Legislature(2017 - 2018)BUTROVICH 205
03/07/2017 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SJR1 | |
| SCR1 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 1 | TELECONFERENCED | |
| *+ | SCR 1 | TELECONFERENCED | |
| + | TELECONFERENCED |
SJR 1-CONST AM: GUARANTEE PERM FUND DIVIDEND
3:32:53 PM
CHAIR DUNLEAVY announced the consideration of SJR 1.
3:33:16 PM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, Juneau,
Alaska, sponsor of SJR 1, said the resolution would put before
the Alaska voters an amendment to Article IX, Section 15 of the
Alaska Constitution to do the following:
1. Place the current formula for calculating the Permanent
Fund Dividend (PFD) into the constitution.
2. Require that there be inflation proofing.
SENATOR COGHILL addressed inflation proofing and pointed out
that Senator Wielechowski would leave it up to a "matter of
law." He referenced Section 2(c), "The Legislature shall provide
by law for a transfer from the earnings reserve account of the
fund sufficient to offset the effect of inflation on the
principal of the fund during that fiscal year." He asked Senator
Wielechowski if he considered tying inflation proofing to the
Consumer Price Index (CPI).
SENATOR WIELECHOWSKI replied that his original intent was to put
the statute's exact language into the constitution. He disclosed
that Legislative Legal said using the exact language was a lot
to add to the constitution and recommended that the statute's
exact language not be used. He opined that if the legislation
passes and voters approve it, then the existing statute would
still control, and the Legislature could change that at any
time, just like what the Legislature can do now.
SENATOR COGHILL commented that putting SJR 1 into the
constitution and using the earnings reserve for government would
have an impact on the dividend. He asked Senator Wielechowski to
address the resolution's impact on the dividend and its
"constitutional right balance."
3:35:54 PM
SENATOR WIELECHOWSKI replied that all the resolution does is put
the dividend formula into the constitution. He pointed out that
the PFD is currently considered a right in statute. He admitted
that stating a right statutorily does not confer the same degree
of right as a constitutional situation would. He reiterated that
the resolution is not declaring a right, but rather it is
declaring the formula is set in the constitution and the
inflation proofing is set in the constitution. He opined that
the resolution does not change the legal status, but makes it
more of a right to substantive procedural due process; that's
what typically occurs in a constitutional right that is
established is more of an ability to claim a legal due process,
a procedural due process. He specified that what is gained is
just putting the dividend formula into the constitution. He
emphasized that his intent is not to confer anyone an additional
right.
He pointed out that the statute currently says there is a legal
obligation for the Permanent Fund Corporation to transfer funds
from the earnings reserve to the dividend fund, something that
he believes is illegal and is currently being contested in
judiciary. He remarked that the statutory dedication that the
Legislature set up would confer a similar right that currently
exists. He summarized that his intent was to put the current
statutes into the constitution and not change anyone's rights,
but to simply codify it in the constitution so that people know
that they are going to get their PFD every year without it being
vetoed.
He opined that if the Legislature passes a permanent fund
restructuring with a guarantee for a PFD, the dividend cannot be
guaranteed unless it is put into the constitution. He asserted
that putting the guarantee into the constitution will engender
trust by the people of Alaska and a fair tradeoff for
restructuring the permanent fund.
SENATOR COGHILL replied that many of Senator Wielechowski's
points were legitimate, but sees the resolution as creating
other structural problems.
3:39:45 PM
CHAIR DUNLEAVY opened public testimony on SJR 1.
3:40:09 PM
CLEM TILLION, representing self, Halibut Cove, Alaska, testified
in support of SJR 1. He asked that the Legislature not change
anything and obey the law as it is written. He pointed out that
the Alaska Permanent Fund Corporation is statutorily required to
take out inflation proofing before approving 50 percent of the
earnings to be sent to the Department of Revenue. He opined that
changing the law makes the permanent fund more vulnerable to
destruction.
3:42:33 PM
SENATOR GIESSEL asked Mr. Tillion to clarify if he is in favor
of SJR 1.
MR. TILLION emphasized that he is in favor of SJR 1 if the
resolution does not change the law as it currently stands and
puts it into the constitution where it belongs.
3:44:34 PM
JANEL DOCKENDORF, representing self, Wasilla, Alaska, testified
in support of SJR 1. She said the PFD should be left the way it
is.
3:45:41 PM
JAMES SQUYRES, representing self, Deltana, Alaska, testified in
support of SJR 1. He said he supports the current calculation of
the PFD. He suggested that the resolution be passed immediately
for comparison to the permanent fund bills currently under
consideration.
3:47:11 PM
JULIET STOESSEL, representing self, Tok, Alaska, testified in
support of SJR 1. She set forth that the PFD needs to be saved
because the permanent fund is Alaskan's money.
3:48:25 PM
NORMAN EGOLF, representing self, Tok, Alaska, testified in
support of SJR 1. He asked that the current statute be placed
into the constitution.
3:49:23 PM
PEGGY CLEVENGER, representing self, Tok, Alaska, testified in
support of SJR 1. She asked that the statute be added to the
constitution.
3:50:46 PM
JACK CLEVENGER, representing self, Tok, Alaska, testified in
support of SJR 1.
3:52:03 PM
DAVID RICHARD LUNTZ, representing self, Delta Junction, Alaska,
testified in support of SJR 1. He asked that the people of
Alaska be allowed to vote on the measure.
3:53:28 PM
JON FAULKNER, representing self, Homer, Alaska, testified in
support of SJR 1. He believes that the current PFD program is a
right of the citizens and that Alaskans have a right to vote on
the measure.
3:55:55 PM
DAVID OTNESS, representing self, Cordova, Alaska, testified in
support of SJR 1. He said the state is in a very important
juncture and he considered SJR 1 to be the most important item
to have come along in a long time.
3:58:52 PM
BETH FREAD, representing self, Palmer, Alaska, testified in
support of SJR 1. She set forth that SJR 1 is critical to the
ongoing fiscal health of Alaska's future.
4:02:15 PM
PAM GOODE, representing self, Deltana, Alaska, testified in
support of SJR 1. She stated that she supported keeping the
PFD's current calculation. She asserted that the constitution
was written for the people to hold the government accountable.
She said she does not look at the PFD as an entitlement because
the PFD belongs to the people.
4:04:19 PM
KAREN TERRY, representing self, Chugiak, Alaska, testified in
support of SJR 1. She said she did not support using a
percentage-of-market-value formula to determine the PFD. She
opined that Alaskans want the current PFD formula in the
constitution due to excessive spending by the Legislature and
possible vetoes. She said a constitutional amendment is the only
way to assure that the PFD is protected, and Alaska's unique
legacy is preserved for future generations.
4:07:59 PM
STEVE ST. CLAIR, representing self, Wasilla, Alaska, testified
in opposition of SJR 1. He remarked that enshrining the PFD in
the constitution is a good thing, but added that there are parts
in resolution that he did not like. He opined that inflation
proofing is unnecessary because investments in the permanent
fund are already inflation proofed and previously proposed 50-50
plans for using the permanent fund do not include inflation
proofing.
4:09:34 PM
KENNETH MCLEOD, representing self, North Pole, Alaska, testified
in support of SJR 1. He asserted that the permanent fund should
not be changed. He said any changes to the permanent fund should
go before the people of Alaska.
4:11:00 PM
KURT SCHMIDT, representing self, Delta Junction, Alaska,
testified in support of SJR 1. He asserted that the resolution
maintains and clarifies procedures that govern the PFD and
prevents abuse of the fund. He set forth that the people of
Alaska should decide their fate and vote on SJR 1. He stated
that he disagreed with one Senate member who recently said that
the people really don't know the issues and the Legislature
should not let them vote in such matters as the PFD.
4:13:06 PM
CHAIR DUNLEAVY closed public testimony on SJR 1.
4:13:22 PM
SENATOR GIESSEL moved to report SJR 1, version 30-LS0104\D, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR DUNLEAVY asked if there was an objection.
SENATOR COGHILL objected and explained that he is not a big fan
of putting SJR 1 in the constitution. He stated that there are
constitutional principles in SJR 1 that he does not understand.
He noted that there is public support, but said the resolution
would create a tension between using any of the earnings reserve
and the dividend.
SENATOR COGHILL removed his objection.
4:14:25 PM
CHAIR DUNLEAVY announced that without objection, SJR 1 moved
from the Senate State Affairs Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SCR 1 - Version A.PDF |
SSTA 3/7/2017 3:30:00 PM |
SCR 1 |
| SCR 1-Sponsor Statement.pdf |
SSTA 3/7/2017 3:30:00 PM |
SCR 1 |
| SCR 1 - Supporting Document - Voting Recusal Provisions in 50 states.pdf |
SSTA 3/7/2017 3:30:00 PM |
SCR 1 |
| SCR 1- Fiscal Note LEG.pdf |
SSTA 3/7/2017 3:30:00 PM |
SCR 1 |
| SJR 1 - Fiscal Note Division of Elections.pdf |
SSTA 3/7/2017 3:30:00 PM |
SJR 1 |
| SJR 1 - Written Testimony.pdf |
SSTA 3/7/2017 3:30:00 PM |
SJR 1 |