Legislature(2015 - 2016)SENATE FINANCE 532

04/12/2016 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 128 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Heard & Held
+ HB 188 PERSON W/DISABILITY SAVINGS ACCOUNTS TELECONFERENCED
Heard & Held
+ HB 83 REPEAL COLLECTION OF CIVIL LITIG. INFO TELECONFERENCED
Heard & Held
+ HB 289 BOARD OF BARBERS AND HAIRDRESSERS TELECONFERENCED
Heard & Held
+ HB 231 EXTEND BOARD OF PAROLE TELECONFERENCED
Heard & Held
+ HB 268 AIDEA:DIVIDEND TO STATE;INCOME;VALUATION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 12, 2016                                                                                            
                         1:37 p.m.                                                                                              
                                                                                                                                
1:37:16 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 1:37 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Laura  Cramer, Staff,  Senator Anna  MacKinnon; David  Teal,                                                                    
Director, Legislative  Finance Division;  Representative Dan                                                                    
Saddler,  Sponsor; Kim  Skipper,  Staff, Representative  Dan                                                                    
Saddler;  Representative  Gabrielle   LeDoux,  Sponsor;  Amy                                                                    
Michel, Staff, Representative  LeDoux; Esther Mielke, Staff,                                                                    
Representative Bob  Lynn; Kris Curtis,  Legislative Auditor,                                                                    
Alaska  Division  of  Legislative  Audit;  Gene  Therriault,                                                                    
Staff, Alaska Industrial Development and Export Authority.                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Stuart  Spielman,  Autism  Speaks, Washington  DC;  Margaret                                                                    
Brodie,   Director,  Division   of  Health   Care  Services,                                                                    
Department  of   Health  and  Social   Services,  Anchorage;                                                                    
Kristen    Vandagriff,   Alaska    Governors   Council    on                                                                    
Disabilities   and  Special   Education,  Anchorage;   Sarah                                                                    
Batton,  Attorney,  Groh  Eggers,  Anchorage;  Ken  Jacobus,                                                                    
Anchorage  BAR   Association,  Anchorage;   Glenda  Ledford,                                                                    
Chair, Board of Barbers  and Hairdressers, Wasilla; Jeannine                                                                    
Jabaay,  Board  of  Barbers  and  Hairdressers,  Hope;  Jeff                                                                    
Edwards, Director, Parole Board, Department of Corrections,                                                                     
Anchorage; Michael Lamb, Chief Financial Officer, AIDEA.                                                                        
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 128    PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS                                                                                 
                                                                                                                                
          SB 128 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHB 83(JUD)                                                                                                                    
          REPEAL COLLECTION OF CIVIL LITIG. INFO                                                                                
                                                                                                                                
          CSHB 83(JUD) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
CSHB 188(FIN)                                                                                                                   
          PERSON W/DISABILITY SAVINGS ACCOUNTS                                                                                  
                                                                                                                                
          CSHB 188(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
CSHB 231(FIN)                                                                                                                   
          EXTEND BOARD OF PAROLE                                                                                                
                                                                                                                                
          CSHB 231(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
HB 268    AIDEA:DIVIDEND TO STATE;INCOME;VALUATION                                                                              
                                                                                                                                
          HB 268 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 289    BOARD OF BARBERS AND HAIRDRESSERS                                                                                     
                                                                                                                                
          HB 289 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SENATE BILL NO. 128                                                                                                           
                                                                                                                                
     "An  Act   relating  to  the  Alaska   permanent  fund;                                                                    
     relating  to  appropriations   to  the  dividend  fund;                                                                    
     relating  to  income  of  the  Alaska  permanent  fund;                                                                    
     relating to  the earnings reserve account;  relating to                                                                    
     the Alaska  permanent fund dividend;  making conforming                                                                    
     amendments; and providing for an effective date."                                                                          
1:37:58 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon explained  the intent  of the  committee                                                                    
substitute  for SB  128 was  to address  the state's  fiscal                                                                    
crisis.                                                                                                                         
                                                                                                                                
1:38:44 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche MOVED to  ADOPT the committee substitute                                                                    
for   SB  128,   Work  Draft   29-GS2859\N  (Wallace/Martin,                                                                    
4/12/16).                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
1:39:00 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:40:42 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:41:09 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon announced  that the  documents discussed                                                                    
at the table were available online under the bill.                                                                              
                                                                                                                                
1:41:24 PM                                                                                                                    
                                                                                                                                
LAURA CRAMER,  STAFF, SENATOR ANNA MACKINNON,  explained the                                                                    
committee substitute.  She read from the  Sectional Analysis                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Section  1:  Legislative  intent that  the  legislature                                                                    
     reevaluate  the use  of the  earnings of  the Permanent                                                                    
     Fund in three years                                                                                                        
                                                                                                                                
     Section 2: Amerada  Hess income no longer  flows to the                                                                    
     Capital Income  Fund. Segregation of these  funds is no                                                                    
     longer legally required                                                                                                    
                                                                                                                                
     Section  3:  Dedicated  deposits of  royalties  to  the                                                                    
     Permanent  Fund  are  reduced from  the  current  25/50                                                                    
     split on  old/new leases to the  constitutional minimum                                                                    
     of 25 percent                                                                                                              
                                                                                                                                
     Section 4:                                                                                                                 
                                                                                                                                
          (a)   Requires    the   Alaska    Permanent   Fund                                                                    
          Corporation  to determine  the net  income of  the                                                                    
          earnings   reserve  account   as  the   income  is                                                                    
          realized and received                                                                                                 
                                                                                                                                
          (b)  Defines the  Percent of  Market Value  (POMV)                                                                    
          payout  as 5.25  percent of  the average  year-end                                                                    
          market value  of the  Permanent Fund  and Earnings                                                                    
          Reserve  Account for  the first  five of  the most                                                                    
          recently  completed six  fiscal years.  The payout                                                                    
          may  not  exceed  the   year-end  balance  of  the                                                                    
          earnings reserve account for  the fiscal year just                                                                    
          ended                                                                                                                 
                                                                                                                                
     Section 5:  AS 37.13.145  is the Disposition  of Income                                                                    
     of the Permanent Fund statute                                                                                              
                                                                                                                                
          (a)   Unchanged   -   Establishes  the   ERA   and                                                                    
          identifies  the ERA  as  holding  earnings of  the                                                                    
          Permanent Fund and ERA                                                                                                
                                                                                                                                
          (b)  Repealed in  this bill  - dividends  based on                                                                    
          statutory net income                                                                                                  
                                                                                                                                
          (c) Repealed in this bill - inflation proofing                                                                        
                                                                                                                                
          (d)  Repealed  in  this   bill  -  segregation  of                                                                    
          Amerada Hess                                                                                                          
                                                                                                                                
          (e)  Added  in  this   section  -  each  year  the                                                                    
          legislature  may appropriate  to the  General Fund                                                                    
          the  amount available  for  distribution from  the                                                                    
          Earnings Reserve Account under  the POMV in Sec. 4                                                                    
          (b)                                                                                                                   
                                                                                                                                
     Section  6: Dividends  are comprised  of 20  percent of                                                                    
     the 5.25  percent POMV  outlined in  Sec. 4(b),  and 20                                                                    
     percent  of   prior  year  royalties,   excludes  those                                                                    
     dedicated to  the Permanent Fund  or School  Fund (25.5                                                                    
     percent are dedicated)                                                                                                     
                                                                                                                                
     Section  7:  Mental  Health  Trust   Fund  may  not  be                                                                    
     included  in the  computation of  income available  for                                                                    
     distribution under the POMV                                                                                                
                                                                                                                                
     Section  8: Makes  computation of  Mental Health  Trust                                                                    
     Fund  income  consistent   with  computation  of  other                                                                    
     Permanent Fund Income                                                                                                      
                                                                                                                                
     Section  9:  Transfer of  money  to  the Dividend  Fund                                                                    
     requires an appropriation                                                                                                  
                                                                                                                                
     Section 10: The amount  of each Permanent Fund Dividend                                                                    
     for fiscal years 2017, 2018, and 2019 shall be $1,000                                                                      
                                                                                                                                
     Section 11:  Conforms to Sec.  9, which moves  money to                                                                    
     the Dividend Fund by appropriation                                                                                         
                                                                                                                                
     Section 12:  Once the  money is  in the  Dividend Fund,                                                                    
     the Department of Revenue  shall annually pay dividends                                                                    
     without further appropriation                                                                                              
                                                                                                                                
     Section  13: Repeals  language relating  to the  former                                                                    
     dividend  calculation, inflation  proofing calculation,                                                                    
     and Amerada Hess language                                                                                                  
                                                                                                                                
     Section  14:  Repeals Sec.  10  -  $1,000 dividend  for                                                                    
     three years                                                                                                                
                                                                                                                                
     Section 15: The Commissioner  of Revenue and the Alaska                                                                    
     Permanent  Fund  Corporation   may  adopt  regulations,                                                                    
     policies and procedures to implement this Act                                                                              
                                                                                                                                
     Section 16: Retroactivity clause                                                                                           
                                                                                                                                
     Section  17: Effective  Date for  sections  15 and  16,                                                                    
     immediate                                                                                                                  
                                                                                                                                
     Section 18: Effective Date, July 1, 2016                                                                                   
                                                                                                                                
1:45:56 PM                                                                                                                    
                                                                                                                                
Senator Olson wondered how the dividend amount would                                                                            
fluctuate under Section 6, what the expected dividend                                                                           
payout would be after 2019.                                                                                                     
                                                                                                                                
1:46:34 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon relayed that David Teal, Director,                                                                           
Legislative Finance Division would be available to answer                                                                       
questions.                                                                                                                      
                                                                                                                                
1:46:39 PM                                                                                                                    
                                                                                                                                
Ms.  Cramer agreed  that  Mr. Teal  would  walk through  the                                                                    
output from the model.                                                                                                          
                                                                                                                                
1:46:55 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
OBJECTION,  the proposed  committee substitute  was adopted.                                                                    
She relayed  that Mr. Teal  would walk through how  the bill                                                                    
would address the  budget shortfall and how  it would affect                                                                    
the Permanent Fund.                                                                                                             
                                                                                                                                
1:47:47 PM                                                                                                                    
                                                                                                                                
DAVID TEAL,  DIRECTOR, LEGISLATIVE FINANCE  DIVISION, looked                                                                    
at the "LFD Fiscal Model" (copy on file).                                                                                       
                                                                                                                                
1:48:00 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:48:33 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:48:35 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon  remarked   that  the   Permanent  Fund                                                                    
Corporation  had  requested  a  model using  a  6.9  percent                                                                    
Permanent  Fund investment  return; the  governor's original                                                                    
model  had  used 7.45  percent.  She  noted that  the  model                                                                    
before  the  committee  used   the  6.9  percent  investment                                                                    
return.                                                                                                                         
                                                                                                                                
1:49:16 PM                                                                                                                    
                                                                                                                                
Mr. Teal looked  to the price scenario at the  center of the                                                                    
document.  The   scenario  used  the  spring   2016  revenue                                                                    
forecast.  He  noted  that  the  yellow  highlighted  fields                                                                    
reflected no  growth in  the operating  budget, and  in fact                                                                    
had a  targeted cut  of $247 million,  which was  subject to                                                                    
change.                                                                                                                         
                                                                                                                                
1:50:07 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon understood  that  the estimated  capital                                                                    
spend projected in the model was $185 million.                                                                                  
                                                                                                                                
Mr. Teal replied in the affirmative.                                                                                            
                                                                                                                                
1:50:16 PM                                                                                                                    
                                                                                                                                
Mr. Teal noted the factors  of Community Assistance and Debt                                                                    
Service,  as  projected,  and  highlighted  that  the  model                                                                    
contained  no  revenue  variables: sales  tax,  income  tax,                                                                    
motor  fuel  tax,   indirect  expenditure  adjustments,  the                                                                    
Governor's  tax bills  package,  except for  the Tax  Credit                                                                    
Reform bill  - the modeling  output of which were  the House                                                                    
Finance Committee  numbers. He directed  committee attention                                                                    
to the  blue bars  under "Custom Plan  Specifications" which                                                                    
reflected a POMV payout of  5.25 percent, with 20 percent of                                                                    
the payout going to dividends,  and an additional 20 percent                                                                    
going to dividends  from royalties. He pointed  to the upper                                                                    
right line graph  on the slide, which  showed that dividends                                                                    
would  be steady  at $1000.  He said  that without  the cap,                                                                    
dividends would drop  to $900 for 3 years and  then would go                                                                    
back to $1000  through 2025. He said that  the model assumed                                                                    
that  the CBR  would  earn  more than  the  current  1 to  2                                                                    
percent. He said that it was  not in the bill, but there had                                                                    
been discussion  of more aggressively  investing the  CBR so                                                                    
that the returns  on it would be higher.  He elaborated that                                                                    
there were  a number of  ways to do  that, but it  would not                                                                    
make a  significant difference to  the model. He  noted that                                                                    
the lower  left graph  on the slide  reflected that  the CBR                                                                    
balance  under  the  model  would drop  to  $2  billion.  He                                                                    
furthered  that those  earnings did  not make  or break  the                                                                    
model.  He indicated  the graph  in the  upper left  corner,                                                                    
which showed the UGF revenue/budget,  in millions. He stated                                                                    
that  the expenditure  line was  the dark  line on  top, the                                                                    
bars   represented  oil   revenue   [blue],  CBR/SBR   draws                                                                    
[orange],  and  the  POMV draw  from  the  earnings  reserve                                                                    
[green]. The graph indicated that  the deficit would narrow,                                                                    
but that  it would  still exist through  2025. He  said that                                                                    
the  lower  left graph  showed  that  reserve balances  were                                                                    
expected  to  stabilize  at approximately  $12  billion.  He                                                                    
noted  that the  table at  the  bottom of  the graph  showed                                                                    
reserves of  approximately $12 billion in  2025. The deficit                                                                    
would still  exist, but  because it would  be lower  than it                                                                    
was  currently, the  reserves would  be  exhausted after  28                                                                    
years.  He  said that  it  was  worth noting  that  although                                                                    
reserves in  2017 were approximately $14  billion, the state                                                                    
was  spending reserves  at a  more rapid  rate, which  would                                                                    
exhaust them in 8 years or less.                                                                                                
                                                                                                                                
1:54:39 PM                                                                                                                    
                                                                                                                                
Mr.  Teal  remarked  that  the   reserve  balance  would  be                                                                    
slightly lower, and the deficit  would be so much lower that                                                                    
the glide  path would be  better under the  legislation than                                                                    
under the status quo. He noted  the table in the lower right                                                                    
of the slide  that reflected in turquoise the  real value of                                                                    
the Permanent  Fund would fall  slightly overtime  and would                                                                    
not  keep  pace with  inflation  at  the projected  earnings                                                                    
rates.  He noted  that  although there  would  be a  nominal                                                                    
payout  of 5.25  percent,  there was  a 6  year  lag in  the                                                                    
projection because  the payout was  based on the first  5 of                                                                    
the most  recently completed  6 years.  Because of  the long                                                                    
look back, the effective payout  as shown in the lower right                                                                    
hand corner of the slide was at roughly 4.9 percent.                                                                            
                                                                                                                                
1:55:59 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  surmised  that the  slide  reflected  a                                                                    
spending increased from FY16 to FY17.                                                                                           
                                                                                                                                
Mr. Teal replied  that there was actually a  reduction in FY                                                                    
17, but remarked  that in FY16 the dividends  were not shown                                                                    
as  general fund  expenditures. The  graph was  showing only                                                                    
UGF expenditures. He clarified that  if FY 17 dividends were                                                                    
shown,  the line  would  increase from  $5  billion to  $6.4                                                                    
billion.                                                                                                                        
                                                                                                                                
1:56:47 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  surmised that the way  that the dividend                                                                    
was  calculated   and  paid  out  would   change  under  the                                                                    
legislation and the dividend payments  would be reflected in                                                                    
the Operating Budget.                                                                                                           
                                                                                                                                
Mr.  Teal responded  that currently  the  dividends did  not                                                                    
show as  general fund expenditures.  They were  reflected in                                                                    
the fiscal  summary, but in  a different section;  under the                                                                    
legislation   dividends  would   appear   as  general   fund                                                                    
expenditures.                                                                                                                   
                                                                                                                                
1:57:23 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon assured  Alaskans  that  there would  be                                                                    
zero growth in the operating budget.                                                                                            
                                                                                                                                
1:58:04 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  asked whether  the  green  bars on  the                                                                    
graph  in the  upper  left  of the  slide  reflected a  $2.4                                                                    
billion draw in FY17.                                                                                                           
                                                                                                                                
Mr.  Teal  responded  that  $2.4  billion  was  an  accurate                                                                    
approximation.                                                                                                                  
                                                                                                                                
1:58:26 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon referred to FY  25 on the same chart, and                                                                    
surmised that the draw would increase to $3 billion.                                                                            
                                                                                                                                
Mr.  Teal  replied  that  the draw  would  increase  as  the                                                                    
Permanent Fund and the Earnings Reserve increased.                                                                              
                                                                                                                                
1:58:55 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  noted  that the  dividend  check  would                                                                    
remain steady at  about $1000, in perpetuity.  She said that                                                                    
the Governor's original  plan, SB 114, as  well as offerings                                                                    
in the  house had all  been incorporated  into the cs  in an                                                                    
effort to  stabilize the dividend,  while using the  bulk of                                                                    
the assets  in the  form of  earnings to  diversify Alaska's                                                                    
revenue stream. She indicated the  lower left hand corner of                                                                    
the  slide  which showed  the  stabilizing  of the  draw  on                                                                    
reserves.  She  said  that  currently  the  legislature  was                                                                    
looking at removing  $7 billion, over two years,  to pay for                                                                    
expenses. She furthered that more  work needed to be done to                                                                    
ensure that the state did  not lose any stability in growing                                                                    
the corpus of the fund.                                                                                                         
                                                                                                                                
2:00:19 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy  surmised that if spending  could be driven                                                                    
down from  $5.2 billion,  to $4  billion, reserves  could be                                                                    
extended and less of a draw would be necessary.                                                                                 
                                                                                                                                
Mr. Teal replied in the affirmative.                                                                                            
                                                                                                                                
2:00:52 PM                                                                                                                    
                                                                                                                                
Senator  Dunleavy  remarked  that people  should  understand                                                                    
that as  spending was pushed  down, the life of  the savings                                                                    
and the Permanent Fund would be extended.                                                                                       
                                                                                                                                
2:01:37 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  agreed.  She understood  that  for  the                                                                    
first time  in Alaska's  history, $700 million  for dividend                                                                    
payouts was  listed as new  money spending in  the Operating                                                                    
Budget.  She furthered  that there  was no  increase to  the                                                                    
Operating Budget, but  dividends going out to  the people of                                                                    
Alaska were reflected.                                                                                                          
                                                                                                                                
Mr. Teal  responded yes. He  added that the $5.3  billion in                                                                    
spending included the payout of  dividends, which meant that                                                                    
the graph  reflected a $4.5 billion  budget, in conventional                                                                    
terms.                                                                                                                          
                                                                                                                                
2:02:26 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asserted that  the downward  pressure on                                                                    
the budget would  continue; the bill would not  solve all of                                                                    
the state's fiscal problems, but  would go a long way toward                                                                    
future fiscal stabilization.                                                                                                    
                                                                                                                                
2:02:45 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman  looked at  the  bottom  left graph,  which                                                                    
showed  budget reserves  without  growth, out  to 2053.  [He                                                                    
added the  Years to  Exhaust, 28,  to the  last date  on the                                                                    
graph 2025: 2053]                                                                                                               
                                                                                                                                
Mr.  Teal replied  that  the Years  to  Exhaust used  simple                                                                    
math. He  explained that in  FY 25, reserves would  be lower                                                                    
at $11.9  billion, but  the deficit would  also be  lower at                                                                    
minus $432  million. He  said that  although there  would be                                                                    
lower reserves, they would last much longer.                                                                                    
                                                                                                                                
2:04:09 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman   understood  that  with  no   growth,  the                                                                    
reserves would be exhausted by 2053.                                                                                            
                                                                                                                                
Mr. Teal warned  that it was risky to get  too accurate with                                                                    
projections of this kind.                                                                                                       
                                                                                                                                
2:04:30 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche  queried  the  factors  that  made  the                                                                    
corpus of  the fund  grow faster under  the scenario  on the                                                                    
slide, versus the status quo.                                                                                                   
                                                                                                                                
Mr.  Teal  replied  that  the   balance  included  both  the                                                                    
Earnings  Reserve   and  the  Corpus.  He   said  that  they                                                                    
continued  to  increase  because 25  percent  of  royalties,                                                                    
leases,  etc., were  being deposited  into the  Corpus every                                                                    
year. He stated that 6.9  percent was being earned, but 5.25                                                                    
percent was  being paid out,  any earnings above  the payout                                                                    
remained  in  the  fund.  He  furthered  that  although  the                                                                    
inflation  proofing provision  had been  repealed, inflation                                                                    
proofing would still exist.                                                                                                     
                                                                                                                                
2:05:49 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche noted that  the cuts in state government                                                                    
that were  reflected on  the slide were  less than  what the                                                                    
committee  hoped  to accomplish.  He  pointed  out that  the                                                                    
model also did not include changes to oil and gas credits.                                                                      
                                                                                                                                
2:06:18 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  interjected that the model  did take oil                                                                    
and gas  tax credit  changes into  account, she  referred to                                                                    
the Tax  Credit Reform line in  yellow at the center  of the                                                                    
page.                                                                                                                           
                                                                                                                                
2:06:21 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche   asserted  that   it  would   be  more                                                                    
favorable  to the  fiscal outlook  if the  actual reductions                                                                    
were higher.                                                                                                                    
                                                                                                                                
Mr. Teal  agreed. He  said that the  Governor's oil  and gas                                                                    
credit reform  bill would  have the  most impact,  the House                                                                    
Resource Committee version would  have had the least impact,                                                                    
and  the House  Finance  Committee version  would split  the                                                                    
difference.                                                                                                                     
                                                                                                                                
2:06:45 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:06:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:07:01 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche thought  that  it would  be helpful  to                                                                    
include  a separate  box  on the  slide  that reflected  the                                                                    
expected $700 million payout for  the dividend, with a spend                                                                    
line below it.                                                                                                                  
                                                                                                                                
2:07:28 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  wondered  whether  there  could  be  an                                                                    
asterisk on  the FY 17 line  to reflect the addition  of the                                                                    
$700  million   payout  for   the  dividend.   Something  to                                                                    
highlight that the Operating Budget was not growing.                                                                            
                                                                                                                                
Mr.  Teal  replied  that  he   could  include  the  dividend                                                                    
payments in the FY 16 line.                                                                                                     
                                                                                                                                
Senator  Dunleavy reiterated  that  highlighting the  figure                                                                    
for the public as a "different spend" could be helpful.                                                                         
                                                                                                                                
2:08:15 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  repeated that clearly  highlighting that                                                                    
the  $700  million was  for  dividends,  and not  government                                                                    
spending, would be helpful.                                                                                                     
                                                                                                                                
Mr.  Teal agreed  to highlight  the difference  on a  future                                                                    
slide.                                                                                                                          
                                                                                                                                
2:08:56 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon mentioned  the  document titled  "Status                                                                    
Quo" (copy on  file) and related that the  public could find                                                                    
it online under the bill.                                                                                                       
                                                                                                                                
2:09:15 PM                                                                                                                    
                                                                                                                                
Senator  Olson understood  that the  bill did  not eliminate                                                                    
the need for a three-quarter vote to access the CBR.                                                                            
                                                                                                                                
Mr. Teal replied  that as long as the legislature  had a CBR                                                                    
draw  and   a  large  earnings  reserve   balance  it  faced                                                                    
supermajority votes.                                                                                                            
                                                                                                                                
2:09:48 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  hoped that the  other body would  do the                                                                    
three-quarter draw  because the  money currently in  the CBR                                                                    
had  a  rate  of  return  for interest  of  2  percent,  the                                                                    
borrowing interest  would be higher  if the  legislature was                                                                    
forced to go into the earnings reserve account.                                                                                 
2:11:05 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  remarked that the governor  preferred a                                                                    
fixed  draw,  and supported  the  intent  for stability.  He                                                                    
asked how the  budget could be kept small,  even as earnings                                                                    
increased and the POMV draw grew.                                                                                               
                                                                                                                                
Mr. Teal replied  that there were things that  could be done                                                                    
that would limit  spending, but that if  money was available                                                                    
it  could   be  spent;  future   spending  was  up   to  the                                                                    
legislature.  He  thought  that the  governor  assumed  that                                                                    
extra revenue would  always be spent, which  was the primary                                                                    
difference between  the DOR  analysis of  the model  and the                                                                    
LFD analysis. He believed that  the truth fell somewhere in-                                                                    
between always  spending or always  saving, but it  would be                                                                    
up to each  legislature to decide. He said  that rules could                                                                    
be  established to  limit  spending when  the  price of  oil                                                                    
rebounded, and could be easily  added to legislation of this                                                                    
nature.                                                                                                                         
                                                                                                                                
Vice-Chair  Micciche understood  that the  stability of  the                                                                    
POMV was  similar to a  fixed draw  because it was  based on                                                                    
earnings that  would not fluctuate dramatically.  What would                                                                    
create  the change  would be  a fluctuation  in oil  related                                                                    
revenue, which was where rules should be applied.                                                                               
                                                                                                                                
Mr. Teal responded  that the combination of  oil revenue and                                                                    
the POMV payout would be the  issue. He agreed that the POMV                                                                    
payout  was fairly  stable, but  the other  oil revenue  was                                                                    
not.  He  said  that   exercising  spending  restraint  when                                                                    
surpluses  were  available  would eliminate  volatility.  He                                                                    
said  that the  hypothetical  could not  be modeled  because                                                                    
spending   would  always   be   at  the   per-view  of   the                                                                    
legislature.                                                                                                                    
                                                                                                                                
2:15:05 PM                                                                                                                    
                                                                                                                                
Senator  Dunleavy   believed  that  there  should   be  less                                                                    
government spending.                                                                                                            
                                                                                                                                
2:16:19 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon recalled  a conversation  with Mr.  Teal                                                                    
about the consideration of a  draw that could not exceed the                                                                    
$3.3 billion as suggested by  the governor. She relayed that                                                                    
in her duration at the  legislature, money had been returned                                                                    
to the  CBR over the top  of what had been  borrowed by past                                                                    
legislatures,  and spending  had  been done  in the  Capital                                                                    
Budget. She  recognized that  dividend reductions  and taxes                                                                    
made  the   public  uncomfortable  unless  there   was  also                                                                    
conversation about controlled government spending.                                                                              
                                                                                                                                
2:17:52 PM                                                                                                                    
                                                                                                                                
Senator  Dunleavy   remarked  that  there  should   be  less                                                                    
government spending.  He added that deferred  maintenance in                                                                    
the state needed to be addressed.                                                                                               
                                                                                                                                
2:18:47 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon remarked that  there was also an unfunded                                                                    
pension liability  issue that needed  to be  considered. She                                                                    
asserted that  there needed  to be  less spending,  but that                                                                    
the state  needed to  pay the  debts that it  owed -  one of                                                                    
which was deferred maintenance.                                                                                                 
                                                                                                                                
2:20:08 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Micciche   pointed   out   the   Alaska   State                                                                    
Constitution specified  that one legislature could  not "tie                                                                    
the hands" of  future legislatures, which he  believed was a                                                                    
blessing and a curse.                                                                                                           
                                                                                                                                
2:21:20 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  explained that  the senate  had proposed                                                                    
$1 billion in  cuts to the Operating Budget  and was hopeful                                                                    
that the  two bodies  to craft  a plan  that would  work for                                                                    
Alaska. She noted that the  committee was tackling the issue                                                                    
from all angles.                                                                                                                
                                                                                                                                
2:22:46 PM                                                                                                                    
                                                                                                                                
Senator  Bishop asked  how the  real value  effective payout                                                                    
could be kept at 100 percent in the out years.                                                                                  
                                                                                                                                
Mr.  Teal responded  that  one  way would  be  to earn  more                                                                    
money,  and the  other would  be to  reduce the  payout rate                                                                    
from 5.25,  which some considered  aggressive. He  said that                                                                    
those were the two levers  that would help maintain the real                                                                    
value of the Permanent Fund.                                                                                                    
                                                                                                                                
2:23:51 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon interpreted that to mean to cut the                                                                          
budget and draw less from reserves - or increase revenue                                                                        
through other sources.                                                                                                          
                                                                                                                                
Mr. Teal agreed.                                                                                                                
                                                                                                                                
SB 128 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
2:24:38 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:31:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 188(FIN)                                                                                                
                                                                                                                                
     "An Act  establishing a program for  financial accounts                                                                    
     for  individuals   with  disabilities;   exempting  the                                                                    
     procurement  of  contracts  for the  program  from  the                                                                    
     State Procurement  Code; exempting  certain information                                                                    
     on participants  in the program  from being  subject to                                                                    
     inspection  as  a  public  record;  providing  that  an                                                                    
     account  under the  program for  an  individual with  a                                                                    
     disability is not a security;  allowing a state to file                                                                    
     a  claim  against  an  individual's  financial  account                                                                    
     under the  program to  recover Medicaid  payments after                                                                    
     the individual's death; and  providing for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
2:32:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAN SADDLER, SPONSOR, introduced the                                                                             
legislation and read from the Sponsor Statement:                                                                                
                                                                                                                                
     HB 188 seeks to help  Alaskans cope with the challenges                                                                    
     of  living with  a disability  by allowing  individuals                                                                    
     and  families  to  set up  tax-free  savings  accounts,                                                                    
     called "ABLE accounts," to  pay for education, housing,                                                                    
     transportation or other disability-related expenses.                                                                       
                                                                                                                                
     The U.S.  Congress passed the "Achieving  a Better Life                                                                    
     Experience (ABLE)  Act" in 2014, authorizing  states to                                                                    
     create special savings  accounts for disability-related                                                                    
     expenses  modeled  after  the successful  "529  college                                                                    
     savings programs," named after  the relevant section of                                                                    
     IRS code.                                                                                                                  
                                                                                                                                
     ABLE  accounts, also  known as  "529A" accounts,  allow                                                                    
     individuals   with   disabilities  to   improve   their                                                                    
     financial  security  by  using private  investments  to                                                                    
     supplement their  benefits from  insurance, employment,                                                                    
     Supplemental  Security  Income   (SSI),  Medicaid,  and                                                                    
     other  sources. Assets  held in  an ABLE  account would                                                                    
     not be counted under  means tests required for Medicaid                                                                    
     or SSI,  although SSI cash benefits  would be suspended                                                                    
     if the ABLE balance exceeded $100,000.                                                                                     
                                                                                                                                
     ABLE   accounts   could   be   spent   for   education,                                                                    
     transportation,  job  training and  support,  assistive                                                                    
     technology,  health  and   wellness,  legal  and  other                                                                    
     qualified services.  Contributions would be  limited to                                                                    
     $14,000  per year,  and capped  at  $400,000. A  person                                                                    
     could have only one account.                                                                                               
                                                                                                                                
     To be eligible for an  ABLE account, a person must have                                                                    
     become  blind or  disabled before  the age  of 26.  The                                                                    
     Governor's   Council   on  Disabilities   and   Special                                                                    
     Education estimates that about                                                                                             
     13,770  Alaskans   -  10  percent   of  those   with  a                                                                    
     disability - might qualify for ABLE accounts.                                                                              
                                                                                                                                
     By  empowering  Alaskans  with disabilities  and  their                                                                    
     families to build their  financial independence, HB 188                                                                    
     will help  them meet more  of their life  challenges by                                                                    
     relying  on  private  resources,  without  eroding  the                                                                    
     value of  public benefits to  which they  are entitled.                                                                    
     ABLE accounts will be important  tools for helping them                                                                    
     live full, productive lives in their communities.                                                                          
                                                                                                                                
Representative Saddler  divulged that  the bill  had evolved                                                                    
during the  legislative process to  make sure that  money in                                                                    
ABLE  account was  not unavailable  to creditors  should the                                                                    
account holder  go bankrupt or  fail to pay their  debts. He                                                                    
noted that  there were specific  benefits to having  a state                                                                    
authorized ABLE  account; first, by passing  the bill Alaska                                                                    
could join  a consortium  of other  states in  obtaining the                                                                    
economies  of  scale  and lower  account  fees  for  account                                                                    
holders.  Secondly, Alaskans  could  go to  DOR directly  if                                                                    
there were  problems with their  accounts. He said  that the                                                                    
contribution limits would be matched  to the college savings                                                                    
plan;  $400,000, the  highest  in the  nation. He  concluded                                                                    
that  passage  of the  bill  would  demonstrate concern  for                                                                    
disables Alaskans by  providing them a way  to improve their                                                                    
lives, without increasing any state costs.                                                                                      
                                                                                                                                
2:36:31 PM                                                                                                                    
                                                                                                                                
Senator  Olson wondered  how many  people  were expected  to                                                                    
take advantage of the program.                                                                                                  
                                                                                                                                
Representative Saddler  replied that  it was  estimated that                                                                    
there were  130,000 disabled  Alaskan residents,  10 percent                                                                    
of which would qualify for the program.                                                                                         
                                                                                                                                
2:36:53 PM                                                                                                                    
                                                                                                                                
Senator Olson wondered whether  the program would negatively                                                                    
impact the resources  for those who did not  qualify for the                                                                    
program and relied on support  from the Department of Health                                                                    
and Social Services (DHSS).                                                                                                     
                                                                                                                                
Representative Saddler  stated that  the program  would have                                                                    
no effect  on the DHSS  budget or the resources  for others.                                                                    
He asserted  that this  would be  an opportunity  for people                                                                    
who would create  the accounts to deposit  private funds. He                                                                    
thought that the program could benefit DHSS.                                                                                    
                                                                                                                                
2:37:39 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche noted  that the  costs associated  with                                                                    
the bill would be covered  by the Alaska Mental Health Trust                                                                    
Authority (AMHTA).                                                                                                              
                                                                                                                                
Representative  Saddler  replied   in  the  affirmative.  He                                                                    
furthered  that  many of  the  beneficiaries  of AMHTA  were                                                                    
disabled  and would  benefit from  the legislation.  He said                                                                    
that after  initial implementation,  fees would  support the                                                                    
program at no cost to the state.                                                                                                
                                                                                                                                
2:38:22 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon requested a Sectional Analysis.                                                                              
                                                                                                                                
2:38:43 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:39:33 PM                                                                                                                    
RECONVENED                                                                                                                      
2:39:40 PM                                                                                                                    
                                                                                                                                
KIM SKIPPER, STAFF, REPRESENTATIVE DAN SADDLER, discussed                                                                       
the Sectional Analysis (copy on file):                                                                                          
                                                                                                                                
     Sec. 1: Cites this as the Alaska ABLE Act Savings                                                                      
     Program Act                                                                                                              
                                                                                                                                
     Sec. 2: Creates a new chapter 65. Alaska Savings                                                                       
     Program for Eligible Individuals                                                                                         
                                                                                                                                
          Sec.  06.65.010:  Program  authorized.  Authorizes                                                                  
          Alaska ABLE  savings program  in the  Department -                                                                    
          which is the Alaska  Department of Revenue. Allows                                                                    
          it to  implement and administer the  program under                                                                    
          the Federal ABLE Act.                                                                                                 
                                                                                                                                
          Sec.   06.65.020:   General   department   duties.                                                                  
          Outlines   the  duties   of   the  department   in                                                                    
          implementing and administering the program.                                                                           
                                                                                                                                
          Sec.  06.65.030:  Modification of  program.  Gives                                                                  
          the Department authority to  modify the program in                                                                    
          accordance to any federal law changes                                                                                 
                                                                                                                                
          Sec.  06.65.040:   Additional  department  powers.                                                                  
          Allows   department  to   set  fees   for  program                                                                    
          transactions   and  services   and  also   develop                                                                    
          marketing plan to promote the ABLE program                                                                            
                                                                                                                                
          Sec.     06.65.050:     Contracting     authority;                                                                  
          procurement   exemption.   Allows  department   to                                                                  
          contract with  a person to assist  in implementing                                                                    
          the program,  provide services, join  other states                                                                    
          to obtain or  provide services for implementation,                                                                    
          join  a cooperative  effort with  other states  to                                                                    
          provide  services  for   the  program  that  could                                                                    
          include  investment  and record-keeping  services.                                                                    
          Allows state  to join with  other states  to allow                                                                    
          an Alaska resident to participate  in a program in                                                                    
          another  state under  federal authorizing  law and                                                                    
          for an  outside state to participate  in a program                                                                    
          in this state. If  contracting with another state,                                                                    
          AS 36.30 (Procurement Code) will not apply.                                                                           
                                                                                                                                
          Sec. 06.65.060:  Investment oversight:  Allows the                                                                  
          department  to oversee  and  approve selection  of                                                                    
          investment managers and  advisors for the program,                                                                    
          and  to  oversee  all investment  disclosures  and                                                                    
          regulatory filings related to program investments                                                                     
                                                                                                                                
          Sec. 06.65.070:  Financial contractor obligations:                                                                  
          outlines   duties/obligations   of  the   selected                                                                    
          financial contractor(s)                                                                                               
                                                                                                                                
          Sec.  06.65.080:  Additional  audits:  Allows  the                                                                  
          department to  order an audit of  the contractor's                                                                    
          financial  operation and  position in  addition to                                                                    
          annual audit  if the department  has reason  to be                                                                    
          concerned                                                                                                             
                                                                                                                                
          Sec.   06.65.090:   Contract   termination;   non-                                                                  
          renewal. Gives  department authority to  not renew                                                                  
          a financial contract. If so  it would take custody                                                                    
          of  the  program  accounts and  transfer  them  to                                                                    
          another financial  contractor that  offers similar                                                                    
          program accounts                                                                                                      
                                                                                                                                
          Sec.  06.65.100:  Eligible individuals.  Describes                                                                  
          who is eligible to participate in the program.                                                                        
                                                                                                                                
          Sec.   06.65.110:   Representative   of   eligible                                                                  
          individuals.   Describes   who   may  act   as   a                                                                  
          representative of  the eligible individual  who is                                                                    
         a minor or lacks decision-making capacity                                                                              
                                                                                                                                
          Sec. 06.65.120: Program  account ownership. States                                                                  
          that  the  owner of  the  program  account is  the                                                                    
          designated beneficiary.                                                                                               
                                                                                                                                
          Sec.  06.65.130:   Number  of   program  accounts.                                                                  
          Allows  only one  program  account per  designated                                                                    
          beneficiary under federal authorizing law.                                                                            
                                                                                                                                
          Sec.   06.65.140:  Program   account  application:                                                                  
          Outlines   department   procedures   for   program                                                                    
          account   applications  and   information  to   be                                                                    
          collected in that process                                                                                             
                                                                                                                                
          Sec.  06.65.150:   Program  account  establishment                                                                  
          fee. Allows financial contractor  to charge a non-                                                                  
          refundable to establish  program account. That fee                                                                    
          to  be   determined  in  the  contract   with  the                                                                    
          financial contractor.                                                                                                 
                                                                                                                                
          Sec.  06.65.160:  Program  account  contributions.                                                                  
          Outlines  how a  person can  make a  contribution,                                                                    
          the  limit  authorized   by  federal  law,  allows                                                                    
          department  to reject  or withdraw  a contribution                                                                    
          that exceeds  that annual  limit or  maximum limit                                                                    
          established  by authorizing  law or  if designated                                                                    
          beneficiary  is not  eligible, and  that financial                                                                    
          contractor must report contributions to the IRS.                                                                      
                                                                                                                                
          Sec.  06.65.170:   Limited  investment  direction.                                                                  
          Limits  to  two  the  number of  times  a  program                                                                    
          account investment can be changed.                                                                                    
                                                                                                                                
          Sec. 06.65.180: Change  of designated beneficiary.                                                                  
          Allows a designated  beneficiary or representative                                                                    
          to  change beneficiary  of an  account to  another                                                                    
          eligible individual in the family.                                                                                    
                                                                                                                                
          Sec.   06.65.190:   Distribution   for   qualified                                                                  
          expenses.   States  that   withdrawals  from   the                                                                  
          program accounts  may only  be used  for qualified                                                                    
         expenses for the designated beneficiary.                                                                               
                                                                                                                                
          Sec. 06.65.200: Rollover  distribution. Subject to                                                                  
          federal  law governing  rollovers, a  distribution                                                                    
          from a  program account  can be  made to  the same                                                                    
          designated   beneficiary   or   another   eligible                                                                    
          individual in  the family,  and the  timeframe for                                                                    
          that to be done.                                                                                                      
                                                                                                                                
          Sec.   06.65.210:    Statements.   Requires   that                                                                  
          statements re: program accounts  be issued 4 times                                                                    
          a year at times  established by the department and                                                                    
          that  the   program  contractor   provide  related                                                                    
         information at the department's request.                                                                               
                                                                                                                                
          Sec.   06.65.220:  Preparation   and  filing.   In                                                                  
          addition to  other reports a  financial contractor                                                                    
          shall prepare  and file statements  required under                                                                    
         state and federal law and other agencies.                                                                              
                                                                                                                                
          Sec.  06.65.230: Separate  accounting. Requires  a                                                                  
          financial    contractor   to    provide   separate                                                                    
          accounting for each program account.                                                                                  
                                                                                                                                
          Sec.  06.65.240: Annual  fee.  Allows a  financial                                                                  
          contractor   may   charge   an  annual   fee   for                                                                    
          maintenance of a program account.                                                                                     
                                                                                                                                
          Sec.  06.65.250:  Use  as  security.  Prohibits  a                                                                  
          program account from being used  as security for a                                                                    
          loan                                                                                                                  
                                                                                                                                
          Sec.  06.65.260:  No  state  obligation.  Declares                                                                  
          that the program does not  create an obligation of                                                                    
          the state, department, or  any agency to guarantee                                                                    
          the  return of  principal or  pay interest  on the                                                                    
          principal in a program account                                                                                        
                                                                                                                                
          Sec.  06.65.270:  Confidentiality. Specifies  that                                                                  
          program account information is confidential                                                                           
                                                                                                                                
          Sec.  06.65.280: Exchange  of information.  Allows                                                                  
          the  Department to  exchange information  with the                                                                    
          Department  of  Health  and  Social  Services  and                                                                    
          other  state  agencies  to  determine  whether  an                                                                    
          individual is eligible                                                                                                
                                                                                                                                
          Sec.   06.65.290:  Treatment   under  means   test                                                                  
          programs.  Specifies the  program account  amounts                                                                  
          must  be  disregarded in  determining  eligibility                                                                    
          for means-tested programs                                                                                             
                                                                                                                                
          Sec.  06.65.300:   Deposit  from   permanent  fund                                                                  
          dividend.  Allows  deposits  to  program  accounts                                                                  
          from the permanent fund dividend                                                                                      
                                                                                                                                
          Sec. 06.65.310: Program  expense fund. Establishes                                                                  
          program expense fund and  describes it purpose and                                                                    
          operation                                                                                                             
                                                                                                                                
          Sec. 06.65.320:  Medicaid claims: Allows  that the                                                                  
          state  may  file  a   claim  against  the  program                                                                    
          account of a beneficiary who dies.                                                                                    
                                                                                                                                
          Sec.   06.65.330:   Governing   law.   Establishes                                                                  
          federal  law as  governing  to the  extent of  any                                                                    
          conflict with state law                                                                                               
                                                                                                                                
          Sec.   06.65.340:    Regulations.   Requires   the                                                                  
          department to adopt implementing regulations                                                                          
                                                                                                                                
          Sec.  06.65.350:   Annual  report.   Requires  the                                                                  
          department to  evaluate the program each  year and                                                                    
          file an  annual report on  or before the  start of                                                                    
          each legislative session beginning in 2018                                                                            
                                                                                                                                
          Sec. 06.65.390: Definitions.                                                                                        
                                                                                                                                
     Sec.  3: AS  36.30.850(b):  Adds  ABLE program  account                                                                  
     oversight as  a responsibility  of the  Commissioner of                                                                    
     Revenue                                                                                                                    
                                                                                                                                
     Sec  4:  AS  40.25.120(a)   is  amended  to  create  an                                                                  
     exception  to public  inspection for  names, addresses,                                                                    
     and other program account identifying information                                                                          
                                                                                                                                
Co-Chair MacKinnon queried the location of the Section 4                                                                        
within the bill.                                                                                                                
                                                                                                                                
[Section 4 was located on Page 11.]                                                                                             
                                                                                                                                
2:45:39 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:46:29 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:46:58 PM                                                                                                                    
                                                                                                                                
Ms. Skipper continued to discuss the Sectional Analysis:                                                                        
                                                                                                                                
     Sec.  5: AS  45.55.990(32):  Excludes program  accounts                                                                  
     from the definition of "security"                                                                                          
                                                                                                                                
     Sec. 6: AS 47.07.055: Allows  the state to file a claim                                                                  
     against  the designated  beneficiary's program  account                                                                    
     after the individual dies                                                                                                  
                                                                                                                                
     Sec. 7: Transition                                                                                                       
                                                                                                                                
          Requires the  Department to file its  first report                                                                    
          on the program  on or before the first  day of the                                                                    
          Second Regular  Session of Thirtieth  Alaska State                                                                    
          Legislature (2018)                                                                                                    
     Sec. 8: Transition                                                                                                       
                                                                                                                                
          Allows the Department to adopt regulations, but                                                                       
          not before the effective date of the provisions                                                                       
          authorizing the Alaska ABLE savings program                                                                           
                                                                                                                                
     Sec. 9: Effective Date                                                                                                   
                                                                                                                                
          Section 8 takes effect immediately                                                                                    
                                                                                                                                
2:48:02 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
2:48:24 PM                                                                                                                    
                                                                                                                                
STUART   SPIELMAN,  AUTISM   SPEAKS,   WASHINGTON  DC   (via                                                                    
teleconference),  testified in  support of  the legislation.                                                                    
He stated that 40 states had enacted similar legislation.                                                                       
                                                                                                                                
Co-Chair MacKinnon  wondered whether  DHSS had  any comments                                                                    
or concerns pertaining to the bill.                                                                                             
                                                                                                                                
2:49:20 PM                                                                                                                    
                                                                                                                                
MARGARET   BRODIE,  DIRECTOR,   DIVISION   OF  HEALTH   CARE                                                                    
SERVICES,   DEPARTMENT  OF   HEALTH  AND   SOCIAL  SERVICES,                                                                    
ANCHORAGE (via  teleconference), testified that there  was a                                                                    
potential benefit  to the department  because over  time the                                                                    
amount  that   the  department  would  spend   for  disabled                                                                    
individuals could decrease.                                                                                                     
                                                                                                                                
2:50:08 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon   asked  whether   the   administration                                                                    
supported the bill.                                                                                                             
                                                                                                                                
Ms.  Brodie replied  that the  administration supported  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
2:50:26 PM                                                                                                                    
                                                                                                                                
KRISTEN    VANDAGRIFF,   ALASKA    GOVERNORS   COUNCIL    ON                                                                    
DISABILITIES   AND   SPECIAL   EDUCATION,   ANCHORAGE   (via                                                                    
teleconference),  spoke in  support  of the  bill. She  said                                                                    
that  the bill  would be  a great  tool for  individuals and                                                                    
their families  to be more independent  and self-sufficient,                                                                    
and to be able to join the workforce.                                                                                           
                                                                                                                                
CSHB 188(FIN) was HEARD and HELD in committee for further                                                                       
consideration.                                                                                                                  
                                                                                                                                
2:51:12 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:53:10 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 83(JUD)                                                                                                 
                                                                                                                                
     "An Act relating to  collecting information about civil                                                                    
     litigation  by the  Alaska Judicial  Council; repealing                                                                    
     Rule  41(a)(3), Alaska  Rules of  Civil Procedure,  and                                                                    
     Rules  511(c)  and  (e),   Alaska  Rules  of  Appellate                                                                    
     Procedure; and providing for an effective date."                                                                           
                                                                                                                                
2:54:21 PM                                                                                                                    
                                                                                                                                
Representative LeDoux presented the sponsor statement:                                                                          
                                                                                                                                
     HB   83   eliminates   the   automatic   reporting   of                                                                    
     information  about  civil  case  settlements  currently                                                                    
     required by  law. This bill  follows the advice  of the                                                                    
     Judicial  Council,  which   has  recommended  that  the                                                                    
     legislature  do  away  with this  requirement.  Passing                                                                    
     this  bill  would  save  money   and  time  by  freeing                                                                    
     attorneys  and   litigants  from  an   unnecessary  and                                                                    
     functionally  useless  submission  of  data  which  the                                                                    
     Judicial Council sees no point in collecting.                                                                              
                                                                                                                                
     It is part  of the job of the  legislature to eliminate                                                                    
     waste and to make government more effective.                                                                               
     Discarding needless data  collection requirements is an                                                                    
     easy  way   to  achieve  cost-savings   and  streamline                                                                    
     government. HB 83 does exactly this.                                                                                       
                                                                                                                                
    I urge your support for the swift passage of HB 83.                                                                         
                                                                                                                                
2:55:28 PM                                                                                                                    
                                                                                                                                
AMY MICHEL, STAFF, REPRESENTATIVE LEDOUX, discussed the                                                                         
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section One: Repeals Alaska Rules of Civil Procedure                                                                       
     Rule 41(a) (3) and Alaska Rules of Appellate Procedure                                                                     
     Rules 511(c) and (e).                                                                                                      
                                                                                                                                
     Section Two: Repeals AS 09.68.130 which requires                                                                           
     reporting of civil litigation information to the                                                                           
     Alaska Judicial Council.                                                                                                   
                                                                                                                                
     Section Three: Per the Alaska Constitution, repealing                                                                      
    court rules requires a 2/3 majority of both bodies.                                                                         
                                                                                                                                
     Section Four: Provides for an effective date                                                                               
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
2:56:51 PM                                                                                                                    
                                                                                                                                
SARAH   BATTON,  ATTORNEY,   GROH  EGGERS,   ANCHORAGE  (via                                                                    
teleconference),  testified  in  support of  the  bill.  She                                                                    
stated  that the  bill would  save  money and  time for  all                                                                    
parties involved.                                                                                                               
                                                                                                                                
2:58:01 PM                                                                                                                    
                                                                                                                                
KEN  JACOBUS,  ANCHORAGE  BAR  ASSOCIATION,  ANCHORAGE  (via                                                                    
teleconference), spoke in support of  the bill. He said that                                                                    
the  bill  was   supported  by  many  of   the  state's  bar                                                                    
associations and was seemingly unopposed.                                                                                       
                                                                                                                                
2:59:45 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
3:00:04 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  solicited  closing  comments  from  the                                                                    
sponsor.                                                                                                                        
                                                                                                                                
Representative LeDoux urged passage of the legislation.                                                                         
                                                                                                                                
CSHB 83(JUD)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
3:00:19 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:01:09 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 289                                                                                                            
                                                                                                                                
     "An  Act relating  to the  membership of  the Board  of                                                                    
     Barbers and Hairdressers."                                                                                                 
                                                                                                                                
3:01:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GABRIELLE LEDOUX, SPONSOR, explained that                                                                        
the legislation:                                                                                                                
                                                                                                                                
     House Bill  289 creates equal board  representation for                                                                    
     all licensees governed by the Board of                                                                                     
     Barbers  and  Hairdressers.   The  board  oversees  the                                                                    
     licensing  of 2,271  hairdressers; 962  manicurists and                                                                    
     nail  technicians; 542  estheticians; 151  barbers; and                                                                    
     146 tattoo and piercing artists.                                                                                           
     The  existing  board  structure has  1  hairdresser,  1                                                                    
     hairdresser  with   an  esthetician   certification,  1                                                                    
     tattoo  or  piercing  artist, 1  public  member  and  2                                                                    
     barbers.                                                                                                                   
                                                                                                                                
     In 2015, the legislature  passed HB 131, which required                                                                    
     manicurists  and nail  technicians  to become  licensed                                                                    
     through the  board; however  the existing  statute does                                                                    
     not provide for representation  from that sector of the                                                                    
     industry.  HB 289  fixes this  by increasing  the board                                                                    
     from 6  to 7 members,  so that the second  largest body                                                                    
     of  licensees the  board  oversees has  a  seat at  the                                                                    
     table to represent their trade.                                                                                            
                                                                                                                                
     HB  289 reallocates  one designated  barber  seat to  a                                                                    
     licensee   at-large.  This   alteration  reflects   the                                                                    
     changes  in the  industry.  When the  board seats  were                                                                    
     originally allocated, over  1,200 barbers were licensed                                                                    
     in  Alaska.  That number  has  fallen  to 151  licensed                                                                    
     barbers today.  The reallocation  of one  member alters                                                                    
     the  board composition  to better  reflect the  current                                                                    
     industry membership levels.                                                                                                
                                                                                                                                
    I ask for your consideration and support of HB 289.                                                                         
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
3:04:11 PM                                                                                                                    
GLENDA LEDFORD,  CHAIR, BOARD  OF BARBERS  AND HAIRDRESSERS,                                                                    
WASILLA  (via  teleconference),  spoke  in  support  of  the                                                                    
legislation.  She  particularly  supported the  addition  of                                                                    
manicurists  and nail  technicians to  the board.  She added                                                                    
that   the   board   voted  unanimously   to   support   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
3:05:59 PM                                                                                                                    
                                                                                                                                
JEANNINE  JABAAY, BOARD  OF BARBERS  AND HAIRDRESSERS,  HOPE                                                                    
(via  teleconference),  spoke  in   strong  support  of  the                                                                    
legislation. She noted that  there was an overrepresentation                                                                    
of barbers on the board, given  the number of barbers in the                                                                    
state.  She   believed  that   that  manicurists   and  nail                                                                    
technicians should  have a  seat on the  board and  that the                                                                    
odd number  of board members illustrated  best practices for                                                                    
the small board  that governed a large  number of licensees.                                                                    
She furthered  that adding a  seventh member made  it easier                                                                    
to  attain a  quorum. She  said  that when  the statute  was                                                                    
created the state had over  1200 barbers, as of January 2016                                                                    
the  number   was  152,  which   had  led  to   the  current                                                                    
overrepresentation of barbers on the board.                                                                                     
                                                                                                                                
3:09:30 PM                                                                                                                    
                                                                                                                                
Senator Bishop queried the decline of barbers in the state.                                                                     
                                                                                                                                
Ms. Jabaay replied that she did not know.                                                                                       
                                                                                                                                
3:10:09 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony                                                                                      
                                                                                                                                
HB  289  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
3:10:51 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:11:49 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 231(FIN)                                                                                                
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Parole; and providing for an effective date."                                                                              
3:12:07 PM                                                                                                                    
                                                                                                                                
ESTHER  MIELKE, STAFF,  REPRESENTATIVE  BOB LYNN,  testified                                                                    
that the Board  of Parole currently served in  Alaska as the                                                                    
authority  over  parole  setting.   She  said  that  it  was                                                                    
currently set in statute to  be terminated on June 30, 2016;                                                                    
HB 231 originally  extended that date to June  30, 2022, but                                                                    
the most current version of the  bill extends it to June 30,                                                                    
2020. She  relayed that the  board was audited in  2015. The                                                                    
audit included  and examination of the  board's performance,                                                                    
in light  of the 11  sunset criteria points  provided within                                                                    
Alaska  statute.   She  continued   that  the   Division  of                                                                    
Legislative  Audit  had  found  the  board  to  be  in  good                                                                    
standing,   but  provided   4  recommendations   to  improve                                                                    
operations:                                                                                                                     
                                                                                                                                
1.  The  executive  director should  improve  procedures  to                                                                    
ensure  required   documentation  for  parole   hearings  is                                                                    
accurate and consistently included in parole files.                                                                             
                                                                                                                                
2.  The   executive  director   in  coordination   with  DOC                                                                    
management  should  implement   documentation  standards  to                                                                    
ensure  all offender  and victim  notifications are  made in                                                                    
accordance with statutory requirements.                                                                                         
                                                                                                                                
3. The board should  ensure proposed regulations address all                                                                    
statutory requirements related to its duties.                                                                                   
                                                                                                                                
4.  DOC's Administrative  Services Division  director should                                                                    
take steps  to ensure ACOMS complies  with state information                                                                    
technology security standards and national best practices.                                                                      
                                                                                                                                
Ms.   Mielke  shared   that  the   board  agreed   with  the                                                                    
recommendations. She  related that HB 231  would fulfill the                                                                    
constitutional  requirement  that   the  state  establish  a                                                                    
parole system  that kept Alaskans  safe. She noted  that the                                                                    
fiscal note would  cover the boards operating  costs and had                                                                    
already been included in the Operating Budget.                                                                                  
                                                                                                                                
3:14:28 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE   AUDIT,  explained   that   the  division   had                                                                    
concluded   the   board   conducted  its   business   in   a                                                                    
professional and efficient manner,  and recommended a 6 year                                                                    
extension. She  said that an  8 year extension had  not been                                                                    
recommended  because of  the  current  uncertainties in  the                                                                    
field of  corrections. She furthered that  the division felt                                                                    
that that the  new risk assessment tool  that the department                                                                    
had just implemented  required legislative oversight earlier                                                                    
than in  8 years. She  mentioned the 4  recommendations made                                                                    
by  the division,  and noted  that they  were administrative                                                                    
and had  not impacted the recommendation  for extension. She                                                                    
noted that the  recommendations could be found on  Page 9 of                                                                    
the   audit    (copy   on   file).   She    reiterated   the                                                                    
recommendations.  She  echoed that  the  board  and the  DOC                                                                    
concurred with all of the division's recommendations.                                                                           
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
3:18:46 PM                                                                                                                    
                                                                                                                                
JEFF   EDWARDS,  DIRECTOR,   PAROLE  BOARD,   DEPARTMENT  OF                                                                    
CORRECTIONS,  ANCHORAGE   (via  teleconference),  introduced                                                                    
himself.                                                                                                                        
                                                                                                                                
3:18:59 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon opined  that the  board was  costing the                                                                    
state $1  million in General  Fund dollars. She  queried the                                                                    
number of employees on the Parole Board.                                                                                        
                                                                                                                                
Mr. Edwards  replied that there  were 6  full-time employees                                                                    
of  the  board, as  well  as  5 governor  appointed  sitting                                                                    
members who were considered part-time employees.                                                                                
                                                                                                                                
3:19:59 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon asserted  that the  board would  need to                                                                    
defend its $1 million dollars.                                                                                                  
                                                                                                                                
Mr.  Edwards  believed  that the  services  that  the  board                                                                    
provided would  be vastly  expanded through  the possibility                                                                    
of SB 91  because criminal justice commissions,  on a global                                                                    
level,  had been  expanded and  their  duties increased.  He                                                                    
noted that  prison populations were  continuing to  grow. He                                                                    
contended that  his was the  only agency that  could release                                                                    
individuals, who  posed low  risk, early.  He felt  that the                                                                    
paroling authority  provided a pathway to  reintegration and                                                                    
re-entry for  low-risk prisoners into society,  which was an                                                                    
efficient  use of  state dollars.  He  relayed that  housing                                                                    
low-risk prisoners  in jails was expensive  and ineffective.                                                                    
He  believed that  the board  would be  at the  forefront of                                                                    
saving hard-bed costs for the DOC.                                                                                              
                                                                                                                                
3:22:37 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  queried a breakdown of  the $852,000 in                                                                    
personal services reflected on the fiscal note.                                                                                 
                                                                                                                                
3:22:55 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon referred to Page 1 of the audit:                                                                             
                                                                                                                                
     The board  is funded by the  general fund. Expenditures                                                                    
     are  primarily  for   personal  services,  travel,  and                                                                    
     office rental  costs. Budgeted  expenditures for  FY 15                                                                    
     were $896,700.                                                                                                             
                                                                                                                                
Co-Chair  MacKinnon  noted  that  there  had  been  a  staff                                                                    
vacancy and wondered how long the position remained vacant.                                                                     
                                                                                                                                
Mr.  Edwards replied  that  the position  was  vacant for  a                                                                    
period of time. He added  that during the position's vacancy                                                                    
there had been an  expansion of the Probation Accountability                                                                    
and Certain  Enforcement (PACE) program, which  had provided                                                                    
the board  with an additional  staff position. He  said that                                                                    
the vacant position was filled  once the board completed the                                                                    
institution   of   the   new   program,   which   had   been                                                                    
legislatively  mandated  through SB  64  [SB  64 was  passed                                                                    
during 2013-2014]                                                                                                               
                                                                                                                                
3:23:57 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon   wondered  whether  the   position  had                                                                    
remained vacant for all of FY 15.                                                                                               
                                                                                                                                
Mr. Edwards agreed to provide that information.                                                                                 
                                                                                                                                
Co-Chair   MacKinnon   understood   that   the   board   was                                                                    
dovetailing in with the PACE  program, which had resulted in                                                                    
an additional position.                                                                                                         
                                                                                                                                
Mr. Edwards  relied that one  position control  number (PCN)                                                                    
had been designated to the  parole board to support the PACE                                                                    
program.                                                                                                                        
                                                                                                                                
3:24:42 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  asked  whether Mr.  Edwards  managed  6                                                                    
individuals, while someone else managed the PACE program.                                                                       
                                                                                                                                
Mr. Edwards replied that the  DOC supervised the individuals                                                                    
on the actual program, the  board's role was to identify who                                                                    
was acceptable for  the program and to  track violations. He                                                                    
added that  the PACE position was  responsible for analyzing                                                                    
data and providing data on  behalf of the departments to the                                                                    
effectiveness of the program.                                                                                                   
                                                                                                                                
3:25:25 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon requested  a written  document detailing                                                                    
the personal services and travel lines of the fiscal note.                                                                      
                                                                                                                                
CSHB 231(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 268                                                                                                            
                                                                                                                                
     "An  Act  relating to  the  dividends  from the  Alaska                                                                    
     Industrial Development  and Export  Authority; relating                                                                    
     to  the meaning  of 'mark-to-market  fair value,'  'net                                                                    
     income,'  'project or  development,' and  'unrestricted                                                                    
     net  income'  for  purposes of  the  Alaska  Industrial                                                                    
     Development and Export Authority;  and providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
3:26:47 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
3:27:07 PM                                                                                                                    
                                                                                                                                
GENE  THERRIAULT, STAFF,  ALASKA INDUSTRIAL  DEVELOPMENT AND                                                                    
EXPORT AUTHORITY,  (AIDEA) testified that the  first problem                                                                    
that  the  legislation  aimed to  address  was  the  "market                                                                    
value" adjustment entries.  He said that in  order for AIDEA                                                                    
to  get  its  audited financial  statement,  new  accounting                                                                    
rules required that  different assets that were  held by the                                                                    
authority  be evaluated  and  mark-to-market adjustments  be                                                                    
made during  the fiscal year. Generally  Accepted Accounting                                                                    
Principles   (G.A.A.P)   kept   evolving,   which   required                                                                    
recording  of market  value adjusting  entries; essentially,                                                                    
act like  something happened that  did not happen,  and book                                                                    
it  as  though  it  did.  He  relayed  that  this  would  be                                                                    
considered a "non-cash" adjustment  to the accounts that was                                                                    
bringing  an   unnecessary  amount  of  volatility   to  the                                                                    
calculation  of  the  dividend to  the  state  treasury.  He                                                                    
pointed to  Page 1 of  the bill, which offered  a definition                                                                    
of mark-to-market fair value":                                                                                                  
                                                                                                                                
          (2) "mark-to-market fair value" means fixing the                                                                    
     value of an investment as its market value as of the                                                                     
     financial reporting date;                                                                                                
                                                                                                                                
Mr.  Therriault  directed  committee attention  to  Page  2,                                                                    
which showed  that the  legislature had  previously included                                                                    
and  exclusion  mechanism  in the  calculation  of  the  net                                                                    
income for the  purposes of AIDEA paying out  a dividend. He                                                                    
stated  that the  bill  proposed  adding the  mark-to-market                                                                    
evaluations   to  the   exclusion  so   that  the   non-cash                                                                    
adjustments would be  backed out and the  true-net income of                                                                    
the authority  would serve for calculating  the dividend. He                                                                    
continued  that the  second problem  the bill  would address                                                                    
was the "dividend penalty". When  the value of a project had                                                                    
been determined  to have been permanently  reduced, for some                                                                    
reason,  G.A.A.P  required  booking/recording  an  adjusting                                                                    
entry between the balance sheet  and the income statement to                                                                    
reduce or remove some  or all of the value of  an asset or a                                                                    
project from  AIDEA's balance.  The resulting  entry reduced                                                                    
net income. The consequence  (depending on the facts), could                                                                    
possibly either  reduce the state's dividend  from a project                                                                    
it had funded  due to an adjusting entry  reducing value, or                                                                    
have AIDEA  paying a  dividend on  top of  a project  it had                                                                    
funded due to an adjusting  entry reducing value. The result                                                                    
could be up  to a 25 percent to 50  percent dividend penalty                                                                    
from an  adjusting entry.  He noted  that on  Page 2  of the                                                                    
bill noncash  adjustments and the  write-off of  assets that                                                                    
were purchased with outside sources  of money had been added                                                                    
to the  exclusion clause that  had already  been established                                                                    
by the legislature.  This would base the  yearly dividend to                                                                    
the  state treasury  on  true net  income  and would  remove                                                                    
unnecessary   volatility  in   the   calculation  of   those                                                                    
dividends.                                                                                                                      
                                                                                                                                
3:31:49 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  requested a  Sectional Analysis  for the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Mr. Therriault noted that the Sectional Analysis reiterated                                                                     
the 2 problems that the bill would correct.                                                                                     
                                                                                                                                
3:32:31 PM                                                                                                                    
                                                                                                                                
Mr. Therriault warned that swings in the volatility of the                                                                      
dividend would become more pronounced without the passage                                                                       
of the legislation.                                                                                                             
                                                                                                                                
3:33:10 PM                                                                                                                    
                                                                                                                                
MICHAEL LAMB, CHIEF FINANCIAL OFFICER, AIDEA (via                                                                               
teleconference), echoed Mr. Therriault's remarks.                                                                               
                                                                                                                                
3:33:40 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon asked whether the legislation was in any                                                                     
way related to the purchase of a gas utility.                                                                                   
                                                                                                                                
Mr. Lamb replied in the negative.                                                                                               
                                                                                                                                
HB 268 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:34:56 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:34 p.m.                                                                                          

Document Name Date/Time Subjects
HB188 Sectional Analysis for version G.pdf SFIN 4/12/2016 1:30:00 PM
HB 188
HB188 Sponsor Statement.pdf SFIN 4/12/2016 1:30:00 PM
HB 188
HB188 Summary of Changes - Version N (HL&C) to Version G (HFIN).pdf SFIN 4/12/2016 1:30:00 PM
HB 188
HB188 Supporting Documents-Letter from Alaska Autism Speaks.pdf SFIN 4/12/2016 1:30:00 PM
HB 188
HB188 Supporting Documents-Letter from GCDSE.pdf SFIN 4/12/2016 1:30:00 PM
HB 188
HB188 Supporting Documents-Letter of support Municipality of Anchorage HSS.pdf SFIN 4/12/2016 1:30:00 PM
HB 188
HB 83 Committee Report.PDF SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Letter of Support Ken Jacobus.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Letters of Support.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Sectional Analysis.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Sponsor Statement .pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Summary of Changes.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support AS 09.68.130.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support Civil Case Data.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support Civil Case Form.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support Civil Case Report 2001.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support Resolution of Support Anchorage Bar Association.pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support Rules of Appellate Procedure 511 (c) and (e).pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB 83 Support Rules of Civil Procedure Rule 41 (a) (3).pdf SFIN 4/12/2016 1:30:00 PM
HB 83
HB289 Supporting Documents-Presentation from Board of Barbers and Hairdressers.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents - Professional Boards Report.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Article Forbes 6-16-2014.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Article Forbes 10-11-2014.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Angela Stubbs 2-23-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Blake Quackenbush 2-26-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Board of Barbers and Hairdressers 2-29-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Grace Halsey 2-23-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Jeannine Jabaay 2-23-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Rachel Saldana 2-25-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB289 Supporting Documents-Letter Renee Scott 2-25-2016.pdf SFIN 4/12/2016 1:30:00 PM
HB 289
HB231 Additional Info from Auditor.pdf SFIN 4/12/2016 1:30:00 PM
HB 231
HB231 Legislative Audit.pdf SFIN 4/12/2016 1:30:00 PM
HB 231
HB231 Sponsor Statement.pdf SFIN 4/12/2016 1:30:00 PM
HB 231
HB231 Summary of Changes.pdf SFIN 4/12/2016 1:30:00 PM
HB 231
HB268 PowerPoint presentation.pdf SFIN 4/12/2016 1:30:00 PM
HB 268
HB268 Sectional Analysis.pdf SFIN 4/12/2016 1:30:00 PM
HB 268
HB268 Transmittal Letter.pdf SFIN 4/12/2016 1:30:00 PM
HB 268
SB 128 - Sectional Analysis - Version N.pdf SFIN 4/12/2016 1:30:00 PM
SB 128
SB 128 CSSB 128 work draft version N.pdf SFIN 4/12/2016 1:30:00 PM
SB 128
SB 128 CSSB 128 LFD Fiscal Model Status Quo 041216.pdf SFIN 4/12/2016 1:30:00 PM
SB 128
SB 128 CSSB 128 version N LFD Fiscal Model 4 12 16.pdf SFIN 4/12/2016 1:30:00 PM
SB 128
HB 231 Parole Board PS Detail FY2017.pdf SFIN 4/12/2016 1:30:00 PM
HB 231
SB 128 Letter Packet 3.pdf SFIN 4/12/2016 1:30:00 PM
SB 128
SB 128 Key Coalition Letter - Senate Finance 4-15-16.pdf SFIN 4/12/2016 1:30:00 PM
SB 128