Legislature(2015 - 2016)BILL RAY CENTER 208
06/16/2016 03:00 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
FOURTH SPECIAL SESSION
June 16, 2016
3:24 p.m.
3:24:46 PM
CALL TO ORDER
Co-Chair Thompson called the House Finance Committee
meeting to order at 3:24 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Co-Chair
Representative Steve Thompson, Co-Chair
Representative Dan Saddler, Vice-Chair
Representative Bryce Edgmon
Representative Les Gara
Representative Lynn Gattis
Representative David Guttenberg
Representative Scott Kawasaki
Representative Cathy Munoz
Representative Lance Pruitt
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Randall Hoffbeck, Commissioner, Department of Revenue;
David Teal, Director, Legislative Finance Division; Brodie
Anderson, Staff, Representative Steve Thompson;
Representative Lora Reinbold; Representative Cathy Tilton;
Representative Andy Josephson; Representative Sam Kito III;
Representative Bob Herron; Representative Kurt Olson;
Senator Anna MacKinnon
SUMMARY
SB 128 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS
CSSB 128 (FIN) was HEARD and HELD in committee
for further consideration.
Co-Chair Thompson discussed the meeting agenda. He stated
that
3:25:43 PM
CS FOR SENATE BILL NO. 128(FIN)
"An Act relating to the Alaska Permanent Fund
Corporation, the earnings of the Alaska permanent
fund, and the earnings reserve account; relating to
management of the budget reserve fund (art. IX, sec.
17, Constitution of the State of Alaska) by the Alaska
Permanent Fund Corporation; relating to procurement by
the Alaska Permanent Fund Corporation; 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."
Co-Chair Neuman MOVED to ADOPT the proposed committee
substitute for CSSB 128(FIN), Work Draft 29-GS2859\O
(Wallace/Martin, 6/16/16). There being NO OBJECTION, it was
so ordered.
Co-Chair Thompson stated that Brodie Anderson would present
the changes in the committee substitute.
3:26:30 PM
BRODIE ANDERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,
reviewed the changes reading from a prepared statement.
· There has been two portions of the Title that have
been removed to conform to changes in the bill.
· Page 1, Lines 10-11 - Clarifies the intent language of
the review of the entire act created by the bill.
· Sections 2, 3, and 12 of the "U" version have been
removed, these sections exempted the Alaska Permanent
Fund Corporation from the state procurement code.
· Portions of Section 9 which was Section 11 in the "U"
version have been removed, this was the portion of the
section that distributed surplus funds into the CBR
and corpus.
· Page 3, Lines 25-26 - After the revenue limit of $1.2
billion it reduces the POMV payout, in the old version
it was a dollar for dollar, now it is eighty cents to
a dollar.
· Page 6, Lines 12-18 - Adds new subsections that
guarantees a $1500 PFD for 2017 and 2018 and
establishes a $2000 dividend cap adjusted for
inflation.
· Page 8, Line 10 - Repeals the two $1500 dividend
guarantees in 2019.
· Page 8, Lines 19-21 - Conforming language for certain
sections of the bill.
· Page 8, Line 23 - The $2000 inflation proofed PFD
$2000 cap begins after July 1, 2019.
· Page 8, Line 24-25 - Effective immediately for the
rest of the bill not specifically mentioned in a
previous section.
Mr. Anderson mentioned that there were other technical and
re-numerated changes to the bill as well.
3:31:18 PM
Representative Munoz referred to page 4. She asked Mr.
Anderson to explain the revenue limit and the multiplier of
4 beginning on line 4.
Mr. Anderson deferred to Mr. Teal and Commissioner
Hoffbeck.
Co-Chair Thompson directed Mr. Teal and Commissioner
Hoffbeck to the table.
3:32:24 PM
RANDALL HOFFBECK, COMMISSIONER, DEPARTMENT OF REVENUE,
introduced himself.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, placed
himself on record.
3:32:37 PM
Representative Munoz asked about the revenue limit and the
multiplier on page 4 of the bill.
Co-Chair Thompson added that it was on page 4, lines 4-7.
Representative Munoz responded in the affirmative.
Mr. Teal responded that there was a revenue limit that was
in place until the earnings reserve balance was high (4
times the payout). He approximated that it would be a $10
billion to $11 billion reserve balance. He added that when
reserves were that high the payout limit of $.80 cents on
the dollars would not apply and additional money would flow
to the general fund (GF).
Representative Gara referred to the 4 times reserve item
that was in some version of the governor's bill and in a
version that came out of the Senate - defined the same way
as it was in the bill that came out of the Senate.
Commissioner Hoffbeck responded affirmatively. He relayed
that the 4 times reserve had been in all of the various
versions of the bill.
Vice-Chair Saddler asked members to speak louder, as he was
having difficulty hearing.
Co-Chair Thompson indicated that the committee would be
taking a 45 minute at ease to allow time for members to
review the changes to the bill. He asked members that had
submitted amendments to review the new version and let Mr.
Anderson know if they wanted to submit amendments for
version "O". He specified that6 no new amendments would be
allowed at the present time.
3:34:49 PM
AT EASE
3:34:57 PM
RECONVENED
Representative Wilson asked for a copy of the changes.
Co-Chair Thompson responded that Mr. Anderson would be
providing members copies of the changes.
3:35:20 PM
AT EASE
5:21:39 PM
RECONVENED
Co-Chair Thompson indicated that they would be setting the
bill aside. He relayed that the next House Finance
Committee meeting would be on the following day at 9:00
a.m.
CSSB 128 (FIN) was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
5:21:57 PM
The meeting was adjourned at 5:21 p.m.
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