Legislature(2015 - 2016)SENATE FINANCE 532
04/28/2016 09:00 AM Senate CONFERENCE COMMITTEE ON SB196
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| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 196 | ||
29TH ALASKA STATE LEGISLATURE
SECOND SESSION
CONFERENCE COMMITTEE ON SB 196 and
April 28, 2016
9:00 a.m.
9:00:56 AM
CALL TO ORDER
Chair Hoffman called the Conference Committee meeting on
SB196 to order at 9:00 a.m.
MEMBERS PRESENT:
Senate:
Senator Lyman Hoffman, Chair
Senator Anna MacKinnon
Senator Click Bishop
House:
Representative Bryce Edgmon, Vice-Chair
Representative Dan Saddler
Representative Scott Kawasaki
MEMBERS ABSENT
None
ALSO PRESENT:
Tim Grussendorf, Staff, Senator Lyman Hoffman.
SUMMARY
SB 196 POWER COST EQ FUND: RESERVE ACCT;DIVIDEND
CCS SB 196 was REPORTED out of committee with a
previously published fiscal impact note: FN1
(SFIN); and a previously published zero fiscal
note: FN2 (CED).
CS FOR SENATE BILL NO. 196(FIN)
"An Act relating to the amount appropriated for power
cost equalization; relating to the use of certain
unexpended earnings from the power cost equalization
endowment fund; and providing for an effective date."
and
HOUSE CS FOR CS FOR SENATE BILL NO. 196(FIN)
"An Act relating to the amount appropriated for power
cost equalization; relating to the use of certain
unexpended earnings from the power cost equalization
endowment fund; and providing for an effective date."
9:01:22 AM
Vice-Chair Edgmon MOVED to ADOPT the proposed committee
substitute for SB 196, Work Draft 29-LS1383\D
(Shutts/Nauman, 4/22/16). There being NO OBJECTION, it was
so ordered.
TIM GRUSSENDORF, STAFF, SENATOR LYMAN HOFFMAN, explained
the committee substitute. He stated that the change was on
page 2, Section 3, line 10, "the Legislature may
appropriate 70 percent of the difference." He explained
that "difference" was the difference between the earnings
and after the Power Cost Equalization (PCE) payment. He
announced 70 percent of the excess earnings could be
appropriated. He stated that the Senate version split the
excess into three, which addressed all the excess funds at
one time at a 50 percent, 30 percent, and 20 percent
divide.
Chair Hoffman queried the details of the split. Mr.
Grussendorf replied that 50 percent was for community
assistance, 30 percent to the PCE fund, and 20 percent to
the Rural Energy Funds, which contained three separate
funds.
9:02:52 AM
AT EASE
9:03:22 AM
RECONVENED
9:03:25 AM
Mr. Grussendorf clarified that Senate version had 50
percent to community assistance; 30 percent to the Rural
Energy Funds; and 20 percent would be reinvested into the
PCE.
Chair Hoffman noted that the percentage divide referred to
excess earnings after full funding of the PCE. Mr.
Grussendorf agreed, and stated that the House version
wanted to ensure that community assistance was initially
fully funded. He stated that after all of the community
assistance was filled with excess earnings, the Rural
Energy Funds, and the remaining excess would return to the
PCE. He explained that the compromise returned to the 70/30
split. He stated that 70 percent would go to the created
funds, and 30 percent would return to the PCE. He stressed
that the community assistance would be filled at the 70/30
split. He stated that once the community assistance had
reached $30 million, the Rural Energy Funds would addressed
at 70/30. He stated that once the Rural Energy Funds
reached $25 million, any remaining excess would remain in
the PCE.
Chair Hoffman felt that the bill was a fair compromise to
ensure that the endowment could be sustainable in the long
run. He shared that the Legislative Finance Division (LFD)
agreed that the bill created a more solid fund to act as an
endowment.
Vice-Chair Edgmon remarked that the bill ensured that the
endowment was properly replenished, which better ensured
that the new community assistance program had a better
chance to be funded at the full amount every year.
9:06:12 AM
Vice-Chair Edgmon MOVED to REPORT CCS SB 196 and the
accompanying fiscal notes to the full Senate and House for
consideration.
A roll call vote was taken on the motion.
IN FAVOR: Hoffman, MacKinnon, Bishop, Edgmon, Saddler,
Kawasaki
OPPOSED: None
The MOTION PASSED (6/0).
CCS SB 196 was REPORTED out of committee with a previously
published fiscal impact note: FN1 (SFIN); and a previously
published zero fiscal note: FN2 (CED).
ADJOURNMENT
9:07:18 AM
The meeting was adjourned at 9:07 a.m.
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