02/23/2021 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SJR5 | |
| SJR7 | |
| SJR6 | |
| SB53 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 53 | TELECONFERENCED | |
| += | SJR 6 | TELECONFERENCED | |
| += | SJR 5 | TELECONFERENCED | |
| += | SJR 7 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 23, 2021
3:33 p.m.
MEMBERS PRESENT
Senator Mike Shower, Chair
Senator Mia Costello
Senator Roger Holland
Senator Scott Kawasaki
MEMBERS ABSENT
Senator Lora Reinbold, Vice Chair
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 5
Proposing amendments to the Constitution of the State of Alaska
relating to an appropriation limit; and relating to the budget
reserve fund.
- MOVED SJR 5 OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 7
Proposing amendments to the Constitution of the State of Alaska
relating to prohibiting the establishment of a state tax without
the approval of the voters of the state; and relating to the
initiative process.
- MOVED SJR 7 OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 6
Proposing amendments to the Constitution of the State of Alaska
relating to the Alaska permanent fund, appropriations from the
permanent fund, and the permanent fund dividend.
- MOVED SJR 6 OUT OF COMMITTEE
SENATE BILL NO. 53
"An Act relating to use of income of the Alaska permanent fund;
relating to the amount of the permanent fund dividend; relating
to the duties of the commissioner of revenue; relating to an
advisory vote on the permanent fund; providing for an effective
date by repealing the effective date of sec. 8, ch. 16, SLA
2018; and providing for an effective date."
- MOVED SB 53 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 5
SHORT TITLE: CONST. AM: APPROP LIMIT; BUDGET RESERVE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) STA, JUD, FIN
02/04/21 (S) STA AT 3:30 PM BUTROVICH 205
02/04/21 (S) Heard & Held
02/04/21 (S) MINUTE(STA)
02/11/21 (S) STA AT 3:30 PM BUTROVICH 205
02/11/21 (S) Scheduled but Not Heard
02/23/21 (S) STA AT 3:30 PM BUTROVICH 205
BILL: SJR 7
SHORT TITLE: CONST. AM: STATE TAX; VOTER APPROVAL
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) STA, JUD, FIN
02/04/21 (S) STA AT 3:30 PM BUTROVICH 205
02/04/21 (S) Heard & Held
02/04/21 (S) MINUTE(STA)
02/11/21 (S) STA AT 3:30 PM BUTROVICH 205
02/11/21 (S) Scheduled but Not Heard
02/23/21 (S) STA AT 3:30 PM BUTROVICH 205
BILL: SJR 6
SHORT TITLE: CONST. AM: PERM FUND & PFDS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) STA, JUD, FIN
02/04/21 (S) STA AT 3:30 PM BUTROVICH 205
02/04/21 (S) Scheduled but Not Heard
02/09/21 (S) STA AT 3:30 PM BUTROVICH 205
02/09/21 (S) Heard & Held
02/09/21 (S) MINUTE(STA)
02/11/21 (S) STA AT 3:30 PM BUTROVICH 205
02/11/21 (S) Scheduled but Not Heard
02/23/21 (S) STA AT 3:30 PM BUTROVICH 205
BILL: SB 53
SHORT TITLE: PERM FUND; ADVISORY VOTE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/25/21 (S) READ THE FIRST TIME - REFERRALS
01/25/21 (S) STA, JUD, FIN
02/04/21 (S) STA AT 3:30 PM BUTROVICH 205
02/04/21 (S) Scheduled but Not Heard
02/09/21 (S) STA AT 3:30 PM BUTROVICH 205
02/09/21 (S) Heard & Held
02/09/21 (S) MINUTE(STA)
02/11/21 (S) STA AT 3:30 PM BUTROVICH 205
02/11/21 (S) Scheduled but Not Heard
02/23/21 (S) STA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
MATTHEW MAIXNER, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
JORDAN HARARY, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
BERT HOUGHTALING, representing self
Big Lake, Alaska
POSITION STATEMENT: Testified in support of SJR 7.
CAROLYN REID, representing self
Soldotna, Alaska
POSITION STATEMENT: Testified in opposition to SJR 6.
TERRIE HARRIS, representing self
Anchor Point, Alaska
POSITION STATEMENT: Testified during the hearing on SJR 6 to
state support for a vote of the people on the traditional
formula of the PFD only.
TERESA HANSON, representing self
Alaska
POSITION STATEMENT: Testified on SJR 6 to say the legislature
should not tap into the permanent fund without a vote of the
people.
BERT HOUGHTALING, representing self
Big Lake, Alaska
POSITION STATEMENT: Testified in opposition to SJR 6.
VIKKI JO KENNEDY, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to SJR 6.
MATTHEW MAIXNER, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SJR 6.
CRIS EICHENLAUB, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified on SJR 6 to advocate for
enshrining permission from the people to impose taxes or
increase fees.
MATTHEW MAIXNER, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 53.
CRIS EICHENLAUB, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified on SB 53 to state support for an
advisory vote on the PFD.
TERRIE HARRIS, representing self
Anchor Point, Alaska
POSITION STATEMENT: Testified on SB 53 to state support for
amending the language in the advisory vote on the PFD.
BERT HOUGHTALING, representing self
Big Lake, Alaska
POSITION STATEMENT: Testified that SB 53 is another version of
stealing the PFD.
ACTION NARRATIVE
3:33:12 PM
CHAIR MIKE SHOWER called the Senate State Affairs Standing
Committee meeting to order at 3:33 p.m. Present at the call to
order were Senators Kawasaki, Costello, Holland, and Chair
Shower.
SJR 5-CONST. AM: APPROP LIMIT; BUDGET RESERVE
3:34:08 PM
CHAIR SHOWER announced the consideration of SENATE JOINT
RESOLUTION NO. 5 Proposing amendments to the Constitution of the
State of Alaska relating to an appropriation limit; and relating
to the budget reserve fund.
3:34:21 PM
CHAIR SHOWER opened public testimony on SJR 5; finding none, he
closed public testimony and reminded the public that written
testimony could be sent to ssta@akleg.gov.
CHAIR SHOWER found no questions or comments from the committee
and solicited a motion to move the bill from committee.
3:35:29 PM
SENATOR HOLLAND moved to report [SJR 5,] work order 32-GS
1664\A, from committee with [individual recommendations and
attached fiscal note(s)].
3:35:44 PM
CHAIR SHOWER found no objection and SJR 5 was reported from the
Senate State Affairs Standing Committee.
3:35:49 PM
At ease
SJR 7-CONST. AM: STATE TAX; VOTER APPROVAL
3:37:51 PM
CHAIR SHOWER reconvened the meeting and announced the
consideration of SENATE JOINT RESOLUTION NO. 7 Proposing
amendments to the Constitution of the State of Alaska relating
to prohibiting the establishment of a state tax without the
approval of the voters of the state; and relating to the
initiative process.
3:38:24 PM
CHAIR SHOWER opened public testimony on SJR 7.
3:38:44 PM
MATTHEW MAIXNER, representing self, Juneau, Alaska, stated that
as a libertarian, he believes that all taxation is theft. He
supports the passage of SJR 7 because voters should have a say
on taxes and how they affect their pocketbooks.
3:40:31 PM
JORDAN HARARY, representing self, Anchorage, Alaska, stated that
any taxation of the people should be approved by the people and
SJR 7 ensures that will happen. He opined that taxation covers
shortsighted fiscal policies in the short term but it impacts
the economy of the state in the long term and only brings in
minimal revenue. He also suggested the committee consider
amending the resolution to require a two-thirds majority vote
for this resolution to help prevent outside money from trying to
sway voters.
3:42:34 PM
BERT HOUGHTALING, representing self, Big Lake, Alaska, agreed
with previous testimony that any proposed tax should be approved
by the voters. He suggested the committee amend the resolution
to require voter approval of any proposed increase to existing
taxes. He cited the gas tax as an example. He further agreed
with the previous testifier about requiring a [super] majority
vote to approve any tax, not just 51 percent.
He offered his understanding that that public testimony was
already closed on SJR 5 and SJR 6 and he would have liked to
testify against both resolutions. He concluded his testimony
stating that, "Anything that restricts our permanent fund
dividend - does not enshrine it under the statutory PFD - should
not be bills that get presented forward going hereon forth."
CHAIR SHOWER advised that if he stayed on the line he would be
able to testify on SJR 6 and SB 53.
3:44:39 PM
CHAIR SHOWER closed public testimony on SJR 7. Finding no
further questions or comments from the committee, he solicited a
motion to move SJR 7 from committee.
3:44:54 PM
SENATOR HOLLAND moved to report [SJR 7,] work order 32-GS1711\A,
from committee [with individual recommendations and attached
fiscal note(s)].
CHAIR SHOWER found no objection and SJR 7 was reported from the
Senate State Affairs Standing Committee.
3:45:15 PM
At ease
SJR 6-CONST. AM: PERM FUND & PFDS
3:46:44 PM
CHAIR SHOWER reconvened the meeting and announced the
consideration of SENATE JOINT RESOLUTION NO. 6 Proposing
amendments to the Constitution of the State of Alaska relating
to the Alaska permanent fund, appropriations from the permanent
fund, and the permanent fund dividend.
3:47:11 PM
CHAIR SHOWER opened public testimony on SJR 6.
3:47:58 PM
At ease
3:48:26 PM
CHAIR SHOWER reconvened the meeting and asked Ms. Reid to begin
her testimony.
3:48:51 PM
CAROLYN REID, representing self, Soldotna, Alaska, stated that
the portion of the permanent fund that goes to the people of
Alaska as a dividend should be left alone unless the people vote
for a change. She opined that the majority of Alaskans do not
want the legislature to take their dividend away and they want
the dividends that have been stolen.
3:50:13 PM
TERRIE HARRIS, representing self, Anchor Point, Alaska, reminded
the committee that they were not voted into office to make hard
decisions. Rather, they were voted in to represent constituents
and those constituents have repeatedly said to leave the
dividend alone. She stated support for a vote of the people on
the PFD on the traditional formula only.
MS. HARRIS said she also wanted to testify on SJR 7 in support
of a two-thirds majority vote of the people on new taxes and
increases to existing taxes.
3:51:24 PM
TERESA HANSON, representing self, [unk city] Alaska, recapped
the history of the permanent fund up until the first $1,000
checks were distributed in 1982. Since then, she said
legislators have tapped the permanent fund without consideration
of the voice of the people. She emphasized that the legislature
should only tap into the permanent fund with a vote of the
people, and it should "be restored back to its original
agreement as set forth." The permanent fund should not be a tool
for the legislature to use when it overspends in other areas,
she said. She concluded her comments by asking legislators to
stop the steal.
3:53:13 PM
BERT HOUGHTALING, representing self, Big Lake, Alaska, stated
opposition to the governor's proposal because it puts all
control over the permanent fund in legislators' hands. "You will
ultimately end up being able to determine who will and who won't
be able to get a PFD in the future." He noted that the
resolution changes "shall" to "may" meaning that the legislature
may choose to protect the dividend for the future but it may
also choose to change the law and not protect the dividend for
the future. If there is a constitutional cap on the budget,
there may be nothing left for the dividend "So I am a no when it
comes to SJR 6."
3:54:49 PM
VIKKI JO KENNEDY, representing self, Juneau, Alaska, stated that
she opposes SJR 6 because she does not want to put everything
she depends on in the hands of the legislature when it can't be
responsible for itself. She cited the example of legislators
saying they would not collect per diem after 120 days but
changing the law the next year. She stated support for using
part of the permanent fund for essential services like road
maintenance and ferry service.
3:57:53 PM
MATTHEW MAIXNER, representing self, Juneau, Alaska, stated
support for SJR 6 and sending the question to the people for a
vote. He said he believes there is confusion about what SJR 6
does. He offered his understanding that the resolution gives the
people control over how the PFD is spent. If the dividend is in
the Alaska Constitution, it is untouchable, he said. He
disagreed with a previous testifier that there may be nothing
left for a dividend because 25 percent is removed from the fund
and used specifically for dividends for the people. He
understood the concern about essential services, but he believes
the most essential service is to get the people the money that
they deserve. He also agrees that the legislature should stop
stealing from the people. He concluded his comments stating, "I
do advocate the return of the money that you guys took from us."
4:01:07 PM
CRIS EICHENLAUB, representing self, Wasilla, Alaska, testified
on SJR 6 to advocate for enshrining permission from the people
to impose taxes or increase fees. He offered his belief that
from this point forward, no bills should pass that tax the
people or increase fees until the people have received their
traditional formula PFD. He suggested that paying the people
first would make the idea of taxes and fees more palatable.
He noted that he missed the opportunity to testify on SJR 5 and
SJR 7 asked if he had to call back to testify on SB 53 or if the
committee would take his word that he opposed that legislation.
CHAIR SHOWER apologized and advised that he could stay on the
line to testify on SB 53 and he was welcome to submit written
testimony on SJR 5 and SJR 7 to ssta@akleg.gov. It would be
entered into the record.
4:04:01 PM
CHAIR SHOWER closed public testimony on SJR 6 and solicited a
motion.
4:04:37 PM
SENATOR HOLLAND moved to report [SJR 6,] work order 32-GS1694\A
from committee [with individual recommendations and attached
fiscal note(s)].
There being no objection, SJR 6 was reported from the Senate
State Affairs Standing Committee.
SB 53-PERM FUND; ADVISORY VOTE
4:06:30 PM
CHAIR SHOWER reconvened the meeting and announced the
consideration of SENATE BILL NO. 53 "An Act relating to use of
income of the Alaska permanent fund; relating to the amount of
the permanent fund dividend; relating to the duties of the
commissioner of revenue; relating to an advisory vote on the
permanent fund; providing for an effective date by repealing the
effective date of sec. 8, ch. 16, SLA 2018; and providing for an
effective date."
He explained that this legislation from the Governor was tied to
SJR 6.
4:06:58 PM
CHAIR SHOWER opened public testimony on SB 53,
4:07:08 PM
MATTHEW MAIXNER, representing self, Juneau, Alaska, stated that
he favors SB 53 to help establish an advisory committee and he
believes that people need to educate themselves about what the
PFD does. He opined that it would be beneficial for legislators
to help in the education process during town hall meetings.
4:09:06 PM
CRIS EICHENLAUB, representing self, Wasilla, Alaska, testified
on SB 53 to state support for an advisory vote on the PFD. He
opined that the claims that constituents would rather have
services than their dividend were untrue and the advisory vote
would prove that. He further opined that the people who make
those claims have numbered days.
4:10:16 PM
TERRIE HARRIS, representing self, Anchor Point, Alaska,
testified on SB 53 to state support for an advisory vote on the
PFD that has language about the traditional formula. She
emphasized that a court should not be able to say the people
would not get their PFD and legislators should have no say in
whether the people get their PFD. "I want it taken out of your
hands because the people no longer trust you to represent." She
maintained that legislators are not hired to make hard
decisions; they are hired to represent their constituents. The
remaining testimony was off topic.
4:12:10 PM
BERT HOUGHTALING, representing self, Big Lake, Alaska, stated
that SB 53 is another version of stealing the PFD. It combines
the Earnings Reserve Account (ERA) with the corpus and allows
legislators to authorize a PFD at their discretion. He said
nothing protects Alaskans from legislators stealing the PFD for
the state and capital budget. He suggested the committee
"trashcan" SB 53. He posited that SJR 1 was the only bill that
actually enshrines the PFD under the traditional formula and
also allows a percent of market value (POMV) draw from the ERA.
He concluded that SJR 6 and SB 53 do not protect traditional
formula for the permanent fund dividend and he was a resounding
"No" on both.
4:14:50 PM
CHAIR SHOWER closed public testimony on SB 53. He restated that
written testimony could be sent to ssta@akleg.gov and
subsequently reminded the public that they would be able to
comment further and offer suggestions when the Judiciary
Committee heard the bill.
Finding no further questions or comments, he solicited a motion.
4:15:14 PM
SENATOR HOLLAND moved to report [SB 53], work order 32-LS1693\A,
from committee [with individual recommendations and attached
fiscal note(s)].
CHAIR SHOWER found no objection and SB 53 was reported from the
Senate State Affairs Standing Committee.
4:15:50 PM
At ease
4:17:27 PM
CHAIR SHOWER reconvened the meeting and thanked the testifiers.
4:18:04 PM
There being no further business to come before the committee,
Chair Shower adjourned the Senate State Affairs Standing
Committee meeting at 4:18 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR 6 Dept of Revenue Info.pdf |
SSTA 2/23/2021 3:30:00 PM |
SJR 6 |
| SJR 5 Response.pdf |
SSTA 2/23/2021 3:30:00 PM |
SJR 5 |
| SJR 7 Tax Ballot Measures.xlsx |
SSTA 2/23/2021 3:30:00 PM |
SJR 7 |