Legislature(1999 - 2000)
1999-05-15 House Journal
Full Journal pdf1999-05-15 House Journal Page 1453 HB 231 The following, which had been moved to the bottom of the calendar (page 1445), was read the second time: HOUSE BILL NO. 231 "An Act relating to income of the Alaska permanent fund, to the Alaska Income Account, and to permanent fund dividends; and providing for an effective date." with the: Journal Page FIN RPT CS(FIN) NT 5DP 3DNP 3NR 1436 FISCAL NOTE (H. FIN/GOV) 5/15/99 1437 Representative Green moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: CS FOR HOUSE BILL NO. 231(FIN) "An Act relating to deposits to the Alaska permanent fund from mineral lease rentals, royalties, royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), federal mineral revenue sharing payments received by the state from mineral leases, and bonuses received by the state from mineral leases, and limiting deposits from those sources to the 25 percent required under art. IX, sec. 15, Constitution of the State of Alaska; relating to income of the Alaska permanent fund, to the Alaska Income Account, and to permanent fund dividends; authorizing an advisory vote on the Healthy Alaska Plan, a long term financial plan for the state; and providing for an effective date." There being no objection, it was so ordered. 1999-05-15 House Journal Page 1454 HB 231 Amendment No. 1 was offered by Representative Moses: Page 5, line 4 through Page 6, line 7: Delete all material. Page 6, line 9: Delete "2, 8, and 10" Insert "2, and 8" Renumber the following bill sections accordingly Representative Moses moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Mulder objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSHB 231(FIN) Second Reading Amendment No. 1 YEAS: 7 NAYS: 30 EXCUSED: 1 ABSENT: 2 Yeas: Kapsner, Kemplen, Kookesh, Moses, Murkowski, Smalley, Williams Nays: Austerman, Barnes, Berkowitz, Brice, Bunde, Cissna, Coghill, Cowdery, Croft, Davies, Davis, Dyson, Foster, Green, Grussendorf, Halcro, Harris, Hudson, James, Kerttula, Kohring, Kott, Masek, Morgan, Mulder, Phillips, Porter, Rokeberg, Therriault, Whitaker Excused: Joule Absent: Ogan, Sanders And so, Amendment No. 1 was not adopted. Amendment No. 2 was not offered. 1999-05-15 House Journal Page 1455 HB 231 Amendment No. 3 was offered by Representative Kemplen: Page 4, line 4: Delete "$1,000" Insert "$1,540 for recipients in households whose income falls below the median income level for Alaska. Other recipient's dividend level shall be determined on a sliding scale based on household income determined through regulation by the Department of Revenue" Page 4, line 12: Delete "$1,000" Insert "$1,540 for recipients in households whose income falls below the median income level for Alaska. Other recipient's dividend level shall be determined on a sliding scale based on household income determined through regulation by the Department of Revenue Page 5, line 23: Delete "$1,000" Insert "$1,540" Representative Kemplen moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Barnes objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 231(FIN) Second Reading Amendment No. 3 YEAS: 13 NAYS: 26 EXCUSED: 1 ABSENT: 0 Yeas: Berkowitz, Brice, Cissna, Croft, Foster, Grussendorf, Kapsner, Kemplen, Kerttula, Kookesh, Morgan, Moses, Smalley Nays: Austerman, Barnes, Bunde, Coghill, Cowdery, Davies, Davis, Dyson, Green, Halcro, Harris, Hudson, James, Kohring, Kott, Masek, Mulder, Murkowski, Ogan, Phillips, Porter, Rokeberg, Sanders, Therriault, Whitaker, Williams 1999-05-15 House Journal Page 1456 HB 231 Excused: Joule And so, Amendment No. 3 was not adopted. Amendment No. 4 was not offered. Amendment No. 5 was offered by Representative Kemplen: Page 1, lines 8 and 9 (title amendment): Delete "the Healthy Alaska Plan, a long term financial plan" Insert "long-term financial plans" Page 6, lines 6 - 7: Delete all material and insert: "Summary of the Alaska Balanced Budget Plan: This long-range plan requires further limitations and reductions on state spending. A personal income tax will help fund government and protect the permanent fund dividend. The personal income tax would be based on 31% of your federal tax obligation and provide a $500 credit to each family member receiving the permanent fund dividend. In addition, in the first year the dividend would increase and then return to former levels. In more detail, the plan would provide as follows: (1)Spending Reductions: State spending would be reduced, but spending for public education would be protected; (2)Permanent Fund: The corpus of the Permanent Fund would be protected by making a one-time transfer $4,000,000,000 in gains to the budget reserve fund; (3)Permanent Fund Dividends: The dividends would increase the first year to approximately $2,100 and then return to levels of approximately $1,200 to $1,300 in following years, depending on market conditions; (4)Constitutional Budget Reserve Fund: The fund's annual earnings would increase to approximately $550,000,000 a year and would be used to fund state government; (5)New Revenues: A state income tax would raise another $350,000,000 a year to fund state government. The rate of state income tax would be based upon 31% of a person's federal tax minus a $500 tax credit for each PFD receiving family member. 1999-05-15 House Journal Page 1457 HB 231 SHOULD THE STATE IMPLEMENT THE HEALTHY ALASKA PLAN OR THE ALASKA BALANCED BUDGET PLAN? (Vote for only one.) HEALTHY ALASKAN PLAN ¦ á or ALASKA BALANCED BUDGET PLAN ¦ á" Representative Kemplen moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Mulder objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSHB 231(FIN) Second Reading Amendment No. 5 YEAS: 13 NAYS: 26 EXCUSED: 1 ABSENT: 0 Yeas: Berkowitz, Brice, Cissna, Croft, Davies, Dyson, Kapsner, Kemplen, Kerttula, Kookesh, Moses, Rokeberg, Smalley Nays: Austerman, Barnes, Bunde, Coghill, Cowdery, Davis, Foster, Green, Grussendorf, Halcro, Harris, Hudson, James, Kohring, Kott, Masek, Morgan, Mulder, Murkowski, Ogan, Phillips, Porter, Sanders, Therriault, Whitaker, Williams Excused: Joule And so, Amendment No. 5 was not adopted. Amendment No. 6 was offered by Representative Mulder: Page 6, line 8: Delete "Sections 3 - 7 and 9 of this Act take effect July 2, 1999" Insert "Sections 3 - 9 of this Act take effect September 30, 1999" 1999-05-15 House Journal Page 1458 HB 231 Page 6, line 9: Delete "Sections 1, 2, 8, and 10" Insert "Sections 1, 2, and 10" Representative Mulder moved and asked unanimous consent that Amendment No. 6 be adopted. Representative Davies objected and withdrew the objection. There being no further objection, Amendment No. 6 was adopted. Amendment No. 7 was offered by Representative Mulder: Page 1, line 8 (title amendment): Delete "the Healthy Alaska Plan," Page 5, line 14: Delete "at least $100,000,000" Page 5, line 23, following "of": Insert "no less than" Page 5, line 24, following "thereafter": Insert "is paid" Page 5, lines 29 - 31: Delete "other functions of state government would be funded at a flat level unless changed by the legislature;" Representative Mulder moved and asked unanimous consent that Amendment No. 7 be adopted. Representative Ogan objected and withdrew the objection. There being no further objection, Amendment No. 7 was adopted and the new title appears below: CS FOR HOUSE BILL NO. 231(FIN) am "An Act relating to deposits to the Alaska permanent fund from mineral lease rentals, royalties, royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), federal mineral revenue sharing payments received by the state from mineral leases, and 1999-05-15 House Journal Page 1459 HB 231 bonuses received by the state from mineral leases, and limiting deposits from those sources to the 25 percent required under art. IX, sec. 15, Constitution of the State of Alaska; relating to income of the Alaska permanent fund, to the Alaska Income Account, and to permanent fund dividends; authorizing an advisory vote on a long term financial plan for the state; and providing for an effective date." Representative Green moved and asked unanimous consent that CSHB 231(FIN) am be considered engrossed, advanced to third reading and placed on final passage. There being no objection, it was so ordered. CSHB 231(FIN) am was read the third time. Representative Phillips placed a call of the House. The Speaker stated the call was satisfied. The question being: "Shall CSHB 231(FIN) am pass the House?" The roll was taken with the following result: CSHB 231(FIN) am Third Reading Final Passage YEAS: 27 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Austerman, Barnes, Berkowitz, Brice, Bunde, Cissna, Coghill, Cowdery, Croft, Davies, Davis, Green, Grussendorf, Halcro, Harris, Hudson, James, Kerttula, Kott, Mulder, Murkowski, Phillips, Porter, Rokeberg, Therriault, Whitaker, Williams Nays: Dyson, Foster, Kapsner, Kemplen, Kohring, Kookesh, Masek, Morgan, Moses, Ogan, Sanders, Smalley Excused: Joule And so, CSHB 231(FIN) am passed the House. Representative Green moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. 1999-05-15 House Journal Page 1460 HB 231 CSHB 231(FIN) am was referred to the Chief Clerk for engrossment.