04/26/2021 01:30 PM Senate JUDICIARY

                 SB 53-PERM FUND; ADVISORY VOTE                                                                             
                                                                                                                                
1:55:32 PM                                                                                                                    
CHAIR HOLLAND announced the consideration  of SENATE BILL NO. 53,                                                               
"An Act relating  to use of income of the  Alaska permanent fund;                                                               
relating to the  amount of the permanent  fund dividend; relating                                                               
to  the duties  of the  commissioner of  revenue; relating  to an                                                               
advisory vote on  the permanent fund; providing  for an effective                                                               
date  by repealing  the effective  date of  sec. 8,  ch. 16,  SLA                                                               
2018; and providing for an effective date."                                                                                     
                                                                                                                                
[SB 53 was heard on 4/21/21.]                                                                                                   
                                                                                                                                
1:55:34 PM                                                                                                                    
CHAIR HOLLAND opened public testimony on SB 53.                                                                                 
                                                                                                                                
1:55:57 PM                                                                                                                    
BERT  HOUGHTALING, representing  self, Big  Lake, Alaska,  stated                                                               
his opposition  to SB 53. The  bill will take the  permanent fund                                                               
earnings and  divide it in half.  The legislature may or  may not                                                               
pay  a  permanent   fund  dividend  (PFD)  under   the  bill.  He                                                               
characterized  SB  53  as  similar to  another  bill  before  the                                                               
legislature, SB 75.  He said it would provide a  spending cap but                                                               
would  fund the  capital budget  and operating  budget first.  He                                                               
said  he opposes  any  PFD  bill that  does  not  follow the  PFD                                                               
statutory formula.                                                                                                              
                                                                                                                                
1:57:40 PM                                                                                                                    
CHAIR HOLLAND closed public testimony on SB 53.                                                                                 
                                                                                                                                
1:57:50 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:59:36 PM                                                                                                                    
CHAIR HOLLAND reconvened the meeting                                                                                            
                                                                                                                                
2:00:04 PM                                                                                                                    
CHAIR HOLLAND reopened public testimony on SB 53.                                                                               
                                                                                                                                
2:00:28 PM                                                                                                                    
ED MARTIN,  representing self, Sterling,  Alaska, stated  that if                                                               
SB 53  does not go back  to the original statutory  formula based                                                               
on  a five-year  average of  the permanent  fund and  pay out  50                                                               
percent in  PFDs, it would  not meet the advisory  vote criteria.                                                               
He offered  his view  that during the  original advisory  vote to                                                               
establish the PFDs several issues  arose, including the sentiment                                                               
that  the  legislature should  not  touch  the  PFD or  create  a                                                               
percent-of-market-value  (POMV).  However,  the  legislature  has                                                               
done  this.   Therefore,  he  has  reservations   about  using  a                                                               
different  formula.  He suggested  that  using  the POMV  may  be                                                               
unconstitutional.  He  said  he favors  enshrining  the  original                                                               
statutory formula for the PFD in the Alaska Constitution.                                                                       
                                                                                                                                
2:02:53 PM                                                                                                                    
JEAN   HOLT,  representing   self,  Palmer,   Alaska,  spoke   in                                                               
opposition to SB  53. She echoed the comments  of Mr. Houghtaling                                                               
by speaking in  support of maintaining PFDs  and placing language                                                               
in the Alaska Constitution to require it, if necessary.                                                                         
                                                                                                                                
[SB 53 was held in committee.]