05/04/2001 09:00 AM House FIN

CS FOR SENATE BILL NO. 193(FIN)                                                                                               
                                                                                                                                
     "An  Act making a  special appropriation  to the  Alaska                                                                   
     Legislative  Council for  a  study of  the economic  and                                                                   
     social  effects of  the permanent  fund dividend  on the                                                                   
     state; and providing for an effective date."                                                                               
                                                                                                                                
CHRIS KNAUSS,  STAFF, SENATOR  KELLY testified in  support of                                                                   
CSSB 193  (FIN) on behalf of  the sponsor. He  explained that                                                                   
the legislation  is a follow  up on  a court case:  Lindly v.                                                                   
Marlone (1990).  The court  addressed the two-year  residency                                                                   
requirement in  regards to the  permanent fund  dividend. The                                                                   
legislation would  contract a  study through the  Legislative                                                                   
Council  in the sum  of $200  thousand dollars  to study  the                                                                   
social and  economic affects  of the  dividend on the  state.                                                                   
The study  would look at what  attracts people [to  the state                                                                   
of  Alaska]; is  it the  permanent fund  dividend. The  study                                                                   
would  also look  at the  amount  of state  services used  by                                                                   
people  that  come  to  the  state.  The  findings  would  be                                                                   
reported to the Legislature by January 15, 2002.                                                                                
                                                                                                                                
Representative  Davies  questioned  if  it is  reasonable  to                                                                   
accomplish the ends of the report.  Mr. Knauss responded that                                                                   
the McDowell  Group indicated that  it would be  a reasonable                                                                   
time to  complete the study. The  sponsor felt that  it would                                                                   
be easier to go to contract.                                                                                                    
                                                                                                                                
TAPE HFC 01 - 114, Side B                                                                                                     
                                                                                                                                
CSSB 193  (FIN) was heard and  HELD in Committee  for further                                                                   
consideration.