07/24/2019 05:15 PM House FINANCE

HOUSE BILL NO. 2003                                                                                                           
                                                                                                                                
     "An Act making special appropriations for the payment                                                                      
     of permanent fund dividends; and providing for an                                                                          
     effective date."                                                                                                           
                                                                                                                                
5:19:50 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Ortiz  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  (CS)   for  HB  2003,  Work   Draft  31-LS1141\M                                                                    
(Caouette 7/24/19).                                                                                                             
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Vice-Chair Johnston asked her staff to review the bill.                                                                         
                                                                                                                                
5:20:27 PM                                                                                                                    
                                                                                                                                
ERIN   SHINE,  STAFF,   REPRESENTATIVE  JENNIFER   JOHNSTON,                                                                    
reviewed  the changes  in  the  CS. The  CS  removed the  $1                                                                    
billion transfer  from the  Permanent Fund  Earnings Reserve                                                                    
Account (ERA)  to the General  Fund. She explained  that the                                                                    
language was included in separate  legislation that had just                                                                    
been  considered on  the  House floor.  She  noted that  the                                                                    
deleted language was  located in version A of  HB 2003, page                                                                    
1, lines 4 through 6.                                                                                                           
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
Ms.  Shine  explained  that the  bill  would  appropriate  a                                                                    
Permanent Fund  Dividend (PFD). She noted  the bill language                                                                    
had been considered in a  previous piece of legislation. The                                                                    
bill  would  appropriate  $172,200,000  from  the  Statutory                                                                    
Budget Reserve  (SBR) to the dividend  fund and $901,470,000                                                                    
from   the  General   Fund  to   the   dividend  fund.   The                                                                    
appropriation equated to a PFD  of approximately $1,605. She                                                                    
added that the  bill assumed the reverse  sweep was obtained                                                                    
and there  were sufficient  funds in  the SBR.  She detailed                                                                    
that without  the reverse sweep  the bill would  have hollow                                                                    
authority under Section  1(b), which would lower  the PFD to                                                                    
$1,336.                                                                                                                         
                                                                                                                                
5:22:35 PM                                                                                                                    
                                                                                                                                
Representative Wool  stated that  $172 million from  the SBR                                                                    
would  bring the  PFD amount  from  approximately $1,300  to                                                                    
approximately  $1,600.  He  wondered  if  the  $172  million                                                                    
transfer  was contingent  on HB  2002,  which contained  the                                                                    
reverse  sweep  and  transfer  language.  Alternatively,  he                                                                    
wondered if the $172 million was part of a reverse sweep.                                                                       
                                                                                                                                
Ms. Shine responded that in  SB 2002 the reverse sweep would                                                                    
need to  be achieved  to repopulate  the SBR  account, which                                                                    
currently had a zero balance  (without the reverse sweep, HB
 gave hollow authority). She  explained that the reverse                                                                    
sweep was necessary  in order to transfer the  funds for the                                                                    
payment of PFDs.                                                                                                                
                                                                                                                                
Co-Chair  Johnston  set  the bill  aside  and  recessed  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
HB  2003  was  HEARD  and  HELD  in  committee  for  further                                                                    
consideration.