3:51:20 PM CHAIR DUNLEAVY called the committee back to order. He announced the consideration of SB 2. He noted that public testimony was still open. 3:51:50 PM JERRY BURNETT, Deputy Commissioner, Alaska Department of Revenue (DOR), addressed the fiscal note for SB 2 that indicates a $279,000 operating cost primarily for mail. He added that the amount of the dividend in the fiscal note is $1,030. He added that the amount of the dividend would be adjusted to the total appropriation in SB 1. He noted that two issues were not addressed in SB 2 nor in the DOR fiscal note. The Alaska Department of Health and Social Services (DHSS) is not sure how beneficiaries will be effected and has not brought forward a fiscal note. He explained that the second issue pertained to the historical calculation for the felon funds where the amount goes to the Department of Corrections. He detailed that the calculation for felon funds for the $1,022 dividend in the FY18 budget was $12.4 million. He said with the larger amount the calculation would have been $25 million. He added that the bill, as written, does not address the supplemental dividend. He concluded that the next committee may want to address the two issues that he noted. CHAIR DUNLEAVY asked Mr. Burnett if he had additional comments. MR. BURNETT replied that the appropriation is contrary to the Governor's fiscal plan so everyone should think about whether that money is needed for other purposes. The issues he mentioned are the only administrative issues. He added that in response to a comment from Chair Dunleavy, there is no intentional delay. CHAIR DUNLEAVY noted that the next committee of referral is Senate Finance. SENATOR COGHILL asked if garnishing the PFD would be a part of the second issuance, as well. MR. BURNETT answered yes and noted the cost of one-time garnishment includes 48 hours of programming time. SENATOR COGHILL asked if it was administrative costs. MR. BURNETT replied yes. 3:57:02 PM CHAIR DUNLEAVY asked if SB 2 is still contrary to the governor's fiscal plan. MR. BURNETT answered that the budget documents before the Legislature are consistent with not paying the second dividend. CHAIR DUNLEAVY noted that there was a majority vote in both the House and the Senate for the appropriation last session and the governor vetoed it. SB 2 is an attempt to restore that appropriation. SENATOR COGHILL asked about contingency language and whether there is legal precedent for passing a bill that is contingent upon another one. CHAIR DUNLEAVY deferred to his staff to answer. 3:59:08 PM GINA RITACCO, Staff, Senator Dunleavy, Alaska State Legislature, Juneau, Alaska, explained that SB 1 is the appropriation bill for $683,234,813 for a dividend of about $1,030 for 2016. SB 2 is a directive to DOR to issue the check immediately. SB 2 has an effective date of May 1, 2017, for both bills to pass in order to use FY18 funds. SB 2 also has a section that provides if SB 1 fails, SB 2 is not enacted. SENATOR COGHILL confirmed that Ms. Ritacco's review answered his previous question. MS. RITACCO explained that the reason SB 2 directs DOR to pay immediately is that if it didn't the appropriation would go in with next year's dividend, rather than as a supplemental, and end up adjusting 2017's dividend amount. 4:01:25 PM SENATOR GIESSEL moved to report SB 2, version A, from committee with individual recommendations and attached fiscal notes. 4:01:36 PM CHAIR DUNLEAVY announced that without objection, SB 2 moved out of Senate State Affairs Standing Committee.