Legislature(2019 - 2020)SENATE FINANCE 532

04/30/2019 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
Moved CSSB 103(FIN) Out of Committee
Heard & Held
SENATE BILL NO. 103                                                                                                           
     "An Act relating to deposits into the dividend fund                                                                        
     and appropriations from the earnings reserve account;                                                                      
     and providing for an effective date."                                                                                      
10:26:25 AM                                                                                                                   
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for  SB  103, Work  Draft  31-LS0654\G  (Nauman,                                                                    
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
10:27:44 AM                                                                                                                   
JULI LUCKY, STAFF, SENATOR NATASHA  VON IMHOF, discussed the                                                                    
proposed  CS and  read from  a summary  of changes  document                                                                    
(copy on file):                                                                                                                 
     Rewords  the  appropriation   language  to  conform  to                                                                    
     current practice.  The POMV  draw is  appropriated from                                                                    
     the ERA to  the general fund. The  amount available for                                                                    
     appropriation  from the  general fund  to the  dividend                                                                    
     fund is  calculated as  50% of the  POMV draw  [Page 2,                                                                    
     lines  25-27; conforming  changes on  p2, line  31; and                                                                    
     p3, lines 24- 25].                                                                                                         
     Clarifies  the restriction  on appropriating  more from                                                                    
     the ERA than the  allowable POMV draw (currently 5.25%,                                                                    
     reduced  to   5%  for  FY22)  [Page   3,  lines  29-31;                                                                    
     conforming changes on p4, line 27].                                                                                        
     Adds a July 1, 2020 effective date.                                                                                        
     Technical   corrections   recommended  by   Legislative                                                                    
     Removes an  inapplicable reference  [Page 3,  lines 25-                                                                    
     Removes the  sections that  made conforming  changes to                                                                    
     the  Mental  Health  Trust Fund  statutes.  These  were                                                                    
     deemed  unnecessary  by  legal  since  the  net  income                                                                    
     determination is remaining in  statute [Previous sec. 6                                                                    
     & 7].                                                                                                                      
Ms. Lucky  noted that  in the previous  version of  the bill                                                                    
Sections  37.13.145(e)and (f)  had been  repealed. She  said                                                                    
that  it had  been determined  that  only (f)  needed to  be                                                                    
repealed,  (e)  needed  to  be   rewritten.  She  said  that                                                                    
37.13.145(e) made  the statement that the  legislature could                                                                    
not  appropriate  more  from the  earnings  reserve  account                                                                    
(ERA)than was allowed under the POMV draw.                                                                                      
10:30:12 AM                                                                                                                   
Co-Chair von Imhof WITHDREW her objection.                                                                                      
Co-Chair von Imhof reminded that  the bill was a 50-50 split                                                                    
and  a financial  review of  the impacts  of that  split had                                                                    
been  previously discussed.  The bill  replaced the  current                                                                    
statute  for calculating  the Permanent  Fund Dividend.  The                                                                    
bill had an  effective date of July 1, 2020.  She noted that                                                                    
the financial  implications of  the bill  were a  deficit of                                                                    
approximately $800 million.                                                                                                     
10:31:51 AM                                                                                                                   
AT EASE                                                                                                                         
10:33:48 AM                                                                                                                   
Co-Chair von Imhof asked whether  members had any amendments                                                                    
to offer.                                                                                                                       
10:34:20 AM                                                                                                                   
AT EASE                                                                                                                         
10:35:03 AM                                                                                                                   
Co-Chair  Stedman  reviewed  a  new  fiscal  note  from  the                                                                    
Permanent Fund,  OMB Component  2616. He  directed attention                                                                    
to  the analysis  on  the  second page  and  noted that  one                                                                    
column was in millions, while the other was in dollars.                                                                         
10:36:10 AM                                                                                                                   
AT EASE                                                                                                                         
10:36:29 AM                                                                                                                   
Co-Chair  Stedman clarified  that the  fiscal note  had been                                                                    
Co-Chair  Stedman  MOVED  to report  CSSB  103(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
Senator Wielechowski OBJECTED for discussion.                                                                                   
10:37:22 AM                                                                                                                   
Senator Wielechowski he  thought if there was  a change made                                                                    
to the  way that the  permanent fund was calculated,  and if                                                                    
the  statutory  requirement  that the  corporation  transfer                                                                    
funds  from the  ERA to  the dividend  fund were  removed, a                                                                    
change should be made to the state constitution.                                                                                
10:37:57 AM                                                                                                                   
Senator Wilson agreed with Senator Wielechowski.                                                                                
10:38:23 AM                                                                                                                   
Senator Wielechowski MAINTAINED his objection.                                                                                  
A roll call vote was taken on the motion.                                                                                       
IN FAVOR: Wilson, Bishop, Hoffman, Stedman, von Imhof                                                                           
OPPOSED: Wielechowski                                                                                                           
The motion carried (5/1).                                                                                                       
CSSB 103(FIN)  was REPORTED  out of  committee with  one "do                                                                    
pass" recommendation,  and four "amend"  recommendations and                                                                    
with  one  new indeterminate  fiscal  note  from the  Senate                                                                    
Finance Committee for the Department of Revenue.                                                                                
10:38:59 AM                                                                                                                   
AT EASE                                                                                                                         
10:42:00 AM                                                                                                                   
Co-Chair  von  Imhof  explained   that  the  bill  had  been                                                                    
previously heard on April 10 and 29.                                                                                            

Document Name Date/Time Subjects
SB 91 Concerns.pdf SFIN 4/30/2019 9:00:00 AM
SB 91
SB 91 Sponsor Statement, Sectional and project update.pdf SFIN 4/30/2019 9:00:00 AM
SB 91
SB 91 letters of support.pdf SFIN 4/30/2019 9:00:00 AM
SB 91
Hydro presentation 3-18_cw_3_25_18.pdf SFIN 4/30/2019 9:00:00 AM
SB 91
SB 103 Work Draft Version G.pdf SFIN 4/30/2019 9:00:00 AM
SB 103
SB 103 Explanation of Changes SB 103 (FIN).pdf SFIN 4/30/2019 9:00:00 AM
SB 103
SB 104 Work Draft Version K.pdf SFIN 4/30/2019 9:00:00 AM
SFIN 2/4/2020 9:00:00 AM
SB 104
SB 104 Explaination of Changes version K.pdf SFIN 4/30/2019 9:00:00 AM
SFIN 2/4/2020 9:00:00 AM
SB 104
SB 104 Unrestricted General Fund Spreadsheet.pdf SFIN 4/30/2019 9:00:00 AM
SB 104
SB 103 Support Letters.pdf SFIN 4/30/2019 9:00:00 AM
SB 103
SB 104 Support Letter.pdf SFIN 4/30/2019 9:00:00 AM
SB 104