Legislature(2017 - 2018)SENATE FINANCE 532

04/13/2017 09:00 AM Senate FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ HB 137 ST. COUNCIL ON THE ARTS: PUBLIC CORP. TELECONFERENCED
Moved SCS HB 137(FIN) Out of Committee
+= SB 78 PERM FUND DIVIDEND CONTRIBUTIONS/LOTTERY TELECONFERENCED
Moved CSSB 78(FIN) Out of Committee
SENATE BILL NO. 78                                                                                                            
                                                                                                                                
     "An Act  creating the education endowment  fund and the                                                                    
     dividend lottery  fund; authorizing  contributions from                                                                    
     the  permanent fund  dividend to  the dividend  lottery                                                                    
     fund; relating  to transfers from the  dividend lottery                                                                    
     fund and the education  endowment fund; relating to the                                                                    
     definition   of  'gambling';   and  providing   for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:07:33 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon relayed  that  the  committee had  heard                                                                    
SB 78 twice and  had opened and closed  public testimony. At                                                                    
the  most   recent  hearing  the  committee   had  discussed                                                                    
prioritization   of   voluntary    contributions   from   an                                                                    
individual's dividend check.                                                                                                    
                                                                                                                                
Vice-Chair Bishop MOVED to ADOPT Amendment 1, 30-LS0534\M.2                                                                     
(Martin, 4/12/17) (copy on file):                                                                                               
                                                                                                                                
     Page 1, line 4, following "fund;":                                                                                         
          Insert "relating to the duties of the Department                                                                      
          of Revenue;"                                                                                                          
                                                                                                                                
     Page 2, following line 20:                                                                                                 
          Insert a new bill section to read:                                                                                    
          "* Sec. 2. AS 43 .23 .055 is amended to read:                                                                         
          Sec. 43.23.055. Duties of the department. The                                                                         
          department shall                                                                                                      
                                                                                                                                
               (1)  annually  pay permanent  fund  dividends                                                                    
               from the dividend fund;                                                                                          
               (2) subject  to AS 43.23.011  and [PARAGRAPH]                                                                    
               (8) of this  section, adopt regulations under                                                                    
               AS 44.62 (Administrative  Procedure Act) that                                                                    
               establish  procedures  and  time  limits  for                                                                    
               claiming  a  permanent   fund  dividend;  the                                                                    
               department  shall  determine  the  number  of                                                                    
               eligible applicants by October  1 of the year                                                                    
               for which  the dividend  is declared  and pay                                                                    
               the dividends by December 31 of that year;                                                                       
               (3)   adopt   regulations  under   AS   44.62                                                                    
               (Administrative    Procedure     Act)    that                                                                    
               establish procedures  and time limits  for an                                                                    
               individual   upon    emancipation   or   upon                                                                    
               reaching  majority  to  apply  for  permanent                                                                    
               fund dividends  not received  during minority                                                                    
               because  the   parent,  guardian,   or  other                                                                    
               authorized  representative did  not apply  on                                                                    
               behalf of the individual;                                                                                        
               (4)   assist   residents    of   the   state,                                                                    
               particularly in  rural areas, who  because of                                                                    
               language,  disability, or  inaccessibility to                                                                    
               public  transportation  1need  assistance  to                                                                    
               establish  eligibility   and  to   apply  for                                                                    
               permanent fund dividends;                                                                                        
               (5) use a list  of individuals ineligible for                                                                    
               a  dividend  under AS  43.23.005(d)  provided                                                                    
               annually  by  the Department  of  Corrections                                                                    
               and  the  Department   of  Public  Safety  to                                                                    
               determine  the number  and identity  of those                                                                    
               individuals;                                                                                                     
               (6) adopt  regulations that are  necessary to                                                                    
               implement AS 43.23.005(d);                                                                                       
               (7)   adopt    regulations   that   establish                                                                    
               procedures  for  the   parent,  guardian,  or                                                                    
               other   authorized    representative   of   a                                                                    
               disabled individual  to apply for  prior year                                                                    
               permanent fund dividends  not received by the                                                                    
               disabled  individual  because no  application                                                                    
               was submitted on behalf of the individual;                                                                       
               (8)   adopt    regulations   that   establish                                                                    
               procedures  for  an  individual to  apply  to                                                                    
               have   a  dividend   disbursement  under   AS                                                                    
               37.25.050(a)(2)   reissued  if   it  is   not                                                                    
               collected within two years  after the date of                                                                    
               its  issuance;  however, the  department  may                                                                    
               not establish  a time  limit within  which an                                                                    
               application to  have a  disbursement reissued                                                                    
               must be filed;                                                                                                   
               (9)  provide any  information, upon  request,                                                                    
               contained in permanent  fund dividend records                                                                    
               to the child  support services agency created                                                                    
               in  AS  25.27.0  10,  or  the  child  support                                                                    
               enforcement  agency  of  another  state,  for                                                                    
               child support purposes  authorized under law;                                                                    
               if  the   information  is  contained   in  an                                                                    
               electronic  data base,  the department  shall                                                                    
               provide the requesting agency with either                                                                        
                    (A) access to the data base; or                                                                             
                    (B)  a copy  of the  information in  the                                                                    
                    data  base  and a  statement  certifying                                                                    
                    its contents;                                                                                               
               (10)  establish  a fraud  investigation  unit                                                                    
               for the purpose of assisting the                                                                                 
                    (A)   Department    of   Law    in   the                                                                    
                    prosecution  of  individuals  who  apply                                                                    
                    for or obtain  a permanent fund dividend                                                                    
                    in violation  of a  provision in  AS 11,                                                                    
                    by  detecting  and  investigating  those                                                                    
                    crimes; and                                                                                                 
                    (B)    commissioner   to    detect   and                                                                    
                    investigate  the claiming  or paying  of                                                                    
                    permanent  fund  dividends  that  should                                                                    
                    not have  been claimed by or  paid to an                                                                    
                    individual and  to impose  the penalties                                                                    
                    and  enforcement   provisions  under  AS                                                                    
                    43.13.035                                                                                                   
               (11)   adopt  regulations   under  AS   44.62                                                                    
               (Administrative   Procedure   Act)  so   that                                                                    
               contributions under AS  43.23.062 are given a                                                                    
               priority  over donations  under AS  43.23.064                                                                    
               if  the  total  amount of  contributions  and                                                                    
               donations  elected  by an  applicant  exceeds                                                                    
               the  amount of  the  permanent fund  dividend                                                                    
               that the applicant is entitled to receive.                                                                       
                                                                                                                                
    Renumber the following bill sections accordingly."                                                                          
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
9:08:18 AM                                                                                                                    
                                                                                                                                
JULI  LUCKY,   STAFF,  SENATOR  ANNA   MACKINNON,  discussed                                                                    
Amendment 1  (copy on file).  She stated that  the amendment                                                                    
had been drafted at the  request of the sponsor. She relayed                                                                    
that while  the amendment  was lengthy, it  only effectively                                                                    
did  one thing.  She  referred  to page  2,  line 29,  which                                                                    
indicated that  the amendment would prioritize  the existing                                                                    
Pick  Click Give  program under  AS 43.23.062  over the  new                                                                    
raffle program  proposed in  the bill  and enacted  under AS                                                                    
43.23.064. She explained that if  a person had promised more                                                                    
of their  dividend in voluntary  reductions than  they would                                                                    
receive, then  the Pick Click  Give program  donations would                                                                    
be paid first,  and the raffle tickets  would be prioritized                                                                    
second.                                                                                                                         
                                                                                                                                
Co-Chair   MacKinnon    recalled   that    under   voluntary                                                                    
contributions,  the University  of  Alaska Scholars  Program                                                                    
was  the   first  item  prompted.  The   second  prompt  for                                                                    
voluntary  contributions  was  Pick Click  Give.  The  third                                                                    
prompt would ask  if the applicant wanted  to support public                                                                    
education  by participating  in a  raffle with  a chance  to                                                                    
win.                                                                                                                            
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair MacKinnon announced there  was an amended committee                                                                    
substitute  before the  committee. She  invited comments  on                                                                    
the  bill.  She read  the  title  of  the bill  and  invited                                                                    
Senator  Bishop  to  leave the  committee  with  some  final                                                                    
comments on the bill.                                                                                                           
                                                                                                                                
Vice-Chair  Bishop spoke  to  the bill  as  the sponsor.  He                                                                    
thought people in the state  prioritized education, which he                                                                    
had observed through emails, phone  calls, and text messages                                                                    
during the budget  process. He thought the  bill was another                                                                    
tool by  which state residents could  voluntarily contribute                                                                    
towards education. He believed  the concept would be popular                                                                    
with Alaskans. He thanked the body for hearing the bill.                                                                        
                                                                                                                                
Senator  Hughes thanked  the sponsor  for bringing  the bill                                                                    
forward and for  his responsiveness to the  comments made in                                                                    
the the Senate Education Committee  pertaining to the use of                                                                    
the  word  "raffle"  rather than  the  word  "lottery."  She                                                                    
thought clarification  was needed because the  word "raffle"                                                                    
involved a  defined group  of people  and a  defined limited                                                                    
amount of time.  She thought it was no  different from going                                                                    
to a  local chamber  meeting and  participating in  a bucket                                                                    
raffle. It  would be  for a  limited group  of people  for a                                                                    
limited time.  She thought it  was important  to distinguish                                                                    
"raffle"  from "lottery".  She was  thankful  that the  bill                                                                    
sponsor was willing to make a language adjustment.                                                                              
                                                                                                                                
Vice-Chair  Bishop  appreciated his  colleague's  suggestion                                                                    
about having a ranking  order of voluntary contributions. He                                                                    
reiterated  the  order  of options.  He  looked  forward  to                                                                    
seeing how the bill functioned.                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon directed  attention  to  fiscal note  2,                                                                    
dated March 31,  2017. The fiscal note reflected  a cost for                                                                    
software upkeep.                                                                                                                
                                                                                                                                
9:13:31 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:44 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon asked  for  committee  support to  amend                                                                    
fiscal  note   2  from  the   Department  of   Revenue,  OMB                                                                    
component 121.  She wanted  to amend  the funding  source to                                                                    
1005 Program Receipts. She explained  there was a percentage                                                                    
charge for  the administration  of the program.  The funding                                                                    
source would  no longer be  undesignated general  funds. She                                                                    
asked  if  she had  member  support  to change  the  funding                                                                    
source  to 1005  Program Receipts.  There was  no objection.                                                                    
The amendment to fiscal note 2 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair MacKinnon  continued to discuss fiscal  note 2. The                                                                    
projection  for services  was  $4,400 in  FY  19, $8,800  in                                                                    
FY 20,  $13,100 in  FY 21,  $17,500  FY 22,  and $21,900  in                                                                    
FY 23. Whether the  costs would be realized  depended on the                                                                    
activity of the people of Alaska.                                                                                               
                                                                                                                                
Vice-Chair  Bishop  MOVED  to report  CSSB  78(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 78(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and  with and with  a new fiscal  impact note                                                                    
by  the  Senate  Finance  Committee for  the  Department  of                                                                    
Revenue;  one previously  published  zero  fiscal note:  FN1                                                                    
(LAW); and one previously  published fiscal impact note: FN3                                                                    
(REV).                                                                                                                          
                                                                                                                                
9:16:36 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:18:52 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB 78 Amendment 1 Bishop.pdf SFIN 4/13/2017 9:00:00 AM
SB 78
HB 137 Amendment 1 MacKinnon.pdf SFIN 4/13/2017 9:00:00 AM
HB 137