04/15/2002 09:05 AM House RLS
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE RULES STANDING COMMITTEE
April 15, 2002
9:05 a.m.
MEMBERS PRESENT
Representative Pete Kott, Chair
Representative Brian Porter
Representative Vic Kohring
Representative Ethan Berkowitz
Representative Reggie Joule
MEMBERS ABSENT
Representative Carl Morgan
Representative Lesil McGuire
COMMITTEE CALENDAR
HOUSE BILL NO. 304
"An Act relating to disposition of income of the permanent fund;
and providing for an effective date."
- FAILED TO MOVE CSHB 304(RLS) OUT OF COMMITTEE
HOUSE BILL NO. 508
"An Act relating to publication of results of testing for
paralytic shellfish poisoning by the Department of Environmental
Conservation and to participation of the Department of
Environmental Conservation in the development of operating plans
of qualified regional dive fishery associations."
- MOVED CSHB 508(RLS) OUT OF COMMITTEE
SENATE BILL NO. 269
"An Act naming bridge number 1121, across the Knik River, the
Sergeant James Bondsteel Bridge of Honor; and providing for an
effective date."
- MOVED SB 269 OUT OF COMMITTEE
HOUSE BILL NO. 506
"An Act relating to legislative immunity."
- SCHEDULED BUT NOT HEARD
PREVIOUS ACTION
BILL: HB 304
SHORT TITLE:PERMANENT FUND INCOME
SPONSOR(S): REPRESENTATIVE(S)WHITAKER
Jrn-Date Jrn-Page Action
01/14/02 1954 (H) PREFILE RELEASED 1/4/02
01/14/02 1954 (H) READ THE FIRST TIME -
REFERRALS
01/14/02 1954 (H) STA, FIN
01/16/02 1992 (H) COSPONSOR(S): FATE
02/16/02 (H) STA AT 10:00 AM BUTROVICH 205
02/16/02 (H) -- Meeting Postponed to
2/23/02 --
02/23/02 (H) STA AT 10:00 AM HOUSE FINANCE
519
02/23/02 (H) Heard & Held
02/23/02 (H) MINUTE(STA)
03/19/02 (H) STA AT 8:00 AM CAPITOL 102
03/19/02 (H) Moved Out of Committee
03/19/02 (H) MINUTE(STA)
03/19/02 2600 (H) STA RPT 3DP 1DNP 2NR 1AM
03/19/02 2600 (H) DP: FATE, WILSON, STEVENS;
DNP: JAMES;
03/19/02 2600 (H) NR: HAYES, COGHILL; AM:
CRAWFORD
03/19/02 2600 (H) FN1: ZERO(REV)
03/21/02 (H) FIN AT 9:00 AM HOUSE FINANCE
519
03/22/02 (H) FIN AT 9:00 AM HOUSE FINANCE
519
03/22/02 2654 (H) COSPONSOR(S): MULDER
03/25/02 (H) FIN AT 9:00 AM HOUSE FINANCE
519
03/25/02 (H) Moved CSHB 304(FIN) Out of
Committee
MINUTE(FIN)
03/26/02 2679 (H) FIN RPT CS(FIN) NT 5DP 1DNP
2NR 3AM
03/26/02 2679 (H) DP: BUNDE, WHITAKER,
LANCASTER, HUDSON,
03/26/02 2679 (H) MULDER; DNP: FOSTER; NR:
HARRIS,
03/26/02 2679 (H) MOSES; AM: CROFT, DAVIES,
WILLIAMS
03/26/02 2680 (H) FN(S): FORTHCOMING
03/27/02 2719 (H) FN2: (REV)
03/27/02 2719 (H) RULES TO CALENDAR 3/27/02
03/27/02 2719 (H) RETURNED TO RLS COMMITTEE
04/15/02 (H) RLS AT 9:00 AM BUTROVICH 205
BILL: HB 508
SHORT TITLE:DIVE FISHERY ASSOCIATIONS/PSP REPORTS
SPONSOR(S): RESOURCES
Jrn-Date Jrn-Page Action
03/20/02 2618 (H) READ THE FIRST TIME -
REFERRALS
03/20/02 2618 (H) RES
03/25/02 (H) RES AT 1:00 PM CAPITOL 124
03/25/02 (H) Moved Out of Committee
03/25/02 (H) MINUTE(RES)
03/26/02 2682 (H) RES RPT 7DP
03/26/02 2682 (H) DP: KERTTULA, CHENAULT, FATE,
GREEN,
03/26/02 2682 (H) STEVENS, MASEK, SCALZI
03/26/02 2682 (H) FN1: ZERO(DEC)
03/27/02 2720 (H) DP: MCGUIRE ADDED TO RES RPT
04/15/02 (H) RLS AT 9:00 AM BUTROVICH 205
BILL: SB 269
SHORT TITLE:NAMING BONDSTEEL BRIDGE OF HONOR
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR
Jrn-Date Jrn-Page Action
02/01/02 2087 (S) READ THE FIRST TIME -
REFERRALS
02/01/02 2087 (S) TRA
02/01/02 2087 (S) FN1: ZERO(DOT)
02/01/02 2088 (S) GOVERNOR'S TRANSMITTAL LETTER
02/26/02 (S) TRA AT 1:30 PM BUTROVICH 205
02/26/02 (S) Moved Out of Committee
02/26/02 (S) MINUTE(TRA)
02/27/02 2316 (S) TRA RPT 4DP 1NR
02/27/02 2316 (S) FN1: ZERO(DOT)
02/27/02 2316 (S) DP: COWDERY, WILKEN, ELTON,
TAYLOR;
02/27/02 2316 (S) NR: WARD
04/10/02 (S) RLS AT 10:30 AM FAHRENKAMP
203
04/10/02 (S) MINUTE(RLS)
04/10/02 2710 (S) RULES TO CALENDAR 4/10/02
04/10/02 2711 (S) READ THE SECOND TIME
04/10/02 2711 (S) ADVANCED TO THIRD READING
UNAN CONSENT
04/10/02 2711 (S) READ THE THIRD TIME SB 269
04/10/02 2712 (S) PASSED Y19 N- E1
04/10/02 2712 (S) EFFECTIVE DATE(S) SAME AS
PASSAGE
04/10/02 2718 (S) TRANSMITTED TO (H)
04/10/02 2718 (S) VERSION: SB 269
04/11/02 2877 (H) READ THE FIRST TIME -
REFERRALS
04/11/02 2877 (H) RLS
04/15/02 (H) RLS AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
TAMARA COOK, Director
Legislative Legal and Research Services
Legislative Affairs Agency
Terry Miller Building, Room 329
Juneau, Alaska 99801
POSITION STATEMENT: Presented the differences in Version T of
HB 304 and CSHB 304(FIN).
JIM KELLY, Director of Communications
Alaska Permanent Fund Corporation
Department of Revenue
PO Box 25500
Juneau, Alaska 99802-5500
POSITION STATEMENT: Offered amendments to [Version T] of HB
304.
REPRESENTATIVE DREW SCALZI
Alaska State Legislature
Capitol Building, Room 13
Juneau, Alaska 99801
POSITION STATEMENT: Testified on behalf of the sponsor of HB
508, the House Resources Standing Committee.
CAROL CARROLL, Director
Administrative Services Division
Department of Military & Veterans' Affairs
400 Willoughby, Suite 500
Juneau, Alaska 99811
POSITION STATEMENT: Presented SB 269.
ACTION NARRATIVE
TAPE 02-5, SIDE A
Number 0001
CHAIR PETE KOTT called the House Rules Standing Committee
meeting to order at 9:05 a.m. Representatives Kott, Porter,
Kohring, Berkowitz, and Joule were present at the call to order.
HB 304-PERMANENT FUND INCOME
CHAIR KOTT announced that the first order of business would be
HOUSE BILL NO. 304, "An Act relating to disposition of income of
the permanent fund; and providing for an effective date."
Number 0072
TAMARA COOK, Director, Legislative Legal and Research Services,
Legislative Affairs Agency, explained that the proposed
committee substitute (CS), Version 22-LS1207\T, Cook, 4/5/02,
makes a change in Section 12. That change was to delete the
reference to "On July 1, 2002" and insert "At the beginning of
fiscal year 2003". The proposed CS deletes Sections 14 and 15,
which were the effective dates. Ms. Cook related her impression
that effective dates are no longer necessary due to changes
[incorporated in the proposed CS]. She also related her
impression that the change in Section 12 is wise if there are no
effective dates. Ms. Cook pointed out that [the proposed CS]
has shifted the bill over so that the transfers from the
earnings reserve account would occur at the beginning of each
fiscal year. Those appropriations made in the prior year should
remain unaffected by this bill, which will only apply to future
appropriations.
Number 0230
REPRESENTATIVE BERKOWITZ said, "Just to be clear on the intent
today, we are not moving this bill along ... these are just
technical changes and as the process evolves, this bill will
evolve here in this committee. Is that the intent?"
CHAIR KOTT answered, "That's correct, in some part of this
committee." These changes are being made in the event that the
bill is forwarded for consideration by the House.
Number 0275
REPRESENTATIVE PORTER moved that the committee adopt CSHB 304,
Version 22-LS1207\T, Cook, 4/5/02, as the working document.
There being no objection, Version T was before the committee.
Number 0312
JIM KELLY, Director of Communications, Alaska Permanent Fund
Corporation, Department of Revenue, noted that the committee
should have a letter from Robert Storer, Executive Director,
Alaska Permanent Fund Corporation, Department of Revenue,
regarding a couple of proposed amendments. Mr. Kelly pointed
out that Section 11 repeals statutory inflation-proofing.
However, the corporation asks that the statutory inflation-
proofing not be repealed. The [Alaska Permanent Fund] Board's
position is that if the fund was moved to a percent of market
value (POMV) distribution and the payout was limited to no more
than 5 percent of the funds average market value for the last
five fiscal years, then there will be permanent and protective
inflation-proofing. Mr. Kelly highlighted the fact that HB 304
is a statutory bill rather than a constitutional amendment. [A
statutory bill] creates uncertainty that there can't be
additional appropriations on top of what is envisioned in the
language of these statutes. For example, HB 20 would
appropriate $59 million to the municipal dividend, which would
be on top of this 5 percent. The two line items for the
Department of Natural Resources and the Department of Law total
approximately $2 million, which is a fairly good-sized loophole
that would be on top of the 5 percent. Furthermore, any
appropriations that are made out of the earnings reserve account
would also be on top of the 5 percent. Mr. Kelly recognized
that the legislature has an excellent record of supporting
inflation-proofing. However, he wasn't sure that the
[corporation] could rely on that past discipline to continue.
Therefore, the [corporation] requests that the inflation-
proofing be left in for now.
Number 0542
MR. KELLY turned to the second amendment that the corporation
would propose. He directed attention to page 3, line 24, and
requested the deletion of the language "excluding any unrealized
gains or losses". This change will allow the Alaska Mental
Health Trust Authority to continue its current practice of
computing the trust income in the same manner as the permanent
fund. Mr. Kelly related his belief that the intent of the House
Finance Committee was to continue that practice.
MR. KELLY moved to the timing of the dividend appropriation. He
explained that in the past the dividend appropriation, although
the language says [to perform the appropriation] at the end of
the fiscal year, has been made after the audit is complete.
This is done per a Memorandum of Agreement. Therefore, the
corporation intends to make the appropriations after the
completion of the audit when the numbers are exact. In regard
to the 5 percent, Mr. Kelly drew attention to the last paragraph
of the letter by Mr. Storer, which relates the corporation's
understanding that the appropriation for the corporation's
budget is separate and above the 5 percent.
Number 0686
CHAIR KOTT moved that the committee adopt the following
amendment, Amendment 1:
Page 3, line 24,
Delete "excluding any unrealized gains or losses"
There being no objection, Amendment 1 was adopted.
CHAIR KOTT turned to Mr. Kelly's suggestion to not repeal
Section 11, and announced that he isn't inclined to change that
at this time.
REPRESENTATIVE PORTER agreed. He said that although he
understands the corporation's position, the legislature is faced
with a billion dollar shortfall. Representative Porter related
his belief that all the options should be available for use in
dealing with that problem. Furthermore, Representative Porter
remarked that the [corporation] has been over inflation-proofing
the fund for many years and a couple of years without the
redundant inflation-proofing wouldn't be harmful.
REPRESENTATIVE BERKOWITZ expressed his hope that [the committee]
has the opportunity to revisit this particular point and discuss
it more fully when it is time to forward the bill.
CHAIR KOTT, upon no one else wishing to testify, announced that
the public testimony was closed.
Number 0808
REPRESENTATIVE PORTER moved to report CSHB 304, Version 22-
LS1207\T, Cook, 4/5/02, as amended out of committee with
individual recommendations and the accompanying fiscal notes.
REPRESENTATIVE BERKOWITZ objected. Representative Berkowitz
pointed out that the next stop for this bill is the House floor.
Representative Berkowitz viewed HB 304 as part of a long-range
fiscal plan for which he needed to see the other components. He
related his belief that it would be prudent for the bill to be
held in committee. Representative Berkowitz announced that he
wouldn't sign the bill report if required.
CHAIR KOTT acknowledged that to be Representative Berkowitz's
prerogative. However, he explained that all the committee is
doing is "pre-positioning" the bill in the event further
attention is necessary.
REPRESENTATIVE KOHRING expressed concern with the bill. He
related his belief in not spending any portion of the permanent
fund for fear of moving in the direction of spending it in its
entirety over time. Representative Kohring expressed the need
to review other spending reductions and efficiencies in
government before considering new revenue sources.
REPRESENTATIVE PORTER clarified that the [corpus of the] fund
may not be spent by the legislature without a two-thirds vote of
each body and a vote of the public.
A roll call vote was taken. Representatives Kohring, Porter,
and Kott voted to report Version T from committee.
Representatives Berkowitz and Joule voted against reporting
Version T from committee. Therefore, Version T failed to be
reported out of the House Rules Standing Committee by a vote of
3:2.
HB 508-DIVE FISHERY ASSOCIATIONS/PSP REPORTS
CHAIR KOTT announced that the next order of business would be
HOUSE BILL NO. 508, "An Act relating to publication of results
of testing for paralytic shellfish poisoning by the Department
of Environmental Conservation and to participation of the
Department of Environmental Conservation in the development of
operating plans of qualified regional dive fishery
associations."
Number 1023
REPRESENTATIVE DREW SCALZI, Alaska State Legislature, testified
on behalf of the House Resources Standing Committee in support
of the "House Resources Subcommittee Bill 508." Representative
Scalzi explained that this bill would move the dive fishery to
the beginning of the process when the Alaska Department of Fish
& Game (ADF&G) organizes the dive fishery plan for the year.
Therefore, [it allows] for the beaches to be set for commercial
harvest. He related that the Department of Environmental
Conservation (DEC) is in support of this.
REPRESENTATIVE SCALZI informed the committee that the dive
fishers have requested that the information be placed on the
website in order that others can access where the beaches may or
may not be [ripe] for paralytic shellfish poisoning. However,
DEC has concerns with placing that information on the website in
a certain manner because the information may be misinterpreted.
Therefore, the proposed committee substitute (CS) [Version J]
moves the language requiring this information to be posted on
the website to be moved to the legislative intent section. With
this change, the information will be accessible, while
protected. By posting this information on the Internet, money
and time is saved.
CHAIR KOTT related his understanding that Section 1(b) of HB 508
has been shifted to intent language.
REPRESENTATIVE SCALZI agreed, and highlighted that it was done
at the request of DEC.
Number 1230
REPRESENTATIVE KOHRING moved to adopt CSHB 508, Version 22-
LS1642\J, Utermohle, 4/8/02, as the working document. There
being no objection, Version J was before the committee.
CHAIR KOTT, upon no one wishing to testify, the public testimony
was closed.
Number 1249
REPRESENTATIVE PORTER moved to report CSHB 508, Version 22-
LS1642\J, Utermohle, 4/8/02, out of committee with individual
recommendations and the accompanying zero fiscal note. There
being no objection, CSHB 508(RLS) was reported from the House
Rules Standing Committee.
SB 269-NAMING BONDSTEEL BRIDGE OF HONOR
CHAIR KOTT announced that the next order of business would be
SENATE BILL NO. 269, "An Act naming bridge number 1121, across
the Knik River, the Sergeant James Bondsteel Bridge of Honor;
and providing for an effective date."
Number 1286
CAROL CARROLL, Director, Administrative Services Division,
Department of Military & Veterans' Affairs, explained that SB
269 names bridge number 1121 after Sergeant James Bondsteel, who
received the medal of honor during the Vietnam War. Sergeant
Bondsteel moved to Alaska in the 1980s and worked for the
Veterans' Administration. In 1987 Sergeant Bondsteel was in a
traffic accident on bridge 1121 where he died.
CHAIR KOTT, upon no one else wishing to testify, closed public
testimony.
Number 1328
REPRESENTATIVE BERKOWITZ moved to report SB 269 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, SB 269 was reported from the
House Rules Standing Committee.
ADJOURNMENT
At 9:30 a.m. the committee was recessed to the call of the
chair. [This meeting never reconvened.]
| Document Name | Date/Time | Subjects |
|---|