04/14/2004 01:55 PM House FIN

HOUSE JOINT RESOLUTION NO. 47                                                                                               
                                                                                                                                
     Proposing  amendments to the  Constitution of  the State                                                                   
     of  Alaska  relating  to  the principal  of  the  Alaska                                                                   
     permanent fund; limiting  appropriations from the Alaska                                                                   
     permanent  fund to  amounts equal  to that  part of  the                                                                   
     market  value of  the fund  that  exceeds the  principal                                                                   
     based on an  averaged percent of the fund  market value;                                                                   
     and permitting  appropriations  from the permanent  fund                                                                   
     only for costs  of administering the fund,  a program of                                                                   
     dividend  payments  for   state  residents,  and  public                                                                   
     education.                                                                                                                 
                                                                                                                                
TAPE HFC 04 - 83, Side B                                                                                                      
                                                                                                                                
Co-Chair  Williams  explained that  HJR  47  includes a  soft                                                                   
enshrinement.                                                                                                                   
                                                                                                                                
Pete Ecklund  explained that the  first portion of HJR  47 is                                                                   
the same  as HJR  46. He  noted that  HJR 47  has a  purposes                                                                   
section not  included in HJR  46. Co-Chair Williams  observed                                                                   
that  the   legislation   was  based   on  work  by   Senator                                                                   
Therriault, but that  he would prefer not to  have a purposes                                                                   
section. He felt that the legislature  would be giving up the                                                                   
legislature's power of appropriation  and could be challenged                                                                   
in court.                                                                                                                       
                                                                                                                                
Mr.  Ecklund  observed that  some  of  the details  would  be                                                                   
included in a statutory bill (HB 553).                                                                                          
                                                                                                                                
Representative  Hawker  questioned   if  community  dividends                                                                   
would be included. Mr. Ecklund could not respond.                                                                               
                                                                                                                                
Representative  Hawker  stated  that  he  would  continue  to                                                                   
pursue   clarification   on  the   inclusion   of   community                                                                   
dividends.                                                                                                                      
                                                                                                                                
Co-Chair Harris MOVED to report  HJR 47 out of Committee with                                                                   
the accompanying fiscal notes.                                                                                                  
                                                                                                                                
Representative Croft OBJECTED.  He spoke in opposition to the                                                                   
legislation. He  pointed out that  the legislation  would not                                                                   
implement POMV  and would not offer protections  to dividends                                                                   
or  guarantee  additional  money  for  public  education.  He                                                                   
questioned what the legislation would buy.                                                                                      
                                                                                                                                
Representative Croft  WITHDREW his OBJECTION. There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative Fate  expressed his concern but  noted that he                                                                   
would allow the bill to move.                                                                                                   
                                                                                                                                
Representative  Hawker acknowledged  concerns, but  felt that                                                                   
the bill should be forwarded.                                                                                                   
                                                                                                                                
Vice-Chair  Meyer   stated  that  he  did  not   support  the                                                                   
legislation  but  added  that   he  would  also  support  its                                                                   
movement.                                                                                                                       
                                                                                                                                
Representative  Joule questioned  if  it is  possible to  see                                                                   
each proposal compared.                                                                                                         
                                                                                                                                
HJR  47  was  REPORTED  out  of   Committee  with  individual                                                                   
recommendations and with two fiscal impact notes.