Legislature(2017 - 2018)SENATE FINANCE 532

03/09/2017 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 22 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= SB 24 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+= SB 21 PERMANENT FUND: INCOME; POMV; DIVIDENDS TELECONFERENCED
Scheduled but Not Heard
+= SB 26 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Heard & Held
+= SB 70 APPROP. LIMIT/BUDGET PROCESS/PERM FUND TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       March 9, 2017                                                                                            
                         9:04 a.m.                                                                                              
                                                                                                                                
9:04:40 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Hoffman called the Senate Finance Committee                                                                            
meeting to order at 9:04 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Mike Dunleavy                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Donny Olson                                                                                                             
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James Armstrong,  Staff, Senator Lyman Hoffman;  David Teal,                                                                    
Director,   Legislative   Finance  Division;   Pat   Pitney,                                                                    
Director,  Office of  Management and  Budget, Office  of the                                                                    
Governor; Laura Cramer, Staff, Senator Anna MacKinnon.                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 21     PERMANENT FUND: INCOME; POMV; DIVIDENDS                                                                               
                                                                                                                                
          SB 21 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
SB 22     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          SB 22 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 24     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          SB 24 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 26     PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS                                                                                 
                                                                                                                                
          SB 26 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 70     APPROP. LIMIT/BUDGET PROCESS/PERM FUND                                                                                
                                                                                                                                
          SB 70 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
SENATE BILL NO. 22                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:05:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  informed that the committee  would take up                                                                    
a  committee substitute  (CS) for  SB 22,  which would  have                                                                    
some technical changes.                                                                                                         
                                                                                                                                
Co-Chair  MacKinnon   MOVED  to  ADOPT   proposed  committee                                                                    
substitute  for  SB  22, Work  Draft  30-GS1855\D  (Wallace,                                                                    
3/2/17).                                                                                                                        
                                                                                                                                
Co-Chair Hoffman OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Hoffman  asked  staff  to  explain  the  technical                                                                    
changes  in the  bill. He  remarked that  the committee  was                                                                    
trying to get the  operating budget completed as effectively                                                                    
and efficiently  as possible  so as to  devote more  time to                                                                    
the piece  of legislation associated with  restructuring the                                                                    
Permanent Fund Dividend (PFD) program.                                                                                          
                                                                                                                                
9:06:33 AM                                                                                                                    
                                                                                                                                
JAMES  ARMSTRONG, STAFF,  SENATOR  LYMAN HOFFMAN,  explained                                                                    
that the  committee had  not received  the budget  bill from                                                                    
the other  body, but would  be working with  the Legislative                                                                    
Finance Division  (LFD) and Legal  Services to clean  up the                                                                    
bill. He stated that the committee  would be using SB 22 and                                                                    
SB 24  as the vehicles to  develop the budget; and  when the                                                                    
bills from  the other body  came to the committee,  it would                                                                    
make  the  corresponding  changes.   He  recalled  that  the                                                                    
committee had done  the same thing the  previous session. He                                                                    
asserted  that the  LFD  Director and  the  Director of  the                                                                    
Office of  Management and  Budget (OMB)  could speak  to the                                                                    
technical  conforming changes  that had  been made  and were                                                                    
explicated  in  the  document "Summary  of  Changes  between                                                                    
Governor's Operating Bill and CSSB22 (FIN)" (copy on file).                                                                     
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
explained  that the  CS  before the  committee  was for  all                                                                    
practical purposes  the governor's bill, redrafted  in Legal                                                                    
Services  Division language  rather than  language from  the                                                                    
Department of  Law. He specified that  the bill appropriated                                                                    
the same  amount of  money for the  same purposes,  and from                                                                    
the same fund sources. He  thought it was easily discernable                                                                    
that the changes to the  bill were confined to date changes,                                                                    
rearrangements,  and  small  technical changes.  He  thought                                                                    
that the changes  would make the process easier  for LFD and                                                                    
Legal  Services, as  well  as for  the  committee. When  the                                                                    
committee developed the next CS,  it would be much easier to                                                                    
discern any substantive changes  from the rearrangements and                                                                    
other technical adjustments.                                                                                                    
                                                                                                                                
9:08:58 AM                                                                                                                    
                                                                                                                                
PAT  PITNEY,  DIRECTOR,  OFFICE OF  MANAGEMENT  AND  BUDGET,                                                                    
OFFICE  OF  THE  GOVERNOR, stated  that  the  administration                                                                    
concurred with  the changes. She  stated that the  CS before                                                                    
the  committee did  exactly what  had been  proposed in  the                                                                    
governor's budget.                                                                                                              
                                                                                                                                
Co-Chair Hoffman  WITHDREW his  objection. A roll  call vote                                                                    
was taken on the motion.                                                                                                        
                                                                                                                                
IN FAVOR: Bishop,  Dunleavy, Micciche,  von Imhof,  Hoffman,                                                                    
MacKinnon                                                                                                                       
OPPOSED:                                                                                                                        
                                                                                                                                
Senator Olson was absent from the vote.                                                                                         
                                                                                                                                
The MOTION PASSED (6/0).                                                                                                        
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  30-GS1855\D                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
SB  22  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:10:12 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:11:16 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Hoffman stated that there  was a CS to consider for                                                                    
SB 24.                                                                                                                          
                                                                                                                                
SENATE BILL NO. 24                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:11:16 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon   MOVED  to  ADOPT   proposed  committee                                                                    
substitute  for  SB  24, Work  Draft  30-GS1856\D  (Wallace,                                                                    
3/2/17).                                                                                                                        
                                                                                                                                
Co-Chair Hoffman OJBECTED for discussion.                                                                                       
                                                                                                                                
Mr. Teal explained that the CS  was similar to that of CS SB                                                                    
22, in  that the CS  was the same  as the original  bill but                                                                    
for small technical changes.                                                                                                    
                                                                                                                                
Ms. Pitney  concurred that the CS  was the same as  what the                                                                    
administration    had   submitted    but   with    technical                                                                    
corrections.                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  WITHDREW his  OJBECTION. A roll  call vote                                                                    
was taken on the motion.                                                                                                        
                                                                                                                                
IN FAVOR: Dunleavy, Micciche, von  Imhof, Bishop, MacKinnon,                                                                    
Hoffman                                                                                                                         
OPPOSED:                                                                                                                        
                                                                                                                                
Senator Olson was absent from the vote.                                                                                         
                                                                                                                                
The MOTION PASSED (6/0).                                                                                                        
                                                                                                                                
There being NO further OBJECTION, the CS was ADOPTED.                                                                           
                                                                                                                                
SB  24  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:12:51 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:17 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Hoffman handed the gavel to Co-Chair MacKinnon.                                                                        
                                                                                                                                
SENATE BILL NO. 26                                                                                                            
                                                                                                                                
     "An  Act   relating  to   the  Alaska   Permanent  Fund                                                                    
     Corporation,  the  earnings  of  the  Alaska  permanent                                                                    
     fund,  and the  earnings reserve  account; relating  to                                                                    
     the  mental health  trust  fund;  relating to  deposits                                                                    
     into the dividend fund; relating  to the calculation of                                                                    
     permanent  fund  dividends;  relating  to  unrestricted                                                                    
     state   revenue   available  for   appropriation;   and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:14:17 AM                                                                                                                    
                                                                                                                                
Co-Chair   Hoffman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for  SB  26,  Work  Draft  30-GS1690\D  (Martin,                                                                    
3/8/17).                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
LAURA CRAMER,  STAFF, SENATOR ANNA MACKINNON,  discussed the                                                                    
CS, explaining  that language from  SB 70 had  been inserted                                                                    
in to SB  26. She noted that there had  been one change, due                                                                    
to an  error in drafting  found on  page 8, Section  21. The                                                                    
change was to  an effective date, which had  been changed to                                                                    
July  1, 2020.  She explained  that the  date signified  the                                                                    
change  in the  Percent  of Market  Value  (POMV) from  5.25                                                                    
percent to 5 percent, and would be effective in FY 21.                                                                          
                                                                                                                                
9:15:42 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon WITHDREW her objection. There being NO                                                                       
further OBJECTION, the CS was ADOPTED.                                                                                          
                                                                                                                                
SB 26 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
Co-Chair MacKinnon informed that the committee would                                                                            
discuss amendments to the bill the following day at 9:00                                                                        
a.m.                                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:16:25 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:16 a.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB 22 work draft version D.pdf SFIN 3/9/2017 9:00:00 AM
SB 22
SB 24 work draft version D.pdf SFIN 3/9/2017 9:00:00 AM
SB 24
SB 26 work draft version D.pdf SFIN 3/9/2017 9:00:00 AM
SB 26