04/21/2022 01:00 PM Senate FINANCE

SENATE BILL NO. 199                                                                                                           
                                                                                                                                
     "An  Act  relating  to  use of  income  of  the  Alaska                                                                    
     permanent  fund;   relating  to   the  amount   of  the                                                                    
     permanent fund dividend; relating  to the duties of the                                                                    
     commissioner   of  revenue;   and   providing  for   an                                                                    
     effective date."                                                                                                           
                                                                                                                                
1:07:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  stated that  the committee  would consider                                                                    
amendments.                                                                                                                     
                                                                                                                                
Senator  Wilson MOVED  to ADOPT  Amendment 1,  32-LS1529\I.1                                                                    
(Nauman, 4/20/22) (copy on file).                                                                                               
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
Senator Wilson  spoke to  the amendment.  He cited  that the                                                                    
amendment would remove  may  and  put in  shall.  He thought                                                                    
everyone   in   the   legislative   body   understood   that                                                                    
appropriations could  always be changed  at the will  of the                                                                    
legislature.  He felt  that the  legislature  was trying  to                                                                    
rebuild  trust  with  the  people  of  the  state,  and  the                                                                    
amendment would  show legislative intent to  follow the law.                                                                    
He thought the bill would be fully worked out on the floor.                                                                     
                                                                                                                                
Senator Olson asked what the  amendment would do by changing                                                                    
to the word shall.                                                                                                              
                                                                                                                                
Senator Wilson  opined that the  change would show  a better                                                                    
intent  that the  legislature  would  follow the  [Permanent                                                                    
Fund Dividend] formula and that  the legislature was serious                                                                    
and not just putting a placeholder into statute.                                                                                
                                                                                                                                
Co-Chair Stedman MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wielechowski, Wilson, Olson                                                                                           
OPPOSED: Hoffman, von Imhof, Stedman, Bishop                                                                                    
                                                                                                                                
The MOTION FAILED (3/4).                                                                                                        
                                                                                                                                
1:10:05 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:10:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Bishop  MOVED  to  report  CSSB  199(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
Senator Wilson commented that SB  199 was an important piece                                                                    
of legislation  for the  full Senate  to debate.  He thought                                                                    
most of the discussions on the  bill would be carried out on                                                                    
the floor.  He was not  in favor  of the current  version of                                                                    
the bill.                                                                                                                       
                                                                                                                                
Senator  Wielechowski agreed  that the  bill would  generate                                                                    
much discussion on the Senate  floor. He did not support the                                                                    
bill,  which dealt  with restructure  of the  Permanent Fund                                                                    
Dividend (PFD) statute, which had  been an issue since 2016.                                                                    
He commented that there was a  statute on the books that had                                                                    
not been  followed for  the last six  years. He  thought the                                                                    
only way  to solve  the issue  was to put  the PFD  into the                                                                    
constitution.  He thought  Alaskans deserved  a policy  that                                                                    
had some  consistency and stability. He  discussed different                                                                    
dividend scenarios  but maintained  that the solution  was a                                                                    
constitutional amendment. He  thought Alaskans would support                                                                    
an amendment.                                                                                                                   
                                                                                                                                
                                                                                                                                
Senator von Imhof did not  think that the legislature should                                                                    
tax people  in order  to pay a  dividend, which  she thought                                                                    
was a  contingency in the bill.  She did not agree  with the                                                                    
concept of taking money from  one person and distributing it                                                                    
to the  persons  neighbor. She  did not  necessarily support                                                                    
the  bill,  but  she  supported   moving  the  bill  out  of                                                                    
committee.                                                                                                                      
                                                                                                                                
Senator  Olson  was in  favor  of  the amendment  previously                                                                    
offered  but would  not object  to  moving the  bill out  of                                                                    
committee. He  acknowledged that  the bill was  not perfect,                                                                    
but it  would not inhibit  the distribution of the  PFD that                                                                    
many of his constituents supported.                                                                                             
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
CSSB 199(FIN)  was REPORTED  out of  committee with  one "do                                                                    
pass"  recommendation, two  "do  not pass"  recommendations,                                                                    
three  "no  recommendation"   recommendations,  one  "amend"                                                                    
recommendation, and with one  forthcoming fiscal impact note                                                                    
from the Office of the Governor.