Legislature(2003 - 2004)

04/06/2004 02:08 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 298                                                                                                            
                                                                                                                                
     An Act  relating to  the distribution of  appropriations                                                                   
     from  the  Alaska permanent  fund  under  art. IX,  sec.                                                                   
     15(b), Constitution  of the State of Alaska,  and making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date.                                                                                                                      
                                                                                                                                
Co-Chair  Harris  MOVED  to ADOPT  work  draft  #23-LS1075\C,                                                                   
Cook,  4/6/04,  as  the  version   of  the  bill  before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
PETE ECKLUND, STAFF, REPRESENTATIVE  BILL WILLIAMS, explained                                                                   
changes made to  work draft version "V".  Page  3, Section 3,                                                                   
language provides  a 5-year rolling average  and insures that                                                                   
the Legislature will not eat into  the principle and will not                                                                   
remove more from the Permanent  Fund real rate of return.  He                                                                   
pointed out that Page 3, Line  6, had been amended adding the                                                                   
language:  "The first  10  of  the 11  fiscal  years".   That                                                                   
technical change  was made to  insure that the  year-end data                                                                   
would add an additional  fiscal year.  In that  way, by using                                                                   
the 11 years, the Legislature  would be able to look back and                                                                   
take the  10-years  in order to  have the  complete data  for                                                                   
using as a comparison.                                                                                                          
                                                                                                                                
He pointed  out that on  Page 3, Line  19, the Committee  had                                                                   
previously  adopted an  amendment  indicating  that not  more                                                                   
than 50% be allocated for public  education and that language                                                                   
was  left in  the  draft.   Page  5,  Line 18,  Paragraph  2,                                                                   
provides  notification language.   The  permanent fund  check                                                                   
stub  indicates that  "X"  amount of  the  check goes  toward                                                                   
inflation  proofing by the  Legislature.   If the Percent  of                                                                   
Market Value is adopted, there  will no longer be a principle                                                                   
to inflation proof, only the fund.   The language was changed                                                                   
to read:                                                                                                                        
                                                                                                                                
     (2)       Disclose the amount of each dividend                                                                             
               attributable   to   [Income   earned  by   the                                                                   
               Permanent  Fund  from] deposits  to that  fund                                                                   
               required  under art.IX, sec.  15. Constitution                                                                   
               of the State of Alaska."                                                                                         
                                                                                                                                
Co-Chair Harris stated  for the record that  he maintains the                                                                   
percentage should  be 60%  for dividends and  40% to  be used                                                                   
for education rather than the  proposed 50/50 split.  He said                                                                   
that he was not offering that  as an amendment but wanted the                                                                   
record to indicate his intent.                                                                                                  
                                                                                                                                
Representative   Hawker  concurred   with  Co-Chair   Harris,                                                                   
stating that he looked forward  to continuing the debate.  He                                                                   
added,  consideration should  be made  to the possibility  of                                                                   
municipal revenue sharing.                                                                                                      
                                                                                                                                
Representative Foster MOVED to  report CS HB 298 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 298  (FIN)  was reported  out  of Committee  with  "no                                                                   
recommendation" and  with a new  zero note by  the Department                                                                   
of Revenue and zero note #1 by the Department of Revenue.                                                                       
                                                                                                                                

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