04/19/2001 03:45 PM Senate STA

         SB 193-APPROP:STUDY EFFECTS OF PERM FUND DIVIDEND                                                                  
                                                                                                                              
CHAIRMAN THERRIAULT apologized  to committee members for having just                                                            
a copy of the  bill and the sponsor  statement in member's  packets.                                                            
                                                                                                                                
SENATOR  KELLY,   bill  sponsor,  quoted  Senator  Stevens   saying,                                                            
"There's nothing that beats  a genuine lack of preparedness." He too                                                            
apologized  for the  lack of information  and attributed  it  to the                                                            
speed with  which bills are scheduled  and moved during the  last of                                                            
the session.                                                                                                                    
                                                                                                                                
SENATOR KELLY  stated there is much discussion revolving  around the                                                            
permanent  fund  dividend,   much  of which   centers  on  anecdotal                                                            
evidence that the dividend might be drawing people to the state.                                                                
                                                                                                                                
The  courts  have  disallowed  longer  residency   requirements  but                                                            
language  in  the 1990  Lindly  v. Malone  case  allows  a study  to                                                            
determine  the  effects  of  the  permanent  fund  dividend  on  the                                                            
demographics  of the  state. Depending  on the  findings,  residency                                                            
requirements  could  possibly   be reconsidered.   If  the  dividend                                                            
program is  drawing individuals that  are causing a greater  draw on                                                            
our  services  than  if we  did  not  have the  dividend,  then  the                                                            
residency issue could possibly be revisited.                                                                                    
                                                                                                                                
SENATOR HALFORD joined the meeting.                                                                                             
                                                                                                                                
SENATOR KELLY explained  that SB 193 authorizes a study to determine                                                            
what the  dividend is  doing to  the demographics  of our state  and                                                            
whether it might be causing a drain on state services.                                                                          
                                                                                                                                
CHAIRMAN THERRIAULT  asked for the reason for selecting  January 15,                                                            
2003, as the date the report  would be delivered to the legislature.                                                            
                                                                                                                                
SENATOR KELLY  said there was no reason  other than it matched  with                                                            
another  study bill. If  it could  be done sooner  he would  readily                                                            
agree because the sooner  the information is available the better it                                                            
is for everyone concerned.                                                                                                      
                                                                                                                                
Side B                                                                                                                          
                                                                                                                                
CHAIRMAN THERRIAULT  said there were  no fiscal notes available  but                                                            
the depth of the study  and the length of time would impact the size                                                            
of  the notes.  Since  Senator  Kelly  is chairman  of  the  finance                                                            
committee there  was no reason to  be overly concerned about  fiscal                                                            
notes in this  committee. It is a  matter of how specific  the study                                                            
will be or the amount of detail that is affordable.                                                                             
                                                                                                                                
SENATOR KELLY  added that the Department  of Community and  Economic                                                            
Development  as  well  as the  Department  of  Labor  and  Workforce                                                            
Development  are  mentioned  in  the  study  and  he  will  also  be                                                            
requesting  that  the  Department  of  Health  and  Social  Services                                                            
participate in the study.                                                                                                       
                                                                                                                                
SENATOR HALFORD asked what costs are envisioned.                                                                                
                                                                                                                                
SENATOR KELLY  responded they were  discussing $250,000 to  $300,000                                                            
during  the  first  draft  of the  gender  equity  study.  [A  study                                                            
authorized during the 2001 session.]                                                                                            
                                                                                                                                
CHAIRMAN THERRIAULT  asked for questions from committee  members and                                                            
then for on-line or in person testimony. There was no response.                                                                 
                                                                                                                                
He noted  the lack  of fiscal  notes but  added that  they would  be                                                            
indeterminate at this time anyway.                                                                                              
                                                                                                                                
Since  Senator Kelly  indicated  he would  like to  include  another                                                            
department in the study  and the affordability of that would need to                                                            
be addressed  in finance  committee, he was  prepared to take  final                                                            
action on the  bill with the understanding that this  would be dealt                                                            
with in that next committee.                                                                                                    
                                                                                                                                
SENATOR PHILLIPS  moved SB  193 to the next  committee of  referral.                                                            
There was no objection.