SENATE BILL NO. 103 "An Act relating to deposits into the dividend fund and appropriations from the earnings reserve account; and providing for an effective date." 10:26:25 AM Co-Chair Stedman MOVED to ADOPT proposed committee substitute for SB 103, Work Draft 31-LS0654\G (Nauman, 4/29/19). Co-Chair von Imhof OBJECTED for discussion. 10:27:44 AM JULI LUCKY, STAFF, SENATOR NATASHA VON IMHOF, discussed the proposed CS and read from a summary of changes document (copy on file): Rewords the appropriation language to conform to current practice. The POMV draw is appropriated from the ERA to the general fund. The amount available for appropriation from the general fund to the dividend fund is calculated as 50% of the POMV draw [Page 2, lines 25-27; conforming changes on p2, line 31; and p3, lines 24- 25]. Clarifies the restriction on appropriating more from the ERA than the allowable POMV draw (currently 5.25%, reduced to 5% for FY22) [Page 3, lines 29-31; conforming changes on p4, line 27]. Adds a July 1, 2020 effective date. Technical corrections recommended by Legislative Legal: Removes an inapplicable reference [Page 3, lines 25- 26]. Removes the sections that made conforming changes to the Mental Health Trust Fund statutes. These were deemed unnecessary by legal since the net income determination is remaining in statute [Previous sec. 6 & 7]. Ms. Lucky noted that in the previous version of the bill Sections 37.13.145(e)and (f) had been repealed. She said that it had been determined that only (f) needed to be repealed, (e) needed to be rewritten. She said that 37.13.145(e) made the statement that the legislature could not appropriate more from the earnings reserve account (ERA)than was allowed under the POMV draw. 10:30:12 AM Co-Chair von Imhof WITHDREW her objection. Co-Chair von Imhof reminded that the bill was a 50-50 split and a financial review of the impacts of that split had been previously discussed. The bill replaced the current statute for calculating the Permanent Fund Dividend. The bill had an effective date of July 1, 2020. She noted that the financial implications of the bill were a deficit of approximately $800 million. 10:31:51 AM AT EASE 10:33:48 AM RECONVENED Co-Chair von Imhof asked whether members had any amendments to offer. 10:34:20 AM AT EASE 10:35:03 AM RECONVENED Co-Chair Stedman reviewed a new fiscal note from the Permanent Fund, OMB Component 2616. He directed attention to the analysis on the second page and noted that one column was in millions, while the other was in dollars. 10:36:10 AM AT EASE 10:36:29 AM RECONVENED Co-Chair Stedman clarified that the fiscal note had been updated. Co-Chair Stedman MOVED to report CSSB 103(FIN) out of Committee with individual recommendations and the accompanying fiscal note. Senator Wielechowski OBJECTED for discussion. 10:37:22 AM Senator Wielechowski he thought if there was a change made to the way that the permanent fund was calculated, and if the statutory requirement that the corporation transfer funds from the ERA to the dividend fund were removed, a change should be made to the state constitution. 10:37:57 AM Senator Wilson agreed with Senator Wielechowski. 10:38:23 AM Senator Wielechowski MAINTAINED his objection. A roll call vote was taken on the motion. IN FAVOR: Wilson, Bishop, Hoffman, Stedman, von Imhof OPPOSED: Wielechowski The motion carried (5/1). CSSB 103(FIN) was REPORTED out of committee with one "do pass" recommendation, and four "amend" recommendations and with one new indeterminate fiscal note from the Senate Finance Committee for the Department of Revenue. 10:38:59 AM AT EASE 10:42:00 AM RECONVENED Co-Chair von Imhof explained that the bill had been thth previously heard on April 10 and 29.