Legislature(2015 - 2016)FAHRENKAMP 203

03/15/2016 09:00 AM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Location Change --
-- Recessed to 2:30 p.m. --
*+ SCR 16 SPECIAL SESSION TO BE HELD ON ROAD SYSTEM TELECONFERENCED
Heard & Held
-- Initial Presentation Only --
+= SB 114 PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS TELECONFERENCED
Moved CSSSSB 114(STA) Out of Committee
+= SB 128 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Moved SB 128 Out of Committee
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SJR 1 CONST AM: GUARANTEE PERM FUND DIVIDEND TELECONFERENCED
Moved SJR 1 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 15, 2016                                                                                         
                           9:01 a.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bill Stoltze, Chair                                                                                                     
Senator John Coghill, Vice Chair                                                                                                
Senator Charlie Huggins                                                                                                         
Senator Lesil McGuire                                                                                                           
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 16                                                                                             
Urging  the  Governor  to  designate a  location  for  a  special                                                               
session of  the Twenty-Ninth Alaska State  Legislature, if called                                                               
after adjournment  of the  First Regular  Session of  the Twenty-                                                               
Ninth Alaska  State Legislature,  that is in  a community  on the                                                               
state's road system.                                                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 114                                                                                      
"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; and providing  for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED CSSSSB 114(STA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
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."                                                                    
                                                                                                                                
     - MOVED SB 128 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 1                                                                                                   
Proposing amendments to  the Constitution of the  State of Alaska                                                               
relating to the Alaska permanent  fund, establishing the earnings                                                               
reserve  account, relating  to the  permanent fund  dividend, and                                                               
requiring the  permanent fund dividend  be at least equal  to the                                                               
amount that would be calculated under current law.                                                                              
                                                                                                                                
     - MOVED SJR 1 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SCR 16                                                                                                                  
SHORT TITLE: SPECIAL SESSION TO BE HELD ON ROAD SYSTEM                                                                          
SPONSOR(s): SENATOR(s) STOLTZE                                                                                                  
                                                                                                                                
04/18/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/18/15       (S)       STA                                                                                                    
03/15/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 114                                                                                                                  
SHORT TITLE: PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS                                                                            
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
04/18/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/18/15       (S)       STA, FIN                                                                                               
02/01/16       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
02/01/16       (S)       STA, FIN                                                                                               
02/04/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/04/16       (S)       Scheduled but Not Heard                                                                                
02/09/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/09/16       (S)       Heard & Held                                                                                           
02/09/16       (S)       MINUTE(STA)                                                                                            
02/16/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/16/16       (S)       Heard & Held                                                                                           
02/16/16       (S)       MINUTE(STA)                                                                                            
02/16/16       (S)       STA AT 6:00 PM BUTROVICH 205                                                                           
02/16/16       (S)       Heard & Held                                                                                           
02/16/16       (S)       MINUTE(STA)                                                                                            
02/23/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/23/16       (S)       Heard & Held                                                                                           
02/23/16       (S)       MINUTE(STA)                                                                                            
03/10/16       (S)       STA AT 8:30 AM BUTROVICH 205                                                                           
03/10/16       (S)       -- MEETING CANCELED --                                                                                 
03/15/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 128                                                                                                                  
SHORT TITLE: PERM. FUND: DEPOSITS; DIVIDEND; EARNINGS                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/19/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (S)       STA, FIN                                                                                               
01/26/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
01/26/16       (S)       Heard & Held                                                                                           
01/26/16       (S)       MINUTE(STA)                                                                                            
01/28/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
01/28/16       (S)       Heard & Held                                                                                           
01/28/16       (S)       MINUTE(STA)                                                                                            
02/02/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/02/16       (S)       Heard & Held                                                                                           
02/02/16       (S)       MINUTE(STA)                                                                                            
02/04/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/04/16       (S)       Heard & Held                                                                                           
02/04/16       (S)       MINUTE(STA)                                                                                            
02/04/16       (S)       STA AT 5:30 PM BUTROVICH 205                                                                           
02/04/16       (S)       Heard & Held                                                                                           
02/04/16       (S)       MINUTE(STA)                                                                                            
02/11/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/11/16       (S)       Heard & Held                                                                                           
02/11/16       (S)       MINUTE(STA)                                                                                            
02/23/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/23/16       (S)       Heard & Held                                                                                           
02/23/16       (S)       MINUTE(STA)                                                                                            
03/10/16       (S)       STA AT 8:30 AM BUTROVICH 205                                                                           
03/10/16       (S)       -- MEETING CANCELED --                                                                                 
03/15/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SJR 1                                                                                                                   
SHORT TITLE: CONST AM: GUARANTEE PERM FUND DIVIDEND                                                                             
SPONSOR(s): WIELECHOWSKI                                                                                                        
                                                                                                                                
01/21/15       (S)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (S)       STA, JUD, FIN                                                                                          
02/23/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/23/16       (S)       Heard & Held                                                                                           
02/23/16       (S)       MINUTE(STA)                                                                                            
03/03/16       (S)       STA AT 6:30 PM BUTROVICH 205                                                                           
03/03/16       (S)       Heard & Held                                                                                           
03/03/16       (S)       MINUTE(STA)                                                                                            
03/15/16       (S)       STA AT 9:00 AM FAHRENKAMP 203                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BRANDON BREFCZYNSKI, Staff                                                                                                      
Senator Stoltze                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Explained the committee substitute (CS) for                                                               
SB 114.                                                                                                                       
                                                                                                                                
JESSE LOGAN, Staff                                                                                                              
Senator McGuire                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Addressed the CS for SB 114.                                                                              
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
Senator Coghill                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Explained Amendment 2 for SB 114.                                                                         
                                                                                                                                
RANDY HOFFBECK, Commissioner                                                                                                    
Alaska Department of Revenue                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Summarized and addressed questions regarding                                                              
SB 128.                                                                                                                         
                                                                                                                                
CRAIG W. RICHARDS, Attorney General                                                                                             
Alaska Department of Law                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Summarized and addressed questions regarding                                                              
SB 128.                                                                                                                         
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:01:11 AM                                                                                                                    
CHAIR  BILL  STOLTZE called  the  Senate  State Affairs  Standing                                                             
Committee meeting  to order at 9:01  a.m. Present at the  call to                                                               
order  were   Senators  Coghill,  Huggins,  McGuire,   and  Chair                                                               
Stoltze.                                                                                                                        
                                                                                                                                
                                                                                                                                
        SCR 16-SPECIAL SESSION TO BE HELD ON ROAD SYSTEM                                                                    
                                                                                                                                
9:02:57 AM                                                                                                                    
CHAIR STOLTZE announced the consideration of SCR 16.                                                                            
                                                                                                                                
SENATOR HUGGINS moved to adopt  the committee substitute (CS) for                                                               
SCR 16, version W, as the working document.                                                                                     
                                                                                                                                
CHAIR STOLTZE objected for discussion  purposes. He noted that he                                                               
introduced SCR 16  at the end of last session  in anticipation of                                                               
a  special   session.  He  specified   that  he   introduced  the                                                               
resolution due to the capitol's  scheduled renovation in order to                                                               
minimize  increased cost  to  the state.  He  specified that  the                                                               
resolution  only dealt  with  the current  session  for the  29th                                                               
Legislature.  He  detailed  that  one   of  the  reasons  why  he                                                               
introduced the legislation  as a resolution was  due the governor                                                               
saying that he would veto a  capitol move, but he remarked that a                                                               
governor could  not veto  a resolution. He  asserted that  SCR 16                                                               
was a way for the  Legislature to express its constituents' point                                                               
of view.                                                                                                                        
                                                                                                                                
9:03:22 AM                                                                                                                    
SENATOR WIELECHOWSKI joined the committee meeting.                                                                              
                                                                                                                                
9:04:44 AM                                                                                                                    
CHAIR STOLTZE removed his objection.  He announced that version W                                                               
was adopted and SCR 16 would be held in committee.                                                                              
                                                                                                                                
                                                                                                                                
         SB 114-PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS                                                                     
                                                                                                                                
9:05:08 AM                                                                                                                    
CHAIR STOLTZE announced the consideration of SB 114.                                                                            
                                                                                                                                
9:05:14 AM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
9:06:26 AM                                                                                                                    
CHAIR STOLTZE called  the committee back to order  and noted that                                                               
there was a proposed committee substitute (CS).                                                                                 
                                                                                                                                
SENATOR MCGUIRE moved that the  CS for sponsor substitute (SS) SB                                                               
114, version U, be brought before the committee.                                                                                
                                                                                                                                
CHAIR  STOLTZE objected  for  discussion  purposes. He  explained                                                               
that the  CS was developed  by Senator McGuire with  one revision                                                               
from his office, pertaining to revenue limitation.                                                                              
                                                                                                                                
9:07:28 AM                                                                                                                    
BRANDON  BREFCZYNSKI,   Staff,  Senator  Stoltze,   Alaska  State                                                               
Legislature, Juneau, Alaska, stated  that the committee made only                                                               
one change aside from the sponsor's changes. He explained the                                                                   
committee's change as follows:                                                                                                  
                                                                                                                                
     Page  2,  line  28  through  page 3,  line  2.  We  are                                                                    
     establishing a  revenue limit  based on  production tax                                                                    
     and royalties that exceed $1  billion. For every dollar                                                                    
     of  production  tax  and   royalties  that  exceeds  $1                                                                    
     billion, the  annual Percentage of Market  Value (POMV)                                                                    
     draw will be reduced on a dollar-for-dollar basis.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI asked that an explanation be provided on                                                                   
the impact if $2 billion in increased production occurred.                                                                      
                                                                                                                                
MR. BREFCZYNSKI specified as follows:                                                                                           
                                                                                                                                
     If  the  state  would   have  received  $2  billion  in                                                                    
     production  tax and  royalties,  you  reduce your  POMV                                                                    
     draw  by  $1  billion.  Anything over  $1  billion  the                                                                    
     annual  POMV draw  is  reduced  on a  dollar-for-dollar                                                                    
     basis.                                                                                                                     
                                                                                                                                
CHAIR STOLTZE added as follows:                                                                                                 
                                                                                                                                
     Spending   limits  themselves   is   really  tough   to                                                                    
     implement and we've  seen from other action  you can do                                                                    
     previous year appropriations and  there's a lot of ways                                                                    
     to alter the effectiveness of  a spending limit. If all                                                                    
     of the prognostications are wrong  and oil rebounds, we                                                                    
     don't want to  put in a mechanism that  would cause the                                                                    
     ability to spend. Government  has an intrinsic tendency                                                                    
     to spend available money.                                                                                                  
                                                                                                                                
9:10:27 AM                                                                                                                    
JESSE LOGAN, Staff, Senator McGuire, Alaska State Legislature,                                                                  
Juneau, Alaska, addressed what the CS for SSSB 114 does as                                                                      
follows:                                                                                                                        
                                                                                                                                
   1. Establishes a revenue limit: Section 3.                                                                                   
   2. Changes the POMV draw from 5 percent to 4.5 percent:                                                                      
     Section 3. The change allows for a larger rate of growth                                                                   
     for the Permanent Fund and greater payouts over time.                                                                      
     Legislative Finance agreed with the approach.                                                                              
   3. Adds an inflation-proofing mechanism: Section 5, page 3,                                                                  
     lines  20-23. Similar  approach  to the  governor's bill  in                                                               
     that if the  POMV draw from the previous  year is multiplied                                                               
     by 4, the  difference in the Earnings  Reserve Account (ERA)                                                               
     could be returned to the corpus for inflation proofing.                                                                    
   4. Establishes a review period: Section 7, page 4, lines 23-                                                                 
     31. Allows  the commissioner  for the Department  of Revenue                                                               
     to recommend  adjustments in addition to  providing a report                                                               
     in consultation  with the Permanent Fund  Corporation to the                                                               
     Legislature  for  evaluating  asset sufficiency  within  the                                                               
     ERA.                                                                                                                       
                                                                                                                                
MR. LOGAN added  that several other small changes  were made that                                                               
entailed housekeeping  measures regarding  cash flow  and timing.                                                               
He  noted  that  changes  were  done  in  consultation  with  the                                                               
Permanent Fund Corporation.                                                                                                     
                                                                                                                                
9:13:17 AM                                                                                                                    
SENATOR  MCGUIRE added  that the  amendments were  the result  of                                                               
consultation with  members of the  House and Senate  who actively                                                               
spoke  with  their  neighbors in  addition  to  public  testimony                                                               
offered  in the  State Affairs  Committee. She  pointed out  that                                                               
Chair Stoltze's  amendment to limit spending  addressed a concern                                                               
people  had where  the  Permanent Fund  Dividend  (PFD) would  be                                                               
restructured, but  the Legislature could  go on a  spending spree                                                               
at some  later point.  She asserted that  changing the  POMV draw                                                               
from 5 to 4.5 percent  would provide for more sustainability. She                                                               
opined  that  the  POMV model  would  inflation-proof  itself  in                                                               
addition  to  retaining  the constitutional  requirement  for  25                                                               
percent of  the royalties to  go into the Permanent  Fund itself.                                                               
She noted  that an  additional provision  was included  for added                                                               
inflation  proofing to  reflect  times of  growth.  She said  the                                                               
review  period was  something  that lawmakers  had  asked for  in                                                               
order  to comeback  and revisit  the  provisions in  SB 114.  She                                                               
pointed out  that SB 114  guaranteed a  $1000 PFD and  noted that                                                               
the intent  was to provide  a dividend that was  sustainable. She                                                               
added  that  Permanent Fund  Corporation  and  its trustees  were                                                               
consulted to make sure all of the amendments were fully vetted.                                                                 
                                                                                                                                
CHAIR STOLTZE announced that Senator  Coghill had an amendment to                                                               
offer.                                                                                                                          
                                                                                                                                
9:15:49 AM                                                                                                                    
SENATOR COGHILL  moved Amendment 29-LS0883\U.2  ("U.2"), Gardner,                                                               
3/15/16.                                                                                                                        
                                                                                                                                
                         AMENDMENT U.2                                                                                      
                                                                                                                                
Page 2, lines 9 - 15:                                                                                                           
                                                                                                                                
     Delete all material and insert:                                                                                            
                                                                                                                                
"*Sec. 2. AS 37.13 is amended by adding a new section to read:                                                                
     Sec. 37.13.015. Appropriations to the dividend fund.                                                                     
                                                                                                                                
     (a)  Following the calculation under AS 37.13.140(b), the                                                                
     legislature   may   appropriate   to   the   dividend   fund                                                               
     established in AS 43.23.045 the following amounts from the                                                                 
     following funds:                                                                                                           
                                                                                                                                
               (1) from the earnings reserve account established                                                                
     in AS 37.13.145,                                                                                                           
                                                                                                                                
                    (A) 15 percent of 21 percent of the sum of                                                                  
          the net income of the fund determined under AS                                                                        
          37.13.140(a) for each of the last five fiscal years                                                                   
          including the fiscal year just ended; and                                                                             
                                                                                                                                
                    (B) two percent of the market value of the                                                                  
          constitutional budget reserve fund (art. IX, sec. 17,                                                                 
          Constitution of the State of Alaska) calculated on the                                                                
          last day of the fiscal year just ended; and                                                                           
                                                                                                                                
               (2) from the general fund, 15 percent of the                                                                     
     money deposited in the general fund during the fiscal year                                                                 
     just ended from all mineral lease rentals, royalties,                                                                      
     royalty sale proceeds, net profit shares under AS                                                                          
     38.05.180(f) and (g), federal mineral revenue sharing                                                                      
     payments, and bonuses received by the state from mineral                                                                   
     leases.                                                                                                                    
                                                                                                                                
     (b) Nothing in this section creates a dedicated fund."                                                                     
                                                                                                                                
                                                                                                                                
Page 2, line 29:                                                                                                                
                                                                                                                                
     Delete "the portion"                                                                                                   
                                                                                                                                
     Insert "an amount equal to 85 percent"                                                                                 
                                                                                                                                
                                                                                                                                
9:16:01 AM                                                                                                                    
CHAIR STOLTZE objected for discussion purposes.                                                                                 
                                                                                                                                
SENATOR COGHILL  explained that the  intent of the  amendment was                                                               
to exclude the dividend payment from  the $1 billion cap. He said                                                               
the concept was essentially a hybrid  plan for the PFD to be paid                                                               
for by  blending earnings from  the Permanent Fund  and royalties                                                               
in addition to  a small valuation from  the Constitutional Budget                                                               
Reserve (CBR). He  explained that the current plan  calls for the                                                               
PFD to be  paid primarily from the earnings  of royalties, rents,                                                               
and  leases. He  detailed  that the  concept's formulation  would                                                               
blend the following:                                                                                                            
                                                                                                                                
   · 15 percent of the 21 percent sum of the net income                                                                         
     from the ERA.                                                                                                              
   · 15 percent of the royalties, sales, and proceeds net                                                                       
     shares of the oil and gas leases.                                                                                          
   · 2 percent of the market value of the CBR.                                                                                  
                                                                                                                                
SENATOR  COGHILL  said  instead   of  guaranteeing  a  particular                                                               
number, the  PFD would be  based on the  health of the  state. He                                                               
detailed that  people would  feel the  ebb and  flow of  the long                                                               
term  as well  as  the  state's short  term  economic health.  He                                                               
revealed that  he had David  Teal, [Legislative  Fiscal Analyst],                                                               
review his concept and a  $200 million funding gap was projected,                                                               
a number similar to the bill's original concept.                                                                                
                                                                                                                                
9:19:20 AM                                                                                                                    
CHAIR STOLTZE  stated that  he would  continue his  analysis, but                                                               
remained  unsure.  He noted  that  the  Senate Finance  Committee                                                               
would consider the bill as well.                                                                                                
                                                                                                                                
SENATOR  MCGUIRE  offered  her  name   as  a  co-sponsor  to  the                                                               
amendment. She  concurred that the  amendment would  also address                                                               
concerns for  creating a PFD that  was based on future  rents and                                                               
royalties.                                                                                                                      
                                                                                                                                
9:22:54 AM                                                                                                                    
RYNNIEVA  MOSS,   Staff,  Senator  John  Coghill,   Alaska  State                                                               
Legislature, Juneau,  Alaska, explained  that because  15 percent                                                               
of  royalties  were already  in  the  computation, the  amendment                                                               
removes the 15 percent of the royalties from the $1 billion cap.                                                                
                                                                                                                                
MR. LOGAN  specified that the  amendment restructured  the payout                                                               
for the PFD as follows:                                                                                                         
                                                                                                                                
   1. Market's long term health: 15 percent value of the                                                                        
     statutory net  income of  the earnings  reserve ties  to the                                                               
     long term health  of the market. The last  34 dividends have                                                               
     been  tied entirely  to  the  value of  the  market and  the                                                               
     amendment  would have  the PFD  start to  share some  of the                                                               
     market value  with the  state's long  and short  term fiscal                                                               
     health.                                                                                                                    
   2. Alaska's short-term fiscal health: 15 percent of royalties                                                                
     in the calculation would reflect the short-term fiscal                                                                     
     health of the state.                                                                                                       
   3. Alaska's long-term fiscal health: the 2 percent of the CBR                                                                
    value would be the long-term fiscal health of the state.                                                                    
                                                                                                                                
MR. LOGAN  summarized that the amendment  was a three-dimensional                                                               
concept  that  shared risk  and  benefit  between the  state  and                                                               
Alaska's residents.                                                                                                             
                                                                                                                                
9:24:29 AM                                                                                                                    
SENATOR  WIELECHOWSKI  asked that  Mr.  Logan  review the  payout                                                               
numbers from  the proposed  dividend formula  for 2016.  He noted                                                               
that  the state  paid  out approximately  $1.4  billion in  total                                                               
dividends in 2015.                                                                                                              
                                                                                                                                
9:26:24 AM                                                                                                                    
MR. LOGAN answered that the  PFD payout from the proposed formula                                                               
would be $700  million, resulting in an $1100  dividend. He noted                                                               
that the bill retained the $1000 dividend floor.                                                                                
                                                                                                                                
SENATOR  COGHILL explained  that the  amendment was  put together                                                               
prior  to   the  $1000  floor.   He  noted  that   the  formula's                                                               
projections show  the dividend  dipping under  $1000 by  2020. He                                                               
detailed   that   downward   pressure  would   occur   when   the                                                               
Unrestricted General  Fund (UGF) was  above $5 billion.  He added                                                               
that the  CBR would be  extended out at  a steadier rate  and the                                                               
Permanent Fund balance would continue  to rise. He stated that he                                                               
would  defer to  Senate  Finance  for a  decision  on whether  to                                                               
retain the $1000 floor.                                                                                                         
                                                                                                                                
MR. LOGAN  pointed out  that the  modeling for  the bill  shows a                                                               
rise in the FY17 budget  because the dividend would be considered                                                               
part of the overall budget.                                                                                                     
                                                                                                                                
9:29:06 AM                                                                                                                    
MS. MOSS  addressed Senator Wielechowski's question  and detailed                                                               
that  an $1127  dividend  would  be paid  out  in  2016 from  the                                                               
proposed formula as follows:                                                                                                    
                                                                                                                                
   · 15 percent earnings = $618.                                                                                                
   · 15 percent royalties = $211.                                                                                               
   · 2 percent CBR = $298.                                                                                                      
   · Total = $1127.                                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI asked  how much the dividend  would be under                                                               
the bill as currently written versus the amended version.                                                                       
                                                                                                                                
MR.  LOGAN answered  that  the  bill would  transition  to a  new                                                               
formula in 2017  and the 2016 dividend exceeding  $2000 would not                                                               
change. He  explained that  transitioning to  the new  formula in                                                               
2016 would result in an $1100 or $1200 dividend.                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI  noted  that  dividend  projections  dipped                                                               
slightly below  $1000 in  future years.  He asked  what dividends                                                               
where projected to be into 2025.                                                                                                
                                                                                                                                
MR. LOGAN answered that the  dividends would be approximately the                                                               
same, which was the reason the $1000 floor was retained.                                                                        
                                                                                                                                
SENATOR MCGUIRE added  that dividends could have gone  as high as                                                               
$3000  or $4000  under  the  current bill  due  to the  formula's                                                               
higher  percentage  of  royalties;  however,  Alaskans  expressed                                                               
concern in the plan's volatility.  She conceded that the proposed                                                               
amendment would  guarantee Alaskans with  a more stable  share of                                                               
wealth.                                                                                                                         
                                                                                                                                
SENATOR COGHILL  reiterated that  the modeling for  the amendment                                                               
did not contemplate a floor.                                                                                                    
                                                                                                                                
CHAIR  STOLTZE announced  that  the Amendment  U.2  would be  set                                                               
aside until later today.                                                                                                        
                                                                                                                                
9:33:08 AM                                                                                                                    
CHAIR  STOLTZE  moved  Amendment 29-LS0833\U.1  ("U.1"),  Gardner                                                               
3/14/16.  He specified  that the  amendment deals  with a  sunset                                                               
provision.                                                                                                                      
                                                                                                                                
                         AMENDMENT U.1                                                                                      
                                                                                                                                
                                                                                                                                
Page 2, following line 8:                                                                                                       
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 2. AS 37.13.010(a), as amended by sec. 1 of this                                                                 
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (a) Under art. IX, sec. 15, of the state constitution,                                                                
     there is established as a separate fund the Alaska                                                                         
     permanent fund. The Alaska permanent fund consists of                                                                      
                                                                                                                                
               (1) 25 percent of all mineral lease rentals,                                                                     
     royalties, royalty sale proceeds, net profit shares under                                                                  
     AS 38.05.180(f) and (g), and federal mineral revenue                                                                       
     sharing payments received by the state from mineral leases                                                                 
     issued on or before December 1, 1979, and 25 percent of all                                                            
     bonuses received by the state from mineral leases issued on                                                            
     or before February 15, 1980;                                                                                           
               (2) 50 percent of all mineral lease rentals,                                                                 
     royalties, royalty sale proceeds, net profit shares under                                                              
     AS 38.05.180(f) and (g), and federal mineral revenue                                                                   
     sharing payments received by the state from mineral leases                                                             
     issued after December 1, 1979, and 50 percent of all                                                                   
     bonuses received by the state from mineral leases issued                                                               
     after February 15, 1980; and                                                                                           
                                                                                                                                
               (3) [(2)] any other money appropriated to or                                                                 
     otherwise allocated by law or former law to the Alaska                                                                     
     permanent fund."                                                                                                           
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 3, following line 5:                                                                                                       
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 5. AS 37.13.140, as amended by sec. 4 of this Act,                                                               
     is amended to read:                                                                                                        
                                                                                                                                
          Sec. 37.13.140. Income. [(a)] Net income of the fund                                                                
     includes income of the earnings reserve account established                                                                
     under AS 37.13.145. Net [THE CORPORATION SHALL DETERMINE                                                               
     THE NET] income of the fund shall be computed annually as                                                              
     of the last day of the fiscal year in accordance with                                                                  
     generally accepted accounting principles, excluding any                                                                
     unrealized gains or losses. Income [, EXCLUDING UNREALIZED                                                             
     GAINS OR LOSSES.                                                                                                           
                                                                                                                                
     (b) THE CORPORATION SHALL DETERMINE THE AMOUNT AVAILABLE                                                                   
     FOR DISTRIBUTION UNDER THIS SECTION, COMPUTED ANNUALLY FOR                                                                 
     EACH FISCAL YEAR, FOLLOWING THE CONCLUSION OF THE FISCAL                                                                   
     YEAR. THE AMOUNT] available for distribution [MAY NOT BE                                                                   
     LESS THAN ZERO AND] equals 21 [FOUR AND ONE HALF] percent                                                              
     of the net income [AVERAGE MARKET VALUE] of the fund [,                                                                
     INCLUDING THE EARNINGS RESERVE ACCOUNT ESTABLISHED IN AS                                                                   
     37.13.145,] for the last five fiscal years, including                                                              
     [IMMEDIATELY PRECEDING] the fiscal year just ended, but may                                                            
     not exceed net income of the fund for the fiscal year just                                                             
     ended plus the balance in the earnings reserve account                                                                 
     described in AS 37.13.145 [REDUCED BY THE PORTION OF                                                                   
     PRODUTION TAXES AND MINERAL LEASE RENTALS, ROYALTIES,                                                                      
     ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER AS                                                                          
     38.05.180(f) AND (g), FEDERAL MINERAL REVENUE SHARING                                                                      
     PAYMENTS, AND BONUSES RECEIVED BY THE STATE FROM MINERAL                                                                   
     LEASES AND DEPOSITED INTO THE GENERAL FUND IN THE FISCAL                                                                   
     YEAR JUST ENDED THAT EXCEEDS $1,000,000,000]"                                                                              
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 3, following line 11:                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 7. AS 37.13.145(a), as amended by sec. 6 of this                                                                 
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (a) The earnings reserve account is established as a                                                                  
     separate account in the fund. Income [EXCEPT FOR INCOME                                                                
     DEPOSITED INTO THE GENERAL FUND UNDER (e) OF THIS SECTION,                                                                 
     INCOME] from the fund shall be deposited by the corporation                                                                
     into the account as soon as it is received. Money in the                                                                   
     account shall be invested n investments authorized under AS                                                                
     37.13.120."                                                                                                                
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 4, following line 2:                                                                                                       
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "Sec. 9. AS 37.13.145(c), as amended by sec. 8 of this Act,                                                              
     is amended to read:                                                                                                        
                                                                                                                                
          (c) after the transfer under (b) of this section, the                                                             
     [THE] corporation shall [MAY] transfer from the earnings                                                               
     reserve account to the principal of the fund an amount                                                                     
     sufficient to offset the effect of inflation on principal                                                              
     of the fund during that fiscal year. However, none of the                                                                  
     amount transferred shall be applied to increase the value                                                                  
     of that portion of the principal attributed to the                                                                         
     settlement of State v. Amerada Hess, et al., 1JU-77-847                                                                    
     Civ. (Superior Court, First Judicial District) on July 1,                                                                  
     2004. The [ON JULY 1, THE] corporation shall calculate the                                                             
     amount to transfer to the principal under this subsection                                                                  
     by                                                                                                                         
                                                                                                                                
          (1) computing the average of the monthly United States                                                            
     Consumer Price Index for all urban consumers for each of                                                               
     the two previous calendar years;                                                                                       
                                                                                                                                
          (2) computing the percentage change between the first                                                             
     and second calendar year average; and                                                                                  
          (3) applying that rate to the value of the principal                                                              
     of the fund on the last day of the fiscal year just ended,                                                             
     including that portion of the principal attributed to the                                                              
     settlement of State v. Amerada Hess, et al., 1JU-77-847                                                                
     Civ. (Superior Court, First Judicial District) [MULTIPLYING                                                            
     THE AMOUNT AVAILABLE FOR DISTRIBUTION FOR THE PREVIOUS                                                                     
     FISCAL YEAR UNDER AS 37.13.140(b) BY FOUR AND SUBTRACTING                                                                  
     THE PRODUCT OF THAT CALCULATION FROM THE BALANCE OF THE                                                                    
     EARNINGS RESERVE ACCOUNT ON JUNE 30 OF THE PREVIOUS FISCAL                                                                 
     YEAR]."                                                                                                                    
                                                                                                                                
                                                                                                                                
Page 4, following line 12:                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 11. AS 37.13.145(d), as amended by sec. 10 of this                                                               
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (d) Notwithstanding (b) [(e)] of this section, income                                                               
     earned on money awarded in or received as a result of State                                                                
     v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court,                                                                  
     First Judicial District), including settlement, summary                                                                    
     judgment, or adjustment to a royalty-in-kind contract that                                                                 
     is tied to the outcome of this case, or interest earned on                                                                 
     the money, or on the earnings of the money shall be treated                                                                
     in the same manner as other income of the Alaska permanent                                                                 
     fund, except that it is not available for distribution to                                                                  
     the dividend fund or for transfers to the principal                                                                      
     [GENERAL FUND] under (c) [(e)] of this section, and shall                                                                
     be annually deposited into the Alaska capital income fund                                                                  
     (AS 37.05.5650."                                                                                                           
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 4, following line 31:                                                                                                      
                                                                                                                                
     Insert a new subsection to read:                                                                                           
                                                                                                                                
          "(h) At the end of each fiscal year, the corporation                                                                  
     shall transfer from the earnings reserve account to the                                                                    
     dividend fund established under AS 43.23.045, 50 percent of                                                                
     the income available for distribution under AS 37.13.140."                                                                 
                                                                                                                                
                                                                                                                                
Page5, following line 4:                                                                                                        
                                                                                                                                
     Insert a new bill section to read:                                                                                         
     "* Sec. 14. AS 37.13.300(c), as amended by sec. 13 of this                                                               
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (c) Net income from the mental health trust fund may                                                                  
     not be included in the computation of net income [THE                                                                  
     AMOUNT] available for distribution under AS 37.13.140 [AS                                                              
     37.13.140(b)]."                                                                                                            
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 5, foll0wing line 11:                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 16. AS 37.14.031(c), as amended by sec. 15 of this                                                               
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (c) The net income of the fund shall be determined                                                                
     [COMPUTED   ANNUALLY]   by   the   Alaska   Permanent   Fund                                                               
     Corporation in the same manner the corporation determines                                                              
     the net income of the Alaska Permanent Fund under AS                                                                   
     37.13.140 [AS OF THE LAST DAY OF THE FISCAL YEAR IN                                                                    
     ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES,                                                                  
     EXCLUDING ANY UNREALIZED GAINS OR LOSSES]."                                                                                
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 6, following line 6:                                                                                                       
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 18. AS 43.23.025(a), as amended by sec. 17 of this                                                               
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (a) By October 1 of each year, the commissioner shall                                                                 
     determine the value of each permanent fund dividend for                                                                    
     that year by                                                                                                               
                                                                                                                                
          (1) determining the total amount available for                                                                        
     dividend payments, which equals                                                                                            
                                                                                                                                
               (A) the amount of income of the Alaska Permanent                                                             
          Fund transferred [APPROPRIATED] to the dividend fund                                                              
          under AS 37.13.145(h) [AS 37.13.015] during the                                                                   
          current year;                                                                                                         
                                                                                                                                
               (B) plus the unexpended and unobligated balances                                                                 
          of prior fiscal year appropriations that lapse into                                                                   
          the dividend fund under AS 43.23.045(d);                                                                              
               (C) less the amount necessary to pay prior year                                                                  
          dividends from the dividend fund in the current year                                                                  
          under AS 43.23.005(h), 43.23.021, and 43.23.055(3) and                                                                
          (7);                                                                                                                  
                                                                                                                                
               (D) less the amount necessary to pay dividends                                                                   
          from the dividend fund due to eligible applicants who,                                                                
          as determined by the department, filed for a previous                                                                 
          year's dividend by the filing deadline but who were                                                                   
          not included in a previous year's dividend                                                                            
          computation;                                                                                                          
                                                                                                                                
               (E) less appropriations from the dividend fund                                                                   
          during the current year, including amounts to pay                                                                     
          costs of administering the dividend program and the                                                                   
          held harmless provisions of AS 43.23.075;                                                                             
                                                                                                                                
          (2) determining the number of individuals eligible to                                                                 
     receive a dividend payment for the current year and the                                                                    
     number of estates and successors eligible to receive a                                                                     
     dividend   payment   for   the   current   year   under   AS                                                               
     43.23.005(h); and                                                                                                          
                                                                                                                                
          (3) dividing the amount determined under (1) of this                                                                  
     subsection by the amount determined under (2) of this                                                                      
     subsection."                                                                                                               
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 6, following line 18:                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 21. AS 43.23.045(d), as amended by sec. 20 of this                                                               
     Act, is amended to read:                                                                                                   
                                                                                                                                
          (d) Unless specified otherwise in an appropriation                                                                    
     act, the unexpended and unobligated balance of an                                                                          
     appropriation to implement this chapter lapses into the                                                                    
     dividend fund on June 30 of the fiscal year for which the                                                                  
     appropriation was made and shall [MAY] be used in                                                                      
     determining the amount of and paying the subsequent year's                                                                 
     dividend as provided in AS 43.23.025(a)(1)(B)."                                                                            
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 6, following line 19:                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
     "* Sec. 23. AS 37.13.015, 37.13.145(e), 37.13.145(f),                                                                    
     37.13.145(g); and AS 43.23.025(c) are repealed July 1,                                                                     
     2018."                                                                                                                     
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 6, line 22:                                                                                                                
                                                                                                                                
     Delete "sec. 10"                                                                                                           
                                                                                                                                
     Insert "sec. 17"                                                                                                           
                                                                                                                                
                                                                                                                                
Page 6, line 23:                                                                                                                
                                                                                                                                
     Delete "sec. 11"                                                                                                           
                                                                                                                                
     Insert "sec. 19"                                                                                                           
                                                                                                                                
                                                                                                                                
Page 6, lines 23-24:                                                                                                            
                                                                                                                                
     Delete "sec. 12"                                                                                                           
                                                                                                                                
     Insert "sec. 20"                                                                                                           
                                                                                                                                
                                                                                                                                
Page 6, line 26:                                                                                                                
                                                                                                                                
     Delete "sec. 10 - 12"                                                                                                      
                                                                                                                                
     Insert "secs. 17, 19, and 20"                                                                                              
                                                                                                                                
                                                                                                                                
Page 6, following line 30:                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 25. The uncodified law of the State of Alaska is                                                                 
     amended by adding a new section to read:                                                                                   
                                                                                                                                
     TRANSITION. (a) Notwithstanding AS 43.23.025(a), as amended                                                                
     by sec. 18 of this Act, and AS 43.23.045(c), as amended by                                                                 
     sec. 21 of this Act, the commissioner of revenue shall                                                                     
     determine the value of the permanent fund dividend                                                                         
     distributed in 2018 under AS 37.13.015, AS 43.23.025(a),                                                                   
     43.23.025(c), and 43.23.045(d), as those sections read on                                                                  
     the day before the effective date of secs. 18 and 21 of                                                                    
     this Act.                                                                                                                  
                                                                                                                                
          (b) The commissioner of revenue and the Alaska                                                                        
     Permanent Fund Corporation may adopt regulations, policies,                                                                
     and procedures necessary to implement AS 43.23.025(a), as                                                                  
     amended by sec. 18 of this Act, and AS 43.23.045(d), as                                                                    
     amended by sec. 21 of this Act. The regulations, policies,                                                                 
     or procedures may not take effect before the effective date                                                                
     of the law implemented by the regulation, policy, or                                                                       
procedure."                                                                                                                     
                                                                                                                                
                                                                                                                                
Page 7, lines 2 - 3:                                                                                                            
                                                                                                                                
     Delete "secs. 1 - 14 of this Act take effect after July 1,                                                                 
     2016, secs. 1014"                                                                                                          
                                                                                                                                
     Insert "secs. 1, 3, 4, 6, 8, 10, 12(e) - (g), 13, 15, 17,                                                                  
     19, 20, and 24 take effect after July 1, 2016, secs. 8, 10,                                                                
     12(e) - (g), 13, 15, 17, 19, 20, and 24"                                                                                   
                                                                                                                                
                                                                                                                                
Page 7, following line 3:                                                                                                       
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "* Sec. 27. Sections 2, 5, 7, 9, 11, 12(h), 14, 16, 18, 21,                                                              
     and 23 of this Act take effect July 1, 2018."                                                                              
                                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                
Page 7, line 4:                                                                                                                 
                                                                                                                                
     Delete "Sections 14 and 15"                                                                                                
                                                                                                                                
     Insert "Sections 24 and 26"                                                                                                
                                                                                                                                
                                                                                                                                
Page 7, line 5:                                                                                                                 
                                                                                                                                
     Delete "sec 16"                                                                                                            
                                                                                                                                
     Insert "secs. 27 and 28"                                                                                                   
                                                                                                                                
                                                                                                                                
9:33:36 AM                                                                                                                    
SENATOR HUGGINS objected for discussion purposes.                                                                               
                                                                                                                                
CHAIR STOLTZE  explained that  Amendment U.1  would add  a 2-year                                                               
sunset provision to  SB 114 and the legislation  would be brought                                                               
back  for discussion.  He noted  that his  preferred route  was a                                                               
public vote for the provision to be added to the constitution.                                                                  
                                                                                                                                
9:35:02 AM                                                                                                                    
CHAIR  STOLTZE announced  that  SB  114 would  be  set aside  and                                                               
reconsidered  when the  committee  reconvenes  in the  afternoon.                                                               
[Amendments U.1 and U.2 were pending.]                                                                                          
                                                                                                                                
                                                                                                                                
      SB 128-PERMENANT FUND: DEPOSITS; DIVIDEND; EARNINGS                                                                   
                                                                                                                                
9:35:22 AM                                                                                                                    
CHAIR STOLTZE announced the consideration of SB 128.                                                                            
                                                                                                                                
9:35:55 AM                                                                                                                    
RANDY  HOFFBECK,  Commissioner,  Alaska  Department  of  Revenue,                                                               
Juneau,  Alaska, thanked  the committee  and Senator  McGuire for                                                               
their  efforts in  putting forward  a  plan that  would create  a                                                               
stable  and durable  fiscal  plan  for the  State  of Alaska.  He                                                               
opined that  Alaskans were concerned about  government's level of                                                               
spending  during  high  revenues  and the  importance  of  having                                                               
spending  accountability so  that  the state  is  dealing with  a                                                               
boom-and-bust economy.                                                                                                          
                                                                                                                                
9:38:09 AM                                                                                                                    
He  asserted  that  the  Alaska  Permanent  Fund  Protection  Act                                                               
(APFPA) encapsulates the volatility  within the Permanent Fund by                                                               
putting the  oil and gas tax  with the royalty revenues  into the                                                               
Permanent Fund. He  added that a secondary  advantage was created                                                               
where the lows within the system were taken out as well.                                                                        
                                                                                                                                
He   stated   that   the  current   low-oil   price   environment                                                               
necessitated  stress  testing  the  plan's  revenue  models  with                                                               
extreme scenarios in  order to make sure  goals were accomplished                                                               
even  in times  that rarely  occur. He  revealed that  the plan's                                                               
modeling  did survive  the highs  and lows  of a  commodity-based                                                               
economy. He added that after a  series of tests with thousands of                                                               
iterations,  the plan  could sustainably  draw $3.3  billion from                                                               
combining  oil and  gas  revenues with  investment  returns on  a                                                               
sustained basis.                                                                                                                
                                                                                                                                
He reported  that the private  sector had expressed the  need for                                                               
government  to  stabilize its  portion  of  the state's  economic                                                               
base. He  conceded that after  attempts to diversify  the state's                                                               
economy over the years, Alaska  has two primary economic engines:                                                               
resource   development,  the   commodity  side;   and  government                                                               
spending,  both state  and federal.  He remarked  that there  was                                                               
very  little that  could be  done on  the commodity  side of  the                                                               
equation,  but  the  one  thing  that  could  be  stabilized  was                                                               
government  spending. He  added that  the private  sector clearly                                                               
stated  their  need for  stability  in  order to  make  long-term                                                               
financial decisions and investments. He  said the lows were taken                                                               
out to  address the  private sector's  difficulty in  making long                                                               
term commitments due to uncertainty.                                                                                            
                                                                                                                                
9:40:45 AM                                                                                                                    
CHAIR STOLTZE  asked how Commissioner  Hoffbeck has  responded to                                                               
businesses  that  either  support  a smaller  government  or  the                                                               
sector dependent on government activity.                                                                                        
                                                                                                                                
COMMISSIONER  HOFFBECK   answered  that  both   discussions  have                                                               
occurred.  He detailed  that discussions  have primarily  been on                                                               
government's size,  followed by predictability and  stability. He                                                               
summarized  that  people  want  to  pay for  the  right  size  of                                                               
government, not excessive government.                                                                                           
                                                                                                                                
CHAIR STOLTZE  commented that  predictability and  stability were                                                               
the most  important parts  and both were  being impacted  for the                                                               
largest revenue producers.                                                                                                      
                                                                                                                                
9:42:32 AM                                                                                                                    
COMMISSIONER HOFFBECK answered correct.                                                                                         
                                                                                                                                
He  set forth  that the  APFPA  was a  good plan  that worked  by                                                               
taking the  volatility component out  of the system.  He asserted                                                               
that thinking had to be  different, dynamic, and immediate action                                                               
was  needed. He  said  the administration  can  suggest, but  the                                                               
Legislature  had  to  make  the choices.  He  asserted  that  big                                                               
problems don't get easier by waiting.                                                                                           
                                                                                                                                
He remarked that  closing the $3.5 billion to  $4 billion deficit                                                               
in  a  year  and  a  half, two  legislative  sessions,  would  be                                                               
something that  nobody really believed could  be accomplished. He                                                               
opined that  even after  the deficit  was closed,  the individual                                                               
tax burden for  Alaskans would still be one of  the lowest in the                                                               
nation.  He detailed  that  the dividend  would  be protected,  a                                                               
dividend  that no  other state  pays; the  state's savings  would                                                               
continue  to grow  at  least at  the rate  of  inflation, if  not                                                               
greater;   children's  and   grandchildren's   future  would   be                                                               
protected; most  of the government's services  that Alaskans have                                                               
enjoyed over  the years  would be preserved;  and money  would be                                                               
left to invest in the state's resources.                                                                                        
                                                                                                                                
9:46:31 AM                                                                                                                    
SENATOR HUGGINS  asked that  Commissioner Hoffbeck  summarize the                                                               
five traits that he was looking for.                                                                                            
                                                                                                                                
COMMISSIONER HOFFBECK summarized as follows:                                                                                    
                                                                                                                                
   1. Keep the individual tax burden as low as possible.                                                                        
   2. Preserve the dividend.                                                                                                    
   3. Preserve  the   Permanent    Fund's   corpus   for   future                                                               
     generations.                                                                                                               
  4. Retain as many essential government services as possible.                                                                  
   5. Have money available to support resource development.                                                                     
                                                                                                                                
9:47:52 AM                                                                                                                    
CRAIG W.  RICHARDS, Attorney General,  Alaska Department  of Law,                                                               
Juneau, Alaska,  set forth  that the  governor's plan  does three                                                               
things as follows:                                                                                                              
                                                                                                                                
   1. Places the volatile petroleum revenues, production tax and                                                                
     royalties directly into the Permanent Fund. Revenues from                                                                  
     oil and gas are no longer large enough to sustain                                                                          
     government.                                                                                                                
   2. Annually draws $3.3 billion out of the Permanent Fund to                                                                  
     the General Fund. All of the cash-flow streams would act as                                                                
     an annuity. Revenues from oil and gas are no longer large                                                                  
     enough to sustain government.                                                                                              
   3. Changes the dividend formulation from one based on a five-                                                                
     year average of half of the Permanent Fund earnings to a                                                                   
     royalty formulation of half of royalties.                                                                                  
                                                                                                                                
9:50:40 AM                                                                                                                    
CHAIR STOLTZE noted  that Senator McGuire's plan was  not to fill                                                               
the  whole gap  with Permanent  Fund earnings,  but to  provide a                                                               
substantial  gap.   He  opined  that  the   governor's  "annuity"                                                               
approach may make the state dependent on just the payout.                                                                       
                                                                                                                                
ATTORNEY GENERAL RICHARDS replied  that neither Senator McGuire's                                                               
POMV approach  under SB  114 nor the  governor's plan  could take                                                               
enough  out   of  the   Permanent  Fund   to  fully   fund  state                                                               
government's $4 billion budget.                                                                                                 
                                                                                                                                
CHAIR  STOLTZE asked  Attorney General  Richards  to verify  that                                                               
Attorney General Richards did not  want to be misinterpreted that                                                               
people could not be taxed enough.                                                                                               
                                                                                                                                
ATTORNEY   GENERAL  RICHARDS   clarified  that   Chair  Stoltze's                                                               
question was  whether or  not the  administration was  leaving to                                                               
the  Legislature the  flexibility  to budget  how  they want.  He                                                               
specified that the answer between  SB 114 and the governor's plan                                                               
was SB 114 annuitizes one type  of wealth and the governor's plan                                                               
annuitizes two types of wealth.                                                                                                 
                                                                                                                                
ATTORNEY GENERAL  RICHARDS detailed that  SB 114 takes  a measure                                                               
of the Permanent Fund's value,  not its earnings, the actual cash                                                               
flow, and takes  the measured value and turns it  into an annuity                                                               
where  "x"  amount  is  taken   out,  but  leaves  the  petroleum                                                               
revenues' volatility in the General Fund.                                                                                       
                                                                                                                                
He  added that  the  third component  was the  gap  that was  not                                                               
covered  by the  petroleum revenues  and the  Permanent Fund.  He                                                               
asserted that  no one's plan  was going to  be able to  close the                                                               
gap because  the petroleum revenues  and the Permanent  Fund were                                                               
not big enough.  He asserted that SB 114  annuities the Permanent                                                               
Fund's earnings.  He pointed out  that the  administration's plan                                                               
does  both  the  Permanent  Fund's  earnings  and  the  petroleum                                                               
revenues  to provide  more stability  than  just annuitizing  the                                                               
Permanent  Fund  earnings  themselves. He  reiterated  that  both                                                               
plans  only  get  part  of   the  way  there,  which  leaves  the                                                               
Legislature to decide whether to cut more or increase revenues.                                                                 
                                                                                                                                
9:54:09 AM                                                                                                                    
He revealed  that the state's  unrestricted budget  compared with                                                               
unrestricted  petroleum revenues  have  tracked  each other  very                                                               
closely.  He explained  that  the government  spends  a lot  more                                                               
money when  it has a  lot of  money from petroleum  revenues, and                                                               
the government has to find a way to spend less when it has less.                                                                
                                                                                                                                
He  pointed   out  that  the  Legislature   has  been  incredibly                                                               
disciplined  in  terms  of saving  Permanent  Fund  earnings.  He                                                               
specified that  the state has  had a rules-based system  in place                                                               
around the  Permanent Fund  for over 30  years. He  detailed that                                                               
the  rules-based  system  inflation  proofs  the  Permanent  Fund                                                               
corpus,  pays  out  a  dividend   and  then  customarily,  not  a                                                               
legislative requirement, of not  appropriating the Permanent Fund                                                               
earnings reserve  or otherwise  taking money  out of  the system.                                                               
Even though  there has  not been particularly  a large  amount of                                                               
discipline in saving  monies in high oil  environments, there has                                                               
been  an incredible  amount of  discipline  in terms  of how  the                                                               
Legislature approaches the Permanent Fund.  He set forth that the                                                               
Legislature  has  shown  a willingness,  ability  and  desire  to                                                               
follow a  structured rule-based framework versus  the tendency to                                                               
spend the money that is available.                                                                                              
                                                                                                                                
He  summarized  that one  of  the  goals  was not  only  reducing                                                               
volatility, but to  put around the petroleum  revenues some rule-                                                               
based  frameworks that  would increase  the likelihood  of saving                                                               
money and spending it on a  plan rather than just year-to-year ad                                                               
hoc.                                                                                                                            
                                                                                                                                
ATTORNEY GENERAL  RICHARDS explained that  the goal of  the APFPA                                                               
was to  take the  state off of  the commodities  rollercoaster in                                                               
terms of governmental spending.  He detailed that stable spending                                                               
patterns  makes  state  budgeting  easier. He  pointed  out  that                                                               
Alaska's  revenues have  historically gone  up and  down over  50                                                               
percent. He noted that revenues  where almost $10 billion in 2008                                                               
during  the oil  tax  period from  Alaska's  Clear and  Equitable                                                               
Share (ACES) to this year's  $2 billion. He summarized that going                                                               
to  a more  annuitized system  would make  governmental budgeting                                                               
easier  and  its  consequence  would  roll  through  the  state's                                                               
economy as well.                                                                                                                
                                                                                                                                
9:57:51 AM                                                                                                                    
He revealed  that the International Monetary  Fund (IMF) reported                                                               
that  natural-resource  based  economies  tend  not  to  do  well                                                               
because they do not have  broad-based taxation and are subject to                                                               
oil revenue's cyclicality.  He said the IMF  report suggests that                                                               
finding a way  to create a fiscal structure that  was not reliant                                                               
on  year-to-year  volatility  would not  only  make  governmental                                                               
budgeting  easier, but  would actually  improve an  economy as  a                                                               
whole  by avoiding  the danger  of "pro-cyclical  spending" which                                                               
was spending a  lot when a government was flush  with revenue. He                                                               
pointed   out  that   an  economic   double-whammy  occurs   when                                                               
governmental spending  was dramatically reduced at  the same time                                                               
that  other  economic  sectors and  petroleum  development  comes                                                               
down. He  noted that the  IMF report concluded  that diversifying                                                               
oil based and  commodity-based economies could mean as  much as a                                                               
0.3 percent increase in annual GDP growth.                                                                                      
                                                                                                                                
He summarized that  Alaska's economy was not broad  enough to tax                                                               
at a level  that would diversify the state away  from the oil and                                                               
gas  sector. He  said the  state has  to find  a way  to use  its                                                               
sovereign wealth to develop a sound fiscal policy.                                                                              
                                                                                                                                
                                                                                                                                
10:02:00 AM                                                                                                                   
CHAIR  STOLTZE  addressed  one  of  the  rules  Attorney  General                                                               
Richards talked  about and said  there's not a  strict adherence.                                                               
He specified that the constitution  required 25 percent royalties                                                               
for  quite  a  while.  He  noted that  the  Legislature  and  the                                                               
administration  supported  50  percent  and  the  percentage  was                                                               
reduced during the 23rd Legislature.  He said some rules are more                                                               
flexible than others.                                                                                                           
                                                                                                                                
ATTORNEY  GENERAL RICHARDS  answered  correct. He  noted that  he                                                               
refers to  what Chair Stoltze  addressed as the Savings  Rule and                                                               
the Spending  Rule. He  specified that the  Savings Rule  has had                                                               
variability in  it, but  he thought  of past  actions as  doing a                                                               
little  extra.  He  said  the  Legislature  has  been  incredibly                                                               
disciplined  regarding   the  Spending   Rule  where   the  rules                                                               
framework  has not  been broken  where the  Earnings Reserve  was                                                               
raided for capital projects.                                                                                                    
                                                                                                                                
SENATOR  HUGGINS  asserted that  the  State  of Alaska  pays  for                                                               
everything.   He   specified   that    his   statement   was   an                                                               
overstatement, but  not far  from the truth.  He opined  that the                                                               
concept  where  the  state  pays  for  everything  has  not  been                                                               
addressed.                                                                                                                      
                                                                                                                                
ATTORNEY GENERAL  RICHARDS reiterated that any  solution with the                                                               
Permanent  Fund  was  a  half-solution  where  a  billion  dollar                                                               
differential would  still exist. He  opined that there  was going                                                               
to  be  lots of  room  for  policy  discussions on  revenues  and                                                               
spending.                                                                                                                       
                                                                                                                                
10:04:04 AM                                                                                                                   
He  set forth  that  a rules-based  framework  would sustain  the                                                               
Permanent Fund by:                                                                                                              
                                                                                                                                
   · Preserving the purchasing power or inflation proofing the                                                                  
     value of the Permanent Fund over time to ensure that the                                                                   
     next generation had the same level of wealth as the current                                                                
     generation.                                                                                                                
   · Making sure the plan's durability modeling ensured enough                                                                  
     money for annual draws to the General Fund and dividends.                                                                  
   · Making sure the Earnings Reserve did not grow too large                                                                    
     over time to decrease the chance of a raid.                                                                                
                                                                                                                                
He added that  a good policy would be taking  what was not needed                                                               
in the Earnings Reserve and moving it to the corpus.                                                                            
                                                                                                                                
CHAIR STOLTZE noted that  Attorney General Richards characterized                                                               
any appropriation from the Earnings Reserve as a "raid."                                                                        
                                                                                                                                
ATTORNEY  GENERAL  RICHARDS  replied  that he  should  frame  the                                                               
characterization  as   "ad  hoc  spending,"  spending   from  the                                                               
Permanent  Fund in  a manner  that  was not  under a  sustainable                                                               
plan.                                                                                                                           
                                                                                                                                
10:06:22 AM                                                                                                                   
He  addressed the  difference between  the sovereign  wealth fund                                                               
model  and a  classical endowment  model. He  specified that  the                                                               
sovereign wealth  fund model would  house the  petroleum revenues                                                               
in the Permanent Fund itself.  Under the classic endowment model,                                                               
the petrol revenues would remain in the General Fund.                                                                           
                                                                                                                                
ATTORNEY  GENERAL RICHARDS  said the  next option  was to  decide                                                               
whether to  go with  a fixed  draw or a  POMV draw.  He explained                                                               
that the  governor's bill has several  advantages where petroleum                                                               
revenue volatility would  be housed in the Permanent  Fund with a                                                               
fixed-draw amount.  He specified  that a  fixed draw  would allow                                                               
for  a  smoothed  out  or  averaged spending  where  a  bit  more                                                               
spending would be possible in lower  years and a bit more savings                                                               
in higher  years of petroleum  revenues. He pointed out  that the                                                               
Permanent Fund  and the POMV  both use averages  as a way  to get                                                               
reasoned calculations  that do  not jump all  over the  place. He                                                               
said putting the  petroleum revenues into the  Permanent Fund was                                                               
a  similar concept  where revenues  are  assigned a  value and  a                                                               
certain  amount would  be  spent every  year.  He suggested  that                                                               
petroleum revenue  be thought  of as an  asset and  deciding what                                                               
amount  of the  asset  can be  spent every  year  on a  sustained                                                               
basis. He  added that  the governor's plan  was similar  to Scott                                                               
Goldsmith's approach.                                                                                                           
                                                                                                                                
10:08:36 AM                                                                                                                   
SENATOR HUGGINS  asked Attorney General  Richard to  confirm that                                                               
under the endowment model, the  assumption was that the Permanent                                                               
Fund  maintains  its  traditional  role   and  it  would  not  be                                                               
leveraged for something else.                                                                                                   
                                                                                                                                
ATTORNEY GENERAL RICHARDS answered  that the Permanent Fund would                                                               
be  in its  traditional  role plus  some  kind of  endowment-like                                                               
payment to the General Fund plus dividends.                                                                                     
                                                                                                                                
SENATOR   HUGGINS  asked   if  the   Permanent   Fund  would   be                                                               
destabilized  or volatility  created if  the fund  was used  as a                                                               
backstop for a gas pipeline.                                                                                                    
                                                                                                                                
ATTORNEY  GENERAL RICHARDS  answered that  he did  not know,  but                                                               
suggested  that there  were several  ways to  do it.  He remarked                                                               
that he has not heard anyone  propose using the Permanent Fund in                                                               
the  manner Senator  Huggins suggested;  but if  used, he  opined                                                               
that  the Permanent  Fund  would directly  invest  as opposed  to                                                               
backstopping bonds.                                                                                                             
                                                                                                                                
He noted that the fixed amount  and POMV were both reasonable and                                                               
produce  the  same  amount  of  money  over  time;  however,  the                                                               
percentage of market value approach  would have more fluctuation.                                                               
He reiterated that the biggest  difference between the governor's                                                               
approach  and  SB 114's  sovereign  wealth  was where  oil  price                                                               
volatility would reside.  He said the disadvantage  of having oil                                                               
price volatility  reside in the  General Fund was that  the state                                                               
would be  stuck with the  annual amount that could  be collected.                                                               
He specified  that reasoned assumptions  could not be  made about                                                               
how  much could  be  spent  over time,  which  meant there  would                                                               
always be volatility in the General Fund.                                                                                       
                                                                                                                                
10:11:46 AM                                                                                                                   
ATTORNEY GENERAL RICHARDS explained  that a hypothetical modeling                                                               
exercise  was done  by the  Department  of Revenue  to show  what                                                               
would have happened if the POMV  concept was enacted in the past.                                                               
He pointed  out that the  modeling showed that the  POMV approach                                                               
would not have smoothed out  the volatility-curve associated with                                                               
oil  prices and  additional layers  would have  been laid  on the                                                               
volatility. He  said the  layering would have  made sense  in the                                                               
low years  because the  revenues would have  been needed  to meet                                                               
budgeting needs, but in high  years an unadjusted POMV would have                                                               
compounded pro-cyclical spending because  savings would be placed                                                               
into a general fund that already had excess revenues.                                                                           
                                                                                                                                
He  remarked  that  the  revenue-limitation  amendment  that  the                                                               
committee passed  was a  good amendment  because during  high oil                                                               
price environments,  money from savings  would not be put  into a                                                               
budget  that was  already highly  funded. He  explained that  the                                                               
difference  between the  revenue  limit and  what the  governor's                                                               
bill does was as follows:                                                                                                       
                                                                                                                                
   1. Does not provide for automatic savings of the petroleum                                                                   
     revenues at very high revenues.                                                                                            
   2. Does not allow for spending a constant level of petroleum                                                                 
     revenues over time regardless of what is collected.                                                                        
   3. Volatility in the General Fund would continue to exist                                                                    
     under the revenue-limit cap.                                                                                               
                                                                                                                                
CHAIR  STOLTZE clarified  that not  spending  would increase  the                                                               
likelihood of spending.                                                                                                         
                                                                                                                                
ATTORNEY  GENERAL RICHARDS  answered correct.  He specified  that                                                               
the  POMV payout  does not  provide a  limitation on  spending or                                                               
revenues in  terms of excess  oil revenues. He remarked  that the                                                               
revenue limitation would  do a very good job of  making sure that                                                               
financial savings  were not spent  when it's not needed,  but the                                                               
amendment would  not go  to the next  step of  ensuring financial                                                               
savings at real high oil prices.                                                                                                
                                                                                                                                
10:14:29 AM                                                                                                                   
ATTORNEY  GENERAL  RICHARDS   addressed  the  different  dividend                                                               
methodologies and  noted that two  combinations did not  make the                                                               
most  sense mathematically.  He said  using a  POMV draw  with an                                                               
earnings-based dividend  was a little dangerous  because the POMV                                                               
was  a  pretty steady  amount,  but  the earnings-based  dividend                                                               
would  always be  very  variable  and the  result  would make  it                                                               
harder to  depend on revenues to  the General Fund each  year. He                                                               
said the  preferred alternative to  a POMV draw and  an earnings-                                                               
based dividend would be to base  the dividend on the market value                                                               
of the  fund rather  than year-to-year  earnings, the  end result                                                               
would not  have the variability  and swings that exist  under the                                                               
current system. He remarked that  although variability and swings                                                               
might be good policy in  terms of people's dividends, variability                                                               
rather  than stability  in revenue  to the  General Fund  did not                                                               
make sense.                                                                                                                     
                                                                                                                                
He  said the  other type  of dividend  combination that  he found                                                               
mathematically challenging  was SB  114's initial version  with a                                                               
royalty-based  dividend  and  a   PFD  floor.  He  detailed  that                                                               
dividends would  be paid  out on  the upside  of oil  prices, but                                                               
guaranteed  with  a floor  on  the  downside  of oil  prices.  He                                                               
asserted that the dividend plan  under SB 114 would easily become                                                               
unsustainable very fast.                                                                                                        
                                                                                                                                
10:17:44 AM                                                                                                                   
SENATOR  MCGUIRE  thanked   Commissioner  Hoffbeck  and  Attorney                                                               
General Richards for working with  her office. She opined that an                                                               
amalgamation  of bills  would  ultimately  happen because  people                                                               
understand where  the state was financially.  She analogized that                                                               
people were at  the acceptance level that a "root  canal" must be                                                               
performed.                                                                                                                      
                                                                                                                                
10:19:57 AM                                                                                                                   
SENATOR COGHILL commented that the  real question was whether the                                                               
state's wealth could  be used to stabilize the  government as the                                                               
Legislature starts  slimming down  the budget.  He said  to date,                                                               
the  Permanent  Fund earnings  have  not  been used  for  general                                                               
government  purposes.   He  detailed   that  using   the  current                                                               
methodology and taking  money out of Permanent  Fund earnings for                                                               
government spending  would highly impact the  dividend. He stated                                                               
that the intent in the governor's  plan and SB 114 was to protect                                                               
and sustain  the value of  the state's  wealth when used  for the                                                               
first time  in government services  and the dividend. He  said he                                                               
appreciated the approach being taken  and noted that that was the                                                               
reason for  his methodology change in  introducing his amendment.                                                               
He remarked  that if  the Legislature does  not do  anything, the                                                               
Permanent  Fund earnings  could be  used, but  the impact  on the                                                               
dividend  would be  great and  the state's  volatility would  not                                                               
change.                                                                                                                         
                                                                                                                                
[CHAIR STOLTZE set SB 128 aside for further consideration.]                                                                     
                                                                                                                                
10:22:48 AM                                                                                                                   
CHAIR STOLTZE recessed the meeting to the call of the chair.                                                                    
                                                                                                                                
                                                                                                                                
          SJR 1-CONST AM: GUARANTEE PERM FUND DIVIDEND                                                                      
                                                                                                                                
2:32:02 PM                                                                                                                    
CHAIR STOLTZE  called the committee  back to order  and announced                                                               
the consideration of SJR 1.                                                                                                     
                                                                                                                                
2:33:19 PM                                                                                                                    
SENATOR WIELECHOWSKI  moved to report  SJR 1,  [29-LS0008\A], out                                                               
of  committee with  individual  recommendations and  accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
2:33:28 PM                                                                                                                    
CHAIR STOLTZE announced  that without objection, SJR  1 moved out                                                               
of committee.                                                                                                                   
                                                                                                                                
                                                                                                                                
         SB 114-PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS                                                                     
                                                                                                                                
2:33:46 PM                                                                                                                    
CHAIR STOLTZE  announced the continued  consideration of  SB 114.                                                               
He restated the motion to adopt Amendment 29-LS0833\U.1 ("U.1").                                                                
                                                                                                                                
SENATOR HUGGINS restated his objection.                                                                                         
                                                                                                                                
CHAIR STOLTZE moved to amend  Amendment U.1. He explained that in                                                               
consultation  with the  sponsor, Senator  McGuire asked  that the                                                               
provision's sunset be extended one  additional year. He explained                                                               
that  the amendment  was conceptual  because drafting  would have                                                               
taken too long due to the sunset provision's complex language.                                                                  
                                                                                                                                
CHAIR STOLTZE moved a conceptual amendment to Amendment U.1.                                                                    
                                                                                                                                
             CONCEPTUAL AMENDMENT TO AMENDMENT U.1                                                                          
                                                                                                                                
     The provisions  inserted through Amendment  [U.1] which                                                                    
     sunset the  act within two  years, shall be  altered to                                                                    
     reflect  a 3  year sunset  extending the  repeal-sunset                                                                    
     provisions for one additional year.                                                                                        
                                                                                                                                
2:34:45 PM                                                                                                                    
CHAIR STOLTZE found  no objection to the  conceptual amendment to                                                               
Amendment U.1 and it was adopted.                                                                                               
                                                                                                                                
SENATOR HUGGINS removed his objection.                                                                                          
                                                                                                                                
2:35:03 PM                                                                                                                    
CHAIR STOLTZE  found no objection  to Amendment U.1,  as amended,                                                               
and it was adopted.                                                                                                             
                                                                                                                                
SENATOR  COGHILL said  Amendment U.  2 has  a technical  drafting                                                               
error  and he  would like  to  amend his  motion to  adopt it  to                                                               
reflect the proper citation of 29-LS0883\U.3 ("U.3").                                                                           
                                                                                                                                
SENATOR HUGGINS objected for discussion purposes.                                                                               
                                                                                                                                
SENATOR COGHILL explained  that it is the same  amendment but the                                                               
citation was typed incorrectly. It should be 29-LS0883\U.3.                                                                     
                                                                                                                                
SENATOR HUGGINS removed his objection.                                                                                          
                                                                                                                                
2:36:06 PM                                                                                                                    
CHAIR STOLTZE announced that hearing  no objection, Amendment U.3                                                               
is adopted.                                                                                                                     
                                                                                                                                
2:36:11 PM                                                                                                                    
SENATOR MCGUIRE  moved to report  the [committee  substitute] for                                                               
sponsor substitute  for SB 114,  as amended, from  committee with                                                               
individual recommendations and attached fiscal notes.                                                                           
                                                                                                                                
2:36:39 PM                                                                                                                    
CHAIR STOLTZE  announced that without objection,  CSSSSB 114(STA)                                                               
moved from committee.                                                                                                           
                                                                                                                                
                                                                                                                                
        SB 128-PERM. FUND: DEPOSITS; DIVIDEND; EARNINGS                                                                     
                                                                                                                                
2:36:48 PM                                                                                                                    
CHAIR  STOLTZE   returned  attention   to  SB  128.   Finding  no                                                               
amendments or additional discussion, he solicited a motion.                                                                     
                                                                                                                                
2:37:01 PM                                                                                                                    
SENATOR COGHILL moved to report SB 128 from committee with                                                                      
individual recommendations and attached fiscal notes.                                                                           
                                                                                                                                
2:37:07 PM                                                                                                                    
CHAIR STOLTZE announced that without objection, SB 128 moved                                                                    
from committee.                                                                                                                 
                                                                                                                                
2:37:54 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Stoltze adjourned the Senate State Affairs Committee at                                                                   
2:37 p.m.                                                                                                                       

Document Name Date/Time Subjects
SB 114 Supporting Document - APFC 2004 Resolution on POMV.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SCR 16 ver W - CS(STA) 3-11-16.pdf SSTA 3/15/2016 9:00:00 AM
SCR 16
SCR 16 2015 Alaska Legislature Salary and Business Expense Report.pdf SSTA 3/15/2016 9:00:00 AM
SCR 16
SB 114 Public Testimony to SSTA (Fifth Batch - 10 POMS) 3-11-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SCR 16 Fiscal Note - SSTA 03-14-16.pdf SSTA 3/15/2016 9:00:00 AM
SCR 16
SB 114 CS(STA) Version U 3-14-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 114 Fiscal Modeling by LFD - to SSTA 03-14-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 114 PowerPoint Presentation to SSTA by Sen. McGuire on CS for SS SB 114(STA) ver U 3-15-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 128 Fiscal Note #3 - DOA-VCCB 02-03-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 128
SB 114 Summary of Changes Version F to CSSS SB 114 Version U 03-14-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 114 Amendment #1 (U.1) - Stoltze (Adopted as Amended, without objection).pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 114 Amendment #2 (U.2) - Coghill (WITHDRAWN IN FAVOR OF REPLACEMENT AMENDMENT #2 - U.3).pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 128 Presentation by Departments of Law and Revenue to SSTA 03-15-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 128
SB 128 Comparison Flow Charts vs SB 114 versions and Status Quo 03-15-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 128
SB 128 Comparison Rules Table (by Administration) vs SB 114 03-15-16.pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 128
SB 114 Replacement Amendment #2 (U.3) - Coghill (Adopted without objection).pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SB 114 Conceptual Amendment #1 to Amendment #1 (SSTA) - Stoltze (Adopted without objection).pdf SSTA 3/15/2016 9:00:00 AM
SB 114
SCR 16 Backup Document - LRS Report from LAA - Historical Special Session Cost Details (Revised by LAA 03-17-16).pdf SSTA 3/15/2016 9:00:00 AM
SCR 16