03/09/2004 08:01 AM House STA

HB 431-MUNICIPAL DIVIDEND PROGRAM                                                                                             
                                                                                                                                
Number 0311                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH  announced that  the next  order of  business was                                                               
HOUSE BILL  NO. 431, "An  Act relating to the  municipal dividend                                                               
program; and providing for an effective date."                                                                                  
                                                                                                                                
Number 0318                                                                                                                     
                                                                                                                                
ADAM  BERG,  Staff to  Representative  Carl  Moses, Alaska  State                                                               
Legislature,  testified   on  behalf  of   Representative  Moses,                                                               
sponsor.   In  response to  a  request from  Chair Weyhrauch,  he                                                               
offered a  brief overview  of the  bill.   He stated  that, after                                                               
permanent fund dividends (PFDs)  are accounted for and "inflation                                                               
proofing has been taken care of,"  a set amount of money would be                                                               
distributed to  each municipality  in the state.   The  amount of                                                               
money  would be  set at  $250 per  person.   Population would  be                                                               
determined by the number of PFD  recipients.  There would also be                                                               
a "basement"  at $40,000  to a  municipality.   He said,  "In the                                                               
event  that  the earnings  reserve  account  doesn't have  enough                                                               
money to pay the total package  of what ... that amount would be,                                                               
we'd go with the lower amount."                                                                                                 
                                                                                                                                
Number 0488                                                                                                                     
                                                                                                                                
DOUG STARK, Ph.D.,  City Council member, City of  Homer, told the                                                               
committee  that   the  City  of   Homer  adopted   unanimously  a                                                               
recommendation endorsing [HB  431].  He noted  that the committee                                                               
had met  yesterday, from  9:00 a.m. to  11:40 p.m.,  spending the                                                               
majority  of  that time  trying  to  determine "what  the  fiscal                                                               
possibilities were  in the future,"  because [the City  of Homer]                                                               
has been  heavily impacted  by the  reduction and  elimination of                                                               
state  revenue   sharing  and  also  the   dramatic  increase  in                                                               
insurance costs.   He  said he  thinks [HB  431] is  an excellent                                                               
bill, and he offered to answer questions.                                                                                       
                                                                                                                                
[HB 431 was heard and held.]