Legislature(2019 - 2020)ADAMS ROOM 519
07/08/2019 02:00 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB2001 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB2001 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
SECOND SPECIAL SESSION
July 8, 2019
2:02 p.m.
2:02:36 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 2:02 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Jennifer Johnston, Vice-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Gary Knopp
Representative Bart LeBon
MEMBERS ABSENT
Representative Tammie Wilson, Co-Chair
Representative Ben Carpenter
Representative Kelly Merrick
Representative Colleen Sullivan-Leonard
Representative Cathy Tilton
ALSO PRESENT
Brodie Anderson, Staff, Representative Neal Foster;
Representative Grier Hopkins; Representative Louise Stutes;
Representative Sarah Hannan; Representative Andi Story;
Representative Harriet Drummond; Representative Ivy
Spohnholz; Representative Adam Wool.
SUMMARY
HB 2001 APPROP: ERA FOR PERMANENT FUND DIVIDENDS
HB 2001 was HEARD and HELD in committee for
further consideration.
Co-Chair Foster reviewed the meeting agenda. He
acknowledged Representatives Louise Stutes and Grier
Hopkins in the audience.
HOUSE BILL NO. 2001
"An Act making a special appropriation from the
earnings reserve account for the payment of permanent
fund dividends; and providing for an effective date."
2:03:32 PM
Co-Chair Foster asked his staff to provide an overview of
the bill.
Representative Knopp asked if a roll call should be taken
to establish a quorum to do business.
Co-Chair Foster noted that a quorum present.
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
explained that the bill would appropriate $1,028,509,500
from the Permanent Fund Earnings Reserve Account (ERA) to
pay a $1,600 Permanent Fund Dividend (PFD). Section 2
designated that the funds would not lapse because it was a
capitalization of a fund. Section 3 included an immediate
effective date clause.
2:06:03 PM
Representative Knopp asked how the numbers had been
determined. He asked if the total $1.028 billion was based
on the number of individuals who had applied for the PFD
the previous year.
Mr. Anderson replied that the $1.028 billion came from a
calculation made by Legislative Legal Services at the time
of the bill's drafting. The number had fluctuated slightly
based off of calculations from the Office of Management and
Budget (OMB). He shared that there had been discussion that
it may be necessary to amend the amount to $1.071 billion
based off of information received from OMB late in the
special session.
Co-Chair Foster asked for verification that the proposed
$1,600 PFD was the same amount as the one paid in 2018.
Mr. Anderson replied affirmatively.
Representative Josephson stated that before the governor's
recent vetoes, the surplus had been around $600 million,
which would have resulted in a PFD of approximately $900.
He observed that a $1,600 PFD would have exceeded the 5.25
percent set in SB 26 [legislation passed in 2018 pertaining
to the PFD].
Mr. Anderson replied in the affirmative. He confirmed that
$1,600 exceeded the percent of market value (POMV) draw
[from the ERA].
Co-Chair Foster recognized Representatives Sarah Hannan and
Andi Story in the audience.
2:08:13 PM
Representative Knopp asked for more information about the
statement that the $1,600 PFD would exceed the POMV draw
established under SB 26. He noted that the governor had
vetoed a portion of the draw.
Mr. Anderson thought the question may be better suited for
the Legislative Finance Division. He detailed that in the
governor's veto process, $1 billion had been left in the
ERA for the payment of the PFD. He elaborated that anything
above the surplus was an additional ad hoc draw. The bill
would exceed the POMV by $28 million.
Co-Chair Foster recognized Representative Harriet Drummond
in the audience.
Vice-Chair Ortiz considered resources to pay a $1,600 PFD.
He referred to Representative Josephson's reference to
roughly $600 million left over based on the budget the
legislature sent to the governor. He wondered if another
$550 million would be needed to cover the $1.028 billion in
the bill if the budget remained the same.
Mr. Anderson replied that he would follow up on the
question.
Co-Chair Foster agreed that his office would follow up.
Representative LeBon calculated that a draw of slightly
below 6.25 percent would be needed.
Co-Chair Foster recognized Representatives Ivy Spohnholz
and Adam Wool in the audience.
HB 2001 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster noted that HB 2001 had been introduced on
the House floor earlier in the day. The intent for the
following day was to address some of the governor's vetoes
and determine how they interplayed with the PFD level. He
reviewed the agenda for the following meeting.
ADJOURNMENT
2:13:01 PM
The meeting was adjourned at 2:12 p.m.
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