Legislature(2017 - 2018)BUTROVICH 205

01/28/2017 10:00 AM STATE AFFAIRS

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Audio Topic
10:00:54 AM Start
10:01:13 AM SB1|| SB2
01:59:30 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 1 APPROP: 2016 PFD SUPPLEMENTAL PAYMENT TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit 3 Minutes> --
+= SB 2 2016 PFD SUPPLEMENTAL PAYMENT TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit 3 Minutes> --
Invited Testimony on SB 1 and SB 2 From:
Former Alaska State Senator, Rick Halford
Dr. Jack Hickel
Former Alaska State Senator & Representative
Clem Tillion
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        January 28, 2017                                                                                        
                           10:00 a.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Dunleavy, Chair                                                                                                    
Senator Cathy Giessel                                                                                                           
Senator John Coghill                                                                                                            
Senator Dennis Egan                                                                                                             
Senator David Wilson (online)                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 1                                                                                                               
"An Act making a special appropriation from the earnings reserve                                                                
account for the payment of permanent fund dividends; and                                                                        
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 2                                                                                                               
"An  Act  increasing  the  amount  of  the  2016  permanent  fund                                                               
dividend  and  directing  the  Department of  Revenue  to  pay  a                                                               
supplemental dividend to eligible  individuals; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 1                                                                                                                    
SHORT TITLE: APPROP: 2016 PFD SUPPLEMENTAL PAYMENT                                                                              
SPONSOR(s): SENATOR(s) DUNLEAVY                                                                                                 
                                                                                                                                
01/09/17       (S)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       STA, FIN                                                                                               
01/24/17       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
01/24/17       (S)       Heard & Held                                                                                           
01/24/17       (S)       MINUTE(STA)                                                                                            
01/28/17       (S)       STA AT 10:00 AM BUTROVICH 205                                                                          
                                                                                                                                
BILL: SB 2                                                                                                                    
SHORT TITLE: 2016 PFD SUPPLEMENTAL PAYMENT                                                                                      
SPONSOR(s): SENATOR(s) DUNLEAVY                                                                                                 
                                                                                                                                
01/09/17       (S)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       STA, FIN                                                                                               
01/24/17       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
01/24/17       (S)       Heard & Held                                                                                           
01/24/17       (S)       MINUTE(STA)                                                                                            
01/28/17       (S)       STA AT 10:00 AM BUTROVICH 205                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
GINA RITACCO, Staff                                                                                                             
Senator Mike Dunleavy                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 1 and SB 2.                                                                    
                                                                                                                                
DR. JACK HICKEL, representing himself                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
KEN FISHER, representing himself                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
AL TINGLEY, representing himself                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition of SB 1 and SB 2.                                                                 
                                                                                                                                
MIKE ALEXANDER, representing himself                                                                                            
Big Lake, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
EDWARD WITBECK, representing himself                                                                                            
Kenai, Alaska                                                                                                                   
POSITION STATEMENT: Did not provide a position.                                                                               
                                                                                                                                
DAVID NEES, representing himself                                                                                                
Cooper Landing, Alaska                                                                                                          
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
J.R. MYERS, representative                                                                                                      
Alaska Constitution Party                                                                                                       
Soldotna, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
WILLIAM DEATON, representing himself                                                                                            
Cordova, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
BARBARA LEARMONTH, representing herself                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition of SB 1 and SB 2.                                                                 
                                                                                                                                
MICHAEL CHAMBERS, representative                                                                                                
United for Liberty-Alaska                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
RICK HALFORD, representing himself                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
CHARLES MCKEE, representing himself                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
DAVID BOYLE, representing himself                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
PAUL KENDALL, representing himself                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
MARY NANUWAK, representing herself                                                                                              
Bethel, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
CHARLENE ARNESON, representing herself                                                                                          
Whittier, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
DR. VERNON SMITH, Professor of Economics and Law                                                                                
Chapman University                                                                                                              
Orange, California                                                                                                              
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
SALLY POLLEN, representing herself                                                                                              
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
GEORGE PIERCE, representing himself                                                                                             
Kasilof, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
FRED STURMAN, representing himself                                                                                              
Kenai, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
MIKE NAVARRE, representing himself                                                                                              
Kenai, Alaska                                                                                                                   
POSITION STATEMENT: Testified in opposition of SB 1 and SB 2.                                                                 
                                                                                                                                
DONALD WESTLUND, representing himself                                                                                           
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SB 1 and SB 2.                                                                 
                                                                                                                                
JAKE JACOBSEN, representing himself                                                                                             
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
MIKE COONS, representing himself                                                                                                
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
JEFFREY VAN ZANDT, representing himself                                                                                         
Tok, Alaska                                                                                                                     
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
JIM "HOTAI" WILLIAMS, representing himself                                                                                      
Valdez, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
DR. BARBARA HANEY, representing herself                                                                                         
North Pole, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
JAMES SQUYRES, representing himself                                                                                             
Deltana, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
PAMELA GOOD, representing herself                                                                                               
Deltana, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
DENNY KAY WEATHERS, representing herself                                                                                        
Hawkins Island-Prince Williams Sound, Alaska                                                                                    
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
RHONA VAN ZANDT, representing herself                                                                                           
Tok, Alaska                                                                                                                     
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
GARY MCDONALD, representing himself                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
CHRISTINE NEES, representing herself                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
FRIEDRICH ZIMMERMAN, representing himself                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
WILLIAM WEATHERBY, representing himself                                                                                         
King Salmon, Alaska                                                                                                             
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
CHARLOTTE NAYAGAK, representing herself                                                                                         
Chevak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
BYRON CHARLES, representing himself                                                                                             
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
VICTOR NAYAGAK, representing himself                                                                                            
Chevak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
TOM BOUTIN, representing himself                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
JEANINE ST. JOHN, representing herself                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SB 1 and SB 2.                                                                 
                                                                                                                                
LAURA CLARK-MAKETA, representing herself                                                                                        
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
WILLIAM TOPEL, representing himself                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
JIM SYKES, representing himself                                                                                                 
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
ANDREW FRAILERY-AFANASYEV, representing himself                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
TARYN LUSKLEET, representing herself                                                                                            
North Pole, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
VANESSA PLATTER, representing herself                                                                                           
Eagle River, Alaska                                                                                                             
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
GERRIT SOUTHLAND, representing himself                                                                                          
Wrangell, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
NORAH SMART, representing herself                                                                                               
Hooper Bay, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
EVELYNN TREFON, representing herself                                                                                            
Newhalen, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
WILLIAM REINER, representing himself                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
ELIZABETH BREUKER, representing herself                                                                                         
Deltana, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
JOHN SONIN, representing himself                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
DELICE CALCOTE, representing herself                                                                                            
Sutton, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
ROSS BIELING, representing himself                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
PAMELA BRODIE, representing herself                                                                                             
Homer, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SB 1 and SB 2.                                                                    
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:00:54 AM                                                                                                                 
CHAIR  MIKE DUNLEAVY  called the  Senate  State Affairs  Standing                                                             
Committee meeting to  order at 10:00 a.m. Present at  the call to                                                               
order were Senators Giessel, Egan,  Coghill, Wilson (online), and                                                               
Chair Dunleavy.                                                                                                                 
                                                                                                                                
                                                                                                                                
           SB 1-APPROP: 2016 PFD SUPPLEMENTAL PAYMENT                                                                       
               SB 2-2016 PFD SUPPLEMENTAL PAYMENT                                                                           
                                                                                                                                
10:01:13 AM                                                                                                                   
CHAIR DUNLEAVY announced that the purpose of the meeting is to                                                                  
hear testimony on SB 1 and SB 2. He asked for summations on SB 1                                                                
and SB 2.                                                                                                                       
                                                                                                                                
10:01:33 AM                                                                                                                   
GINA RITACCO, Staff, Senator  Dunleavy, Alaska State Legislature,                                                               
Juneau,  Alaska, explained  that SB  1 is  an appropriation  bill                                                               
that  will appropriate  the money  to restore  the dividend  that                                                               
amounts to approximately  $1,030 per person, which is  a total of                                                               
$683.23 million; SB 2 is  the directive for the Alaska Department                                                               
of Revenue  to immediately  payout the  dividend once  both bills                                                               
are passed.                                                                                                                     
                                                                                                                                
10:02:09 AM                                                                                                                   
CHAIR DUNLEAVY  announced that the  committee will  commence with                                                               
invited testimony.                                                                                                              
                                                                                                                                
10:02:40 AM                                                                                                                   
At ease.                                                                                                                        
                                                                                                                                
10:03:01 AM                                                                                                                   
CHAIR DUNLEAVY called  the committee back to  order. He announced                                                               
that  invited   testifier  Dr.  Jack  Hickel   will  address  the                                                               
committee.  He detailed  that Dr.  Hickel is  a family  physician                                                               
working for the Southcentral Foundation.                                                                                        
                                                                                                                                
10:03:09 AM                                                                                                                   
DR.  JACK   HICKEL,  representing  himself,   Anchorage,  Alaska,                                                               
testified in support  of SB 1 and  SB 2. He set  forth that there                                                               
should not be changes or capping  of the permanent fund. He added                                                               
that  earnings  should not  be  spent  without  the vote  of  the                                                               
people.  He  asserted  that the  permanent  fund  dividend  (PFD)                                                               
belongs to the people and  is guaranteed through a constitutional                                                               
amendment.                                                                                                                      
                                                                                                                                
10:08:56 AM                                                                                                                   
At ease.                                                                                                                        
                                                                                                                                
10:09:31 AM                                                                                                                   
CHAIR DUNLEAVY called  the committee back to  order. He announced                                                               
that the committee will hear public testimony.                                                                                  
                                                                                                                                
10:10:13 AM                                                                                                                   
KEN FISHER,  representing himself,  Juneau, Alaska,  testified in                                                               
support of SB 1 and SB  2. He said the governor unilaterally took                                                               
away  over  $1,000   from  each  Alaskan  and  it's   up  to  the                                                               
Legislature to defend  the PFD law against  the unilateral action                                                               
of the  governor. He asserted  that state government  should live                                                               
within its means.                                                                                                               
                                                                                                                                
10:13:26 AM                                                                                                                   
AL TINGLEY,  representing himself,  Juneau, Alaska,  testified in                                                               
opposition of SB  1 and SB 2. He asserted  that Alaskans have not                                                               
earned a  cent that  the state  seems bound to  give to  them. He                                                               
advised that  funds would  be better  spent on  correcting issues                                                               
for the population.  He suggested that an  education endowment be                                                               
set up for children rather than allowing parental control.                                                                      
                                                                                                                                
10:15:27 AM                                                                                                                   
MIKE   ALEXANDER,  representing   himself,   Big  Lake,   Alaska,                                                               
testified in  support of  SB 1 and  SB 2. He  set forth  that the                                                               
governor  had taken  away $1  billion from  Alaska's economy  and                                                               
hurt a lot of folks, especially the poorest members of society.                                                                 
                                                                                                                                
10:17:54 AM                                                                                                                   
EDWARD  WITBECK, representing  himself,  Kenai,  Alaska, did  not                                                               
provide a position on SB 1 or SB 2.                                                                                             
                                                                                                                                
10:20:03 AM                                                                                                                   
DAVID  NEES,   representing  himself,  Cooper   Landing,  Alaska,                                                               
testified  in support  of SB  1 and  SB 2.  He asserted  that the                                                               
governor's action on the PFD negatively impacted his family.                                                                    
                                                                                                                                
10:21:43 AM                                                                                                                   
J.R.  MYERS,  Chairman,   Alaska  Constitution  Party,  Soldotna,                                                               
Alaska, testified in support of SB 1  and SB 2. He set forth that                                                               
the  Alaska  Constitution  Party  is  adamantly  opposed  to  the                                                               
governor's  unilateral and  unprecedented action  that interferes                                                               
with a  contract with the  people of  Alaska. He said  the Alaska                                                               
Constitution Party  views the PFD  as compensation  for Alaskans'                                                               
loss  of mineral  and  subsurface rights.  He  remarked that  the                                                               
money  for  the PFD  is  best  spent by  the  people  not by  the                                                               
government. He asserted that government  should be downsized to a                                                               
sensible level. He said the  governor's action created an adverse                                                               
effect on the  economy in addition to placing two  percent of the                                                               
state's population below the poverty line.                                                                                      
                                                                                                                                
10:23:17 AM                                                                                                                   
WILLIAM  DEATON,   representing  himself  and   family,  Cordova,                                                               
Alaska, testified in support  of SB 1 and SB 2.  He said what the                                                               
governor did was wrong and  did so without the Legislature giving                                                               
its okay.  He set forth that  cutting the PFD will  have the most                                                               
adverse effect  on the private-sector  economy. He  asserted that                                                               
the current deficient is due  to the government spending too much                                                               
without looking to the future.                                                                                                  
                                                                                                                                
10:25:06 AM                                                                                                                   
BARBARA   LEARMONTH,   representing  herself,   Juneau,   Alaska,                                                               
testified in opposition of SB 1 and  SB 2. She set forth that she                                                               
supports  the  governor's actions  from  the  previous year.  She                                                               
asserted that she  would rather hear talk  about a responsibility                                                               
to  the state,  its infrastructure  and children's  future rather                                                               
than a  right to  unearned money. She  opined that  the permanent                                                               
fund is a  "permanent fund" that might be needed  later and not a                                                               
"permanent dividend."  She asserted that last  year's decision by                                                               
the governor was  necessitated due to the  Legislature not coming                                                               
up with  a solution.  She encouraged the  Legislature to  come up                                                               
with  a  fiscal solution  first  and  then  see what's  the  best                                                               
outcome for the PFD.                                                                                                            
                                                                                                                                
10:27:47 AM                                                                                                                   
MICHAEL  CHAMBERS,  representative,  United  for  Liberty-Alaska,                                                               
Anchorage, Alaska,  testified in  support of  SB 1  and SB  2. He                                                               
stated that he  is adamantly opposed to the  restructuring of the                                                               
permanent  fund.  He set  forth  that  Alaska  has a  very  proud                                                               
history  of  creating  the  very first  payment  of  the  earth's                                                               
resources  directly  to the  people  and  the history  should  be                                                               
protected.                                                                                                                      
                                                                                                                                
10:30:17 AM                                                                                                                   
RICK HALFORD, representing  himself, Anchorage, Alaska, testified                                                               
in support  of SB 1 and  SB 2. He  disclosed that he is  a former                                                               
legislator  and noted  being the  House-majority leader  when the                                                               
original PFD was passed.                                                                                                        
                                                                                                                                
He supported  the PFD  legislation and  continued to  support the                                                               
PFD against every  effort to change it. He pointed  out that most                                                               
of those in  power have gone to the permanent  fun when money was                                                               
needed,  the most  regressive possible  source. He  revealed that                                                               
the   original  amendment   was   changed   in  the   Legislature                                                               
specifically  to  allow  for  the  dedication  of  permanent-fund                                                               
income,  the added  language  was the  last  five words,  "Unless                                                               
otherwise  provided  by law."  He  explained  that the  amendment                                                               
allowed  for  the dedication,  which  is  in  the law  today,  in                                                               
addition to requiring inflation proofing and dividends.                                                                         
                                                                                                                                
He disclosed  that there  was a  lot of  effort in  the permanent                                                               
fund  discussion  of  how  the   averaging  worked  and  how  the                                                               
inflation  was calculated;  that far  exceeded the  discussion of                                                               
the dividend's amount. He stated  that the dividend's purpose was                                                               
to equalize some of the benefits  that were going in huge measure                                                               
to  wealth, power,  influence and  all of  the other  things that                                                               
drive the political process; but,  other than the first dividend,                                                               
which  came  from  the  general fund  because  the  money  hadn't                                                               
accrued in  the permanent fund yet,  there was never the  need of                                                               
an appropriation.                                                                                                               
                                                                                                                                
He said he supported  the efforts and purposes in SB  1 and SB 2,                                                               
but the question  currently in court is  over "appropriation." He                                                               
asserted that the inflation proofing  and dividend in the law are                                                               
specifically provided  for and allowed by  the constitution, they                                                               
are  not optional  and the  corporation violated  the law  on bad                                                               
legal  advice.  He  remarked that  appropriation  for  accounting                                                               
purposes  or for  knowledge  of  what's going  on  does not  hurt                                                               
anything, but the appropriation was totally unnecessary.                                                                        
                                                                                                                                
He said taking over $600 million  out of an economy that is spent                                                               
from the bottom by individual choices  over a short period has an                                                               
astronomical impact  that approaches the entire  payroll of state                                                               
and local  government. He opined  that the impact has  spread the                                                               
recession  that  was  limited  to  the  oil  industry  and  their                                                               
contractors  to the  whole  economy; it  is  the most  regressive                                                               
economic act since  statehood and the veto  totally separates the                                                               
dividend from the  permanent fund itself, resulting  in a vehicle                                                               
that no longer protects a  prudent investment policy to avoid bad                                                               
loans  or bad  investments and  no longer  acts as  an avenue  to                                                               
protect  and let  people understand  that  inflation proofing  is                                                               
essential to the future of the  fund. He set forth that permanent                                                               
fund itself is under attack due to the separation.                                                                              
                                                                                                                                
MR.  HALFORD referenced  a  1995 annual  report  from the  Alaska                                                               
Permanent Fund Corporation that stated the following:                                                                           
                                                                                                                                
      The permanent fund earnings are rightfully owned by                                                                       
     the people of Alaska; they are not gifts bestowed by a                                                                     
     generous government, they are constitutional rights.                                                                       
                                                                                                                                
He contended that  he does not buy every aspect  of the permanent                                                               
fund  earnings being  a constitutional  right,  but he  contended                                                               
that the people of Alaska should decide.                                                                                        
                                                                                                                                
He set  forth that the battle  the state sees itself  in has been                                                               
repeated  over  and  over  again   since  the  inception  of  the                                                               
permanent  fund. He  opined that  the  dividend funds  everything                                                               
from the  bottom while the  government funds everything  from the                                                               
top.                                                                                                                            
                                                                                                                                
He summarized  that the permanent  fund speaks for itself  by its                                                               
record and  encouraged the Legislature  to let the  people decide                                                               
what to  do with it. He  asserted that the permanent  fund is the                                                               
one thing in the state of Alaska that is not broken.                                                                            
                                                                                                                                
10:37:50 AM                                                                                                                   
CHARLES   MCKEE,   representing   himself,   Anchorage,   Alaska,                                                               
testified in support of SB 1 and SB 2.                                                                                          
                                                                                                                                
10:41:52 AM                                                                                                                   
DAVID BOYLE,  representing himself, Anchorage,  Alaska, testified                                                               
in support of  SB 1 and SB  2. He asked that people  in the lower                                                               
income brackets be taken into consideration.                                                                                    
                                                                                                                                
10:45:16 AM                                                                                                                   
PAUL KENDALL, representing  himself, Anchorage, Alaska, testified                                                               
in support of SB 1 and SB 2.  He opined that that the bills would                                                               
get  back the  "theft" of  $1,032. He  commended legislators  who                                                               
have stood on behalf of the "little people" against the "theft."                                                                
                                                                                                                                
10:49:38 AM                                                                                                                   
MARY NANUWAK, representing herself,  Bethel, Alaska, testified in                                                               
support of SB 1 and SB  2. She asked that legislators think about                                                               
rural  Alaskans before  making their  decisions and  consider the                                                               
horrendous conditions they live under.                                                                                          
                                                                                                                                
10:54:09 AM                                                                                                                   
CHARLENE   ARNESON,  representing   herself,  Whittier,   Alaska,                                                               
testified  in  support of  SB  1  and  SB  2. She  asserted  that                                                               
legislators can come up with  a good solution without tapping the                                                               
PFD first.                                                                                                                      
                                                                                                                                
10:57:31 AM                                                                                                                   
CHAIR  DUNLEAVY  recognized  legislators  online:  Senator  David                                                               
Wilson  and  Representative  Colleen Sullivan-Leonard.  He  asked                                                               
that  Dr.  Vernon  Smith,  an   invited  testifier,  address  the                                                               
committee. He  detailed that Dr.  Smith received the  Nobel Prize                                                               
for Economic  Science in 2002 and  is now a professor  at Chapman                                                               
University.                                                                                                                     
                                                                                                                                
10:58:10 AM                                                                                                                   
DR.  VERNON  SMITH,  Professor  of  Economics  and  Law, Chapman                                                                
University,  Orange,  California,   testified  in support  of  SB                                                               
1  and  SB  2.  He  mentioned  that   he  did  not  speak  as  an                                                               
Alaskan,  but  as  one who  loves  Alaska  very  much  and  noted                                                               
that  he  has  been  going  to  Alaska  fairly  regularly   since                                                               
1965 and feels almost like a citizen.                                                                                           
                                                                                                                                
He set  forth that  Alaska  did an  incredibly  innovative  thing                                                               
when  the  state  created  the  Alaska  Permanent  Fund.  He  set                                                               
forth  that the  permanent  fund is unprecedented   in the  sense                                                               
that   it  recognizes   that  the   state's   natural  resources                                                                
belongs  to the  people  and at  least some  of the  revenue  and                                                               
value  from  those  resources  should  be set  aside  for  direct                                                               
distribution    to   the   people.   He   admitted    that   most                                                               
governments   give  the   people  nothing   and  the  individual                                                                
citizens  in the  few that  have some  sort of a  permanent  fund                                                               
do  not  have  rights  in  their  funds;  that  is an  important                                                                
principle  that  has the  potential  of  reducing  an inequality                                                                
in  a way  that's  not really  a burden  in  terms  of transfers                                                                
through the tax system.                                                                                                         
                                                                                                                                
He  said  if  the  Legislature   cannot  support   them,  then  a                                                               
referendum  is  important  where  Alaskans  have  an opportunity                                                                
to  approve   any  diversion   of  their   dividend  income.   He                                                               
pointed   out  that  the   state  had  a   large  share   of  the                                                               
permanent-fund    income  and   asking   why  better   emergency                                                                
provisions   were  not   made  is  an  important   question.   He                                                               
calculated   that  the   Alaska  Permanent   Fund  was  worth   a                                                               
remarkable  $74,000   for every  man,  woman  and  child  in  the                                                               
state.   He  opined   that  if   any  change   is  made  to   the                                                               
permanent  fund,  Alaskans   should  be  allowed  access  to  the                                                               
principle  to  invest in  Alaskan  businesses  or other  ways  to                                                               
help develop the Alaskan economy.                                                                                               
                                                                                                                                
11:01:24 AM                                                                                                                   
SALLY POLLEN, representing herself,  Palmer, Alaska, testified in                                                               
support  of SB  1 and  SB 2.  She noted  that the  dividend money                                                               
taken from  Alaskans is sitting  in an account and  inquired what                                                               
is to be done with the money.  She pointed out that the money set                                                               
aside  would not  make  a  dent in  Alaska's  fiscal crisis.  She                                                               
opined  that the  money taken  from  the permanent  fund was  far                                                               
reaching and robbed what belonged to future generations.                                                                        
                                                                                                                                
11:04:58 AM                                                                                                                   
GEORGE PIERCE,  representing himself, Kasilof,  Alaska, testified                                                               
in support of  SB 1 and SB 2.  He set forth that the  PFD is most                                                               
important  to  children,  Alaska  natives, and  rural  areas.  He                                                               
opined that  taking half of the  PFD has made the  people poorer.                                                               
He pointed out that the  University of Alaska-Anchorage Institute                                                               
of Social  and Economic Research  (ISER) reported that a  PFD cut                                                               
has a  higher impact than  other tax options. He  summarized that                                                               
the legislation is broken, not the PFD.                                                                                         
                                                                                                                                
11:08:24 AM                                                                                                                   
CHAIR DUNLEAVY  specified that the  previous year's  budget bills                                                               
that  were passed  by both  bodies  had an  appropriation in  the                                                               
legislation for a full dividend  that many legislators voted for,                                                               
but the appropriation has halved through the governor's veto.                                                                   
                                                                                                                                
11:08:59 AM                                                                                                                   
FRED STURMAN,  representing himself, Kenai, Alaska,  testified in                                                               
support of SB 1 and SB  2. He remarked that the Legislature spent                                                               
more money than  the state could afford to spend.  He pointed out                                                               
that bills to  cut spending were never introduced  when the state                                                               
had a lot of money. He asked that  people who don't have a lot of                                                               
resources should not be taxed. He  set forth that a local Alaskan                                                               
can spend their money better than the government can.                                                                           
                                                                                                                                
11:11:00 AM                                                                                                                   
CHAIR   DUNLEAVY  recognized   that   Senator   Tom  Begich   and                                                               
Representative George  Rauscher were in attendance.  He announced                                                               
that  the next  testifier is  Mike  Navarre, mayor  of Kenai  and                                                               
former Alaska legislator.                                                                                                       
                                                                                                                                
11:11:19 AM                                                                                                                   
MIKE NAVARRE,  representing himself, Kenai, Alaska,  testified in                                                               
opposition  of SB  1 and  SB 2.  He set  forth that  the spending                                                               
decisions need to be in the  context of an overall fiscal plan so                                                               
that the  current fiscal crisis  does not turn into  a full-blown                                                               
economic crisis for Alaska.                                                                                                     
                                                                                                                                
MR.  NAVARRE opined  that  last year's  actions  by the  governor                                                               
simply reduced  spending, not  dissimilar from  the Legislature's                                                               
discretionary  authority  on  inflation  proofing  the  permanent                                                               
fund. He noted  that the overriding concern  during the permanent                                                               
fund's early  days was  to save a  renewable resource  for future                                                               
debates  and discussions  about what  the spending  decisions are                                                               
for the state of Alaska.                                                                                                        
                                                                                                                                
He conceded  that making a  distribution and then  deducting that                                                               
distribution hits  the state's lowest  earners and  income folks;                                                               
however, the  focus should be  on the state's overall  future. He                                                               
said  he is  fine with  some legislators  interested in  spending                                                               
reductions; however,  once a  determination is  made, legislators                                                               
have to  figure out how to  pay for their decisions.  He asserted                                                               
that choices in budget cuts,  taxes or PFD distribution are going                                                               
to have economic consequences.                                                                                                  
                                                                                                                                
He   summarized   that   he   thanked   past   legislatures   for                                                               
appropriating excess earnings into the  permanent fund as well as                                                               
setting  up  the permanent  fund  to  turn Alaska's  nonrenewable                                                               
resources  into a  renewable resource  which is  now the  state's                                                               
largest single source of revenue.                                                                                               
                                                                                                                                
11:14:33 AM                                                                                                                   
DONALD   WESTLUND,  representing   himself,  Ketchikan,   Alaska,                                                               
testified in  opposition of SB  1 and SB  2. He opined  that many                                                               
Alaskans survived  without the  PFD. He  remarked that  the state                                                               
probably  does not  have the  money to  put into  PFD checks  and                                                               
legislators  should  focus  on   the  state's  current  financial                                                               
problems. He suggested that an  income tax be considered to close                                                               
the state's  debt. He remarked  that distributing a PFD  and then                                                               
paying the state for an income tax does not make sense.                                                                         
                                                                                                                                
11:18:00 AM                                                                                                                   
JAKE JACOBSEN,  representing himself and family,  Kodiak, Alaska,                                                               
testified  in support  of SB  1 and  SB 2.  He said  he initially                                                               
opposed  the  PFD because  he  considered  it  to  be a  form  of                                                               
socialism, but he  came to understand that as  owners of Alaska's                                                               
owner state,  the PFD is  Alaskans' due as a  share distribution,                                                               
whether needed or not.                                                                                                          
                                                                                                                                
11:19:32 AM                                                                                                                   
MIKE COONS,  representing himself,  Palmer, Alaska,  testified in                                                               
support of  SB 1 and  SB 2, specifically  due to their  impact on                                                               
the economy.  He said he  questioned Governor  Walker's statement                                                               
that keeping  half of the  PFD would  help reduce the  budget. He                                                               
opined  that the  real  reason  for the  state's  recession is  a                                                               
combination of not  paying the oil industry the  credits that are                                                               
in statute  and the state's  economic uncertainty. He  asked that                                                               
state government  stop spending  the people's  money and  cut the                                                               
budget to sustainable levels.                                                                                                   
                                                                                                                                
11:22:40 AM                                                                                                                   
JEFFREY VAN  ZANDT, representing himself, Tok,  Alaska, testified                                                               
in support  of SB 1 and  SB 2. He  opined that the taking  of the                                                               
PFD  is criminal  and has  hurt poor  people. He  asked that  the                                                               
government make budget cuts and restore the PFD.                                                                                
                                                                                                                                
11:25:09 AM                                                                                                                   
JIM  "HOTAI"  WILLIAMS,  representing  himself,  Valdez,  Alaska,                                                               
testified in support of SB 1 and  SB 2. He opined that the taking                                                               
of the PFD by the governor is a crime.                                                                                          
                                                                                                                                
11:27:53 AM                                                                                                                   
DR.  BARBARA HANEY,  representing  herself,  North Pole,  Alaska,                                                               
testified in  support of  SB 1  and SB 2.  She asserted  that the                                                               
governor's  PFD veto  exasperated  the "depression"  in the  area                                                               
north  of  the  Alaska  Range. She  opined  that  the  governor's                                                               
economic model has serious philosophical  and economic flaws. She                                                               
asked that the PFD not be  restructured and asked that the amount                                                               
of money  from the PFD veto  be restored. She set  forth that the                                                               
governor's veto was the most regressive tax.                                                                                    
                                                                                                                                
11:29:58 AM                                                                                                                   
JAMES SQUYRES,  representing himself, Deltana,  Alaska, testified                                                               
in support  of SB  1 and  SB 2. He  asserted that  the governor's                                                               
veto had  taken $5  million directly out  of the  Deltana's local                                                               
economy. He  concurred with the  ISER study that cutting  the PFD                                                               
has the hardest effect on the private economy.                                                                                  
                                                                                                                                
11:32:14 AM                                                                                                                   
PAMELA GOOD, representing herself,  Deltana, Alaska, testified in                                                               
support of SB  1 and SB 2. She asserted  that the permanent fund,                                                               
PFD and  oil revenues  belong to the  people and  the Legislature                                                               
was supposed  to be wise stewards  of the state's money.  She set                                                               
forth that  government is  too big  and the  PFD money  should be                                                               
returned to the people.                                                                                                         
                                                                                                                                
11:35:16 AM                                                                                                                   
DENNY KAY  WEATHERS, representing herself,  Hawkins Island-Prince                                                               
Williams Sound,  Alaska, testified in support  of SB 1 and  SB 2.                                                               
She believed that  Governor Walker was wrong when  he vetoed half                                                               
of  Alaska's PFD  checks the  previous year.  She opined  that an                                                               
overwhelming majority  of voters  felt the same  way and  noted a                                                               
survey that  Governor Walker's  popularity dropped  sharply after                                                               
his veto. She  set forth that the Senate was  wrong in not taking                                                               
action. She  noted that the governor  was quoted in a  2014 where                                                               
he stated that  he had no intention to implement  a statewide tax                                                               
or  paying  for state  government  by  reducing PFD  checks.  She                                                               
explained  that  the  permanent  fund was  created  to  keep  the                                                               
government   from  spending   the   oil-wealth  recklessly.   She                                                               
summarized that Alaska  does not need any new taxes  nor does the                                                               
PFD need to  be surrendered. She set forth  that government needs                                                               
to be cut and overspending stopped.                                                                                             
                                                                                                                                
11:39:38 AM                                                                                                                   
RHONA VAN ZANDT, representing herself,  Tok, Alaska, testified in                                                               
support of  SB 1 and  SB 2. She  said the rural  communities have                                                               
been devastated and forgotten. She  revealed that her family uses                                                               
the PFD  to pay for  wood to heat  their home and  buy groceries.                                                               
She set  forth that the  PFD should  remain with the  people. She                                                               
asserted  that the  people  in the  rural  communities have  lost                                                               
total trust and faith in Alaska's government.                                                                                   
                                                                                                                                
11:42:05 AM                                                                                                                   
GARY   MCDONALD,   representing   himself,   Anchorage,   Alaska,                                                               
testified in support of SB 1 and  SB 2. He opined that 99 percent                                                               
of the people  want their PFD back  and not to touch  it. He said                                                               
he is upset with the governor and will never vote for him again.                                                                
                                                                                                                                
11:43:20 AM                                                                                                                   
CHRISTINE   NEES,   representing  herself,   Anchorage,   Alaska,                                                               
testified  in support  of SB  1 and  SB 2.  She remarked  that if                                                               
allowed, voters  would repeal the  governor's veto. She  said the                                                               
PFD is her  share of Alaska's oil wealth as  well as her family's                                                               
share. She remarked that legislators  need to cut into the budget                                                               
before  reaching  into  her  wallet  and  the  wallets  of  other                                                               
citizens. She said  she is tired of legislators  and the governor                                                               
looking for a quick fix, which is an irresponsible and lazy act.                                                                
                                                                                                                                
11:44:50 AM                                                                                                                   
FRIEDRICH  ZIMMERMAN,  representing himself,  Anchorage,  Alaska,                                                               
testified in support of  SB 1 and SB 2. He asked  that the PFD be                                                               
reinstated that way it was.                                                                                                     
                                                                                                                                
11:45:59 AM                                                                                                                   
WILLIAM  WEATHERBY, representing  himself,  King Salmon,  Alaska,                                                               
testified in support  of SB 1 and  SB 2. He revealed  that he ran                                                               
as a candidate  for the House the previous year  and noted that a                                                               
common theme  was how hard  people were impacted by  only getting                                                               
half of their  PFD. He explained that the cost  of living is high                                                               
in Alaska's rural  villages and asked that the other  half of the                                                               
PFD be returned so that residents can provide for themselves.                                                                   
                                                                                                                                
11:49:54 AM                                                                                                                   
CHARLOTTE   NAYAGAK,   representing  herself,   Chevak,   Alaska,                                                               
testified in  support of SB  1 and SB  2. She asserted  that true                                                               
Alaskan people  were meant to be  given their PFD. She  set forth                                                               
that the PFD is needed for her family's needs.                                                                                  
                                                                                                                                
11:52:11 AM                                                                                                                   
BYRON CHARLES,  representing himself, Ketchikan, Alaska,  did not                                                               
provide a position on SB 1 or SB 2.                                                                                             
                                                                                                                                
11:55:36 AM                                                                                                                   
VICTOR NAYAGAK,  representing himself, Chevak,  Alaska, testified                                                               
in  support of  SB  1 and  SB  2. He  said  the PFD  tremendously                                                               
impacts a low income family. He  pointed out that no PFD to spend                                                               
means  no  money goes  back  into  the  economy. He  stated  that                                                               
getting the  second half of the  PFD would help his  family out a                                                               
lot.                                                                                                                            
                                                                                                                                
11:57:50 AM                                                                                                                   
TOM BOUTIN,  representing himself,  Juneau, Alaska,  testified in                                                               
support  of SB  1 and  SB  2. He  set  forth that  the PFD  gives                                                               
Alaskans  flexibility,   especially  with  the   likelihood  that                                                               
Alaskans might have  to purchase some of  the government services                                                               
they enjoy  that the state can  no longer afford. He  opined that                                                               
outside of  the southern states  during Reconstruction,  no state                                                               
has ever faced the kind of  economic change that Alaska faces. He                                                               
pointed  out  that  the  state  faces  a  profound  imbalance  of                                                               
consumption versus production.  He noted that if he  and his wife                                                               
had saved  all of the PFDs  and invested at 6  percent, the total                                                               
would  have been  $260,000, an  amount that  would have  provided                                                               
financial flexibility.  He summarized that everybody  had choices                                                               
and Alaskans continue  to have choices with the PFD;  SB 1 and SB                                                               
2 continue those choices.                                                                                                       
                                                                                                                                
12:00:57 PM                                                                                                                   
JEANINE  ST.  JOHN,   representing  herself,  Anchorage,  Alaska,                                                               
testified in opposition  of SB 1 and SB 2.  She asserted that the                                                               
fiscal  situation should  have actually  been resolved  last year                                                               
and part of the permanent-fund  earnings should have been part of                                                               
the solution  that would have stabilized  government services and                                                               
resulted in a  $1,000 PFD check anyway; however, the  veto by the                                                               
governor   did  not   reduce  the   budget  and   maintained  the                                                               
Legislature's ability to  make changes in the  revenue portion of                                                               
the  state's  fiscal plan.  She  set  forth that  overriding  the                                                               
governor's  veto and  giving  out the  PFD money  is  not a  good                                                               
solution  or  even the  right  thing  to  do. She  asserted  that                                                               
distributing the  PFD and then having  to come up with  a revenue                                                               
source to  fill the bigger  hole is not leadership.  She remarked                                                               
that giving out  money might be good for votes,  but not good for                                                               
policy. She asserted that she and  her family are willing to step                                                               
up  and help  pay for  services and  everyone, including  out-of-                                                               
state workers,  should contribute  as well.  She opined  that the                                                               
state cannot cut its  way out and the two bills  do not help with                                                               
the solution.                                                                                                                   
                                                                                                                                
12:04:44 PM                                                                                                                   
LAURA   CLARK-MAKETA,  representing   herself,  Palmer,   Alaska,                                                               
testified in  support of  SB 1 and  SB 2. She  said the  PFD veto                                                               
really  effects  the  lowest  10 percent  of  income  earners  in                                                               
Alaska. She explained that she relied  on the PFD to help pay her                                                               
bills. She  asserted that the governor  can only take her  PFD if                                                               
she receives  her subsurface rights  in-kind. She set  forth that                                                               
the PFD  should not  be touched  until the  size and  spending of                                                               
government is addressed. She pointed  out that oil companies have                                                               
reduced and asked why state government has not reduced as well.                                                                 
                                                                                                                                
12:07:47 PM                                                                                                                   
WILLIAM   TOPEL,   representing   himself,   Anchorage,   Alaska,                                                               
testified in support of  SB 1 and SB 2. He  said he witnessed the                                                               
formation of the permanent fund  and PFD, both are state programs                                                               
that have worked  well and are models for the  world. He remarked                                                               
that Governor  Walker's action  to cap the  2016 PFD  through his                                                               
appropriation  veto  has not  been  used  to offset  the  state's                                                               
fiscal  problems, but  his  action  has made  the  lives of  many                                                               
Alaskans  more difficult.  He asserted  that the  governor's veto                                                               
had  a  $1  billion  effect on  Alaska's  economy,  worsened  the                                                               
state's recession,  placed more Alaskans below  the poverty line,                                                               
and  reduced retail  sales in  the private  sector. He  set forth                                                               
that  the  PFD  belongs  to  the  people  of  Alaska,  not  state                                                               
government.  He  remarked  that  the  PFD  represents  individual                                                               
Alaskans'  shares   to  a  commonly  held   resource  wealth.  He                                                               
summarized that there needs to  be a sustainable budget approach,                                                               
continued spending  cuts to state government,  and restoration of                                                               
PFD payments to Alaskans as proposed by SB 1 and SB 2.                                                                          
                                                                                                                                
12:10:31 PM                                                                                                                   
CHAIR DUNLEAVY  recognized that Representative Tammie  Wilson was                                                               
listening to the committee meeting, online.                                                                                     
                                                                                                                                
12:10:44 PM                                                                                                                   
JIM  SYKES, representing  himself, Palmer,  Alaska, testified  in                                                               
support  of SB  1 and  SB  2. He  said he  concurred with  former                                                               
senator Halford's  comments. He  remarked that  he has  not heard                                                               
the  Legislature address  how the  state's budget  crisis can  be                                                               
solved while leaving the permanent  fund intact. He asserted that                                                               
inflation  proofing the  permanent fund  and annually  paying out                                                               
the PFD are  the glue that has held the  whole thing together and                                                               
needs to continue.                                                                                                              
                                                                                                                                
He  suggested that  Alaskans reflect  on  former Alaska  governor                                                               
Hammond's statement that  taxing back some of  the permanent fund                                                               
is  better  than allowing  the  transfer  of the  permanent  fund                                                               
directly to  government; a salient  point because paying  the PFD                                                               
sends money through  the Alaska economy where people  may have to                                                               
pay some of it back through a possible income tax.                                                                              
                                                                                                                                
He  remarked that  in 2016,  the Legislature  did not  take their                                                               
responsibility  to meet  spendable budgets  and the  governor did                                                               
not  have  the authority  to  raise  revenue. He  suggested  that                                                               
solving  the   state's  budget  problem   is  going  to   take  a                                                               
combination of  cuts and  efficiencies; however,  the Legislature                                                               
is the only authority that can  raise revenue. He opined that the                                                               
state cannot  cut its way out  of the budget crisis  and revenues                                                               
will  have  be  raised.  He  pointed  out  that  changes  can  be                                                               
temporary.  He summarized  that he  supported SB  1 and  SB  2 in                                                               
concept, and the bills should be part of a larger package.                                                                      
                                                                                                                                
12:13:49 PM                                                                                                                   
At ease.                                                                                                                        
                                                                                                                                
12:46:07 PM                                                                                                                   
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
12:46:22 PM                                                                                                                   
ANDREW  FRAILERY-AFANASYEV, representing  himself and  the Alaska                                                               
native-rural population, Fairbanks,  Alaska, testified in support                                                               
of SB  1 and SB 2.  He asserted that the  PFD is a vital  part of                                                               
the income  of native Alaskan  families who face  severe poverty,                                                               
extremely  harsh  living  conditions, and  degradation  of  their                                                               
subsistence  lifestyle.  He  advocated for  the  restoration  and                                                               
payout of the PFD.                                                                                                              
                                                                                                                                
12:47:37 PM                                                                                                                   
TARYN  LUSKLEET, representing  herself  and  family, North  Pole,                                                               
Alaska,  testified in  support of  SB 1  and SB  2. She  said the                                                               
people's PFD should be returned  to the people. She asserted that                                                               
the  money vetoed  from the  PFD  would not  make a  dent in  the                                                               
budget and noted  that the money was sitting aside  in an account                                                               
not doing  anything. She  disclosed that she  had planned  to use                                                               
the PFD  for her children's  college expenses. She  remarked that                                                               
not receiving the full PFD had  a huge impact on similar families                                                               
that  are earning  just barely  "above the  line" where  families                                                               
"below the line" would qualify  for services. She summarized that                                                               
the state should operate within its means.                                                                                      
                                                                                                                                
12:50:44 PM                                                                                                                   
VANESSA  PLATTER,  representing  herself,  Eagle  River,  Alaska,                                                               
testified  in support  of  SB 1  and  SB 2.  She  asked that  the                                                               
proposed  PFD be  returned. She  opined that  Alaskans should  at                                                               
least have a vote on something as important as their PFD.                                                                       
                                                                                                                                
12:53:37 PM                                                                                                                   
GERRIT   SOUTHLAND,  representing   himself,  Wrangell,   Alaska,                                                               
testified in  support of  SB 1  and SB 2.  He remarked  that what                                                               
Governor  Walker did  was wrong  and the  PFD should  go back  to                                                               
Alaskans.                                                                                                                       
                                                                                                                                
12:55:26 PM                                                                                                                   
NORAH SMART,  representing herself and her  grandchildren, Hooper                                                               
Bay, Alaska,  testified in  support of  SB 1 and  SB 2.  She said                                                               
living in  rural Alaska is expensive  and the money from  the PFD                                                               
is needed.                                                                                                                      
                                                                                                                                
12:56:59 PM                                                                                                                   
At ease.                                                                                                                        
                                                                                                                                
12:57:12 PM                                                                                                                   
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
1:30:11 PM                                                                                                                    
EVELYNN   TREFON,   representing   herself,   Newhalen,   Alaska,                                                               
testified in support of  SB 1 and SB 2. She  said the people have                                                               
a right  to the PFD  money due to  the law as  currently written.                                                               
She  remarked that  she  also supported  the  governor on  taking                                                               
action in  trying to  protect Alaskans by  trying to  balance the                                                               
budget.  She pointed  out that  capping the  PFD at  $1,000 would                                                               
mean having the PFD for the next 20 years.                                                                                      
                                                                                                                                
1:32:17 PM                                                                                                                    
CHAIR DUNLEAVY asked if  Ms. Trefon is in support of  SB 1 and SB                                                               
2.                                                                                                                              
                                                                                                                                
MS. TREFON answered  that she supported SB 1 and  SB 2 because of                                                               
the  way the  law is  currently  written. She  remarked that  she                                                               
applauded Governor Walker for doing  something to try to generate                                                               
the conversation about the state's financial situation.                                                                         
                                                                                                                                
1:33:00 PM                                                                                                                    
WILLIAM   REINER,   representing  himself,   Anchorage,   Alaska,                                                               
testified in support of SB 1 and SB 2.                                                                                          
                                                                                                                                
1:33:58 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
1:40:20 PM                                                                                                                    
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
1:40:36 PM                                                                                                                    
ELIZABETH   BREUKER,  representing   herself,  Deltana,   Alaska,                                                               
testified in  support of SB  1 and SB 2.  She said she  was angry                                                               
with  the  Legislature in  allowing  the  governor to  steal  her                                                               
children's  PFD.  She  suggested  that the  Legislature  get  its                                                               
spending  intact. She  remarked that  the PFD  veto had  directly                                                               
taken money  out of  the Alaskan economy.  She asserted  that her                                                               
mineral rights  should be given  back if the  PFD is going  to be                                                               
taken away.                                                                                                                     
                                                                                                                                
1:43:59 PM                                                                                                                    
JOHN SONIN,  representing himself,  Juneau, Alaska,  testified in                                                               
support of SB  1 and SB 2.  He set forth that the  PFD puts funds                                                               
into Alaska's economy.                                                                                                          
                                                                                                                                
1:47:16 PM                                                                                                                    
DELICE CALCOTE,  representing herself, Sutton,  Alaska, testified                                                               
in support  of SB 1  and SB 2.  She set  forth that the  PFD veto                                                               
effected   children,  single   parents,  released   inmates,  the                                                               
unemployed  in   tribal  communities,  and  people   in  low-cost                                                               
housing. She inquired  if the state saw an increase  in theft and                                                               
crime  due to  the PFD  veto.  She questioned  the percentage  of                                                               
Alaskan  businesses that  the Alaska  Permanent Fund  Corporation                                                               
invests in.  She summarized that  the money should be  given back                                                               
to the  people and for  the Alaska Permanent Fund  Corporation to                                                               
make better investment choices.                                                                                                 
                                                                                                                                
1:51:33 PM                                                                                                                    
ROSS BIELING, representing  himself, Anchorage, Alaska, testified                                                               
in support of SB 1 and SB 2.  He asserted that the state was in a                                                               
situation forecasted by an ISER report  that a PFD cut would have                                                               
a  demonstrative effect  and lead  to  a recession.  He said  the                                                               
governor made  a mistake in his  PFD veto, but he  understood the                                                               
peril that the  state was in. He pointed out  that a positive may                                                               
result from the  recent oil discoveries. He said passage  of SB 1                                                               
and SB  2 is needed  for a solid economy  so people do  not leave                                                               
and  help  avoid  a  long-term  effect  on  the  state,  such  as                                                               
providing the ability to invest in oil-tax credits.                                                                             
                                                                                                                                
1:53:08 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
1:53:17 PM                                                                                                                    
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
1:53:33 PM                                                                                                                    
PAMELA BRODIE, representing herself,  Homer, Alaska, testified in                                                               
support of  SB 1 and SB  2. She conceded that  the Legislature is                                                               
facing a  difficult problem with unattractive  possibilities that                                                               
hurt  people, but  taking  money  out of  the  PFD  is the  worst                                                               
possible solution with  the most damaging effect  to the economy.                                                               
She  asserted that  taking the  PFD is  the equivalent  of taxing                                                               
every  Alaskan $1,000  regardless of  their ability  to pay.  She                                                               
asserted  that instituting  an income  tax would  be fairer.  She                                                               
suggested that  subsidies to the oil  industry be cut as  well as                                                               
cutting money to the proposed gas line.                                                                                         
                                                                                                                                
1:56:45 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
1:58:47 PM                                                                                                                    
CHAIR DUNLEAVY  called the  committee back  to order.  He thanked                                                               
those that  testified on  SB 1  and SB  2 and  held the  bills in                                                               
committee for further consideration.                                                                                            
                                                                                                                                
1:59:30 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Dunleavy  adjourned the Senate  State Affairs  Committee at                                                               
1:59 p.m.                                                                                                                       

Document Name Date/Time Subjects
SB 1 & SB 2 - Brad Keithley Written Testimony.pdf SSTA 1/28/2017 10:00:00 AM
SB 1
SB 2
SB 1 & SB 2 - Letters of Opposition 01.30.17.PDF SSTA 1/28/2017 10:00:00 AM
SB 1
SB 2
SB 1 & SB 2 - Letters of Support 01.30.2017.pdf SSTA 1/28/2017 10:00:00 AM
SB 1
SB 2