04/13/1999 02:30 PM House FIN

HOUSE BILL NO. 96                                                                                                               
                                                                                                                                
"An Act relating to deposits to the Alaska permanent                                                                            
fund."                                                                                                                          
                                                                                                                                
Co-Chair Therriault noted that the Committee discussed                                                                          
tightening the title of HB 96 during the April 12, 1999                                                                         
hearing. He provided members with Amendment 1 (copy on                                                                          
file). Amendment 1 tightens the title. He added that the 25                                                                     
percent deposit would be made in the front section of the                                                                       
budget and would not be counted as general funds or as                                                                          
legislative action.                                                                                                             
                                                                                                                                
MIKE TIBBLES, STAFF, REPRESENTATIVE THERRIAULT noted that                                                                       
Dan Spencer, Office of Management and Budget indicated that                                                                     
the 25 percent deposit would not be counted as general                                                                          
funds. Mr. Spencer stated that only special appropriations                                                                      
are counted when calculating amounts of "legislative                                                                            
deposits: to the principle of the permanent fund. Mr.                                                                           
Tibbles verified this with Jim Kelly, Legislative Liaison,                                                                      
Alaska Permanent Fund Corporation. Mr. Kelly explained that                                                                     
inflation proofing is also counted with special                                                                                 
appropriations but that the statutory 25 percent deposit                                                                        
would not be counted.                                                                                                           
                                                                                                                                
Representative J. Davies questioned if there should be a                                                                        
change to the manner it is counted.                                                                                             
                                                                                                                                
In response to a question by Vice-Chair Bunde, Co-Chair                                                                         
Therriault clarified that money not deposited into the                                                                          
permanent fund would lapse to the general fund. Money that                                                                      
is deposited into the permanent fund would not show as a                                                                        
general fund appropriation.                                                                                                     
                                                                                                                                
Vice-Chair Bunde observed that there is a zero fiscal note.                                                                     
He questioned if the additional money in the general fund                                                                       
should be shown.                                                                                                                
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 1.                                                                                 
                                                                                                                                
Representative J. Davies asked what would be included under                                                                     
the new title. Co-Chair Therriault reiterated that according                                                                    
to the Legislative Affairs Agency legal counsel it includes                                                                     
all the deposits that go into the permanent fund and limits                                                                     
it to the 25 percent that is mandated by the Constitution.                                                                      
The intent of the amendment is to prevent the scope of the                                                                      
legislation from growing under a broad title. He maintained                                                                     
that concerns that the legislation would turn into a general                                                                    
appropriation to the principal are not justified because it                                                                     
is not an appropriation bill. It is statutory change                                                                            
legislation.                                                                                                                    
                                                                                                                                
Representative J. Davies wondered why the 25 percent was not                                                                    
referenced in the amendment as the constitutionally mandated                                                                    
amount.                                                                                                                         
                                                                                                                                
Representative J. Davies MOVED to AMEND Amendment 1 by                                                                          
adding a conceptional amendment to clarify that the 25                                                                          
percent referenced is the amount mandated under Article 9                                                                       
section 15. There being NO OBJECTION, it was so ordered.                                                                        
There being NO OBJECTION, Amendment 1 as amended was                                                                            
adopted.                                                                                                                        
                                                                                                                                
Representative Foster MOVED to report CSHB 96 (FIN) out of                                                                      
Committee with the accompanying fiscal note. Representative                                                                     
J. Davies expressed reservations regarding how this bill and                                                                    
the other pieces of the budget plan would fit together.                                                                         
Representative Grussendorf echoed his concerns. He asked if                                                                     
an overall budget package would be developed.                                                                                   
                                                                                                                                
Co-Chair Therriault stated that the legislation would be                                                                        
brought into discussions regarding an overall long-range                                                                        
plan.                                                                                                                           
                                                                                                                                
Representative Norman Rokeberg emphasized that the                                                                              
legislation is a statutory change and would therefore need                                                                      
time to go through both bodies. He anticipated that it would                                                                    
be a tool for inclusion in the broader picture.                                                                                 
                                                                                                                                
CSHB 96 (FIN) was REPORTED out of Committee with "no                                                                            
recommendation" and with a zero fiscal note by the                                                                              
Department of Revenue, 3/24/99.