04/04/2019 01:30 PM Senate STATE AFFAIRS

          SJR  5-CONST. AM.:PERMANENT FUND & DIVIDEND                                                                       
                                                                                                                                
3:40:14 PM                                                                                                                    
CHAIR   SHOWER  reconvened   the   meeting   and  announced   the                                                               
consideration  of  SENATE  JOINT   RESOLUTION  NO.  5,  Proposing                                                               
amendments to  the Constitution of  the State of  Alaska relating                                                               
to the Alaska permanent fund and the permanent fund dividend.                                                                   
                                                                                                                                
Senators  Kawasaki,  Coghill,  Micciche, and  Chair  Shower  were                                                               
present.                                                                                                                        
                                                                                                                                
CHAIR SHOWER noted that the bill  was last heard on March 28 when                                                               
public testimony  was heard and  closed. He advised  that written                                                               
testimony could  be submitted  to [email protected].                                                               
He asked Mr. Milks to  provide the follow-up answers to questions                                                               
from the previous hearing.                                                                                                      
                                                                                                                                
3:40:59 PM                                                                                                                    
WILLIAM MILKS, Assistant Attorney  General, Civil Division, Labor                                                               
& State  Affairs Section, Juneau,  said the primary  question the                                                               
members  had  was  about  the  effect  of  garnishments  or  hold                                                               
harmless provisions  on the dividend.  He reviewed the  intent of                                                               
the  legislation   and  advised  that   SJR  5  does   not  cover                                                               
garnishments.                                                                                                                   
                                                                                                                                
3:43:11 PM                                                                                                                    
SENATOR MICCICHE  pointed out that  any other changes  related to                                                               
eligibility would need to go to the voters.                                                                                     
                                                                                                                                
MR. MILKS said that's correct.                                                                                                  
                                                                                                                                
3:44:09 PM                                                                                                                    
CHAIR  SHOWER said  he had  two amendments  for the  committee to                                                               
consider. He also related his intention to move the bill.                                                                       
                                                                                                                                
3:44:27 PM                                                                                                                    
SENATOR  COGHILL  moved to  adopt  Amendment  1, work  order  31-                                                               
GS1072\A.3, Nauman, 4/3/19.                                                                                                     
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                BY SENATOR SHOWER                                                                     
          TO:  SJR 5                                                                                                            
                                                                                                                                
                                                                                                                                
     Page 2, line 11, following "effective":                                                                                    
          Insert "on the later of"                                                                                              
                                                                                                                                
     Page 2, line 12, following "governor":                                                                                     
          Insert B"or an effective date provided for by                                                                         
     concurrence of two-thirds of the membership of each house"                                                                 
                                                                                                                                
CHAIR SHOWER objected for discussion  purposes. He explained that                                                               
these  are technical  changes that  the  drafter recommended.  He                                                               
asked Mr. Milks to comment.                                                                                                     
                                                                                                                                
3:45:00 PM                                                                                                                    
MR. MILKS  agreed that both amendments  contain technical changes                                                               
that  Legislative Legal  Services thought  would further  clarify                                                               
the bill.  The Department of  Law has no objection.  Amendment 1,                                                               
A.3, clarifies  that the legislature  could pass a  bill changing                                                               
the  permanent  fund  dividend   program  and  later  provide  an                                                               
effective  date  with  the  concurrence   of  two-thirds  of  the                                                               
membership of each house.                                                                                                       
                                                                                                                                
MR.  MILKS  explained  that  the  second  amendment,  A.4,  is  a                                                               
contingent  law.   It  clarifies  that   a  law  passed   by  the                                                               
legislature to  change the dividend is  subject to a vote  of the                                                               
people.                                                                                                                         
                                                                                                                                
3:46:59 PM                                                                                                                    
CHAIR SHOWER  removed his objection.  Finding no  further comment                                                               
or objection, [Amendment 1 was adopted.]                                                                                        
                                                                                                                                
3:47:16 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:47:34 PM                                                                                                                    
CHAIR SHOWER reconvened  the meeting and stated  that Amendment 1                                                               
passed.                                                                                                                         
                                                                                                                                
3:47:51 PM                                                                                                                    
SENATOR  COGHILL  moved  to  adopt  Amendment  2,  31-GS1072\A.4,                                                               
Nauman, 4/3/19.                                                                                                                 
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                 BY SENATOR SHOWER                                                                     
         TO: SJR5                                                                                                               
                                                                                                                                
                                                                                                                                
     Page 2, line 4:                                                                                                            
          Delete "Any"                                                                                                        
          Insert "Notwithstanding Section 18 of Article II, a"                                                                  
          Delete "Sections 14-18"                                                                                             
          Insert "Sections 14-17"                                                                                               
                                                                                                                                
                                                                                                                                
     Page 2, line 8:                                                                                                            
          Delete "proposed"                                                                                                     
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "proposed"                                                                                                     
                                                                                                                                
     Page 2, line 13:                                                                                                           
          Delete "proposed"                                                                                                     
                                                                                                                                
CHAIR   SHOWER  objected   for  discussion   purposes.  He   said                                                               
Legislative Legal  Services recommended the technical  changes in                                                               
Amendment 2. He asked Mr. Milks to comment.                                                                                     
                                                                                                                                
3:48:17 PM                                                                                                                    
MR.  MILKS  restated  the  explanation  he  previously  gave  for                                                               
Amendment 2.  It is  a contingent  law. It  clarifies that  a law                                                               
passed by the legislature to change  the dividend is subject to a                                                               
vote of the  people. It is similar to an  amendment the committee                                                               
saw last week regarding taxation.                                                                                               
                                                                                                                                
3:49:17 PM                                                                                                                    
CHAIR  SHOWER  found  no questions  and  removed  his  objection.                                                               
Finding no further discussion or objection, Amendment 2 passed.                                                                 
                                                                                                                                
He asked if there was further discussion on SJR 5.                                                                              
                                                                                                                                
3:49:56 PM                                                                                                                    
SENATOR  COGHILL  highlighted  that  there  are  lingering  legal                                                               
questions  that  will tie  the  hands  of the  legislature  going                                                               
forward regarding eligibility and  timing. He expressed hope that                                                               
these questions will be addressed in the next committee.                                                                        
                                                                                                                                
CHAIR  SHOWER  said he  didn't  offer  the third  amendment  that                                                               
starts to address  those issues because he didn't  feel there was                                                               
time for the  explanation and debate. He said  that amendment and                                                               
others will be offered in the judiciary committee.                                                                              
                                                                                                                                
3:51:00 PM                                                                                                                    
SENATOR COGHILL  moved to report  SJR 5, work  order 31-GS1072\A,                                                               
as  amended,  from  committee  with  individual  recommendations,                                                               
attached fiscal note(s), and  authorization for Legislative Legal                                                               
Services to make appropriate technical and conforming changes.                                                                  
                                                                                                                                
3:51:28 PM                                                                                                                    
CHAIR SHOWER found  no objection and CSSJR 5(STA)  moved from the                                                               
Senate State Affairs Standing Committee.