04/25/1994 08:35 AM House FIN

                                                                               
  HOUSE JOINT RESOLUTION NO. 65                                                
                                                                               
  Proposing amendments to the Constitution of the State of                     
  Alaska relating to the budget reserve fund.                                  
                                                                               
  Representative Martin stressed that the money received by                    
  the state through settlement should be deposited in the                      
                                                                               
                                                                               
  corpus of the Alaska Permanent Fund. He MOVED that "Budget                   
  Reserve Fund" be deleted and "the corpus of the Alaska                       
  Permanent Fund" be inserted on page 1, line 12.                              
                                                                               
  Representatives Grussendorf and MacLean OBJECTED.                            
  Representative Brown questioned if the amendment would be                    
  germane to the legislation. She pointed out that the                         
  amendment was not properly drafted. A roll call vote was                     
  taken on the motion to adopt AMENDMENT 1.                                    
                                                                               
  IN FAVOR: Martin                                                             
  OPPOSED: Brown, Grussendorf, Navarre, Parnell, Therriault,                   
  Larson,          MacLean                                                     
                                                                               
  Representatives Hoffman, Hanley and Foster were absent from                  
  the vote.                                                                    
                                                                               
  The MOTION FAILED (1-7).                                                     
                                                                               
  Representative Brown interpreted that the legislation would                  
  not effect current pay back owed to the Constitutional                       
  Budget Reserve Fund. Co-Chair Larson agreed that the intent                  
  of the legislation is not to effect debts owed prior to the                  
  effective date. Discussion pursued regarding the addition of                 
  an effective date to clarify that the legislation is not                     
  retroactive.                                                                 
                                                                               
  Co-Chair Larson noted that the intent of the legislation is                  
  to clarify there are no provisions for a simple majority                     
  vote and no pay back provision.                                              
                                                                               
  Representative Brown asked what aspect of the pay back was                   
  unacceptable to Judge Green. Representative Martin observed                  
  that the Administration has the authority to pay back at the                 
  end of the calendar year any money available to lapse.                       
                                                                               
  JAY HOGAN, CONTRACT EMPLOYEE, HOUSE FINANCE COMMITTEE noted                  
  that pending senate legislation includes a provision to                      
  require the Governor to propose the amount for                               
  appropriation. The amount would be the general fund balance                  
  from the previous year.                                                      
                                                                               
  Representative Grussendorf suggested that language be                        
  inserted that states, "past debts owed to the Constitutional                 
  Budget Reserve Fund are not effected by the passage of this                  
  resolution." Members further discussed the adoption of a                     
  effective date.                                                              
                                                                               
  HJR 65 was HELD in Committee for further discussion.