Legislature(2017 - 2018)SENATE FINANCE 532

05/02/2018 01:30 PM CONFERENCE COMMITTEE ON SB26

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Audio Topic
01:36:27 PM Start
01:41:46 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 26 APPROP LIMIT & PER FUND:DIVIDEND;EARNINGS TELECONFERENCED
Heard & Held
CS FOR SENATE BILL NO. 26(FIN)                                                                                                
                                                                                                                                
     "An Act  relating to an  appropriation limit; relating                                                                     
     to  the  budget   responsibilities  of  the  governor;                                                                     
     relating to the Alaska permanent fund, the earnings of                                                                     
     the Alaska  permanent fund,  and the  earnings reserve                                                                     
     account; relating  to  the mental  health trust  fund;                                                                     
     relating to deposits into  the dividend fund; relating                                                                     
     to  the  calculation  and payment  of  permanent  fund                                                                     
     dividends; and providing for an effective date."                                                                           
                                                                                                                                
and                                                                                                                             
                                                                                                                                
HOUSE CS FOR CS FOR SENATE BILL NO. 26(FIN)(efd fld H)                                                                        
                                                                                                                                
     "An Act  relating to an  appropriation limit; relating                                                                     
     to  the  budget   responsibilities  of  the  governor;                                                                     
     relating to the Alaska permanent fund, the earnings of                                                                     
     the Alaska  permanent fund,  and the  earnings reserve                                                                     
     account; relating  to  the mental  health trust  fund;                                                                     
     relating  to  deposits  into the  dividend  fund;  and                                                                     
     relating to  the calculation and  payment of permanent                                                                     
     fund dividends."                                                                                                           
                                                                                                                                
1:37:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman announced that the  purpose of the meeting                                                                     
was  to  release   a  working  draft  conference  committee                                                                     
substitute. There  would be  no action  on the  CS,  but it                                                                     
would be  released to the public  for further consideration                                                                     
and discussion.                                                                                                                 
                                                                                                                                
1:37:33 PM                                                                                                                    
                                                                                                                                
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON discussed a                                                                         
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1: Legislative Findings and  Intent language -                                                                     
     this language makes it  clear that several sections in                                                                     
     the  CS  are technical  and  conforming in  nature  to                                                                     
     reflect a Supreme Court ruling                                                                                             
                                                                                                                                
     Section 2: Repeals language  relating to the statutory                                                                     
     appropriation limit                                                                                                        
                                                                                                                                
    Section 3: Conforming change relating to section 5                                                                          
                                                                                                                                
     Section 4: Requires the Governor to submit a report to                                                                     
     the legislature  on how  the budget complies  with the                                                                     
     constitutional appropriation limit                                                                                         
                                                                                                                                
     Section 5: Maintains language that  was in both bodies                                                                     
     versions -  relating to  the  deposits of  rentals and                                                                     
     royalties at the 25percent constitutional level                                                                            
                                                                                                                                
     Section 6: Conforming change relating to section 7 and                                                                     
     a grammatical change                                                                                                       
     Section 7:          Sets the percent of market value                                                                       
     at 5.25percent                                                                                                             
                                                                                                                                
     Section  8:  Sets  the  percent  of  market  value  at                                                                     
     5percent starting July 1, 2021, in Section 18                                                                              
                                                                                                                                
     Section 9:  Clarifies  that the  amount  available for                                                                     
     distribution from  the  ERA to  the  dividend fund  is                                                                     
     appropriated - brings statutory language  in line with                                                                     
     current practice and the Supreme Court decision                                                                            
                                                                                                                                
     Section 10: Technical  and conforming changes relating                                                                     
     to the Supreme Court  decision and relating to Section                                                                     
     12  -  an  appropriation  for  inflation  proofing  is                                                                     
    considered a separate appropriation from the POMV                                                                           
                                                                                                                                
     Section  11: Clarifying  and  conformation language  -                                                                     
     Amerada Hess funds are not available for appropriation                                                                     
                                                                                                                                
     Section 12: Specifies that  the appropriation from the                                                                     
     earnings reserve  account  may not  exceed the  amount                                                                     
     available for  appropriation under the POMV  listed in                                                                     
     Section 7                                                                                                                  
                                                                                                                                
     Section  13: Clarifying  language  that the  Permanent                                                                     
     Fund Corporation's budget  doesn't lapse and  shall be                                                                     
     treated as income and part of  the market value of the                                                                     
     fund                                                                                                                       
                                                                                                                                
     Section 14: Clarifying and conforming language                                                                             
                                                                                                                                
     Section 15: Technical and conforming language relating                                                                     
     to the Supreme Court decision                                                                                              
                                                                                                                                
     Section 16:  Authorizes the  Department of  Revenue to                                                                     
     pay dividends without further appropriation                                                                                
                                                                                                                                
     Section 17: Repeals the statutory appropriation limit                                                                      
                                                                                                                                
     Section 18: Section 8 - the 5percent POMV takes effect                                                                     
     July 1, 2021                                                                                                               
                                                                                                                                
     Section 19: Except for Section 18, this Act takes                                                                          
     effect July 1, 2018                                                                                                        
                                                                                                                                
1:40:42 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  announced that  the CS  was a  draft, and                                                                     
would  be under  further  discussions in  the caucuses  and                                                                     
offices.  He  announced  that Co-Chair  MacKinnon's  office                                                                     
would schedule the next meeting.                                                                                                
                                                                                                                                
SB 26 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
CCS SB 26 W Sectional.pdf JSB26 5/2/2018 1:30:00 PM
SB 26
SB 26 Work Draft Version W.pdf JSB26 5/2/2018 1:30:00 PM
SB 26