04/08/2016 03:42 PM Senate FIN

SENATE BILL NO. 196                                                                                                           
                                                                                                                                
     "An Act relating to the use of certain unexpended                                                                          
     earnings from the power cost equalization endowment                                                                        
     fund."                                                                                                                     
                                                                                                                                
3:53:30 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche MOVED to  ADOPT the committee substitute                                                                    
for SB 196, Work Draft 29-LS1383\F (Nauman, 4/8/16).                                                                            
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
TIM  GRUSSENDORF, STAFF,  SENATOR  LYMAN HOFFMAN,  explained                                                                    
the committee  substitute. He looked  at Section 1,  line 8,                                                                    
added the word,  "and." He furthered that  the second change                                                                    
added  the  language, "the  earnings  of  the fund  for  the                                                                    
previous year." That language was  added so the commissioner                                                                    
would  calculate on  the earnings,  rather than  the monthly                                                                    
average of  the previous three  fiscal years. He  noted that                                                                    
the Legislative  Finance Division (LFD) and  the Legislative                                                                    
Legal  had different  language preferences.  He shared  that                                                                    
LFD  preferred the  phrase, "closed  fiscal  year", so  they                                                                    
could know the  exact amount. He looked at  Section 2, which                                                                    
changed  "seven" to  "five", which  was  the maximum  amount                                                                    
that could  be used for  purpose of power  cost equalization                                                                    
(PCE). He  stated that the  change lined up with  the change                                                                    
to  the investment  target of  4  percent average  over a  5                                                                    
percent per  year period. He  stated that LFD  preferred the                                                                    
phrase "up  to five" rather  than "five." He  encouraged the                                                                    
committee   to    evaluate   that   difference    in   their                                                                    
consideration of  the bill. He  stated that Section 3  was a                                                                    
new  section, which  stated that  if the  5 percent  was not                                                                    
enough  to pay  for the  PCE  program, the  amount would  be                                                                    
prorated. He  remarked that the  last section  addressed how                                                                    
the earnings  were split for  the previous fiscal  year, and                                                                    
whether there  was anything above  the cost of  the program.                                                                    
He shared that  there was previously a dividend  going to GF                                                                    
of 60  percent. He stated  that the dividend was  changed to                                                                    
50 percent.  The 50 percent  would be assigned  to community                                                                    
revenue  sharing. He  shared that  there was  an issue  with                                                                    
sending money  from the PCE fund  to GF was changing  DGF to                                                                    
UGF. The  CS changed DGF  to DGF, because it  was designated                                                                    
for community revenue sharing. He  stressed that the savings                                                                    
of  GF would  be the  money that  the legislature  could use                                                                    
from the program.                                                                                                               
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
OBJECTION, the proposed committee substitute was adopted.                                                                       
                                                                                                                                
Co-Chair MacKinnon noted that the public hearing had                                                                            
already occurred. She shared that she would like LFD to                                                                         
analyze the new language in the CS.                                                                                             
                                                                                                                                
SB 196 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
3:58:07 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:58:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed the schedule.                                                                                      
                                                                                                                                
3:58:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:59:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon stated that there would be no continuing                                                                     
pursuit of SB 208.