Legislature(2015 - 2016)HOUSE FINANCE 519
04/16/2015 08:30 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB39 | |
| SB34 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 39 | TELECONFERENCED | |
| + | SB 34 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 34
"An Act relating to investment of the power cost
equalization endowment fund; and providing for an
effective date."
9:49:52 AM
Mr. Burnett referred to SB 34, the companion bill to HB 86.
He relayed that the current version was changed in the
Senate Finance Committee adding only a few words. He
reported that in the original bill in lines 9 to 10 the
word "seven" was deleted. In the newest version "seven" was
replaced with "four" and new language was added specifying
"over a five-year period." The rest of the language in the
bill remained the same. He conveyed that DOR supported the
changes and offered that the changes provided an achievable
floor and comfortable risk factor. He summarized that the
intent of the bill was to create a situation in which the
state could invest in a risk profile sufficient to meet the
needs of the program.
Representative Edgmon asked if there would ever be a
scenario in which the state would invest in a long-term
endowment targeting less than 4 percent.
Mr. Burnett responded that in the current environment the
department was looking at a profile in the range of 6
percent. He suggested that there could be a situation where
the capital market assumptions were invested at 4 percent.
He indicated that the state had not had any capital market
assumptions below 4 percent in the last several years (30
years). He pointed out that at present the Permanent Fund
was invested to achieve just over a 6 percent rate of
return, gross of fees, for a very long-term endowment.
Representative Edgmon thought that Mr. Burnett' response
tied into the earlier discussion about the House vehicle of
the bill. He felt the change was academic in the scheme of
things and he reported he would be supporting the changes
to the bill.
Representative Wilson wanted to know if the chair was going
to move the bill. Vice-Chair Saddler stated that he would
wait until the co-chairmen returned to the committee.
9:54:25 AM
Vice-Chair Saddler OPENED public testimony.
Vice-Chair Saddler CLOSED public testimony.
9:54:43 AM
AT EASE
9:59:59 AM
RECONVEYNED
Vice-Chair Saddler called the meeting back to order and
indicated that he would entertain a motion on SB 34.
Representative Wilson MOVED to REPORT CSSB 34(FIN) out of
committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, CHSB 34(FIN) was REPORTED out of
committee with a "do pass" recommendation and with a
previously published zero fiscal note: FN1 (DOR).
10:02:10 AM
RECESSED
10:18:53 AM
RECONVEYNED