Legislature(2017 - 2018)BUTROVICH 205

02/28/2017 03:30 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 46 OCT 25: AFR-AMER SOLDIERS AK HWY DAY TELECONFERENCED
Moved SB 46 Out of Committee
-- Public Testimony --
+= SB 21 PERMANENT FUND: INCOME; POMV; DIVIDENDS TELECONFERENCED
Moved SB 21 Out of Committee
+= SB 26 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                       February 28, 2017                                                                                        
                           3:31 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Dunleavy, Chair                                                                                                    
Senator David Wilson                                                                                                            
Senator Cathy Giessel                                                                                                           
Senator Dennis Egan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator John Coghill                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 46                                                                                                              
"An Act establishing October 25  of each year as African American                                                               
Soldiers' Contribution to Building the Alaska Highway Day."                                                                     
                                                                                                                                
     - MOVED SB 46 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 21                                                                                                              
"An Act relating to appropriations  from the income of the Alaska                                                               
permanent  fund; relating  to the  calculation of  permanent fund                                                               
dividends; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED SB 21 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 26                                                                                                              
"An Act  relating to the  Alaska Permanent Fund  Corporation, the                                                               
earnings of the  Alaska permanent fund, and  the earnings reserve                                                               
account; relating  to the mental  health trust fund;  relating to                                                               
deposits into the  dividend fund; relating to  the calculation of                                                               
permanent fund dividends; relating  to unrestricted state revenue                                                               
available  for  appropriation;  and providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 46                                                                                                                   
SHORT TITLE: OCT 25: AFRICAN-AMERICAN SOLDIERS ALASKA HWY DAY                                                                   
SPONSOR(s): SENATOR(s) WILSON                                                                                                   
                                                                                                                                
02/01/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/01/17       (S)       TRA, STA                                                                                               
02/14/17       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
02/14/17       (S)       Heard & Held                                                                                           
02/14/17       (S)       MINUTE(TRA)                                                                                            
02/16/17       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
02/16/17       (S)       Moved SB 46 Out of Committee                                                                           
02/16/17       (S)       MINUTE(TRA)                                                                                            
02/17/17       (S)       TRA RPT 4DP                                                                                            
02/17/17       (S)       DP: STEDMAN, BISHOP, WILSON, EGAN                                                                      
02/28/17       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 21                                                                                                                   
SHORT TITLE: PERMANENT FUND: INCOME; POMV; DIVIDENDS                                                                            
SPONSOR(s): SENATOR(s) STEDMAN                                                                                                  
                                                                                                                                
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       STA, FIN                                                                                               
02/02/17       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
02/02/17       (S)       Heard & Held                                                                                           
02/02/17       (S)       MINUTE(STA)                                                                                            
02/16/17       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
02/16/17       (S)       Heard & Held                                                                                           
02/16/17       (S)       MINUTE(STA)                                                                                            
02/21/17       (S)       STA AT 4:30 PM BUTROVICH 205                                                                           
02/21/17       (S)       Heard & Held                                                                                           
02/21/17       (S)       MINUTE(STA)                                                                                            
02/22/17       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
02/22/17       (S)       -- MEETING CANCELED --                                                                                 
02/28/17       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR DAVID WILSON                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 46.                                                                                         
                                                                                                                                
GARY ZEPP, Staff                                                                                                                
Senator David Wilson                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 46.                                                                            
                                                                                                                                
KATRINA BEVERLY GILL, representing self                                                                                         
State of Maryland                                                                                                               
POSITION STATEMENT: Testified in support of SB 46.                                                                            
                                                                                                                                
JEAN POLLARD, Chair                                                                                                             
Alaska Highway Memorial Project                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 46.                                                                            
                                                                                                                                
VERDIE BOWEN, Director                                                                                                          
Office of Veterans Affairs                                                                                                      
Alaska Department of Military and Veterans Affairs                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 46.                                                                            
                                                                                                                                
BERT LARKINS, representing self                                                                                                 
New Orleans, Louisiana                                                                                                          
POSITION STATEMENT: Testified in support of SB 46.                                                                            
                                                                                                                                
MARK FISH, representing self                                                                                                    
Big Lake, Alaska                                                                                                                
POSITION STATEMENT: Testified in opposition of SB 46.                                                                         
                                                                                                                                
KAREN JONES, representing self                                                                                                  
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in opposition of SB 46.                                                                         
                                                                                                                                
SENATOR BERT STEDMAN                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 21.                                                                                         
                                                                                                                                
CHRISTA MCDONALD, Staff                                                                                                         
Senator Mike Dunleavy                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Reviewed Amendment 1 for SB 21.                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:31:23 PM                                                                                                                    
CHAIR MIKE DUNLEAVY called the Senate State Affairs Standing                                                                  
Committee meeting to order at 3:31 p.m. Present at the call to                                                                  
order were Senators Wilson, Giessel, Egan, and Chair Dunleavy.                                                                  
                                                                                                                                
                                                                                                                                
     SB 46-OCT 25: AFRICAN-AMERICAN SOLDIERS AK HIGHWAY DAY                                                                 
                                                                                                                                
3:31:57 PM                                                                                                                    
CHAIR DUNLEAVY announced the consideration of SB 46.                                                                            
                                                                                                                                
3:32:27 PM                                                                                                                    
SENATOR DAVID WILSON, Alaska State Legislature, Juneau, Alaska,                                                                 
sponsor of SB 46, read the sponsor statement for SB 46 as                                                                       
follows:                                                                                                                        
                                                                                                                                
     Senate Bill 46 recognizes the contributions of African                                                                     
     American Soldiers  in building  the Alaska  Highway and                                                                    
     commemorates    those    extraordinary    efforts    by                                                                    
                                                                                                                                
     establishing   October   25thas     "African   American                                                                    
     Soldiers' Contribution  to Building the  Alaska Highway                                                                    
     Day."                                                                                                                      
                                                                                                                                
                                                                                                                                
      Why October 25th? On this day, African American Army                                                                      
                                                                                                                                
     troops of the  93rdand  95thregiments  constructing the                                                                    
     Alaska-Canadian  (ALCAN)  Highway   north  from  Dawson                                                                    
     Creek,  met the  white  troops  constructing the  ALCAN                                                                    
     Highway  heading south.  The troops  connected the  two                                                                    
     segments on  October 25, 1942,  at Contact  Creek, near                                                                    
     Mile Post 590 in the Yukon Territory.                                                                                      
                                                                                                                                
                                                                                                                                
     Four regiments of African American Army Engineers from                                                                     
                                                                                                                                
     the 93rd,95th,  and  the 97thEngineer  General Services                                                                    
                               th                                                                                               
     Regiments   and  the   388Engineer      Battalion  were                                                                    
     deployed  to Alaska  to assist  in  building the  1,500                                                                    
     miles of road  (The highway cost $138  million to build                                                                    
     at that  time). The 10,607  men, of which a  third were                                                                    
     African American,  built the  road in eight  months and                                                                    
     12   days.   This  extraordinary   accomplishment   was                                                                    
     compared to the construction of the Panama Canal.                                                                          
                                                                                                                                
                                                                                                                                
        Little recognition has been given to the African                                                                        
     American soldiers  for their contributions  in building                                                                    
     the ALCAN Highway; for example:                                                                                            
        · The National Archives contains only a few dozen                                                                       
          photos of the African American troops among the                                                                       
          hundreds taken of the ALCAN Highway construction;                                                                     
        · African Americans were edited out of a 1991                                                                           
          National Geographic feature  on the ALCAN highway,                                                                    
          despite  the  fact   that  the  magazine  obtained                                                                    
          interviews of  seven men  who served  building the                                                                    
          ALCAN;                                                                                                                
                                                                                                                                
        · And, the official 759-page U.S. Army history of                                                                       
          the Corps of Engineers covers African Americans'                                                                      
          involvement with a one-sentence footnote.                                                                             
                                                                                                                                
     The road was built as an overland route across Alaska                                                                      
     during World War  II (WW II) for  strategic purposes in                                                                    
     our  country's  fight  against Japanese  aggression.  A                                                                    
     shortage of  manpower early  in WW II  led to  the U.S.                                                                    
     Army's  decision to  send  African  American troops  to                                                                    
     Alaska to assist in the ALCAN Highway construction.                                                                        
                                                                                                                                
                                                                                                                                
    At the formal dedication of the road, Brigadier General                                                                     
     James  A. O'Connor  singled  out  the African  American                                                                    
     troops   for   special    recognition,   "Someday   the                                                                    
     accomplishments  of these  African American  soldiers -                                                                    
     achievements accomplished  far from their homes  - will                                                                    
     occupy  a  major  place  in   the  lore  of  the  North                                                                    
     country," he promised. Because  of the African American                                                                    
     troop's    performance   in    contributing   to    the                                                                    
     construction  of   the  ALCAN  Highway,   military  and                                                                    
     civilian  leaders  decided  to  desegregate  the  armed                                                                    
     services  in 1948.  The Federal  Highway Administration                                                                    
     has  called  the  ALCAN Highway,  "the  road  to  civil                                                                    
     rights."                                                                                                                   
                                                                                                                                
                                                                                                                                
       This year, 2017, marks the 75thanniversary of the                                                                        
     ALCAN Highway. It's fitting we  recognize these men and                                                                    
     celebrate  their  contributions   in  constructing  the                                                                    
     ALCAN Highway!                                                                                                             
                                                                                                                                
3:35:09 PM                                                                                                                    
GARY ZEPP, Staff, Senator David Wilson, Alaska State                                                                            
Legislature, Juneau, Alaska, read an introductory overview of SB                                                                
46 as follows:                                                                                                                  
                                                                                                                                
     On December  7, 1941, the Japanese  bombed Pearl Harbor                                                                    
     in Hawaii. America's  next concern of World  War II was                                                                    
     how close  Alaska was to  Japan and that fear  became a                                                                    
     reality after the Japanese bombed  Dutch Harbor on June                                                                    
     3  and  June 4,  and  invaded  Attu  and Kiska  in  the                                                                    
     Aleutian Islands  in 1942 as well.  American's reaction                                                                    
     was  to  build  an  overland route  across  Alaska  and                                                                    
     Canada  in   order  to  support  the   troops  and  the                                                                    
     supplies. This  had to be accomplished  quickly and the                                                                    
     U.S. troops  met the call;  they finished  the original                                                                    
     Alaska highway  in eight  months and  a few  days. This                                                                    
     was  an  extraordinary engineering  accomplishment  for                                                                    
     its time.  Most African-American soldiers at  that time                                                                    
     were delegated  to labor projects and  not usually sent                                                                    
     into  battle  because   the  military's  assessment  of                                                                    
     African-American   soldiers    was   thought    to   be                                                                    
     substandard when  compared to  white troops  and skills                                                                    
     and   literacy;  that   changed   after  the   original                                                                    
     construction of the Alaska Highway.                                                                                        
                                                                                                                                
3:36:29 PM                                                                                                                    
MR. ZEPP explained the reason for commemorating October 25 as                                                                   
follows:                                                                                                                        
                                                                                                                                
     Why October  25th as Senator Wilson  stated? Two crews,                                                                    
     one  moving north  and one  moving south  completed the                                                                    
     road's  last link.  Later the  New York  Times reported                                                                    
     what happened  when they,  "met head  on in  the spruce                                                                    
     forest  of  the  Yukon  Territory."  This  is  Corporal                                                                    
     Refines   Sims   Jr.,    an   African   American   from                                                                    
     Philadelphia, who was driving  south with his bulldozer                                                                    
     when he started  to see trees toppling over  on him, on                                                                    
     the other  side he slammed  his vehicle in  reverse and                                                                    
     backed out just as  another bulldozer driven by Private                                                                    
     Alfred  Jalufka of  Kennedy, Texas,  broke through  the                                                                    
     underbrush.  The   wire-service  photographer  captured                                                                    
     this image,  one African  American, one  white standing                                                                    
     on their respective bulldozers,  this occurred 20 miles                                                                    
     east  of   the  Alaska-Yukon  border  as   the  senator                                                                    
     referred to; an article  in the Engineering News Record                                                                    
     described it  as, "Two races working  together to build                                                                    
     a lifeline  to Alaska's defenders  amidst spectacularly                                                                    
     rugged terrain and horrendous weather conditions."                                                                         
                                                                                                                                
He reviewed a map of the Alaska Highway and commented as                                                                        
follows:                                                                                                                        
                                                                                                                                
     The  Alaska Highway  is considered  one of  the biggest                                                                    
     and   most   difficult   construction   projects   ever                                                                    
     completed by the U.S. Corps  of Engineers; it stretches                                                                    
     1,422  miles from  Dawson Creek,  British Columbia,  to                                                                    
     Delta Junction  Alaska, at  a cost  of $138  million in                                                                    
     1942,  taking  that  in  today's  dollars  equals  $2.1                                                                    
     billion.  As   a  side   note  and   to  put   it  into                                                                    
     perspective,  on March  30,  1867,  Secretary of  State                                                                    
     William  Seward   reached  agreement  with   Russia  to                                                                    
     purchase  Alaska   for  $7.2  million,   that's  $112.2                                                                    
     million in today's dollars.                                                                                                
                                                                                                                                
3:38:23 PM                                                                                                                    
MR. ZEPP presented a video: Alaska Highway - "The Road to Civil                                                                 
Rights."                                                                                                                        
                                                                                                                                
3:42:52 PM                                                                                                                    
He thanked the National Park Service and the U.S. Department of                                                                 
Interior for the video. He continued his presentation as                                                                        
follows:                                                                                                                        
                                                                                                                                
     The  African American  Army  regiments  that built  the                                                                    
     Alaska   Highway    established   a    reputation   for                                                                    
     excellence,   especially  in   the   field  of   bridge                                                                    
     building; however,  their accomplishments  were ignored                                                                    
     by  mainstream media  and press.  It  took decades  for                                                                    
     them   to   receive   proper  recognition   for   their                                                                    
     achievements. Some say they were  as "legendary" as the                                                                    
     Tuskegee Airmen and the Buffalo Soldiers.                                                                                  
                                                                                                                                
He addressed "Why the recognition of the African American                                                                       
Soldiers?" as follows:                                                                                                          
                                                                                                                                
     It's  about  historical   context.  Race  relations  in                                                                    
     America were  very different in 1942  and opportunities                                                                    
     for African  Americans were rare and  expectations were                                                                    
     low.  Racial  segregation  included:  housing,  medical                                                                    
     care,    education,    transportation,    and    social                                                                    
     segregation    (restaurants,     drinking    fountains,                                                                    
     bathrooms, etc.).                                                                                                          
                                                                                                                                
     The  movie  "Alaska  at  War"   was  a  documentary  on                                                                    
     Alaska's role in  World War II, such as  the opening of                                                                    
     oil fields,  the Japanese bombing of  Dutch Harbor, the                                                                    
     struggle  to recapture  the Aleutian  Islands, and  the                                                                    
     construction of  the highway. "Not on  African American                                                                    
     soldier was  shown in the  movie," stated  Eugene Long,                                                                    
     who  was   enlisted  in  the  95th   Engineer  Regiment                                                                    
     deployed  to Alaska  to assist  in building  the Alaska                                                                    
     Highway.                                                                                                                   
                                                                                                                                
3:44:17 PM                                                                                                                    
MR. ZEPP addressed "Why the recognition of the African American                                                                 
Soldiers?" by considering the following timeline for the                                                                        
Safeguards of Civil Rights:                                                                                                     
                                                                                                                                
   · 1865:   13th  Amendment   to   the  U.S.   Constitution                                                                    
     abolished slavery and involuntary servitude.                                                                               
   · 1868: 14th  Amendment of the U.S.  Constitution granted                                                                    
     U.S. citizenship to former slaves.                                                                                         
   · 1870: 15th Amendment to  the U.S. Constitution provided                                                                    
     African American men the right to vote.                                                                                    
   · 1875:  The Civil  Rights  Act of  1875  was passed  and                                                                    
     forbid racial segregation in accommodations.                                                                               
   · 1896:    U.S.     Supreme    Court     sustained    the                                                                    
     constitutionality   of  Louisiana's   requirement  that                                                                    
     railroad   companies  provide   "separate  but   equal"                                                                    
     accommodations for white and black passengers.                                                                             
   · Over  the   next  25-35   years,  equality   in  racial                                                                    
     relations  progress  was   lost,  particularly  in  the                                                                    
     South.  By  1910,  segregation was  firmly  established                                                                    
     across the South and most of the border region.                                                                            
   · 1954: Legal  segregation in schools  was banned  in the                                                                    
     U.S.  after a  series of  rulings in  the U.S.  Supreme                                                                    
     Court.                                                                                                                     
   · 1964:  All  legally  enforced  public  segregation  was                                                                    
     abolished by the Civil Rights Act.                                                                                         
                                                                                                                                
     The   U.S.  War   Department's  tradition   and  policy                                                                    
     mandated  the  segregation  of African  Americans  into                                                                    
     separate  units,  led  by white  officers.  During  the                                                                    
     construction  of the  Alaska Highway,  African American                                                                    
     troops were ordered  to not leave camp  and mingle with                                                                    
     the locals,  while the whites  were allowed  to mingle.                                                                    
     They   were   treated    unequally   and   yet   defied                                                                    
     expectations  in  many   situations,  with  even  fewer                                                                    
     resources.                                                                                                                 
                                                                                                                                
He addressed "Why the recognition of the African American                                                                       
Soldiers?" as follows:                                                                                                          
                                                                                                                                
     Little press or mainstream media  has been given to the                                                                    
     African  American soldiers,  examples  of  the lack  of                                                                    
     press coverage of the African American troops include:                                                                     
                                                                                                                                
        · National Archives contains only a few dozen                                                                           
          photos among the hundreds taken of the Alaska                                                                         
          Highway construction.                                                                                                 
        · African Americans were edited out of a 1991                                                                           
          National  Geographic   feature  on   the  highway,                                                                    
          despite  the  fact   that  the  magazine  obtained                                                                    
          interviews of  seven men  who served  building the                                                                    
          Alaska Highway.                                                                                                       
        · A souvenir booklet, "Alaska Highway, Army Service                                                                     
          Forces," published in 1944 includes 100 photos                                                                        
          but only one of an African American soldier.                                                                          
        · The official 759-page U.S. Army history of the                                                                        
          Corps covers African American troop involvement                                                                       
          with a one-sentence footnote.                                                                                         
                                                                                                                                
3:46:40 PM                                                                                                                    
MR. ZEPP addressed "Why the recognition of the African American                                                                 
Soldiers?" as follows:                                                                                                          
                                                                                                                                
     This event  and others  that followed during  World War                                                                    
     II  influenced our  American leaders  and some  believe                                                                    
     that  it  was a  turning  point  in race  relations  in                                                                    
     American. By  1948, President Truman signed  into law a                                                                    
     desegregation plan for the armed forces.                                                                                   
                                                                                                                                
     In 1992, Colin Powell, Chairman  of the Joint Chiefs of                                                                    
     Staff,  after  seeing  Ms.  Lael  Morgan's  exhibit  in                                                                    
     Fairbanks stated,  "I had  no idea  black men  had done                                                                    
     anything   like   this."   "They   are   deserving   of                                                                    
     recognition."                                                                                                              
                                                                                                                                
     Douglas  Brinley,   Rice  University   Historian,  "The                                                                    
     Alaska Highway was not only  the greatest feat of World                                                                    
     War II; it is a triumph over racism."                                                                                      
                                                                                                                                
     General  James  O'Connor,  during  the  Alaska  Highway                                                                    
     dedication stated, "Someday  the accomplishments of the                                                                    
     African American troops'  achievements accomplished far                                                                    
     from their home  will occupy a major place  in the lore                                                                    
     of the North country."                                                                                                     
                                                                                                                                
     This happened in Alaska.                                                                                                   
                                                                                                                                
MR. ZEPP presented a video presentation on the Alaska Highway                                                                   
that featured Mr. Reginald Beverly, 95th Engineer Regiment. He                                                                  
disclosed that Mr. Beverly is currently 102 years old.                                                                          
                                                                                                                                
3:49:06 PM                                                                                                                    
He addressed "Acknowledgment and Thanks" as follows:                                                                            
                                                                                                                                
     The  legacy  of  the  African  American  Army  soldiers                                                                    
     wouldn't be  known today  nor officially  recognized by                                                                    
     the military  if not for  the works  of many.   Just to                                                                    
     name a few:                                                                                                                
                                                                                                                                
        · The U.S. Park Service;                                                                                                
        · U.S. Army Corp of Engineers;                                                                                          
        · Heath Twitchell Jr. (Historian);                                                                                      
        · James Eaton (Curator of the Black History Archive                                                                     
          at Florida A&M University);                                                                                           
        · Ted Stevens (U.S. Senator);                                                                                           
        · Andrew Molloy (Head of Pentagon's Affirmative                                                                         
          Action Office);                                                                                                       
        · Colin Powell (Retired Four Star General);                                                                             
        · Stan Cohen (Author);                                                                                                  
        · John Virtue (Author);                                                                                                 
        · Mike Dunham (Anchorage Daily News);                                                                                   
        · Cornelia Dean (New York Times);                                                                                       
        · Tim Ellis (KUAC News);                                                                                                
        · Rickie Longfellow (News Writer);                                                                                      
        · Bill Gifford (Washington City Paper);                                                                                 
        · Kani Saburi Ayubu (Black Art Depot Today);                                                                            
        · Douglas Brinley (Rice University-Historian);                                                                          
        · Jean Pollard (Educator);                                                                                              
        · Lael Morgan (University of Alaska-Professor of                                                                        
          Journalism).                                                                                                          
                                                                                                                                
     Thank you all for  your contributions in revealing this                                                                    
     remarkable story  and your support of  Senate Bill 46's                                                                    
     efforts to establish October  25th as "African American                                                                    
     Soldiers' Contribution  to Building the  Alaska Highway                                                                    
     Day."                                                                                                                      
                                                                                                                                
He  encouraged all  Alaskans and  visitors to  attend the  Alaska                                                               
Highway's  75th anniversary  events throughout  the state  during                                                               
the upcoming summer.                                                                                                            
                                                                                                                                
CHAIR DUNLEAVY thanked  Mr. Zepp for his  presentation. He opened                                                               
invited testimony for SB 46.                                                                                                    
                                                                                                                                
3:50:56 PM                                                                                                                    
KATRINA  BEVERLY  GILL,  representing self,  State  of  Maryland,                                                               
testified  in support  of SB  46. She  revealed that  she is  the                                                               
daughter  of Veteran  Reginald Beverly,  previously noted  in Mr.                                                               
Zepp's  presentation. She  detailed that  Mr. Beverly  is one  of                                                               
over 4,000 black soldiers who  built the Alaskan Highway in 1942.                                                               
She  provided  the  committee  with   details  of  Mr.  Beverly's                                                               
experience  in  building  the  ALCAN   Highway  as  well  as  his                                                               
educational  and  vocational  history.  She set  forth  that  she                                                               
supported  SB  46  to  recognize  the  contributions  of  African                                                               
American  soldiers  who  worked  extremely  hard  on  the  Alaska                                                               
Highway and completed  the task in record time prior  to the time                                                               
that was given.                                                                                                                 
                                                                                                                                
CHAIR DUNLEAVY thanked  Ms. Gill and Mr. Beverly  for his service                                                               
to his country.                                                                                                                 
                                                                                                                                
3:55:18 PM                                                                                                                    
JEAN POLLARD, Chair, Alaska  Highway Memorial Project, Anchorage,                                                               
Alaska, testified in  support of SB 46. She set  forth that it is                                                               
time to recognize the achievements  of the African Americans that                                                               
built the Alaska Highway. She  noted that when she graduated from                                                               
college  she  did  not  know  about the  history  of  the  Alaska                                                               
Highway.  She  stated   that  SB  46  will   ensure  that  future                                                               
generations  will learn  about the  contributions of  the African                                                               
American soldiers that built the Alaska Highway.                                                                                
                                                                                                                                
4:00:53 PM                                                                                                                    
VERDIE  BOWEN,  Director,  Office  of  Veterans  Affairs,  Alaska                                                               
Department of  Military and Veterans Affairs,  Anchorage, Alaska,                                                               
testified  in support  of SB  46. He  remarked that  the greatest                                                               
aspect of SB 46  is the fact that it recognizes  a third of those                                                               
that built the Alaska Highway and  did so with less than the rest                                                               
of  the  soldiers.  He  said  the  contribution  by  the  African                                                               
American soldiers  proved that under great,  extreme difficulties                                                               
that not only were they the  same soldier, but equal too. He said                                                               
what the African American soldiers  did on the Alaska Highway was                                                               
just as  significant as the military  desegregation that occurred                                                               
in 1948.                                                                                                                        
                                                                                                                                
4:02:30 PM                                                                                                                    
BERT   LARKINS,  representing   self,  New   Orleans,  Louisiana,                                                               
testified in  support of SB 46.  He revealed that his  father was                                                               
one  of the  black soldiers  that  built the  Alaska Highway.  He                                                               
disclosed that  his father was  ecstatic when he heard  the black                                                               
soldiers that  built the Alaska  Highway would be  recognized for                                                               
their accomplishment.                                                                                                           
                                                                                                                                
4:05:28 PM                                                                                                                    
MARK  FISH, representing  self,  Big Lake,  Alaska, testified  in                                                               
opposition of SB 46. He asked  that SB 46 be amended to recognize                                                               
all soldiers  for an  Alaska Highway Day.  He disclosed  that his                                                               
grandfather  had worked  on constructing  the  ALCAN Highway.  He                                                               
admitted that the  bill is well intended, but  informed that both                                                               
blacks  and whites  had  worked together  in  a racially  divided                                                               
country for a common cause in building the ALCAN Highway.                                                                       
                                                                                                                                
4:08:31 PM                                                                                                                    
KAREN  JONES, representing  self, Wasilla,  Alaska, testified  in                                                               
opposition  of SB  46.  She asked  that the  bill  be amended  to                                                               
include  all  soldiers.  She  disclosed that  her  father  was  a                                                               
civilian contractor  on the  Alaska Highway.  She noted  that her                                                               
father  endured  challenging   conditions  during  the  highway's                                                               
construction.  She  revealed  that  12-men  died  on  a  resupply                                                               
mission during construction. She  pointed out that recent history                                                               
has  noted  the contribution  of  black  soldiers in  the  Alaska                                                               
Highway's construction.  She stated that  October 25 should  be a                                                               
date that recognizes all that  had served during a most difficult                                                               
time in the nation's history.                                                                                                   
                                                                                                                                
4:12:26 PM                                                                                                                    
CHAIR DUNLEAVY closed public testimony.                                                                                         
                                                                                                                                
4:12:42 PM                                                                                                                    
SENATOR GIESSEL moved to report  SB 46, version 30-LS0431\A, from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note.                                                                                                                    
                                                                                                                                
4:12:54 PM                                                                                                                    
CHAIR DUNLEAVY  announced that  there being  no objection,  SB 46                                                               
moved from the Senate State Affairs Standing Committee.                                                                         
                                                                                                                                
SENATOR GIESSEL commented as follows:                                                                                           
                                                                                                                                
     I am happy to support this bill, but one of the things                                                                     
     that I can't fail to notice is the Corps of Engineers                                                                      
     approved  this building  of the  road through  wetlands                                                                    
     and permafrost,  it was built  in less than a  year, if                                                                    
     only we could do that today.                                                                                               
                                                                                                                                
CHAIR DUNLEAVY  reiterated that  SB 46  moved from  committee. He                                                               
noted that the  Delta Junction area will be  having a celebration                                                               
during  the  upcoming  summer  in  commemoration  of  the  Alaska                                                               
Highway's completion.                                                                                                           
                                                                                                                                
4:13:48 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
         SB 21-PERMANENT FUND: INCOME; POMV; DIVIDENDS                                                                      
                                                                                                                                
4:14:51 PM                                                                                                                    
CHAIR DUNLEAVY announced the consideration  of SB 21. He declared                                                               
that public testimony is closed on SB 21.                                                                                       
                                                                                                                                
4:15:11 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
4:15:48 PM                                                                                                                    
CHAIR  DUNLEAVY called  the  committee back  to  order. He  asked                                                               
Senator Stedman, sponsor  of SB 21, if he had  any final comments                                                               
or remarks.                                                                                                                     
                                                                                                                                
4:15:57 PM                                                                                                                    
SENATOR BERT  STEDMAN, Alaska State Legislature,  Juneau, Alaska,                                                               
sponsor of SB 21,  said the bill is an integral  part of a fiscal                                                               
solution for Alaska. He commented as follows:                                                                                   
                                                                                                                                
     There are  a lot  of Alaskans  that are  very concerned                                                                    
     that as  we try to  move through to a  fiscal solution,                                                                    
     the biggest pot  of gold is the  permanent fund sitting                                                                    
     there, roughly $57 billion, a  very large, sweet target                                                                    
     of  which  we could  probably  appropriate,  us in  the                                                                    
     Legislature, somewhere  around currently $8  billion or                                                                    
     $9 billion and  then maybe an additional  $4 billion or                                                                    
     so of unrealized earnings. It's  very easy to go in for                                                                    
     us in the Legislature to  appropriate large sums out of                                                                    
     the permanent fund.                                                                                                        
                                                                                                                                
     The concern  is as  we move  forward to  try to  find a                                                                    
     fiscal solution  is that we  ensure that  the viability                                                                    
     of the  permanent fund  stays intact  and that  we that                                                                    
     were  fortunate enough  to live  through  the vast  oil                                                                    
     boom of the last four  decades leaves something for our                                                                    
     kids and  our children's  children on into  the future,                                                                    
     that we  don't over the  next decade just  liquidate it                                                                    
     or  cripple  it  in  a significant  way.  We  are  very                                                                    
     fortunate to  be stewards of  the subsurface  assets in                                                                    
     the State of  Alaska unlike all other  states, and it's                                                                    
     incumbent  upon   us  to  look  forward   to  the  next                                                                    
     generation.                                                                                                                
                                                                                                                                
     Senate Bill 21 would  basically ring-fence or set aside                                                                    
     and   protect   the   permanent   fund   from   adverse                                                                    
     withdrawals  setting  up  a  percent  of  market  value                                                                    
     management  approach to  it where  you could  only take                                                                    
     out 4.5 percent per year  of a 5-year moving average of                                                                    
     the fund  going back 6  years; and that  [4.5] percent,                                                                    
     50   percent  of   that  would   go  automatically   to                                                                    
     dividends, which is 2.25 percent,  the other 50 percent                                                                    
     would  be  available  for  us  in  the  Legislature  to                                                                    
     appropriate  either to  the general  fund to  deal with                                                                    
     fiscal  issues at  the time,  when  clearly that's  the                                                                    
     time we have  today, but looking forward  there will be                                                                    
     a  time when  it's not  needed and  we can  appropriate                                                                    
     that back to  the permanent fund to  make the permanent                                                                    
     fund  grow faster,  or add  it to  the dividends  if we                                                                    
     want to increase the dividends.                                                                                            
                                                                                                                                
     Now  this  structure is  set  up  ignoring the  current                                                                    
     fiscal  position  of the  state;  in  other words,  the                                                                    
     percentage  withdrawal amount  is driven  by the  asset                                                                    
     allocation  of  the fund  and  its  goal  is to  be  in                                                                    
     perpetuity. That 4.5 percent  would allow the permanent                                                                    
     fund  to  not change  its  management  style and  would                                                                    
     block  us from  taking more  than 4.5  percent out  per                                                                    
     year. It just  so happens we are around  the mid-50s in                                                                    
     billions  in the  permanent fund,  if we  were at  $100                                                                    
     billion it would be double  the numbers, and if we were                                                                    
     at  $25  billion it  would  be  half the  numbers.  The                                                                    
     dividend  calculation defaults  out  at  $1,700; now  I                                                                    
     know  some folks  around the  state might  think that's                                                                    
     too big of  a dividend and some folks  might think it's                                                                    
     too small of a dividend, but  it's a 50-50 split and it                                                                    
     happens to  be the time  frame we are in  allowing that                                                                    
     balance to be measured at about $55 billion.                                                                               
                                                                                                                                
     So  that  Mr. Chairman  is  what  is  in front  of  the                                                                    
     committee  on a  second hearing.  I think  there's some                                                                    
     amendments  and  some  other discussions,  but  I  just                                                                    
     wanted  to take  a  few  minutes to  frame  it for  the                                                                    
     people at  home because this  is not a bill  that fixes                                                                    
     our  physical deficit,  it  is a  bill  to protect  the                                                                    
     permanent fund from us, the  Legislature, and to ensure                                                                    
     that we have an intact,  vast amount of wealth from our                                                                    
     oil  boom  going  forward   to  future  generations  of                                                                    
     Alaskans  and   we  are  not   talking  two   or  three                                                                    
     generations, we are talking in perpetuity.                                                                                 
                                                                                                                                
4:20:51 PM                                                                                                                    
SENATOR GIESSEL commented as follows:                                                                                           
                                                                                                                                
     I appreciate  the carefulness that Senator  Stedman has                                                                    
     put  into  this  bill.  I especially  like  that  50-50                                                                    
     split.  Certainly,  citizens  at home  receiving  their                                                                    
     check in  the mail can say,  "Okay, this is how  much I                                                                    
     got and  I know how  much government got, I'm  going to                                                                    
     keep  an eye  on how  they  spend the  50 percent  they                                                                    
     got."  I  think  that  would   create  a  more  engaged                                                                    
     citizenry and that's a good thing.                                                                                         
                                                                                                                                
CHAIR DUNLEAVY asked Senator Stedman if he wanted to touch upon                                                                 
the future of the fund someday that there may be discussions                                                                    
about constitutionalization.                                                                                                    
                                                                                                                                
SENATOR STEDMAN explained as follows:                                                                                           
                                                                                                                                
     I've been  asked how come  I didn't write the  bill and                                                                    
     come  forward  with  a constitutional  amendment,  it's                                                                    
     because  clearly, it's  the constitution  that protects                                                                    
     the corpus  of the permanent  fund, we cannot  spend it                                                                    
     without authorization  of the people. We  can spend and                                                                    
     have  the  authority  to as  the  Legislature,  as  the                                                                    
     appropriators, all of the  earnings and trading profits                                                                    
     of the fund which we call the earnings reserve.                                                                            
                                                                                                                                
     There  are two  reasons  why it's  not  requested as  a                                                                    
     constitutional  amendment  today.  Number  one  is  the                                                                    
     cash-flow draws  and needs  in the  current environment                                                                    
     of the  state, I don't  think we  have the time  to get                                                                    
     there  right  away.  Also,  I would  like  to  see  the                                                                    
     opportunity for all of us  in the Legislature to have a                                                                    
     discussion  with our  constituents  to  make sure  that                                                                    
     they are  onboard in protecting the  permanent fund for                                                                    
     future generations  and they  are comfortable  with the                                                                    
     endowment  approach  so that  we  can  move forward.  I                                                                    
     think that  would be  nice if we  could have  that come                                                                    
     after the statutory  bill has passed, which  is what we                                                                    
     have  in   front  of   us  and   we  have   a  thorough                                                                    
     understanding at the public level.                                                                                         
                                                                                                                                
     This is very  clear and transparent, this  is not smoke                                                                    
     and mirrors,  there's not a  lot of moving  parts, it's                                                                    
     very  straight forward;  and  then,  hopefully we  will                                                                    
     have   the   ability   in  the   future   to   have   a                                                                    
     constitutional  amendment and  that  would enclose  the                                                                    
     earnings account, basically there  would be no need for                                                                    
     it, it would  just go away for  all practical purposes,                                                                    
     and we the Legislature could  only get our hands-on 4.5                                                                    
     percent per  year, and  half of that  then would  go to                                                                    
     the citizens for dividends.                                                                                                
                                                                                                                                
     We would  not be able to  take the easy road,  which is                                                                    
     vote huge chunks  out of the earnings  reserve which we                                                                    
     can  do  today  with  a  simple  majority  vote  and  a                                                                    
     signature  by  the  governor, we  can  easily  move  $7                                                                    
     billion  or $8  billion this  year, and  to me  it just                                                                    
     makes me  want to  stay awake  at night  worrying about                                                                    
     that, it's  not any public  servant I don't  think ever                                                                    
     came to Juneau to see that.                                                                                                
                                                                                                                                
4:23:59 PM                                                                                                                    
CHAIR DUNLEAVY moved to adopt Amendment 1, labeled 30-                                                                          
LS0128\O.1:                                                                                                                     
                                                                                                                                
                                               30-LS0128\O.1                                                                    
                                                      Martin                                                                    
                                                     2/17/17                                                                    
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
                                                                                                                                
                                                                                                                                
     Page 1, line 2, following "dividends;":                                                                                  
     Insert  "authorizing an  advisory  vote on  legislative                                                                  
     action that  changes the  calculation of  the permanent                                                                  
     fund   dividend   and    the   amount   available   for                                                                  
     distribution  from  the  earnings reserve  account  and                                                                  
     making  the   legislative  action  contingent   on  the                                                                  
     advisory vote receiving an affirmative majority vote;"                                                                   
                                                                                                                                
     Page 3, line 19:                                                                                                           
               Delete all material and insert:                                                                                  
        "*  Sec.  6. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
                                                                                                                                
               ADVISORY VOTE. At a special election to be                                                                       
     held on  September 26, 2017, in  substantial compliance                                                                    
     with  the   election  laws  of  the   state,  including                                                                    
     absentee voting  and the preparation,  publication, and                                                                    
     mailing  of an  election pamphlet  under AS 15.58,  the                                                                    
     lieutenant  governor shall  place before  the qualified                                                                    
     voters  of  the  state  a   question  advisory  to  the                                                                    
     legislature  and the  governor.  The election  pamphlet                                                                    
     for   the    special   election   must    comply   with                                                                    
     AS 15.58.020(a)(6), including  the requirement  that it                                                                    
     contain  statements  that  advocate voter  approval  or                                                                    
     rejection    of     the    question.    Notwithstanding                                                                    
     AS 15.80.005 and other laws  relating to preparation of                                                                    
     the ballot  proposition, the  question shall  appear on                                                                    
     the ballot in the following form:                                                                                          
                                                                                                                                
                        Q U E S T I O N                                                                                         
                                                                                                                                
     Do  you approve  of  the passage  by  the Alaska  State                                                                    
     Legislature of  a bill that changes  the calculation of                                                                    
     the permanent  fund dividend  and the  amount available                                                                    
     for  distribution  from  the earnings  reserve  account                                                                    
     established under AS 37.13.145?                                                                                            
                                                                                                                                
          Yes [  ]       No [  ]                                                                                                
                                                                                                                                
        * Sec. 7. The uncodified  law of the State of Alaska                                                                  
     is amended by adding a new section to read:                                                                                
                                                                                                                                
               NOTICE TO THE REVISOR OF STATUTES. The                                                                           
     director  of  elections  shall notify  the  revisor  of                                                                    
     statutes  when the  results of  the election  have been                                                                    
     certified  under  AS 15.15.450  if  the  advisory  vote                                                                    
     authorized  in   sec.  6  of   this  Act   receives  an                                                                    
     affirmative majority vote.                                                                                                 
        * Sec. 8. The uncodified  law of the State of Alaska                                                                  
     is amended by adding a new section to read:                                                                                
                                                                                                                                
               CONDITIONAL EFFECT. Sections 1 - 5 of this                                                                       
     Act  take  effect only  if  the  director of  elections                                                                    
     notifies the revisor  of statutes under sec.  7 of this                                                                    
     Act that the  question in the advisory  vote under sec.                                                                    
     6 of this Act received an affirmative majority vote.                                                                       
        * Sec. 9. If, under sec. 8  of this Act, secs. 1 - 5                                                                  
     of this Act take effect,  they take effect on July 1 in                                                                    
     the  year following  the year  in which  the notice  is                                                                    
     given under sec. 7 of this Act.                                                                                            
        *  Sec.  10. Section  6  of  this Act  takes  effect                                                                  
     immediately under AS 01.10.070(c).                                                                                         
        * Sec. 11.  Except as provided in secs. 9  and 10 of                                                                  
     this Act, this Act takes effect July 1, 2017."                                                                             
                                                                                                                                
4:24:08 PM                                                                                                                    
SENATOR GIESSEL objected for purposes of discussion.                                                                            
                                                                                                                                
4:24:18 PM                                                                                                                    
CHRISTA  MCDONALD, Staff,  Senator  Mike  Dunleavy, Alaska  State                                                               
Legislature, Juneau, Alaska, said  Amendment 1 places an advisory                                                               
vote of the  people to have SB 21 become  effective and explained                                                               
as follows:                                                                                                                     
                                                                                                                                
   · Section 6: is the language of the advisory vote that                                                                       
     reads, "Do  you approve  of the  passage by  the Alaska                                                                    
     State   Legislature  of   a  bill   that  changes   the                                                                    
     calculation  of the  permanent  fund  dividend and  the                                                                    
     amount  of  it  available  for  distribution  from  the                                                                    
     earnings reserve account?".                                                                                                
   · Section 7: establishes that the Director of Elections                                                                      
     will  notify  the  reviser  of  statutes  if  the  vote                                                                    
     receives a majority.                                                                                                       
   · Section 8: creates a conditional requirement of an                                                                         
     affirmative majority vote in order  for Sections 1 to 5                                                                    
     of the  bill to become  effective which is SB  21 which                                                                    
     you see before you.                                                                                                        
   · Section 9: states that Sections 1 to 5 of the                                                                              
     legislation  will  take  place   on  June  1  after  an                                                                    
     affirmative majority vote.                                                                                                 
   · Section 10: issues the advisory vote and states that                                                                       
     it will become effective immediately.                                                                                      
   · Section 11: is the rest of the effective dates of the                                                                      
     bill.                                                                                                                      
                                                                                                                                
CHAIR DUNLEAVY noted that the last advisory vote regarding the                                                                  
permanent fund went to the people 18 years ago. He pointed out                                                                  
the  permanent fund  is  a  unique instrument  not  just in  this                                                               
country,  but  worldwide.  He admitted  that  there  are  varying                                                               
opinions on the  purpose of the permanent fund  and the dividend,                                                               
but explained  that the reason  he offered the amendment  is that                                                               
the  people   of  Alaska  are  partners   with  their  government                                                               
regarding the permanent fund issue  and the 50-50 proposition. He                                                               
said  the people  constitutionalized the  permanent fund  decades                                                               
ago during a time when the  Alaska Legislature was spending a lot                                                               
of money  and they  wanted to  figure out a  way to  preserve the                                                               
money for future  generations. He noted that  after the permanent                                                               
fund was  constitutionalized, other  instruments as well  went to                                                               
the  people for  a  vote  over a  12-year  period, including  the                                                               
Constitutional Budget  Reserve, the  appropriations limit,  and a                                                               
statutory dividend.                                                                                                             
                                                                                                                                
4:27:24 PM                                                                                                                    
SENATOR GIESSEL expressed concern that  the amendment calls for a                                                               
vote of  the people in less  than 6 months. She  pointed out that                                                               
people  may not  completely understand  the fiscal  situation and                                                               
the gravity of the decision.  She added that the special election                                                               
means   there  are   extra  costs   and  its   turnout  will   be                                                               
unpredictable.  She stated  that she  is not  convinced that  the                                                               
people's feelings  will be received with  clarity. She reiterated                                                               
that  she  is  not  convinced that  folks  would  understand  the                                                               
ramifications  of a  "yes"  or "no"  vote. She  asked  if he  had                                                               
considered the factors she noted in terms of a special election.                                                                
                                                                                                                                
CHAIR DUNLEAVY replied that the  people are probably more in tune                                                               
with  the  permanent  fund  issue   than  many  others  that  the                                                               
Legislature deals with.  He opined that the  permanent fund issue                                                               
is of such  magnitude that the people of Alaska  should be a part                                                               
of it.                                                                                                                          
                                                                                                                                
SENATOR EGAN noted  that Senator Stedman is the sponsor  of SB 21                                                               
and asked what his thoughts were on the proposed amendment.                                                                     
                                                                                                                                
4:30:46 PM                                                                                                                    
SENATOR STEDMAN replied as follows:                                                                                             
                                                                                                                                
     The  committee  of   jurisdiction  always  makes  bills                                                                    
     better.  I would  like to  see at  the end  of the  day                                                                    
     constitutional protection for the  permanent fund and a                                                                    
     percent-of-market value setup  with a reasonable payout                                                                    
     targeted  toward the  structure  and  longevity of  the                                                                    
     permanent  fund, not  our cashflow  needs, and  I think                                                                    
     that's what  the bill does.  I always respect  the will                                                                    
     of the committees.                                                                                                         
                                                                                                                                
CHAIR DUNLEAVY noted that SB  21 is referred to another committee                                                               
and continued discussions will address  the contents of the bill.                                                               
He suggested  that the bill be  moved to the next  committee with                                                               
the amendment. He asked if the objection was maintained.                                                                        
                                                                                                                                
SENATOR GIESSEL maintained her objection.                                                                                       
                                                                                                                                
CHAIR DUNLEAVY asked that a roll  call vote be taken on Amendment                                                               
1.                                                                                                                              
                                                                                                                                
A roll  call vote  was taken. Senator  Wilson and  Chair Dunleavy                                                               
voted  in favor  of Amendment  1  and Senators  Giessel and  Egan                                                               
voted against it. Therefore, Amendment 1 failed by a 2:2 vote.                                                                  
                                                                                                                                
4:32:41 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
4:45:14 PM                                                                                                                    
CHAIR DUNLEAVY  called the committee  back to order. He  asked if                                                               
there was a motion to move SB 21.                                                                                               
                                                                                                                                
4:45:20 PM                                                                                                                    
SENATOR GIESSEL moved  to report SB 21,  version 30-LS0128\O from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
4:45:30 PM                                                                                                                    
CHAIR DUNLEAVY  announced that  there being  no objection,  SB 21                                                               
moved from the Senate State  Affairs Standing Committee. He asked                                                               
if there were any closing comments or questions.                                                                                
                                                                                                                                
SENATOR WILSON  read a "Letter  of Intent" from the  Senate State                                                               
Affair Committee regarding SB 21 as follows:                                                                                    
                                                                                                                                
     It is the intent of  the Senate State Affairs Committee                                                                    
     that  when subsequent  committees of  referral in  both                                                                    
     bodies of  the Alaska Legislature consider  Senate Bill                                                                    
     21 (Permanent  Fund: Income;  POMV, Dividends),  or any                                                                    
     related  legislation  dealing  with   the  use  of  the                                                                    
     earnings of  the Permanent Fund, that  those committees                                                                    
     strongly consider including the following elements.                                                                        
                                                                                                                                
        1. Protection of the corpus of the Permanent Fund                                                                       
          against the erosive effect of inflation over                                                                          
          time.                                                                                                                 
        2. A draw limit on the portion of earnings of the                                                                       
          Permanent Fund drawn for use by state government.                                                                     
        3. A savings rule which captures and saves at least                                                                     
          some peak revenue, and places these savings into                                                                      
          the corpus of the Permanent Fund.                                                                                     
                                                                                                                                
CHAIR  DUNLEAVY  announced that  the  letter  of intent  will  be                                                               
incorporated  as the  bill  moves  on to  the  next committee  of                                                               
referral.  He   asked  if  committee  members   had  any  closing                                                               
comments.                                                                                                                       
                                                                                                                                
SENATOR WILSON thanked  Senator Stedman for putting  forth SB 21.                                                               
He  said the  issues that  SB  21 addresses  are complicated.  He                                                               
added that he  appreciated the committee's time to  address SB 21                                                               
and other  bills related  to the permanent  fund. He  opined that                                                               
hopefully the  next committees will  spend time diving  deep down                                                               
into the  issues that  SB 21  addresses as  well as  listening to                                                               
Alaskans.  He  stated  that  he  is  a  strong  believer  of  the                                                               
government not  having any more  than what he has.  He reiterated                                                               
that  he  appreciates  Senator   Stedman's  efforts  and  others'                                                               
efforts put forth during the interim to work on the bill.                                                                       
                                                                                                                                
4:47:31 PM                                                                                                                    
CHAIR DUNLEAVY  said he agreed  with many of the  sentiments that                                                               
Senator  Stedman stated.  He reiterated  that the  permanent fund                                                               
was constitutionalized  decades ago because the  people of Alaska                                                               
did not  trust the Legislature. He  hoped that the state  was not                                                               
entering another period where Alaskans  are going to question the                                                               
Legislature's motives.                                                                                                          
                                                                                                                                
He  set forth  that he  looked  forward to  working with  Senator                                                               
Stedman and  others to  ensure that the  permanent fund  is ring-                                                               
fenced to  make sure the  worst possible fears are  not realized.                                                               
He added that he is going  to keep pushing for the involvement of                                                               
Alaskans in  the protection  of the  permanent fund  because they                                                               
are partners  in the process.  He remarked  that he was  not sure                                                               
Alaskans were  going to support a  plan that they are  not a part                                                               
of.                                                                                                                             
                                                                                                                                
SENATOR  GIESSEL addressed  the letter  of  intent for  SB 21  as                                                               
follows:                                                                                                                        
                                                                                                                                
     The  letter of  intent is  very positive,  and I  think                                                                    
     really fits  well with Senator  Stedman's bill,  SB 21;                                                                    
     he has  used the  title "Grow  and Guard  the Permanent                                                                    
     Fund" and I think we all agree with that.                                                                                  
                                                                                                                                
     The  statement has  been made,  "The  people of  Alaska                                                                    
     entrusting  to their  elected officials,"  and I  agree                                                                    
     with that,  in fact  I spoke about  that on  the Senate                                                                    
     floor.  I  believe  that  trust  was  eroded  when  the                                                                    
     governor  vetoed 50  percent of  the dividend  in 2016;                                                                    
     this  is a  grave,  serious decision  that the  elected                                                                    
     officials  of  this  body should  be  making  with  the                                                                    
     deliberation we are going through right now.                                                                               
                                                                                                                                
     I  hope   we  can  restore  that   trust  through  this                                                                    
     deliberation  with  public   comment  and  the  various                                                                    
     committees this bill will go through.                                                                                      
                                                                                                                                
4:49:47 PM                                                                                                                    
CHAIR DUNLEAVY asked if there was  a motion to move the letter of                                                               
intent  regarding the  items  that Senator  Wilson  had put  into                                                               
public record.                                                                                                                  
                                                                                                                                
SENATOR GIESSEL  moved that the  letter of intent be  attached to                                                               
SB 21 as it moves through the committee process.                                                                                
                                                                                                                                
4:50:12 PM                                                                                                                    
CHAIR DUNLEAVY found no objection, and  SB 21, with the letter of                                                               
intent,  was  reported from  the  Senate  State Affairs  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
4:50:18 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Dunleavy  adjourned  the  Senate  State  Affairs  Standing                                                               
Committee at 4:50 p.m.                                                                                                          

Document Name Date/Time Subjects
SB 46 - Fiscal Note DMVA.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Hearing Request.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Letter of Support.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Sectional Analysis.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Senator Sullivan's Support.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Sponsor Statement.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Version A.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 46 - Shala Dobson Letter of Support.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB46 - Lael Morgan Letter of Support.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 21 & SB 26 - Public Testimony to (S)STA 02.28.17.pdf SSTA 2/28/2017 3:30:00 PM
SB 21
SB 26
SB46 - Letter of support - Mr. Reginald Beverly.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB46 letter of support - AK Veterans Foundation.pdf SSTA 2/28/2017 3:30:00 PM
SB 46
SB 21 & SB 26 - 2016 Letter from Law & Revenue to Sen. MacKinnon.pdf SSTA 2/28/2017 3:30:00 PM
SB 21
SB 26
SB 21 - (S)STA Letter of Intent.PDF SSTA 2/28/2017 3:30:00 PM
SB 21
SB 21 - Amendment 1 - Sen. Dunleavy.pdf SSTA 2/28/2017 3:30:00 PM
SB 21