02/11/1997 08:10 AM House STA

                                                                               
 HJR 18 - DEDICATED FUNDS: RATE MAY BE CHANGED                               
                                                                               
 The first order of business to come before the House State Affairs            
 Standing Committee was HJR 18, Proposing an amendment to the                  
 Constitution of the State of Alaska relating to changing the rate             
 of a tax or license that supports a dedication of its proceeds.               
                                                                               
 CHAIR JEANNETTE JAMES explained the bill was brought up for                   
 reconsideration at the last meeting so that it could be passed from           
 the committee today.                                                          
                                                                               
 Number 0070                                                                   
                                                                               
 CHAIR JAMES explained a fiscal note of $3,000 was attached.  That             
 would be the cost to put the proposal on the ballot.  She asked               
 Representative Ivan to explain the bill for Representative Fred               
 Dyson, he was not at the meeting last week.                                   
                                                                               
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 REPRESENTATIVE IVAN IVAN explained HJR 18 proposed an amendment to            
 Article IX of the Alaska State Constitution that allowed for a                
 dedication of a fund as long as it existed by April, 1956.  The               
 resolution would allow for the changing of a rate of a tax or                 
 license, of which, the proceeds were dedicated for a special                  
 purpose.  The resolution, if approved by the legislature, would be            
 placed before the voters at the next general election.  It was                
 introduced because of the varying opinions represented by the                 
 attorney general office regarding the dedication of a tax increment           
 for a specified purpose.  The resolution was trying to avoid                  
 litigation especially if the proceeds of the tobacco tax-CSHB
(STA)-were to be placed in the school fund, or if the legislature            
 changed any other tax rate or license so that it was known which              
 proceeds would be placed into a dedicated fund.  The resolution,              
 therefore, was a means to resolve that potential problem.                     
                                                                               
 Number 0308                                                                   
                                                                               
 REPRESENTATIVE MARK HODGINS moved that CSHJR 18(STA) move from the            
 committee with individual recommendations and attached fiscal                 
 note(s).                                                                      
                                                                               
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 REPRESENTATIVE AL VEZEY objected.  A roll call vote was taken.                
 Representatives James, Berkowitz, Dyson, Hodgins and Ivan voted in            
 favor of the motion.  Representative Vezey voted against the                  
 motion.  The CSHJR 18(STA) was passed out of the House State                  
 Affairs Standing Committee.