Legislature(1999 - 2000)
1999-05-19 Senate Journal
Full Journal pdf1999-05-19 Senate Journal Page 1702 HB 231 SENATE CS FOR 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 a long term financial plan for the state; and providing for an effective date was read the third time. Senator Taylor moved and asked unanimous consent that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Without objection, the bill was returned to second reading. Senator Taylor offered Amendment No. 1 : Page 9, following line 1: Insert : Plan C Description Summary of Plan: Plan C is a diversified plan. It is based on reducing government to a level commensurate with our population. The Constitutional Budget Reserve Fund is used to balance the budget for the first four years during which time a comprehensive revenue enhancement program is developed. The revenue enhancement program will include a diversified approach including the following: 1) multi-use land sales program to generate a long term enhanced revenue stream; 2) aggressive timber sales program utilizing innovative marketing strategies with emphasis on value added products; 3) encouragement of new oil exploration by independent companies by removing present barriers; 4) establishment of a state lottery; 5) utilization of video machines for charitable gaming. 1999-05-19 Senate Journal Page 1703 HB 231 (1)Land Sales - Beginning year 2000, market 250,000 acres of land and each year thereafter. Year 2001 down payments and prior years annual payments will generate over $231,201,100; year 2002 revenues of 325,725,200; and increases each year thereafter approximately $75,000,000 per year. (2)New oil revenues: FY2002 projected at $5,700,000; FY2003 projected at $14,200,000; FY2004 projected at $18,600,000; FY2005 projected at $22,900,000; FY2006 projected at $29,700,000; FY2007 projected at $33,200,000; FY2008 projected at $78,700,000; FY2009 projected at $127,900,000; FY2010 projected at $147,300,000. These revenues are anticipated to continue increasing through the year 2019. (3)New Oil revenues from independents: FY2002 projected at $222,390,000; FY2003 projected at $226,830,000; FY2004 projected at $211,770,000; FY2005 projected at $223,230,000; FY2006 projected at 215,190,000; FY2007 projected at $209,460,000; FY2008 projected at $216,750,000; FY2009 projected at $215,520,000; and FY2010 projected at $221,340,000. These revenues are expected to continue on the incline through the year 2020 and beyond. (4)State Corporations: $100,000,000 dividend each year. (5)State Lottery: Generate approximately $50,000,000 in state revenues annually for education. This revenue is anticipated to climb as tourism continues to grow. (6)Video Lottery: More accountable than pull tabs and estimated to generate more money for charities and minimum of $20,000,000 per year for the state. This revenue is anticipated to climb as tourism continues to grow. (7)Reduce Spending by $50,000,000 per year for 5 years. 1999-05-19 Senate Journal Page 1704 HB 231 (8)Other New Revenue from new business and other resource development $35,000,000 beginning year 2000. FY2001 projected at $100,000,000; FY2002 projected to be $103,000,000 and FY2003 projected at $106,100,000. This growth is projected to continue upward at a rate of approximately $3,000,000 per year. Plan C Yes ¦ á Plan C No ¦ á Senator Taylor moved for the adoption of Amendment No. 1. Senator Mackie objected. Senator Tim Kelly rose to a Point of Order. President Pearce stated the debate was germane. The question being: Shall Amendment No. 1 be adopted? The roll was taken with the following result: SCS CSHB 231(FIN) Second Reading Amendment No. 1 YEAS: 3 NAYS: 17 EXCUSED: 0 ABSENT: 0 Yeas: Green, Halford, Taylor Nays: Adams, Donley, Ellis, Elton, Hoffman, Kelly Pete, Kelly Tim, Leman, Lincoln, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Ward, Wilken and so, Amendment No. 1 failed. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) was automatically in third reading. Senator Torgerson moved and asked unanimous consent that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the bill was returned to second reading. 1999-05-19 Senate Journal Page 1705 HB 231 Senator Torgerson offered Amendment No. 2 : Page 9, following line 1: Insert a new bill section to read: "* Sec. 12. Sections 5, 6, 7, 8, 9, and 10 of this Act are repealed March 1, 2000." Renumber the following bill sections accordingly. Page 9, line 3: Delete "Section 11 of this Act takes" Insert "Sections 11 and 12 of this Act take" Senator Torgerson moved for the adoption of Amendment No. 2. Objections were heard. The question being: Shall Amendment No. 2 be adopted? The roll was taken with the following result: SCS CSHB 231(FIN) Second Reading Amendment No. 2 YEAS: 13 NAYS: 7 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Ellis, Hoffman, Kelly Pete, Kelly Tim, Leman, Mackie, Miller, Parnell, Phillips, Torgerson, Wilken Nays: Elton, Green, Halford, Lincoln, Pearce, Taylor, Ward and so, Amendment No. 2 was adopted. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S was automatically in third reading. Senator Tim Kelly moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 3. Without objection, the bill was returned to second reading. 1999-05-19 Senate Journal Page 1706 HB 231 Senator Tim Kelly offered Amendment No. 3 : Page 7, line 15, through page 9, line 1: Delete all material. Insert "ADVISORY BALLOT QUESTION Balanced Budget Plan: This will preserve the permanent fund dividend, inflation-proof the permanent fund, support public services, and establish a citizen Revenue Task Force. The plan will (1)Protect the Permanent Fund: The principal of the Alaska permanent fund will remain untouched and inflation-proofed to protect the value of the fund for current and future generations. (2)Preserve the Dividend: Dividend payments to qualified Alaskans are continued, and the dividend will grow over time. Dividends will be paid based on the market value of the Alaska permanent fund. (3) Reduce Spending: Reduce state general fund spending for fiscal years 2000 and 2001. (4)Public Accountability: All permanent fund expenditures will be disclosed to each Alaskan who receives a permanent fund dividend check. (5)Explore Revenue Options: Establish a citizens Revenue Task Force to present options to identify revenue sources. (6)No Income Tax: No personal income tax will be enacted as part of this plan. Question: Should a portion of permanent fund earnings be used to help balance the state budget after first paying annual dividends to residents and inflation-proofing the permanent fund? Yes ¦ á No ¦ á" Senator Tim Kelly moved for the adoption of Amendment No. 3. Senator Halford objected. 1999-05-19 Senate Journal Page 1707 HB 231 Senator Halford moved and asked unanimous consent for the adoption of the following amendment to Amendment No. 3: Page 1, after line 4: Delete all language through line 22 Delete line 25 Page 2, line 1, delete So the question reads: Should a portion of the Permanent Fund earnings be used to help balance the state budget? Objections were heard. The question being: Shall the amendment to Amendment No. 3 be adopted? The roll was taken with the following result: SCS CSHB 231(FIN) am S Second Reading Amendment to Amendment No. 3 YEAS: 7 NAYS: 13 EXCUSED: 0 ABSENT: 0 Yeas: Donley, Elton, Green, Halford, Pearce, Taylor, Ward Nays: Adams, Ellis, Hoffman, Kelly Pete, Kelly Tim, Leman, Lincoln, Mackie, Miller, Parnell, Phillips, Torgerson, Wilken and so, the amendment to Amendment No. 3 was not adopted. Senator Pete Kelly rose to a point of order regarding impugning. President Pearce stated the point was well taken. The question being: Shall Amendment No. 3 be adopted? The roll was taken with the following result: 1999-05-19 Senate Journal Page 1708 HB 231 SCS CSHB 231(FIN) am S Second Reading Amendment No. 3 YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Hoffman, Kelly Pete, Kelly Tim, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken Nays: Donley, Ellis, Elton, Green, Halford, Leman, Lincoln, Taylor, Ward and so, Amendment No. 3 was adopted. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S was automatically in third reading. Senator Ward moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 4. Without objection, the bill was returned to second reading. Senator Ward offered Amendment No. 4 : Page 9, following line 3, insert: Plan C Description Summary of the Plan: Plan C requires using the Constitutional Budget Reserve and a portion of 90,000,000 acres of state land to generate new revenues. Plan C Yes ¦ á Plan C No ¦ á Senator Ward moved for the adoption of Amendment No. 4. Senator Mackie objected. The question being: Shall Amendment No. 4 be adopted? The roll was taken with the following result: 1999-05-19 Senate Journal Page 1709 HB 231 SCS CSHB 231(FIN) am S Second Reading Amendment No. 4 YEAS: 3 NAYS: 17 EXCUSED: 0 ABSENT: 0 Yeas: Halford, Taylor, Ward Nays: Adams, Donley, Ellis, Elton, Green, Hoffman, Kelly Pete, Kelly Tim, Leman, Lincoln, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken and so, Amendment No. 4 failed. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S was automatically in third reading. Senator Ward moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 5. Without objection, the bill was returned to second reading. Senator Ward offered Amendment No. 5 : Page 9, following line 1: Insert calling for an advisory vote to be held in the next General Election on November 7, 2000 Senator Ward moved and asked unanimous consent for the adoption of Amendment No. 5. Senators Torgerson, Green objected. Senator Mackie moved and asked unanimous consent for the adoption of the following technical amendment to Amendment No. 5: Change Amendment No. 5 to read: Page 7, line 10, on the bill: Delete a special Insert the 1999-05-19 Senate Journal Page 1710 HB 231 Delete September 14, 1999 Insert November 7, 2000 Without objection, Amendment No. 5 was amended. The question being: Shall Amendment No. 5 as amended be adopted? SCS CSHB 231(FIN) am S Second Reading Amendment No. 5 am YEAS: 4 NAYS: 16 EXCUSED: 0 ABSENT: 0 Yeas: Green, Halford, Taylor, Ward Nays: Adams, Donley, Ellis, Elton, Hoffman, Kelly Pete, Kelly Tim, Leman, Lincoln, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken and so, Amendment No. 5 as amended failed. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S was automatically in third reading. Senator Ellis moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 6. Without objection, the bill was returned to second reading. Senator Ellis offered Amendment No. 6 : Page 7, line 11 Delete including absentee voting Insert but with voting by mail only Renumber following sections accordingly. Senator Ellis moved for the adoption of Amendment No. 6. Objections were heard. 1999-05-19 Senate Journal Page 1711 HB 231 The question being: Shall Amendment No. 6 be adopted? The roll was taken with the following result: SCS CSHB 231(FIN) am S Second Reading Amendment No. 6 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Ellis, Elton, Green, Halford, Hoffman, Lincoln, Taylor Nays: Kelly Pete, Kelly Tim, Leman, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Ward, Wilken and so, Amendment No. 6 failed. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S was automatically in third reading. Senator Parnell moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 7. Without objection, the bill was returned to second reading. Senator Parnell offered Amendment No. 7 : Delete Sections 1, 2, 3, 4, 5, 6, 8, 9, 10, 12 Conform title accordingly. Senator Parnell moved for the adoption of Amendment No. 7. Objections were heard. Senator Parnell called the Senate. The call was satisfied. The question being: Shall Amendment No. 7 be adopted? The roll was taken with the following result: 1999-05-19 Senate Journal Page 1712 HB 231 SCS CSHB 231(FIN) am S Second Reading Amendment No. 7 YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Donley, Green, Halford, Kelly Pete, Leman, Miller, Parnell, Pearce, Phillips, Taylor, Ward, Wilken Nays: Adams, Ellis, Elton, Hoffman, Kelly Tim, Lincoln, Mackie, Torgerson and so, Amendment No. 7 was adopted. SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S was automatically in third reading. The question being: Shall SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S An Act authorizing an advisory vote on a long term financial plan for the state; and providing for an effective date pass the Senate? The roll was taken with the following result: SCS CSHB 231(FIN) am S Third Reading - Final Passage Effective Dates YEAS: 7 NAYS: 13 EXCUSED: 0 ABSENT: 0 Yeas: Kelly Pete, Leman, Miller, Parnell, Pearce, Phillips, Wilken Nays: Adams, Donley, Ellis, Elton, Green, Halford, Hoffman, Kelly Tim, Lincoln, Mackie, Taylor, Torgerson, Ward Green changed from "Yea" to "Nay". and so, SENATE CS FOR CS FOR HOUSE BILL NO. 231(FIN) am S failed.