Legislature(2017 - 2018)SENATE FINANCE 532

04/23/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 147 PUBLIC ACCOUNTING TELECONFERENCED
Moved SSHB 147 Out of Committee
+= HB 176 EMER. MEDICAL TRANSPORT SERVICE PAYMENTS TELECONFERENCED
Moved CSHB 176(FIN) Out of Committee
+= HB 213 PUBLIC SCHOOL TRUST FUND TELECONFERENCED
Moved SCS CSHB 213(FIN) Out of Committee
+= HB 216 CRIMES;RESTITUTION;DIVIDEND FUND TELECONFERENCED
Moved CSSSHB 216(FIN) AM Out of Committee
+= HB 267 RELEASE HUNTING/FISHING RECORDS TO MUNI TELECONFERENCED
Heard & Held
+= HB 400 FEES FOR FIRE PREVENTION MEASURES TELECONFERENCED
Moved HB 400 Out of Committee
+ HB 212 REAA & SMALL MUNI SCHOOL DISTRICT FUND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 213(FIN)(efd fld)                                                                                       
                                                                                                                                
     "An Act relating to the investment, appropriation, and                                                                     
     administration of the public school trust fund."                                                                           
                                                                                                                                
9:15:20 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  discussed a  brief history of  the bill.                                                                    
The public hearing had been opened and closed.                                                                                  
                                                                                                                                
Vice-Chair   Bishop  MOVED   to  ADOPT   proposed  committee                                                                    
substitute  for   CSHB  213(FIN),  Work   Draft  30-LS0765\T                                                                    
(Wallace, 4/18/18).                                                                                                             
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
JULI LUCKY,  STAFF, SENATOR  ANNA MACKINNON,  explained that                                                                    
the CS reflected one change to  the bill that could be found                                                                    
on Page 2, line 23, where  the percentage had been update to                                                                    
5 percent.                                                                                                                      
                                                                                                                                
ALEXEI PAINTER, LEGISLATIVE FINANCE,  stated that the impact                                                                    
of the bill  would be to increase the  draw by approximately                                                                    
$1.4 million  in FY 19,  which was  in the general  range of                                                                    
POMV draws.                                                                                                                     
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
MIKE BARNHILL,  DEPUTY COMMISSIONER, DEPARTMENT  OF REVENUE,                                                                    
concurred with  the change to  the bill as described  by the                                                                    
previous testifiers.                                                                                                            
                                                                                                                                
Co-Chair MacKinnon asked whether                                                                                                
                                                                                                                                
Mr. Barnhill answered in the affirmative.                                                                                       
                                                                                                                                
9:18:34 AM                                                                                                                    
                                                                                                                                
Senator  Olson queried  the lifespan  of the  corpus of  the                                                                    
Public School Trust Fund.                                                                                                       
                                                                                                                                
Mr. Barnhill  replied that the  trust was intended to  be of                                                                    
indefinite duration. The trust would  last forever if it was                                                                    
managed   appropriately,   which   meant   maintaining   the                                                                    
inflation  adjusted  value  of   deposits.  He  assured  the                                                                    
committee  that  the  trust   had  a  substantial  financial                                                                    
cushion at $650  million and a 5 percent draw  over the next                                                                    
10 years should  not reduce the cushion  below the inflation                                                                    
adjusted value of the fund.                                                                                                     
                                                                                                                                
9:20:20 AM                                                                                                                    
                                                                                                                                
Senator  Olson asked  whether the  same would  be true  when                                                                    
considering the legislature's penchant for spending.                                                                            
                                                                                                                                
Mr. Barnhill thought that the  legislature had multiple sets                                                                    
of  stakeholders to  which it  was responsible.  He believed                                                                    
that in the end the  legislative process resulted in prudent                                                                    
expenditures, particularly  in the  case of trust  funds. He                                                                    
relayed  that there  were fiduciary  duties that  applied to                                                                    
the fund  and he  felt that  it would  be unlikely  that the                                                                    
legislature would  intentionally overspend  from a  fund for                                                                    
which fiduciary duties applied.                                                                                                 
                                                                                                                                
9:21:10 AM                                                                                                                    
                                                                                                                                
Senator Stevens  asked whether  the department  would always                                                                    
have a better turnover on investments than the APFC.                                                                            
                                                                                                                                
Mr. Barnhill  answered in the  negative. He spoke  highly of                                                                    
the  investment   management  staff  at  APFC   and  at  the                                                                    
Department of  Revenue. He  stated that  you could  beat the                                                                    
market some of the time, but  it was unlikely that you could                                                                    
beat it  all the  time. He  said that  the challenge  of all                                                                    
investment professionals  was to stay  ahead of the  game as                                                                    
much  as  possible but  sometimes  the  challenges could  be                                                                    
insurmountable.                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  asked  Mr.   Barnhill  to  explain  the                                                                    
revenue stream that went to the Public School Trust Fund.                                                                       
                                                                                                                                
Mr. Barnhill elaborated  that there was a  1 percent revenue                                                                    
stream  that  was  dedicated  to the  fund  by  statute.  He                                                                    
elaborated  that the  revenue  stream had  come in  annually                                                                    
since 1978, which had contributed to the sizeable balance.                                                                      
                                                                                                                                
Co-Chair  MacKinnon  added that  it  had  been difficult  to                                                                    
calculate income from the fund  and to anticipate what could                                                                    
be used  in any given  budget. She  said that the  method in                                                                    
the bill would  provide a clear path for  the legislature to                                                                    
understand the funds available and the "up to" amount.                                                                          
                                                                                                                                
9:23:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JUSTIN PARISH, SPONSOR,  stated that the bill                                                                    
would modernize the Public School  Trust Fund by bringing it                                                                    
up to  the current  standard to  allow a  larger sustainable                                                                    
draw and a high rate of earnings.                                                                                               
                                                                                                                                
Co-Chair  MacKinnon  asked  whether the  sponsor  wanted  to                                                                    
speak to the changes in the cs.                                                                                                 
                                                                                                                                
Representative Parish commented that  the change fell within                                                                    
the industry standard.                                                                                                          
                                                                                                                                
9:24:54 AM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop MOVED  to report SCS CSHB  213(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
SCS CSHB 213(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation and with one  new zero fiscal note from                                                                    
the Department  of Education and Early  Development, one new                                                                    
fiscal  impact  note for  the  Department  of Education  and                                                                    
Early  Development from  the Senate  Finance Committee,  and                                                                    
one  previously  published  fiscal   impact  note  from  the                                                                    
Department of Education and Early Development.                                                                                  
                                                                                                                                
9:25:18 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:27:06 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 147 Summary of Changes ver A to ver J.pdf SFIN 4/23/2018 9:00:00 AM
HB 147
HB 147 Sectional Analysis ver J .pdf SFIN 4/23/2018 9:00:00 AM
HB 147
HB 147 Sponsor Statement ver J.pdf SFIN 4/23/2018 9:00:00 AM
HB 147
HB 147 Supporting Documents.pdf SFIN 4/23/2018 9:00:00 AM
HB 147
HB176 Sponsor Statement.pdf SFIN 4/23/2018 9:00:00 AM
HB 176
HB 176 AML Letter.pdf SFIN 4/23/2018 9:00:00 AM
HB 176
HB176 Letters of Support.pdf SFIN 4/23/2018 9:00:00 AM
HB 176
HB176 Flow Chart.pdf SFIN 4/23/2018 9:00:00 AM
HB 176
HB176 - Explanation of Changes.pdf SFIN 4/23/2018 9:00:00 AM
HB 176
HB 213 Actual vs. POMV bar chart.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Letter to House Finance - Dept. of Revenue.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Letter to House Finance - Dept. of Law.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Sectional Analysis Ver N.A 4-12-2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Sectional Analysis.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Summary of Changes Ver U to N.A 4-12-2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Summary of Changes ver. R 2-8-18.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213 Support letter.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
HB 213--Supportive Letter.pdf SFIN 4/23/2018 9:00:00 AM
HB 213
Hb 216 Legal Opinion Regarding Appropriation Priorities withough a fixed amount 18-057mlp 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB 216 Additional Documents PowerPoint Presentation 4.18.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB 216 Additional Documents Criminal Fund Use Over the Years with Percentages 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB 216 Legal Opinion Regarding Repayments 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents Difference Bertween Restitution and Compensation 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents FY14 Felons Memo 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents FY15 Felons Memo 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents FY16 Felons Memo 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents FY17 Felons Memo 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents FY18 Felons Memo 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents HB245 from 1988 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB 245
HB216 Additional Documents PowerPoint Presentation 4.18.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents PowerPoint Presentation 4.18.2018.pptx SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Documents Victim Restitution Reform in Other States Research 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Additional Materials Restitution Statistics from ACS 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Reference Document LRS Report of 2017 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Restitution Sectional 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Sponsor Statement 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB216 Support Documents 4.14.2018.pdf SFIN 4/23/2018 9:00:00 AM
HB 216
HB 267 CSHB267(RES) Sponsor Statement 2.23.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 AML Testimony.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 CSHB267(RES) Sectional Summary--Release of Hunting and Fishing Records to Municipalities 2.26.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 Explanation of Changes--HB 267 Version D to Version O 2.26.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 Supporting Document--2 Letters Opposed 2.23.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 Supporting Document--Lake and Peninsula Borough Municipal Code Title 6--2.23.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 Supporting Document--Legal Consequences for Violating Confidentiality 2.23.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 Supporting Documents--Letters and Resolutions in Support 2.23.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 267 Supporting Document--SWAMC Resolution 3.8.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 267
HB 400 DPS Letter 041218.pdf SFIN 4/23/2018 9:00:00 AM
HB 400
HB400 Letters of Support.pdf SFIN 4/23/2018 9:00:00 AM
HB 400
HB400 Sectional Analysis.pdf SFIN 4/23/2018 9:00:00 AM
HB 400
HB400 Sponsor Statement.pdf SFIN 4/23/2018 9:00:00 AM
HB 400
HB 212 - Sectional version R.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 - Explanation of changes D to R 4.19.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 - Sponsor Statement 2.16.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 Attachment #1 Districts covered by the bill.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 Attachment #2 REAA Sm School Fund.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 Attachment #3 School School Construction Grant Fund Final List.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 Attachment #4 Major Maintenance List FY19 Final.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 Attachment #5 Legal Opinion.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 Letters of Support 4.19.18.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 212 model_wo SDR.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB212model_w SDR.pdf SFIN 4/23/2018 9:00:00 AM
HB 212
HB 213 work draft version T.pdf SFIN 4/23/2018 9:00:00 AM
HB 213