price Index for all urban consumers for each of the two                                                           
     previous calendar years;                                                                                                   
              (2)  computing the percentage change between the first                                                            
     and second calendar year average; and                                                                                      
              (3)  applying that rate to the value of the principal of the                                                      
     fund on the last day of the fiscal year just ended, including that                                                         
     portion of the principal attributed to the settlement of State v.                                                          
     Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                                               
     Judicial District)."                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 5, following line 24:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 18. AS 37.13.300(c), as amended by sec. 17 of this Act, is                                                            
amended to read:                                                                                                                
          (c) Net income from the mental health trust fund may not be                                                           
     included in the computation of net income available for                                                                
     distribution under AS 37.13.140 [AS 37.13.140(b)]."                                                                    
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 6, following line 19:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 20. AS 43.23.025(a), as amended by sec. 19 of this Act, is                                                            
amended to read:                                                                                                                
          (a) By October 1 of each year, the commissioner shall                                                                 
     determine the value of each permanent fund dividend for that year                                                          
     by                                                                                                                         
              (1) determining the total amount available for dividend                                                           
     payments, which equals                                                                                                     
                   (A) the amount of income of the Alaska permanent                                                         
          fund transferred [APPROPRIATED] to the dividend fund                                                              
          under AS 37.13.145(g) [AS 37.13.146] during the current                                                           
          year;                                                                                                                 

2017-03-15                     Senate Journal                      Page 0535
                   (B) plus the unexpended and unobligated balances of                                                          
          prior fiscal year appropriations that lapse into the dividend                                                         
          fund under AS 43.23.045(d);                                                                                           
                   (C) less the amount necessary to pay prior year                                                              
          dividends from the dividend fund in the current year under                                                            
            AS 43.23.005(h), 43.23.021, and 43.23.055(3) and (7);                                                              
                   (D) less the amount necessary to pay dividends from                                                          
          the dividend fund due to eligible applicants who, as                                                                  
          determined by the department, filed for a previous year's                                                             
          dividend by the filing deadline but who were not included in a                                                        
          previous year's dividend computation;                                                                                 
                   (E) less appropriations from the dividend fund during                                                        
          the current year, including amounts to pay costs of                                                                   
          administering the dividend program and the hold harmless                                                              
          provisions of AS 43.23.075;                                                                                           
              (2) determining the number of individuals eligible to                                                             
     receive a dividend payment for the current year and the number of                                                          
     estates and successors eligible to receive a dividend payment for                                                          
     the current year under AS 43.23.005(h); and                                                                                
              (3) dividing the amount determined under (1) of this                                                              
     subsection by the amount determined under (2) of this                                                                      
     subsection."                                                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 6, following line 27:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 23. AS 43.23.045(a), as amended by sec. 22 of this Act, is                                                            
amended to read:                                                                                                                
          (a) The dividend fund is established as a separate fund in the                                                        
     state treasury. [THE FUND CONSISTS OF MONEY                                                                                
     APPROPRIATED TO IT UNDER AS 37.13.146.] The dividend                                                                       
     fund shall be administered by the commissioner and shall be                                                                
     invested by the commissioner in the same manner as provided in                                                             
     AS 37.10.070."                                                                                                             
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0536
Page 8, following line 12:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 25. AS 43.23.055, as amended by sec. 24 of this Act, is                                                               
amended to read:                                                                                                                
          Sec. 43.23.055. Duties of the department. The department                                                            
     shall                                                                                                                      
              (1) annually pay permanent fund dividends from the                                                                
               dividend fund [, WITHOUT FURTHER APPROPRIATION];                                                                
              (2) subject to AS 43.23.011 and paragraph (8) of this                                                             
     section, adopt regulations under AS 44.62 (Administrative                                                                  
     Procedure Act) that establish procedures and time limits for                                                               
     claiming a permanent fund dividend; the department shall                                                                   
     determine the number of eligible applicants by October 1 of the                                                            
     year for which the dividend is declared and pay the dividends by                                                           
     December 31 of that year;                                                                                                  
              (3) adopt regulations under AS 44.62 (Administrative                                                              
     Procedure Act) that establish procedures and time limits for an                                                            
     individual upon emancipation or upon reaching majority to apply                                                            
     for permanent fund dividends not received during minority                                                                  
     because the parent, guardian, or other authorized representative                                                           
     did not apply on behalf of the individual;                                                                                 
              (4) assist residents of the state, particularly in rural areas,                                                   
     who because of language, disability, or inaccessibility to public                                                          
     transportation need assistance to establish eligibility and to apply                                                       
     for permanent fund dividends;                                                                                              
              (5) use a list of individuals ineligible for a dividend under                                                     
     AS 43.23.005(d) provided annually by the Department of                                                                     
     Corrections and the Department of Public Safety to determine the                                                           
     number and identity of those individuals;                                                                                  
              (6) adopt regulations that are necessary to implement                                                             
     AS 43.23.005(d);                                                                                                           
              (7) adopt regulations that establish procedures for the                                                           
     parent, guardian, or other authorized representative of a disabled                                                         
     individual to apply for prior year permanent fund dividends not                                                            
     received by the disabled individual because no application was                                                             
     submitted on behalf of the individual;                                                                                     
              (8) adopt regulations that establish procedures for an                                                            
     individual to apply to have a dividend disbursement under                                                                  
     AS 37.25.050(a)(2) reissued if it is not collected within two years                                                        
     after the date of its issuance; however, the department may not                                                            

2017-03-15                     Senate Journal                      Page 0537
     establish a time limit within which an application to have a                                                               
     disbursement reissued must be filed;                                                                                       
              (9) provide any information, upon request, contained in                                                           
     permanent fund dividend records to the child support services                                                              
     agency created in AS 25.27.010, or the child support enforcement                                                           
     agency of another state, for child support purposes authorized                                                             
     under law; if the information is contained in an electronic data                                                           
     base, the department shall provide the requesting agency with                                                              
     either                                                                                                                     
                   (A) access to the data base; or                                                                              
                   (B) a copy of the information in the data base and a                                                         
          statement certifying its contents;                                                                                    
              (10) establish a fraud investigation unit for the purpose of                                                      
     assisting the                                                                                                              
                   (A) Department of Law in the prosecution of                                                                  
          individuals who apply for or obtain a permanent fund                                                                  
          dividend in violation of a provision in AS 11, by detecting                                                           
          and investigating those crimes; and                                                                                   
                   (B) commissioner to detect and investigate the                                                               
          claiming or paying of permanent fund dividends that should                                                            
          not have been claimed by or paid to an individual and to                                                              
          impose the penalties and enforcement provisions under                                                                 
          AS 43.23.035."                                                                                                        
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, following line 14:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 27. AS 37.05.545; AS 37.07.020(f); AS 37.13.140(b),                                                                
37.13.140(c), 37.13.145(e), 37.13.145(f), 37.13.146; and                                                                        
AS 43.23.025(c) are repealed July 1, 2020."                                                                                     
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, line 22:                                                                                                                
     Delete "Section 19"                                                                                                        
     Insert "Section 29"                                                                                                        
                                                                                                                                
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0538
Page 8, line 23:                                                                                                                
     Delete all material and insert:                                                                                            
   "* Sec. 31.  Sections 3, 4, 8, 10, 13, 15, 18, 20, 23, and 25 of this Act                                                  
take effect July 1, 2020."                                                                                                      
                                                                                                                                
Page 8, line 24:                                                                                                                
     Delete "secs. 20 and 21"                                                                                                   
     Insert "secs. 30 and 31"                                                                                                   
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 4.                                                                 
Senator MacKinnon objected.                                                                                                     
                                                                                                                                
The question being:  "Shall Amendment No. 4 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 4?                                                                                                                
                                                                                                                                
YEAS:  7   NAYS:  13   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Begich, Dunleavy, Egan, Hughes, Olson, Wielechowski,                                                                     
Wilson                                                                                                                          
                                                                                                                                
Nays:  Bishop, Coghill, Costello, Gardner, Giessel, Hoffman, Kelly,                                                             
MacKinnon, Meyer, Micciche, Stedman, Stevens, von Imhof                                                                         
                                                                                                                                
and so, Amendment No. 4 failed.                                                                                                 
                                                                                                                                
CS FOR SENATE BILL NO. 26(FIN) was automatically in third                                                                       
reading.                                                                                                                        
                                                                                                                                
The question being: "Shall CS FOR SENATE BILL NO. 26(FIN) "An                                                                   
Act relating to an appropriation limit; relating to the budget                                                                  
responsibilities of the governor; relating to the Alaska permanent fund,                                                        
the earnings of the Alaska permanent fund, and the earnings reserve                                                             
account; relating to the mental health trust fund; relating to deposits                                                         
into the dividend fund; relating to the calculation and payment of                                                              
permanent fund dividends; and providing for an effective date" pass                                                             
the Senate?" The roll was taken with the following result:                                                                      
                                                                                                                                
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0539
CSSB 26(FIN)                                                                                                                    
Third Reading - Final Passage                                                                                                   
                                                                                                                                
YEAS:  13   NAYS:  7   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Costello, Egan, Giessel, Hoffman, Kelly,                                                                
MacKinnon, Meyer, Micciche, Stedman, Stevens, von Imhof                                                                         
                                                                                                                                
Nays:  Begich, Dunleavy, Gardner, Hughes, Olson, Wielechowski,                                                                  
Wilson                                                                                                                          
                                                                                                                                
and so, CS FOR SENATE BILL NO. 26(FIN) passed the Senate.                                                                       
                                                                                                                                
Senator Micciche moved for the adoption of the effective date clauses.                                                          
                                                                                                                                
The question being: "Shall the effective date clauses be adopted?" The                                                          
roll was taken with the following result:                                                                                       
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Effective Date Clauses                                                                                                          
                                                                                                                                
YEAS:  16   NAYS:  4   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Costello, Dunleavy, Egan, Giessel, Hoffman,                                                             
Hughes, Kelly, MacKinnon, Meyer, Micciche, Stedman, Stevens, von                                                                
Imhof, Wilson                                                                                                                   
                                                                                                                                
Nays:  Begich, Gardner, Olson, Wielechowski                                                                                     
                                                                                                                                
and so, the effective date clauses were adopted.                                                                                
SB 26                                                                                                                         
Senator Micciche gave notice of reconsideration on CS FOR SENATE                                                                
BILL NO. 26(FIN) "An Act relating to an appropriation limit; relating                                                           
to the budget responsibilities of the governor; relating to the Alaska                                                          
permanent fund, the earnings of the Alaska permanent fund, and the                                                              
earnings reserve account; relating to the mental health trust fund;                                                             
relating to deposits into the dividend fund; relating to the calculation                                                        
and payment of permanent fund dividends; and providing for an                                                                   
effective date" and moved and asked unanimous consent that it be                                                                
taken up. Senator Gardner objected.                                                                                             
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0540
The question being: "Shall the reconsideration be taken up the same                                                             
day?" The roll was taken with the following result:                                                                             
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Take up Reconsideration Same Day?                                                                                               
                                                                                                                                
YEAS:  15   NAYS:  5   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman,                                                                   
Hughes, Kelly, MacKinnon, Meyer, Micciche, Stedman, Stevens, von                                                                
Imhof, Wilson                                                                                                                   
                                                                                                                                
Nays:  Begich, Egan, Gardner, Olson, Wielechowski                                                                               
                                                                                                                                
and so, the bill was before the Senate on reconsideration.                                                                      
                                                                                                                                
The question to be reconsidered: "Shall CS FOR SENATE BILL                                                                      
NO. 26(FIN) "An Act relating to an appropriation limit; relating to the                                                         
budget responsibilities of the governor; relating to the Alaska                                                                 
permanent fund, the earnings of the Alaska permanent fund, and the                                                              
earnings reserve account; relating to the mental health trust fund;                                                             
relating to deposits into the dividend fund; relating to the calculation                                                        
and payment of permanent fund dividends; and providing for an                                                                   
effective date" pass the Senate?" The roll was taken with the following                                                         
result:                                                                                                                         
                                                                                                                                
CSSB 26(FIN)                                                                                                                    
Third Reading - On Reconsideration                                                                                              
                                                                                                                                
YEAS:  12   NAYS:  8   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Costello, Giessel, Hoffman, Kelly,                                                                      
MacKinnon, Meyer, Micciche, Stedman, Stevens, von Imhof                                                                         
                                                                                                                                
Nays:  Begich, Dunleavy, Egan, Gardner, Hughes, Olson,                                                                          
Wielechowski, Wilson                                                                                                            
                                                                                                                                
and so, CS FOR SENATE BILL NO. 26(FIN) passed the Senate on                                                                     
reconsideration.                                                                                                                
                                                                                                                                
Senator Micciche moved for the adoption of the effective date clauses.                                                          
                                                                                                                                
The question being: "Shall the effective date clauses be adopted?" The                                                          
roll was taken with the following result:                                                                                       
                                                                                                                                

2017-03-15                     Senate Journal                      Page 0541
CSSB 26(FIN)                                                                                                                    
Effective Date Clauses                                                                                                          
                                                                                                                                
YEAS:  15   NAYS:  5   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman,                                                                   
Hughes, Kelly, MacKinnon, Meyer, Micciche, Stedman, Stevens, von                                                                
Imhof, Wilson                                                                                                                   
                                                                                                                                
Nays:  Begich, Egan, Gardner, Olson, Wielechowski                                                                               
                                                                                                                                
and so, the effective date clauses were adopted and the bill was                                                                
referred to the Secretary for engrossment.