Legislature(2021 - 2022)GRUENBERG 120

03/29/2021 01:00 PM House JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 62 MARRIAGE WITNESSES TELECONFERENCED
<Bill Hearing Canceled>
+= HB 29 ELECTRIC UTILITY LIABILITY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 57 FUNDS SUBJECT TO CBR SWEEP PROVISION TELECONFERENCED
Heard & Held
-- Public Testimony --
           HB 57-FUNDS SUBJECT TO CBR SWEEP PROVISION                                                                       
                                                                                                                                
1:01:50 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  first order of business would be                                                               
HOUSE BILL  NO. 57, "An Act  relating to the budget  reserve fund                                                               
established under art. IX, sec.  17(d), Constitution of the State                                                               
of  Alaska; relating  to money  available  for appropriation  for                                                               
purposes of applying art. IX,  sec. 17, Constitution of the State                                                               
of Alaska; and providing for an effective date."                                                                                
                                                                                                                                
1:02:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDY  JOSEPHSON,  Alaska  State  Legislature,  as                                                               
prime  sponsor, introduced  HB  57.   He said  the  idea for  the                                                               
legislation came  from his  witnessing confusion  and uncertainty                                                               
during a  July 2019  House Finance  meeting on  the topic  of the                                                               
constitutional   budget  reserve   (CBR),  particularly   on  the                                                               
application  of the  CBR and  the sweep  provisions, where  there                                                               
appeared  to  be  differences   between  the  administration  and                                                               
legislative agencies.  He said  that just weeks before, there had                                                               
been "massive  vetoes," and doubling  the impact of  those vetoes                                                               
was   the   administration's    belief   that   "everything   was                                                               
'sweepable'."  Representative Josephson  said a thorough study of                                                               
the  case  Hickel  v.  Cowper   showed  that  everything  is  not                                                               
sweepable.    He said  in  preparing  HB  57,  he and  his  staff                                                               
consulted  with   the  Legislative   Finance  Division   and  the                                                               
Legislative Division of Audit.                                                                                                  
                                                                                                                                
1:04:14 PM                                                                                                                    
                                                                                                                                
ELISE  SORUM-BIRK, Staff,  Representative Andy  Josephson, Alaska                                                               
State  Legislature, gave  a  PowerPoint  on HB  57  on behalf  of                                                               
Representative  Josephson, prime  sponsor.    Having covered  the                                                               
sectional analysis on  slide 2 at a prior  committee meeting, she                                                               
directed attention  to slide 3, "CBR  repayment provision," which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Article  IX, Section  17(d)-  "If  an appropriation  is                                                                    
     made  from the  budget reserve  fund, until  the amount                                                                    
     appropriated  is repaid,  the  amount of  money in  the                                                                    
     general fund available for appropriation  at the end of                                                                    
     each succeeding  fiscal year shall be  deposited in the                                                                    
     budget  reserve fund.  The legislature  shall implement                                                                
     this subsection by law                                                                                                 
                                                                                                                                
MS. SORUM-BIRK  said this was  attempted through House  Bill [58]                                                               
in 1994, [during the Eighteenth  Alaska State Legislature], a law                                                               
that  was  found by  the  Alaska  Supreme  Court to  be  "broadly                                                               
unconstitutional."   She  emphasized that  it is  "high time  the                                                               
legislature  take up  this important  role  of implementing  this                                                               
subsection by law."  She stated that is the aim of HB 57.                                                                       
                                                                                                                                
1:06:11 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK  moved on to  discuss intent language,  covered on                                                               
slides 4-9.   She pointed  out the first "Legislative  Intent" on                                                               
slide 4, which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     "It  is  the  intent   of  the  legislature  to  create                                                                    
     statutory  definitions  for  these terms  in  alignment                                                                    
     with both  the current legal understanding  of them and                                                                    
     the reality of existing state fiscal systems."                                                                             
                                                                                                                                
     o  A  lack  of  clarity  in  statutes  surrounding  the                                                                    
     mechanics of the sweep provision                                                                                           
     o  Potential adverse  impacts  on  the availability  of                                                                    
     important fund sources                                                                                                     
     o July 2019 events                                                                                                         
     o Need  consistent meaning of terms  "general fund" and                                                                    
     "available for appropriation"                                                                                              
                                                                                                                                
MS. SORUM-BIRK  said something  can be swept  if it  is available                                                               
for  appropriation or  is part  of the  general fund.   She  said                                                               
during  the discussions  of 2019,  then  Director of  Legislative                                                               
Finance, David  Teal, warned  that without  statutory definitions                                                               
in  place,  the sweeps  become  a  matter of  legislative  policy                                                               
rather than a matter of law.                                                                                                    
                                                                                                                                
MS. SORUM-BIRK moved on to the second "Legislative Intent," on                                                                  
slide 5, which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     o It  is the  intent of the  legislature to  update the                                                                    
     section    of   statute    defining   "available    for                                                                    
     appropriation"  to  specifically reflect  the  findings                                                                    
     set forth in Hickel."                                                                                                      
     o The Alaska Supreme Court's  analysis in the Hickel v.                                                                    
     Cowper decision provides a framework                                                                                       
     o A  legislative obligation exists to  implement by law                                                                    
     Article 9 Section 17(d) of the constitution                                                                                
     o 1994  passage of House  Bill 58 (AS  37.10.420) aimed                                                                    
     to   do   this   but   was    found   to   be   broadly                                                                    
     unconstitutional                                                                                                           
     o Supreme  Court outlined general standard  and invited                                                                    
     a reexamination of this statute                                                                                            
     o  "We also  make no  attempt to  name and  classify as                                                                    
     "available"  or  "unavailable"  every fund  within  the                                                                    
     treasury of  the State of  Alaska. We leave it,  in the                                                                    
     first  instance, to  executive  and legislative  branch                                                                    
     officials more familiar with all  of the funds involved                                                                    
     to  apply  the  general  definition  we  adopt  today."                                                                    
     (Hickel v Cowper, 874 P. 2d 922, n. 27)                                                                                    
     o Legislative  Audit Finding No. 2019-089  of the State                                                                    
     of Alaska FY 2019 Single Audit                                                                                             
                                                                                                                                
1:09:23 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK turned to the third "Legislative Intent," on                                                                     
slide 6, which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     o "It is  the intent of the legislature  to protect the                                                                    
     financial  security of  existing programs  and maintain                                                                    
     the  integrity of  state  financial  structures to  the                                                                    
     greatest extent possible"                                                                                                  
     o  The   Hickel  ruling  voiced  clear   opposition  to                                                                    
     disrupting  the mechanics  of state  finance; advocated                                                                    
     commonsense approach  o Legislature's view  too narrow,                                                                    
     Cowper's view too broad                                                                                                    
     o Revolving  Loan Funds- "?the existing  state programs                                                                    
     dependent on these funds would  have to be curtailed if                                                                    
     these  funds were  expended on  another purpose.  These                                                                    
     funds are maintained, however,  because in the judgment                                                                    
     of  the legislature  they  serve worthwhile  purposes."                                                                    
     (Hickel, 874 P. 2d at 929)                                                                                                 
                                                                                                                                
MS. SORUM-BIRK moved on to the fourth "Legislative Intent," on                                                                  
slide 7, which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     o "The legislature finds  that appropriated funds which                                                                    
     can be expended with  no further legislative action are                                                                    
     no  longer considered  available for  appropriation and                                                                    
     thus  would not  be included  in the  sweep? It  is the                                                                    
     intent of the legislature  to include this principle in                                                                    
     the    codified    definition   of    'available    for                                                                    
     appropriation.'"                                                                                                           
     o  True regardless  of if  the  funds were  given to  a                                                                    
     state agency to spend or  were held in the general fund                                                                    
     o Hickel -  Article 17 did not  require "counting funds                                                                    
     already validly  appropriated to a specific  purpose as                                                                    
     still  'available'" and  that  monies already  "validly                                                                    
     committed  by the  legislature to  some purpose  should                                                                    
     not be  counted as  available." (Hickel,  874 P.  2d at                                                                    
     930-931)                                                                                                                   
                                                                                                                                
MS. SORUM-BIRK turned to the fifth "Legislative Intent," on                                                                     
slide 8, which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     o "The legislature finds that  any funds that cannot be                                                                    
     immediately  expended  through  appropriation  are  not                                                                    
     considered  available for  appropriation  and thus  are                                                                    
     not subject  to the  sweep ?  It is  the intent  of the                                                                    
     legislature to  include this principle in  the codified                                                                    
     definition of 'available for appropriation.'"                                                                              
     o The Hickel Court held  that the voters, in supporting                                                                    
     passage of the CBR resolution  in 1990, were not trying                                                                    
     to eliminate  state services or liquidate  state assets                                                                    
     before funds in the CBR  could be accessed (Hickel, 874                                                                    
     P. 2d at 928).                                                                                                             
     o  Categories   of  funds  that  are   not  immediately                                                                    
     spendable include:                                                                                                         
          o illiquid assets                                                                                                     
          o revolving loan funds                                                                                                
          o grants to the state from private entities                                                                           
                                                                                                                                
1:12:30 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK addressed the sixth "Legislative Intent," on                                                                     
slide 9, which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     o "The  legislature finds that  funds considered  to be                                                                    
     trust receipts,  despite being  included in  the metric                                                                    
     for calculating  what is available, are  to be excluded                                                                    
     from the sweep? It is  the intent of the legislature to                                                                    
     include this  principle in  the codified  definition of                                                                    
     'available  for   appropriation'  and  to   clarify  in                                                                    
     statute  the  principle  that trust  receipts  are  not                                                                    
     fully subject to the sweep provision."                                                                                     
     o  If   actually  appropriated  must  be   included  in                                                                    
     "available for appropriation"                                                                                              
     o Only  a portion  is available  according to  Hickel -                                                                    
     the  part  that  would   be  expended  consistent  with                                                                    
     application of prudent "trust principles"                                                                                  
                                                                                                                                
MS.  SORUM-BIRK  added  that trust  receipts  include:    federal                                                               
funds;  funds  given to  the  state  for  a specific  purpose  by                                                               
private entities;  and appropriations  from trust accounts.   She                                                               
read footnote 23 of the case notes as follows:                                                                                  
                                                                                                                                
     Amounts appropriated  by the  legislature out  of other                                                                    
     funds  within executive  agencies  for  the purpose  of                                                                    
     administering  these  funds  under  explicit  statutory                                                                    
     authority  may  also be  treated  as  a type  of  trust                                                                    
     receipt.                                                                                                                   
                                                                                                                                
MS. SORUM-BIRK said this would  include agriculture, fishing, and                                                               
small business revolving loan funds.                                                                                            
                                                                                                                                
1:14:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON clarified:                                                                                             
                                                                                                                                
     The fact that it's  available for appropriation, as the                                                                    
     slide shows,  doesn't mean that  it's ... to  be swept.                                                                    
     And that  relates to  that important  calculation about                                                                    
     whether the legislature must  deliver a simple majority                                                                    
     to   spend   from   the  CBR   or   the   three-quarter                                                                    
     supermajority   from  both   chambers.     That's   the                                                                    
     importance of that distinction.                                                                                            
                                                                                                                                
1:14:53 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN asked  for a more specific example  related to trust                                                               
receipts.                                                                                                                       
                                                                                                                                
MS.  SORUM-BIRK  reviewed  the revolving  loan  funds  previously                                                               
stated   and   suggested   the  next   slide   would   speak   to                                                               
Representative Claman's question.                                                                                               
                                                                                                                                
1:15:56 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK directed  attention to  the seventh  "Legislative                                                               
Intent,"   on  slide   10,  which   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     o  "The  Hickel  Court treated  money  appropriated  by                                                                    
     state  corporations   much  the   same  way   as  trust                                                                    
     receipts?"                                                                                                                 
     o Alaska  Energy Authority is a  state corporation that                                                                    
     holds  the  Power  Cost  Equalization  (PCE)  endowment                                                                    
     fund. The  PCE is not subject  to sweep or part  of the                                                                    
     general fund for 4 reasons                                                                                                 
          o 1) This fund is housed in a corporation                                                                             
          o  2)   PCE  follows  an  endowment   model  which                                                                    
     requires  application  of  prudent  "trust  principles"                                                                    
          o 3) Hickel says  that only the money appropriated                                                                    
     from  a corporation  must be  counted as  available for                                                                    
     appropriation,  even  if  a corporation  had  funds  in                                                                    
     excess of what it required to fulfill its purpose                                                                          
          o 4) The legislature  has never fully appropriated                                                                    
     the funds  and it is unlikely  that it would do  so, as                                                                    
     that would defy the very purpose of the fund                                                                               
                                                                                                                                
1:17:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  noted  that  attorney  Megan  Wallace,                                                               
[Director, Legislative  Legal Services],  said PCE should  not be                                                               
sweepable, while  [former] Attorney  General Kevin  Clarkson said                                                               
it was.  He said, "This is one  of many examples of why a roadmap                                                               
for the  legislature, and  for ...  agencies that  we interrelate                                                               
with, is  important, and ...  absolutely encouraged, both  by the                                                               
CBR's express language and by Hickel v. Cowper."                                                                                
                                                                                                                                
1:18:03 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  observed that the  slide read that only  money from                                                               
[emphasis on "from"]  a corporation must be  counted as available                                                               
for appropriation.   He  asked if that  was meant  to distinguish                                                               
appropriation from a corporation rather than to a corporation.                                                                  
                                                                                                                                
1:18:44 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK  answered,  "That  is  probably  correct."    She                                                               
clarified that  which is  appropriated from the  fund is  what is                                                               
available.  She  said she thinks the logic behind  that is:  "You                                                               
have to  count the  money you're  spending in  the metric  of the                                                               
money available  for appropriation; you  have to count  the money                                                               
you actually appropriate in that metric."                                                                                       
                                                                                                                                
1:19:50 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK   drew  attention  to  the   eighth  "Legislative                                                               
Intent,"   on  slide   11,  which   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     o  "The legislature  finds  that  the earnings  reserve                                                                    
     account, as  an account  in the Alaska  permanent fund,                                                                    
     is located outside of the  general fund and thus is not                                                                    
     subject to  the sweep  provision? It  is the  intent of                                                                    
     the legislature to codify fund  types that exist in the                                                                    
     state  treasury separately  from  the  general fund  to                                                                    
     eliminate all  uncertainty as  to what  constitutes the                                                                    
     general fund."                                                                                                             
     o Hickel-  "the earnings  reserve account, need  not be                                                                    
     deposited into the budget reserve."  (Hickel, 874 P. 2d                                                                    
     922, 23)                                                                                                                   
                                                                                                                                
MS. SORUM-BIRK  said although the earnings  reserve account (ERA)                                                               
was specifically  referenced in the  case, how the state  uses it                                                               
has changed "pretty  drastically" over time.  She  said the issue                                                               
was briefly  touched upon  in "the  Wielechowski decision."   She                                                               
said that  if the  argument made by  the former  attorney general                                                               
were  followed, then  funds being  used  in a  manner similar  to                                                               
those in  the general fund  would count  as general fund.   Since                                                               
the legislature  can and regular  does appropriate from  the ERA,                                                               
an argument  could be made  that the  ERA was sweepable,  "if you                                                               
just  took  that same  logic  being  used  on  the PCE  one  step                                                               
further."   She added that if  the ERA were swept  "that would be                                                               
kind of a disaster."                                                                                                            
                                                                                                                                
MS. SORUM-BIRK  moved on  to the  ninth "Legislative  Intent," on                                                               
slide 12, which read as follows [original punctuation provided]:                                                                
                                                                                                                                
     o  "It  is the  intent  of  the legislature  to  define                                                                    
     'general  fund' in  a way  that is  practical, logical,                                                                    
     and stabilizing in nature."                                                                                                
     o  No statutory  or constitutional  definition for  the                                                                    
     term "general fund" exists                                                                                                 
     o  Occurs  200+  times  throughout statute  o  Lack  of                                                                    
     consistency between organizations  - currently a matter                                                                    
     of policy rather than law                                                                                                  
     o  It is  common  practice in  other  states to  define                                                                    
     'general fund'                                                                                                             
                                                                                                                                
MS.  SORUM-BIRK  added that  a  definition  would provide  "legal                                                               
consistency in how 'general fund' is viewed."                                                                                   
                                                                                                                                
1:22:30 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK  next addressed  slides 13  and 14,  regarding the                                                               
general fund (GF).   Slide 13, which responds to  the question of                                                               
what the GF is, read as follows [original punctuation provided]:                                                                
                                                                                                                                
     ? There isn't consensus between state agencies                                                                             
     ? In budgeting terms, we  are used to thinking in terms                                                                    
     of UGF, DGF, Federal and Other                                                                                             
          ? These  categories don't align with  the accounts                                                                    
     in the state treasury                                                                                                      
     ? The CAFR says                                                                                                            
          ? "All public monies  and revenues coming into the                                                                    
     state treasury  not specifically authorized  by statute                                                                    
     to be placed  in a special fund  constitute the General                                                                    
     Fund"                                                                                                                      
          ? But  also notes  - "Not  all revenues  that flow                                                                    
     into  the  General  Fund  are   available  to  pay  for                                                                    
     unrestricted  government activities.  The most  notable                                                                    
     are federal  revenues, which are provided  for specific                                                                    
     purposes."                                                                                                                 
     ? It  is common  practice in  public finance  to define                                                                    
     general fund                                                                                                               
                                                                                                                                
MS.  SORUM-BIRK said  slide 14  gives the  current definition  of                                                               
general  fund, which  is:   "The  primary operating  fund of  the                                                               
state, consisting of all money  paid into the state treasury that                                                               
is not specifically authorized by law  to be placed in a separate                                                               
fund."   She said  HB 57  lists that which  is excluded  from the                                                               
general fund, shown on slide  14 as follows [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     ? funds  held or  managed by legally  separate entities                                                                    
     that   the  state   is   financially  accountable   for                                                                    
     including funds held or  managed by public corporations                                                                    
     and the University of Alaska                                                                                               
     ? enterprise funds                                                                                                         
     ? debt service funds                                                                                                       
     ? special revenue funds                                                                                                    
     ? the Alaska permanent fund                                                                                                
     ? internal service funds                                                                                                   
     ? agency funds                                                                                                             
                                                                                                                                
1:25:11 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK, in response to Chair Claman, confirmed there is                                                                 
currently no definition of "general fund" in statute or within                                                                  
the Constitution of the State of Alaska.                                                                                        
                                                                                                                                
1:25:33 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK turned to the summary on slide 15, which read as                                                                 
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Summary  of principles  from Hickel  v  Cowper used  in                                                                    
     defining "available for appropriation"                                                                                     
                                                                                                                                
     ? Two main parameters:                                                                                                     
          ?  "must   include  all   funds  over   which  the                                                                    
     legislature has retained power to appropriate"                                                                             
          and                                                                                                                   
          ?  "which are  not available  to pay  expenditures                                                                    
     without further legislative appropriation"                                                                                 
     ?  For trust  receipts the  amount appropriated  by the                                                                    
     legislature IS  the amount available  for appropriation                                                                    
          ?  This  category  includes federal  funds,  funds                                                                    
     given  to the  state for  specific purposes  by private                                                                    
     entities AND appropriations from trust account                                                                             
          ?   Notably    "amounts   appropriated    by   the                                                                    
     legislature  out   of  other  funds   within  executive                                                                    
     agencies for the purpose  of administering these funds,                                                                    
     under explicit statutory authority  may also be treated                                                                    
     as a type of trust receipt" (revolving loan funds)                                                                         
     ? Monies  of public corporations are  treated similarly                                                                    
     to trust receipts                                                                                                          
     ?  Excludes illiquid  assets, funds  expendable without                                                                    
     further  legislative  appropriation, or  funds  validly                                                                    
     appropriated                                                                                                               
                                                                                                                                
MS. SORUM-BIRK brought attention to slide 16, "Goal in Summary,"                                                                
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     HB 57 aims to enact  by law section Article IX, Section                                                                    
     17  (d) of  the Alaska  Constitution thereby  providing                                                                    
     legal clarity on the sweep provision.                                                                                      
     It does this by:                                                                                                           
     ?  defining  'available  for  appropriation'  using  an                                                                    
     understanding of parameters set  in Hickel v Cowper and                                                                    
     thereby  correcting  the  largely  unconstitutional  AS                                                                    
     37.10.420 (a)(1)                                                                                                           
      ? defining 'general fund' in a way that reflects the                                                                      
     actual mechanics of state finance and clarifying what                                                                      
     fund types are excluded from the general fund                                                                              
      ? formally addressing which funds within the general                                                                      
     fund cannot be swept and why                                                                                               
                                                                                                                                
1:27:30 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN referred  to Section  3  of the  proposed bill  and                                                               
speculated that every fund did not  "make the list," and he asked                                                               
how the funds listed were chosen.                                                                                               
                                                                                                                                
1:29:09 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK  pointed out that  in the bill language,  the word                                                               
"including" preceding the list means some  but not all are on the                                                               
list.   She stated  that the  funds listed  are sub-funds  in the                                                               
general fund that  are not subject to the sweep.   She noted that                                                               
both the  Legislative Audit Division and  the Legislative Finance                                                               
Division would  be doing thorough  reviews of the bill  to ensure                                                               
everything necessary was included.                                                                                              
                                                                                                                                
1:30:04 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  summarized, "So, at  least in terms of  these funds                                                               
that  aren't  subject to  sweep,  the  thought is  this  wouldn't                                                               
necessarily be an exhaustive list."                                                                                             
                                                                                                                                
MS. SORUM-BIRK confirmed that's correct.                                                                                        
                                                                                                                                
1:30:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND noted  where "these  funds include"  was                                                           
located  on page  8, line  8,  of HB  57,  and she  asked if  the                                                               
sponsor's intent  was not  to use  "but are  not limited  to" and                                                               
instead to make the list inclusive.                                                                                             
                                                                                                                                
1:30:46 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK  answered no and reiterated  that "include" infers                                                               
that the list is "not limited to" that which is on it.                                                                          
                                                                                                                                
1:31:10 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  recollected "a distant  memory" of  a communication                                                               
with Legislative  Legal Services, at  which time the  agency told                                                               
him that "include"  makes "not limited to" unnecessary.   He said                                                               
that  caused him  sometimes to  look in  statute for  examples of                                                               
that, and he has noticed that  frequently "not limited to" is not                                                               
added.   He suggested that  would be a  good point to  query with                                                               
Ms. Wallace.                                                                                                                    
                                                                                                                                
1:31:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND remarked  that  after carefully  reading                                                               
the  list on  page  8, she  is  keen to  learn  where the  higher                                                               
education investment  fund would  fall.   She speculated  that it                                                               
could fall  under the University  of Alaska (UA).   She explained                                                               
her interest  in the  fund stems  from "a  non-educational intent                                                               
for  funds to  be withdrawn  from ...  the corpus  of the  higher                                                               
education investment fund."                                                                                                     
                                                                                                                                
1:32:35 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK responded that  unfortunately the higher education                                                               
investment  fund is  not on  the list  because it  is subject  to                                                               
sweep  when  using the  definitions  set  forth under  Hickel  v.                                                               
Cowper.   Under statute, the fund  exists within the GF,  and the                                                               
legislature  retains full  appropriation  control over  it.   She                                                               
said there was no way the  sponsor could see to include that fund                                                               
[on the list]  without changing the statute surrounding  it.  She                                                               
offered examples of how this could be changed.                                                                                  
                                                                                                                                
1:34:18 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  asked  whether the  bill  sponsor  had  considered                                                               
including a provision  in HB 57 that would give  the governor the                                                               
authority to identify  a fund as "not subject  to sweep" followed                                                               
by  a period  of time  in which  the legislature  could determine                                                               
whether to reject that decision.                                                                                                
                                                                                                                                
MS. SORUM-BIRK answered no.  She  said the sponsor "used a pretty                                                               
cut-and-dry interpretation  of the [Alaska] Supreme  Court case,"                                                               
which focuses on whether the fund  is sweepable, whether it is in                                                               
the GF, and whether it is available for appropriation.                                                                          
                                                                                                                                
1:37:01 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN opened public testimony on HB 57.                                                                                  
                                                                                                                                
1:37:23 PM                                                                                                                    
                                                                                                                                
NANCY BIRD  testified in support  of HB  57.  She  opined, "Clear                                                               
and  concise statutory  definitions of  the terms  'available for                                                               
appropriation' and  'general fund' are essential,  since the fund                                                               
source must  meet both of  these standards  to be subject  to the                                                               
sweep."  The  proposed legislation aims to  define "general fund"                                                               
in  a  way that  clarifies  the  types  of  funds that  would  be                                                               
excluded, which she said she  thinks is important in making clear                                                               
that the GF does  not include money such as the PCE  or ERA.  She                                                               
urged the committee to support HB 57.                                                                                           
                                                                                                                                
1:38:38 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN, after  ascertaining that there was no  one else who                                                               
wished to testify, closed public testimony on HB 57.                                                                            
                                                                                                                                
CHAIR CLAMAN announced that HB 57 was held over.                                                                                

Document Name Date/Time Subjects
HB 57 v. B 2.18.2021.PDF HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Sponsor Statement 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Sectional Analysis v. B 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - OMB Letter 7.12.2019.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - CBR Sweep Breakdown by Fund - LFD March 2020 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - AEA Memo on PCE Sweep 8.24.2019.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - Hickel v. Cowper May 27, 1994 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - Legislative Finance Outline of AS 37.10.420 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - Legislative Research Memo GF Definitions 9.1.2020.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - FY19 Single Audit - Finding No. 2019-089 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Additional Document - FY20 CAFR General Fund Accounts 3.8.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 PowerPoint Presentation 3.10.2021.pdf HJUD 3/10/2021 1:30:00 PM
HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 57 Statement of Zero Fiscal Impact 3.6.2021.pdf HJUD 3/17/2021 1:30:00 PM
HJUD 3/19/2021 1:30:00 PM
HJUD 3/24/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/5/2021 1:00:00 PM
HB 57
HB 29 v. A 2.18.2021.PDF HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Sponsor Statement 3.22.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Supporting Document - Electric Utility Liability Information 3.22.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Supporting Document - APA Letter 3.1.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Supporting Document - CVEA Letter 3.9.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Supporting Document - GVEA Letter 3.16.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Supporting Document - CVEA Vegetation Management Draft March 2021 3.22.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Fiscal Note LAW-CIV 3.12.2021.pdf HJUD 3/22/2021 1:30:00 PM
HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HB 29
HB 29 Additional Document - Anchorage Daily News Article (Distributed by HJUD Committee) 3.28.2021.pdf HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 Opposing Document - Testimony Received by 3.29.2021.pdf HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HJUD 4/16/2021 1:00:00 PM
HB 29
HB 29 v. A Amendment #1 HJUD 3.29.2021.pdf HJUD 3/29/2021 1:00:00 PM
HB 29
HB 29 v. A Amendment #1 HJUD Final Vote 3.29.2021.pdf HJUD 3/29/2021 1:00:00 PM
HJUD 4/9/2021 1:00:00 PM
HB 29