Legislature(1995 - 1996)

04/23/1996 08:45 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  SENATE BILL NO. 303                                                          
       An Act  relating to  management of  the budget  reserve                 
       fund; and providing for an effective date.                              
  Co-chairman Frank  directed attention  to a  draft CSSB  303                 
  (Fin) (9-LS1697\F, Cook, 4/19/96) which he explained  allows                 
  the Dept.  of Revenue to transfer  management responsibility                 
  over all or part of the budget reserve fund to the permanent                 
  fund  corporation.   It  is  left to  the  administration to                 
  determine  the  amount  and   the  appropriateness  of   the                 
  transfers.  The Co-chairman voiced his belief that the state                 
  could  substantially  increase  its  yield  by  making  such                 
  transfers  without  incurring  any  risk  to  the  state  or                 
  permanent fund.  It is not  necessary for the legislature to                 
  outline  details  of the  transfer in  law.   The  new draft                 
  merely contains  permissive  language.    Co-chairman  Frank                 
  MOVED for adoption of CSSB 303  (Fin) as a working document.                 
  No objection having been raised, CSSB 303 (Fin) was ADOPTED.                 
  Co-chairman  Halford  voiced  his  understanding  that   the                 
  legislation is permissive rather than a mandate.                             
  Senator  Donley  inquired  concerning  the  administration's                 
  position on the  bill.  Co-chairman Frank  acknowledged that                 
  representatives  of  the administration  had  earlier raised                 
  questions about how the transfer would  be made and what the                 
  impact might be.  He further acknowledged that nothing would                 
  happen if the  department chose not  to implement the  bill.                 
  The  Co-chairman  expressed  his belief  that  transfer  and                 
  management by the  permanent fund corporation could  add $40                 
  million to the state treasury.  He then MOVED for passage of                 
  CSSB 303 (Fin). No  objection having been raised,   CSSB 303                 
  (Fin) was REPORTED OUT of committee  with a zero fiscal note                 
  from the  Dept. of Revenue.  Co-chairman  Frank and Senators                 
  Donley,  Phillips, Rieger,  and  Sharp signed  the committee                 
  report with a "do pass" recommendation.  Co-chairman Halford                 
  and Senator Zharoff signed "no recommendation."                              

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