07/27/2019 11:00 AM Senate FINANCE

SENATE BILL NO. 2001                                                                                                          
                                                                                                                                
     "An Act  making special appropriations for  the payment                                                                    
     of  permanent  fund  dividends; and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
11:03:50 AM                                                                                                                   
                                                                                                                                
Co-Chair von Imhof MOVED to ADOPT the committee substitute                                                                      
(CS) for SB 2001, Work Draft 31-LS116\E (Wallace/Bruce,                                                                         
7/22/19).                                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
CAROLINE SCHULTZ, STAFF, SENATOR NATASHA VON IMHOF,                                                                             
reviewed the "Explanation of Changes CS SENATE BILL NO.                                                                         
2001(FIN)" (copy on file):                                                                                                      
                                                                                                                                
     version: 31-LS1116\U                                                                                                       
     1.   Restores   $1,000,000,000   of   the   statutorily                                                                    
     authorized POMV draw from  the earnings reserve account                                                                    
     to the general fund  that was vetoed. Appropriates that                                                                    
     amount to  the dividend  fund for  the payment  of 2019                                                                    
     permanent fund  dividends, estimated  to be  $1,500 per                                                                    
     eligible Alaskan (Sec. 1).                                                                                                 
                                                                                                                                
     version: 31-LS1116\E                                                                                                       
     1.  Restores   the  vetoed  statutorily   required  25%                                                                    
     royalty  deposit  to  the   Permanent  Fund  corpus  of                                                                    
     $99,800,000  for  FY2018  and  $80,000,000  for  FY2019                                                                    
     (Sec. 1 (a)  (d)).                                                                                                         
                                                                                                                                
     2.  Restores $1,000,000,000  of statutorily  authorized                                                                    
     POMV  draw from  the  earnings reserve  account to  the                                                                    
     general fund that was  vetoed. Appropriates that amount                                                                    
     to the dividend fund for  the payment of 2019 permanent                                                                    
     fund  dividends, estimated  to be  $1,500 per  eligible                                                                    
     Alaskan (Sec. 1 (e)  (f)).                                                                                                 
                                                                                                                                
     3.  Restores  the vetoed  $5,400,000,000  appropriation                                                                    
     from the  earnings reserve account to  the principal of                                                                    
     the Alaska permanent fund (Sec. 1 (g)).                                                                                    
                                                                                                                                
     4.   Restores   $75,000,000   of   the   total   vetoed                                                                    
     $135,000,000  from  the   University  of  Alaska.  This                                                                    
     results  in  a   net  reduction  to  UA   of  close  to                                                                    
     $65,000,000   including    the   $5,000,000   reduction                                                                    
     recommended by  this committee in  the CS for  HB39 and                                                                    
     passed by the legislature (Sec. 2).                                                                                        
                                                                                                                                
11:06:42 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman referenced the  earlier portion of the bill                                                                    
dealing with the  Permanent Fund and relayed  that items had                                                                    
been vetoed by the governor.  The items had been included in                                                                    
the  original  bill  and  were  currently  back  before  the                                                                    
committee,  which  would make  the  issue  whole. The  other                                                                    
section of the  bill restored $75 million  to the University                                                                    
of Alaska for FY 20 operations.                                                                                                 
                                                                                                                                
Ms. Schultz agreed.                                                                                                             
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
further  OBJECTION, the  proposed  committee substitute  was                                                                    
adopted.                                                                                                                        
                                                                                                                                
Co-Chair Stedman  asked if committee members  had questions,                                                                    
concerns, or comments on the CS.                                                                                                
                                                                                                                                
Senator  Micciche asked  if  the hearing  on  SB 2001  would                                                                    
continue in the afternoon.                                                                                                      
                                                                                                                                
Co-Chair Stedman  replied in the  affirmative. The  plan was                                                                    
to  reconvene in  the  afternoon and  possibly  take up  two                                                                    
House bills that were currently pending referral.                                                                               
                                                                                                                                
SB  2001  was  HEARD  and  HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
11:08:38 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
3:04:35 PM                                                                                                                    
RECONVENED