05/06/1994 03:20 PM House FIN

                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           May 6, 1994                                         
                            3:20 p.m.                                          
                                                                               
  TAPE HFC 94-162, Side 2, #000 - end.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 3:20 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Jim Nordlund; Tom Williams, Director,  Alaska                 
  Permanent Fund Division, Department of Revenue.                              
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 364    "An Act relating  to allowable  absences from  the                 
            state for  purposes of  eligibility for  permanent                 
            fund  dividends; and  providing  for an  effective                 
            date."                                                             
                                                                               
            CSHB 364 (FIN) was reported  out of Committee with                 
            "no  recommendation" and with a fiscal impact note                 
            by the Department of Revenue.                                      
  HOUSE BILL NO. 364                                                           
                                                                               
       "An Act relating  to allowable absences from  the state                 
       for  purposes   of  eligibility   for  permanent   fund                 
       dividends; and providing for an effective date."                        
                                                                               
  Co-Chair  Larson  MOVED to  ADOPT  work draft  # 8-LS1378\X,                 
  dated 5/5/94.  There being NO OBJECTION, it was so ordered.                  
                                                                               
  REPRESENTATIVE JIM  NORDLUND spoke  in support  of CSHB  364                 
  (FIN).    He explained  that CSHB  364  (FIN) would  add two                 
  permanent  fund dividend check offs, Alaska Children's Trust                 
  Fund and the Iditarod Race.                                                  
                                                                               
  TOM  WILLIAMS,  DIRECTOR,  ALASKA  PERMANENT  FUND  DIVIDEND                 
  DIVISION,  DEPARTMENT  OF  REVENUE spoke  against  CSHB  364                 
                                                                               
                                1                                              
                                                                               
                                                                               
  (FIN).  He  noted that the  Division does not support  check                 
  offs.   He stressed  that the  program was  not designed  to                 
  promote any  other programs  or organizations  or provide  a                 
  mechanism for eligible Alaskans to  donate to a organization                 
  or program of their  choice.  He expressed concern  with the                 
  practice of allowing  organizations to promote contributions                 
  via the dividend  application.   He noted  that requests  by                 
  other groups have been rejected.                                             
                                                                               
  Mr. Williams discussed the fiscal impact of the legislation.                 
  He projected that  the cost of adding two check  offs to the                 
  dividend application would be $36.0  thousand dollars in the                 
  first  year.   Additional  years  would cost  $15.5 thousand                 
  dollars.                                                                     
                                                                               
  In response  to a  question by  Representative Parnell,  Mr.                 
  Williams acknowledged  that a  check off  for the  Anchorage                 
  Olympics was on the dividend application from 1986 to 1989.                  
                                                                               
  Representative  Brown  questioned if  a  description of  the                 
  Alaska Children's Fund  should be  included.  She  suggested                 
  that "for prevention  of child abuse  and neglect" could  be                 
  added after "fund" on page 2, line 3.                                        
                                                                               
  Mr.   Williams   stressed   that   the  application   cannot                 
  accommodate  additional   language.    He  noted   that  the                 
  application size will have to be increased to accomadate the                 
  additional two  check offs.  He  stated that a two  to three                 
  line  description   could  be   added  to  the   application                 
  instructions.  He clarified that  the Division could attempt                 
  to add the suggested language.                                               
                                                                               
  Mr. Williams noted that the  direct deposit option would not                 
  apply  to  those  wishing  to  assign  a  portion  of  their                 
  dividend.  Substantial  reprogramming would  be required  to                 
  allow  direct deposit after  the assignment of  a portion of                 
  the dividend.                                                                
                                                                               
  Representatives Hanley and Martin spoke in opposition to the                 
  legislation.                                                                 
                                                                               
  Representative Foster MOVED to report  CSHB 364 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTION,  it was                 
  so ordered.                                                                  
                                                                               
  CSHB  364  (FIN) was  reported  out  of Committee  with  "no                 
  recommendation"  and  with  a  fiscal  impact  note  by  the                 
  Department of Revenue.                                                       
  ADJOURNMENT                                                                  
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  The meeting adjourned at 3:45 p.m.                                           
                                                                               
                                                                               
                                3