Legislature(2025 - 2026)GRUENBERG 120
05/09/2025 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Legal Implications of Prosecuting American Nationals in Alaska's Elections | |
| HJR10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 198 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HJR 10 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 10-CONST AM: PERMANENT FUND; POMV;EARNINGS
2:59:50 PM
CHAIR GRAY announced that the final order of business would be
HOUSE JOINT RESOLUTION NO. 10, Proposing amendments to the
Constitution of the State of Alaska relating to the Alaska
permanent fund and to appropriations from the Alaska permanent
fund.
3:00:11 PM
The committee took an at-ease from 3:00 p.m. to 3:02 p.m.
3:02:13 PM
REPRESENTATIVE CALVIN SCHRAGE, Alaska State Legislature, ss
prime sponsor, reminded the committee that HJR 10 proposes a
constitutional amendment that would combine the Alaska Permanent
Fund ("the fund") into a single account structure with a maximum
5 percent draw based on a 5-year average of the 6 preceding
years.
3:03:04 PM
REPRESENTATIVE VANCE moved to adopt Amendment 1 t HJR 10,
labeled 34-LS0648\A.3, Nauman/Wallace, 5/5/25, which read:
Page 1, line 5:
Delete "twenty-five"
Insert "fifty [TWENTY-FIVE]"
CHAIR GRAY objected.
3:03:12 PM
REPRESENTATIVE VANCE explained that Amendment 1 would strengthen
the state's long-term fiscal stability by ensuring that 50
percent of all mineral related revenues are constitutionally
deposited into the fund. Currently, only 25 percent of these
revenue are constitutionally protected, and an additional 25
percent is directed by statute, but the amount is subject to
legislative appropriation. She said Amendment 1 would elevate
this statutory practice to a constitutional mandate to remove
these funds from political discretion and protecting them for
future generations.
CHAIR GRAY said he wished the proposed amendment had been passed
40 years ago, but not today in the state's current fiscal
climate.
3:05:42 PM
REPRESENTATIVE KOPP said Amendment 1 would result an immediate
and significant decrease in general fund (GF) revenue in a
rapidly declining oil price environment. He added that
Amendment 1 would make paying dividends and services orders of
magnitude more difficult.
3:06:37 PM
REPRESENTATIVE SCHRAGE agreed with the previous comments that in
a different fiscal environment he could be persuaded to support
such an amendment. He recalled the previous committee
discussion on the need for flexibility to meet current day
obligations and stated his opposition to Amendment 1.
CHAIR GRAY maintained his objection.
3:07:36 PM
REPRESENTATIVE VANCE said she's open to including some
transition time and asked the committee, "If not now, when?"
A roll call vote was taken. Representatives Underwood and Vance
voted in favor of Amendment 1. Representatives Mina, Eischeid,
Kopp, and Gray voted against it. Therefore, Amendment 1 failed
by a vote of 2-4.
3:10:04 PM
REPRESENTATIVE VANCE moved to adopt Amendment 2 to HJR 10,
labeled 34-LS0648\A.4, Nauman/Wallace, 5/5/25, which read:
Page 2, lines 2 - 5:
Delete "Each fiscal year, the legislature may
also appropriate from the permanent fund an amount to
pay costs associated with investments made under (a)
of this section, including operating expenditures
associated with managing the fund."
CHAIR GRAY objected.
3:10:10 PM
REPRESENTATIVE VANCE explained that Amendment 2 would remove a
provision in HJR 10 that would authorize withdraws from the fund
to pay for investment and operating expenses of the Alaska
Permanent Fund Corporation (APFC). She shared her belief that
the Constitution of the State of Alaska ("the Alaska
Constitution") should not carveout an area that quietly spends
form the fund beyond the structured percent of market value
(POMV) draw. The additional language would undermine the POMV
limit by permitting ongoing withdraws for internal costs outside
of the cap. She reported that current operating costs total
$240 million annually, which if Amendment 2 were to pass, would
be funded statutorily by GF obligations or the POMV draw. She
said Amendment 2 would provide intentional oversight into how
money is being spent from the fund, force a conversation, and
fold these costs into the cap.
CHAIR GRAY asked APFC to comment on the proposed amendment.
3:13:33 PM
DEVEN MITCHELL, Executive Director, Alaska Permanent Fund
Corporation (APFC), said in terms of practicality, Amendment 2
would reduce the draw rate and shared an example. He said he
would prefer that APFC's budget be maintained in its current
status where its netted out prior to transfers being made to the
state, which is more in line with the practices of other trusts
and those entities that manage them.
3:17:22 PM
REPRESENTATIVE KOPP reminded the committee that investment
managers are compensated for excellent performance. He said
there is no binding language in this provision, and that it
simply provides legal authority for APFC to request costs
associated with investment. If amendment 2 were to pass, he
suggested that the legislature could never say, "yes," to these
requests.
3:19:16 PM
REPRESENTATIVE VANCE clarified that this is an additional draw
on top of the POMV transfer to pay for costs associated with
investment operations, which is close to $250,000 from the
corpus of the fund. Without Amendment 2, she explained these
costs would essentially be exempted. She said her goal is to
maintain ultimate legislative authority while protecting the
fund.
3:23:10 PM
A roll call vote was taken. Representatives Underwood and Vance
voted in favor of Amendment 2. Representatives Kopp, Mina,
Eischeid, and Gray voted against it. Therefore, Amendment 2
failed by a vote of 2-4.
REPRESENTATIVE SCHRAGE emphasized the importance of the fund and
the threats that face it. He expressed his he appreciation to
the committee.
3:24:49 PM
REPRESENTATIVE KOPP thanked Representative Vance for the spirit
of Amendment 2, noting that the costs associated with
investments are already paid from the fund's earnings. He said
HJR 10 would protect the ability to pay future dividends and
state expenses and reflects 20 years of APFC's requests to make
such a change to protect the fund.
3:26:08 PM
REPRESENTATIVE EISCHEID shared his belief that HJR 10 would
protect future dividends.
3:26:47 PM
REPRESENTATIVE VANCE clarified that HJR 10 would not
constitutionalize a dividend, it would simply protect the fund,
which the legislative majority has expressed a desire to grow
for state services. Until other pieces of the fiscal plan are
put forth, she said she could not support the constitutional
amendment.
3:28:57 PM
REPRESENTATIVE KOPP moved to report HJR 10 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HJR 10 was reported out of the House
Judiciary Standing Committee.
CHAIR GRAY authorized Legislative Legal Services to make any
necessary technical or conforming changes.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 05.08.25 HJUD DOA DMV American Nationals Response.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| Driver License and ID Application 9-2022 to 10-2023.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| Driver License and ID Application 2-2022 to 9-2022.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| Driver License and ID Application 10-2023 to Present.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| Federal_Voter_Registration_ENG.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| Voter Registration Form.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| OLVR Screenshots.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of prosecuting American Nationals in Alaska’s elections. |
| HJR 10 Amendment 1 Rep. Vance.pdf |
HJUD 5/9/2025 1:00:00 PM |
HJR 10 |
| HJR 10 Amendment 2 Rep. Vance.pdf |
HJUD 5/9/2025 1:00:00 PM |
HJR 10 |
| Memo, Being Born in American Samoa is Not a Crime.pdf |
HJUD 5/9/2025 1:00:00 PM |
Legal Implications of Prosecuting American Nationals in Alaska’s Elections. |
| HJR 10 Backup for Amendment A.3 to HJR 10.pdf |
HJUD 5/9/2025 1:00:00 PM |
HJR 10 |