SENATE BILL NO. 34                                                                                                            
                                                                                                                                
     "An Act relating to investment of the power cost                                                                           
     equalization endowment fund; and providing for an                                                                          
     effective date."                                                                                                           
                                                                                                                                
9:04:45 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon   provided  a   brief  history   of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche  MOVED   to  ADOPT  proposed  committee                                                                    
substitute  for  SB  34,  Work  Draft  29-GS1018\H  (Nauman,                                                                    
4/10/15).                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon OBJECTED for the purpose of discussion.                                                                      
                                                                                                                                
9:05:22 AM                                                                                                                    
                                                                                                                                
ERIN  SHINE, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
changes in the  CS included a change in  the fund investment                                                                    
from 7 percent  to at least a 4 percent  nominal return over                                                                    
a five year period.                                                                                                             
                                                                                                                                
9:05:51 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  commented that  he thought  the legislation                                                                    
made  sound investment  sense. He  said that  the state  had                                                                    
been favored with strong markets  but did not believe casing                                                                    
in at 7 percent was sustainable.                                                                                                
                                                                                                                                
9:06:22 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy referred to Section 1(a)(2):                                                                                   
                                                                                                                                
          (2) invest the fund in a manner likely to achieve                                                                     
     a four [SEVEN] percent  nominal return over a five-year                                                            
     period  to  meet  the  objectives  of  the  power  cost                                                                
     equalization  and  rural electric  capitalization  fund                                                                
     (AS 42.45.100)[TIME].                                                                                                  
                                                                                                                                
Senator Dunleavy understood that four percent was the goal.                                                                     
Co-Chair MacKinnon replied yes.                                                                                                 
                                                                                                                                
9:07:06 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon removed  her objection.  There being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
9:07:26 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  reviewed the fiscal note  FN1 (REV). He                                                                    
explained   that  the   fiscal   note  was   zero,  and   no                                                                    
supplemental or capital costs were anticipated.                                                                                 
                                                                                                                                
Co-Chair  MacKinnon MOVED  to report  CSSB 34  (FIN) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 34(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and  with a previously published  zero fiscal                                                                    
note: FN1 (REV).                                                                                                                
                                                                                                                                
9:08:27 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:10:38 AM                                                                                                                    
RECONVENED