CS FOR SENATE BILL NO. 26(FIN) "An Act relating to an appropriation limit; relating to the budget responsibilities of the governor; relating to the Alaska permanent fund, the earnings of the Alaska permanent fund, and the earnings reserve account; relating to the mental health trust fund; relating to deposits into the dividend fund; relating to the calculation and payment of permanent fund dividends; and providing for an effective date." and HOUSE CS FOR CS FOR SENATE BILL NO. 26(FIN)(efd fld H) "An Act relating to an appropriation limit; relating to the budget responsibilities of the governor; relating to the Alaska permanent fund, the earnings of the Alaska permanent fund, and the earnings reserve account; relating to the mental health trust fund; relating to deposits into the dividend fund; and relating to the calculation and payment of permanent fund dividends." 1:37:09 PM Co-Chair Hoffman announced that the purpose of the meeting was to release a working draft conference committee substitute. There would be no action on the CS, but it would be released to the public for further consideration and discussion. 1:37:33 PM LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON discussed a Sectional Analysis (copy on file): Section 1: Legislative Findings and Intent language - this language makes it clear that several sections in the CS are technical and conforming in nature to reflect a Supreme Court ruling Section 2: Repeals language relating to the statutory appropriation limit Section 3: Conforming change relating to section 5 Section 4: Requires the Governor to submit a report to the legislature on how the budget complies with the constitutional appropriation limit Section 5: Maintains language that was in both bodies versions - relating to the deposits of rentals and royalties at the 25percent constitutional level Section 6: Conforming change relating to section 7 and a grammatical change Section 7: Sets the percent of market value at 5.25percent Section 8: Sets the percent of market value at 5percent starting July 1, 2021, in Section 18 Section 9: Clarifies that the amount available for distribution from the ERA to the dividend fund is appropriated - brings statutory language in line with current practice and the Supreme Court decision Section 10: Technical and conforming changes relating to the Supreme Court decision and relating to Section 12 - an appropriation for inflation proofing is considered a separate appropriation from the POMV Section 11: Clarifying and conformation language - Amerada Hess funds are not available for appropriation Section 12: Specifies that the appropriation from the earnings reserve account may not exceed the amount available for appropriation under the POMV listed in Section 7 Section 13: Clarifying language that the Permanent Fund Corporation's budget doesn't lapse and shall be treated as income and part of the market value of the fund Section 14: Clarifying and conforming language Section 15: Technical and conforming language relating to the Supreme Court decision Section 16: Authorizes the Department of Revenue to pay dividends without further appropriation Section 17: Repeals the statutory appropriation limit Section 18: Section 8 - the 5percent POMV takes effect July 1, 2021 Section 19: Except for Section 18, this Act takes effect July 1, 2018 1:40:42 PM Co-Chair Hoffman announced that the CS was a draft, and would be under further discussions in the caucuses and offices. He announced that Co-Chair MacKinnon's office would schedule the next meeting. SB 26 was HEARD and HELD in committee for further consideration.