02/27/2023 01:30 PM House JUDICIARY

             HB  38-APPROPRIATION LIMIT; GOV BUDGET                                                                         
                                                                                                                                
1:52:47 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 38, "An  Act relating to an  appropriation limit;                                                               
relating  to the  budget responsibilities  of  the governor;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
1:53:05 PM                                                                                                                    
                                                                                                                                
BERNARD  AOTO, Staff,  Representative  Will  Stapp, Alaska  State                                                               
Legislature, responded to unanswered  questions from the previous                                                               
hearing  on  HB 38,  on  behalf  of Representative  Stapp,  prime                                                               
sponsor.  In  response to a question regarding  an exception that                                                               
differed    from    the   constitutional    proposal    detailing                                                               
appropriations  from the  mental health  trust settlement  income                                                               
account,  he  indicated  that  ultimately,  what  to  include  or                                                               
exclude on  the list of exceptions  was a policy call.   He cited                                                               
the Weiss v.  State lawsuit and indicated  that Legislative Legal                                                             
Services, [Legislative Affairs Agency],  was unsure as to whether                                                               
removing this exception would definitively lead to litigation.                                                                  
                                                                                                                                
[Chair Vance passed the gavel to Vice Chair Allard.]                                                                            
                                                                                                                                
1:54:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE  moved  to  adopt Amendment  1  to  HB  38,                                                               
[labeled 33-LS0295\A.6, Marx, 2/25/23], which read:                                                                             
                                                                                                                                
     Page 2, line 2:                                                                                                            
          Delete the first occurrence of "fiscal"                                                                           
          Insert "calendar"                                                                                                 
                                                                                                                                
REPRESENTATIVE EASTMAN objected for the purpose of discussion.                                                                  
                                                                                                                                
1:55:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE explained  that Amendment  1 would  replace                                                               
the first  occurrence of "fiscal  year" on page  2, line 6  of HB
, with  "calendar year"  to address  the concern  regarding the                                                               
timeliness of  the GDP data  transmittal to both  the legislature                                                               
and the  governor for  consideration of the  spending cap.   This                                                               
change would  make it so  the calculation would be  available for                                                               
budget preparations.                                                                                                            
                                                                                                                                
VICE CHAIR ALLARD asked whether  the bill sponsor considered this                                                               
a friendly amendment.                                                                                                           
                                                                                                                                
MR. AOTO answered yes.                                                                                                          
                                                                                                                                
1:55:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN removed  his objection.   There  being no                                                               
further objection, Amendment 1 to HB 38 was adopted.                                                                            
                                                                                                                                
1:55:57 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
[Vice Chair Allard returned the gavel to Chair Vance.]                                                                          
                                                                                                                                
1:56:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked why  the language  referencing "the                                                               
federal bureau" was maintained in HB 38 but removed from HJR 2.                                                                 
                                                                                                                                
CHAIR VANCE said  she preferred that the  state constitution make                                                               
no reference  to the federal  government to retain  its autonomy.                                                               
In  contrast,  she explained  that  she  wanted to  maintain  the                                                               
original intent of having a  GDP-based calculation in statute, as                                                               
referenced by law in the constitutional amendment.                                                                              
                                                                                                                                
1:58:00 PM                                                                                                                    
                                                                                                                                
CHAIR  VANCE   invited  closing  remarks  from   members  of  the                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE EASTMAN  expressed concern about creating  a state                                                               
spending cap that  relied upon data from  the federal government.                                                               
He shared his  belief that Alaska should be able  to make its own                                                               
calculations based on statewide economic data.                                                                                  
                                                                                                                                
REPRESENTATIVE GROH noted that he  stood by his previous comments                                                               
regarding the constitutional amendment.                                                                                         
                                                                                                                                
1:59:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD moved  to report HB 38, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSHB  38(JUD)  was                                                               
reported out of the House Judiciary Standing Committee.