Legislature(2021 - 2022)BUTROVICH 205

02/09/2021 03:30 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 53 PERM FUND; ADVISORY VOTE TELECONFERENCED
Heard & Held
+= SJR 6 CONST. AM: PERM FUND & PFDS TELECONFERENCED
Heard & Held
*+ SJR 1 CONST AM: GUARANTEE PERM FUND DIVIDEND TELECONFERENCED
Heard & Held
+= SB 39 BALLOT CUSTODY/TAMPERING; VOTER REG; MAIL TELECONFERENCED
Scheduled but Not Heard
**Streamed live on AKL.tv**
+ Bills Previously Heard/Scheduled TELECONFERENCED
                SJR  6-CONST. AM: PERM FUND & PFDS                                                                          
                SB  53-PERM FUND; ADVISORY VOTE                                                                             
                                                                                                                                
3:35:21 PM                                                                                                                    
CHAIR  SHOWER   announced  the  consideration  of   SENATE  JOINT                                                               
RESOLUTION  NO. 6,  Proposing amendments  to the  Constitution of                                                               
the  State  of Alaska  relating  to  the Alaska  permanent  fund,                                                               
appropriations from  the permanent  fund, and the  permanent fund                                                               
dividend.                                                                                                                       
and                                                                                                                             
SENATE BILL  NO. 53,  "An Act  relating to use  of income  of the                                                               
Alaska permanent  fund; relating to  the amount of  the permanent                                                               
fund  dividend; relating  to the  duties of  the commissioner  of                                                               
revenue;  relating to  an advisory  vote on  the permanent  fund;                                                               
providing for an  effective date by repealing  the effective date                                                               
of  sec. 8,  ch. 16,  SLA 2018;  and providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
3:35:59 PM                                                                                                                    
MIKE  BARNHILL,  Deputy   Commissioner,  Department  of  Revenue,                                                               
Juneau, Alaska, suggested  that it would make more  sense for the                                                               
committee  to start  with SJR  6, which  lays out  the structure,                                                               
followed by SB 53 that implements the details of the structure.                                                                 
                                                                                                                                
CHAIR SHOWER agreed.                                                                                                            
                                                                                                                                
3:37:06 PM                                                                                                                    
MR. BARNHILL  stated that  SJR 6 proposes  to convert  the Alaska                                                               
Permanent Fund in the Alaska  Constitution from its existing two-                                                               
account structure to a one-account  endowment structure. The goal                                                               
is for  the assets to fund  the objectives of the  endowment both                                                               
today  and  in  the  future.  The assets  of  the  endowment  are                                                               
invested with  a long term  investment horizon to  take advantage                                                               
of   long-term  capital   appreciation.   An   endowment  has   a                                                               
distribution  of  spending  rule   that  balances  spending  with                                                               
preserving the inflation-adjusted value of the deposited funds.                                                                 
                                                                                                                                
He  emphasized  that  an  endowment  preserves  intergenerational                                                               
equity; it is designed to be of indefinite duration.                                                                            
                                                                                                                                
3:39:17 PM                                                                                                                    
SENATOR COSTELLO  asked if this  elevates the  existing endowment                                                               
approach that is in statute to the constitution.                                                                                
                                                                                                                                
MR. BARNHILL  answered that  the permanent  fund currently  has a                                                               
two-account  and SJR 6 proposes  to convert that to a one-account                                                               
structure in the constitution.                                                                                                  
                                                                                                                                
3:40:26 PM                                                                                                                    
SENATOR REINBOLD  asked, 1) why  change the permanent fund  to an                                                               
endowment  structure  and  2)  how   doing  so  will  change  the                                                               
permanent fund dividend (PFD).                                                                                                  
                                                                                                                                
MR. BARNHILL answered  that it is modernization  of the permanent                                                               
fund  two-account structure  that  follows the  spending rule  to                                                               
save  the principal  and spend  the income  that is  generated by                                                               
holdings in the  principal account. He said the  problem with the                                                               
legacy trust  approach was that trust  investment managers tended                                                               
to tilt the  asset allocation to investments  that generated cash                                                               
rather than  capital appreciation, and that  limits the potential                                                               
growth of the trust.                                                                                                            
                                                                                                                                
He  related  that  beginning  in   the  1950s  interest  grew  in                                                               
diversifying trust assets  to take advantage of  the stock market                                                               
and capital  appreciation. The solution  was to develop  the one-                                                               
account  endowment  structure,  and that  spread  throughout  the                                                               
country and world  in the 1970s, '80s and '90s.  He noted that it                                                               
has  taken time  for  the legal  and  accounting rules  governing                                                               
funds to catch up with investment practices.                                                                                    
                                                                                                                                
3:44:02 PM                                                                                                                    
MR. BARNHILL advised that since  1976 the permanent fund has been                                                               
picking up  elements of  an endowment. In  1980, the  statute was                                                               
changed to allow  realized capital gains to flow  to the earnings                                                               
reserve account  and inflation-proofing was appropriated  back to                                                               
the  principal account.  The legislature  started  to permit  the                                                               
permanent fund to  invest in an increasing  array of investments,                                                               
including  stocks and  real estate.  Then in  2005 the  Permanent                                                               
Fund Corporation received  permission to invest as it  saw fit so                                                               
long  as it  followed the  prudent investor  rule on  a portfolio                                                               
wide basis.                                                                                                                     
                                                                                                                                
He said the  last step the legislature took  towards an endowment                                                               
structure  was in  2018 when  it adopted  a distribution  rule in                                                               
Senate Bill 26. Initially the  distribution rule was 5.25 percent                                                               
of the lagging  five-year market value of the  permanent fund and                                                               
today it is five percent.                                                                                                       
                                                                                                                                
MR. BARNHILL  advised that  the remaining step  to convert  to an                                                               
endowment is  to adopt the  one-account structure and SJR  6 does                                                               
that  in the  constitution.  He maintained  that  the benefit  of                                                               
converting to  a one-account  structure was  that there  would no                                                               
longer be the recurring issue  of whether to exhaust the earnings                                                               
reserve  account.   The  one-account  structure   eliminates  the                                                               
earnings reserve account.                                                                                                       
                                                                                                                                
3:47:25 PM                                                                                                                    
SENATOR  REINBOLD  commented  that   the  extremely  long  answer                                                               
probably lost many  listeners. She asked him  to justify, briefly                                                               
and  in layman's  terms, the  reason for  modernizing the  legacy                                                               
two-account structure.                                                                                                          
                                                                                                                                
MR. BARNHILL said  the risk of the two-account  structure is that                                                               
the balance of the earnings reserve  could be drawn down to zero,                                                               
and that would mean no  money for either permanent fund dividends                                                               
or government spending. SJR 6 ensures that never happens.                                                                       
                                                                                                                                
SENATOR REINBOLD  said the idea  of keeping the principal  in one                                                               
account was to prevent it from  being used and shifting to a one-                                                               
account structure  would make the  entire account  available. She                                                               
asked if  a percent of  market value (POMV)  of the total  of the                                                               
earnings  reserve  and  the  principal   would  be  available  to                                                               
withdraw.                                                                                                                       
                                                                                                                                
MR.  BARNHILL  responded that  endowments  only  spend a  certain                                                               
percentage of  the market  value each  year and  the distribution                                                               
rule is designed to protect  the inflation-adjusted value, so the                                                               
endowment remains the  same from an inflation  perspective at all                                                               
points in time.  The concept of intergenerational  equity is that                                                               
the corpus will be maintained for all time.                                                                                     
                                                                                                                                
3:49:56 PM                                                                                                                    
CHAIR SHOWER  asked, under the  one-account structure,  what size                                                               
majority  vote would  be required  to access  funds beyond  the 5                                                               
percent POMV draw.                                                                                                              
                                                                                                                                
MR.  BARNHILL   answered  that  SB  53   establishes  the  annual                                                               
distribution  rule of  5  percent of  the  lagging 5-year  market                                                               
value, and SJR  6 establishes that the  legislature cannot access                                                               
funds in excess of that amount.                                                                                                 
                                                                                                                                
3:52:31 PM                                                                                                                    
SENATOR  COSTELLO  commented  on  the  legislature's  poor  track                                                               
record in following its own  laws, and asked what protections the                                                               
legislation  provides to  assure  Alaskans  that the  legislature                                                               
would be unable to deplete the fund.                                                                                            
                                                                                                                                
MR.  BARNHILL   answered  that  the   basic  protection   is  the                                                               
legislature setting  the distribution rule guided  by advice from                                                               
the Alaska  Permanent Fund Corporation about  their projection of                                                               
real returns  over the  next 10-20  years. The  idea is  that the                                                               
legislature should  not spend any  more than the real  return out                                                               
of the endowment.                                                                                                               
                                                                                                                                
MR.  BARNHILL  said it  is  up  to  the  legislature to  set  the                                                               
distribution rule in  statute but the legislature  would have the                                                               
flexibility  and  discretion  to change  that  distribution  over                                                               
time. He  cautioned that any  change should be  done in in  a way                                                               
that  preserves the  inflation-adjusted  value  of the  permanent                                                               
fund so it is sustainable and permanent.                                                                                        
                                                                                                                                
CHAIR SHOWER asked  if he agrees that there is  no guarantee that                                                               
the legislature would not change  the statutory distribution rate                                                               
at some time in the future.                                                                                                     
                                                                                                                                
MR. BARNHILL  agreed that the  legislation gives  the legislature                                                               
the ability to  set the distribution rule higher  than 5 percent.                                                               
He described this  as a strength of  the legislation, maintaining                                                               
that the legislature has consistently  followed the statute since                                                               
the inception of the permanent fund.                                                                                          
                                                                                                                                
3:58:14 PM                                                                                                                    
CHAIR SHOWER  asked him to discuss  the reason for setting  the 5                                                               
percent  draw  because a  number  of  economists consider  a  4.5                                                               
percent draw to be more reasonable.                                                                                             
                                                                                                                                
MR. BARNHILL  answered that the goal  is to find the  number that                                                               
balances when you  look at the real return going  back 1-10 years                                                               
and  you look  at the  projected real  return going  forward 1-10                                                               
years. For  years, 5 percent  was thought  to be a  fair balance,                                                               
but  many  people  think  that  will be  hard  to  achieve  going                                                               
forward. He advised  that the Permanent Fund  Corporation and the                                                               
Department of  Revenue have a  lot of information to  help inform                                                               
the legislature in achieving the right balance.                                                                                 
                                                                                                                                
CHAIR  SHOWER  asked  if  the   administration  was  amenable  to                                                               
reducing  the  5 percent  distribution  rate  if the  legislature                                                               
determines that 4.5 percent or 4.75 percent is more prudent.                                                                    
                                                                                                                                
4:01:49 PM                                                                                                                    
MR. BARNHILL  replied he  can't speak  for administration  but he                                                               
believes it would be appropriate  for the legislature to schedule                                                               
hearings so all the information  about striking the right balance                                                               
can be put on the table.                                                                                                        
                                                                                                                                
CHAIR SHOWER asked if he was ready to move on to SB 53.                                                                         
                                                                                                                                
MR.  BARNHILL   said  he  first   wanted  to  touch   on  dynamic                                                               
distribution  rules  that float  based  on  inflation and  market                                                               
returns. The point is to  smooth the volatility in distributions.                                                               
He  noted that  a  number of  university  endowments use  dynamic                                                               
distribution rules and that the  permanent fund trustees recently                                                               
issued  Trustees'   Paper  Volume  9  that   discusses  different                                                               
distribution rules  used for endowments. He  also mentioned House                                                               
Bill  213 that  authorized the  conversion of  the public  school                                                               
trust to  an endowment. Following the  conversion, DOR redeployed                                                               
the   trust  assets   to  take   better   advantage  of   capital                                                               
appreciation and  so far  it is working  well. He  suggested that                                                               
this could also work for the legislature.                                                                                       
                                                                                                                                
MR. BARNHILL restated that SB 53 proposes a static 5 percent                                                                    
distribution rule and a 50:50 allocation of the distribution                                                                    
between the permanent fund dividend and government expenses.                                                                    
                                                                                                                                
CHAIR SHOWER asked Mr. Milks to present the sectional analysis                                                                  
for SJR 6.                                                                                                                      
                                                                                                                                
4:05:57 PM                                                                                                                    
BILL MILKS, Department of Law, Juneau, Alaska, presented the                                                                    
sectional analysis for SJR 6.                                                                                                   
                                                                                                                                
     Section  1:  This  section  would  amend  the  existing                                                                  
     language  of the  permanent fund  amendment to  provide                                                                    
     that  permanent fund  income shall  be retained  in the                                                                    
     permanent fund  except as  provided in  new subsections                                                                    
     (b), (c) and (d) as set forth in Section 2.                                                                                
     Section  2:   This  section  would  create   three  new                                                                  
     subsections in the permanent fund amendment.                                                                               
                                                                                                                                
     Subsection (b) would provide that  each fiscal year the                                                                    
     legislature may  appropriate an  amount as  provided by                                                                    
     law from  the permanent fund  to the general  fund that                                                                    
     represents  a percentage  of the  market  value of  the                                                                    
     permanent fund for the first  five of the preceding six                                                                    
     fiscal years.                                                                                                              
                                                                                                                                
     Subsection  (c) would  provide that  a  portion of  the                                                                    
     amount  appropriated  under  subsection  (b)  shall  be                                                                    
     allocated for  permanent fund dividends as  provided by                                                                    
     law. Subsection  (c) further provides that  a change in                                                                    
     the amount allocated for dividends  must be approved by                                                                    
     the voters as set forth in subsection (d).                                                                                 
                                                                                                                                
     Subsection (d) would  require that a law  passed by the                                                                    
     legislature   to  amend   the   amount  allocated   for                                                                    
     permanent fund  dividends would not take  effect unless                                                                    
     the  voters  approved  the proposed  law  at  the  next                                                                    
     statewide  election.  If  approved by  the  voters,  it                                                                    
     would take  effect 90 days  after certification  of the                                                                    
     election or  on a  special effective date  concurred in                                                                    
     by  two-thirds  of  the  members  of  each  house  upon                                                                    
     passage, whichever date is later.                                                                                          
                                                                                                                                
     Section  3:  This  transition provision  would  address                                                                  
     four issues.                                                                                                               
                                                                                                                                
     Subsection  (a) would  provide that  on June  30, 2023,                                                                    
     the  unencumbered  balance   of  the  earnings  reserve                                                                    
     account would  be deposited in  the permanent  fund and                                                                    
     become part of the principal of the fund.                                                                                  
                                                                                                                                
     Subsection  (b) would  provide that  the amendments  to                                                                    
     the permanent  fund would apply to  appropriations made                                                                    
     for fiscal year 2024 and thereafter.                                                                                       
                                                                                                                                
     Subsection (c)  would provide that for  purposes of the                                                                    
     permanent  fund   amendment,  the  law   governing  the                                                                    
     percentage of  the market value  of the  permanent fund                                                                    
     that  may be  appropriated  to the  general fund  under                                                                    
     Section 15(b) would be the law  in place at the time of                                                                    
     the adoption  of the 2022  amendments to  the permanent                                                                    
     fund.   Additionally,  the   law  setting   forth  that                                                                    
     percentage would  not be  a law that  is enacted  in an                                                                    
     appropriation bill.                                                                                                        
                                                                                                                                
     Subsection (d)  would provide that for  purposes of the                                                                    
     permanent fund amendment, the  law governing the amount                                                                    
     allocated  for permanent  fund dividends  under Section                                                                    
     15(c) would  be the  law in  place at  the time  of the                                                                    
     adoption of the 2022  amendments to the permanent fund.                                                                    
     Additionally, the  law setting forth that  amount would                                                                    
     not be a law that  is enacted in an appropriation bill.                                                                    
     Further, a change in the  law regarding dividends would                                                                    
     be  subject to  the requirements  set forth  in Section                                                                    
     15(d) requiring voter approval.                                                                                            
                                                                                                                                
     Section  4:  This  section   would  require  that  this                                                                  
     amendment be placed  on the ballot in  the 2022 general                                                                    
     election.                                                                                                                  
                                                                                                                                
4:10:22 PM                                                                                                                    
CHAIR SHOWER held SJR 6 in committee for further consideration.                                                                 
                                                                                                                                
4:10:49 PM                                                                                                                    
CHAIR SHOWER returned attention to SB 53.                                                                                       
                                                                                                                                
MIKE BARNHILL, Deputy Commissioner, Department of Revenue, said                                                                 
he explained the mechanics of SB 53 during the discussion of SJR
6, but Mr. Milks would present the sectional analysis.                                                                          
                                                                                                                                
4:11:03 PM                                                                                                                    
BILL MILKS, Department of Law, Juneau, Alaska, presented the                                                                    
sectional analysis for SB 53. [Original punctuation provided.]                                                                  
                                                                                                                                
     Section 1:  This bill would  establish a  new statutory                                                                  
     framework for  spending of  permanent fund  income. The                                                                    
     spending, based  on the market  value of  the permanent                                                                    
     fund,  would  be  allocated for  two  purposes  divided                                                                    
     equally: 50%  would be available for  dividends and 50%                                                                    
     to the general fund.                                                                                                       
                                                                                                                                
     Because the  bill would establish  a new  framework for                                                                    
     spending permanent fund income,  Section 1 would delete                                                                    
     language   from  the   current  AS   37.13.140(a)  that                                                                    
     describes a  formula to determine the  amount of income                                                                    
     of  the  fund  that   is  available  for  distribution.                                                                    
     Section 1 would also  provide that the amount available                                                                    
     for appropriation from the  earnings reserve account is                                                                    
     5%  of the  average market  value of  the fund  for the                                                                    
     first five of the  preceding six fiscal years including                                                                    
     the  fiscal  year  just ended.  That  percentage  is  a                                                                    
     reduction from  5.25% that has  been in place  since SB
     26  passed in  2018  although the  reduction  to 5%  is                                                                    
     scheduled to become effective on  July 1, 2021 based on                                                                    
     a delayed effective  date in SB 26.  Finally, Section 1                                                                    
     would amend AS 37.13.140(b)  to clarify that the amount                                                                    
     available for  appropriation from the  earnings reserve                                                                    
     account  may not  exceed the  balance  in the  earnings                                                                    
     reserve account.                                                                                                           
                                                                                                                                
     Section 2: This section  would amend AS 37.13.145(b) to                                                                  
     provide that of the  amount appropriated each year from                                                                    
     the earnings reserve account under AS 37.13.140(b):                                                                        
                                                                                                                                
        • 50 percent may be appropriated  to the  dividend                                                                      
          fund for dividends and                                                                                                
        • 50 percent may be  appropriated  to the  general                                                                      
          fund.                                                                                                                 
                                                                                                                                
     Section  3:  This  section amends  AS  37.13.145(c)  to                                                                  
     authorize an appropriation,  after the appropriation to                                                                    
     the  dividend  fund  and  the   general  fund,  to  the                                                                    
     principal   of  the   permanent   fund  for   inflation                                                                    
     proofing.                                                                                                                  
                                                                                                                                
     Section  4:  This   section  regarding  permanent  fund                                                                  
     income earned as a result  of the State v. Amerada Hess                                                                    
     case  clarifies that  such money  is not  available for                                                                    
     appropriation  to the  dividend fund  or the  principal                                                                    
     and that it shall be  deposited into the capital income                                                                    
     fund.                                                                                                                      
                                                                                                                                
     Section 5:  This section clarifies  that net  income of                                                                  
     the mental  health trust  fund is  not included  in the                                                                    
     computation of  the amount available  for appropriation                                                                    
     from the permanent fund  earnings reserve account under                                                                    
     AS 37.13.140(b) as described in section 1 of the bill.                                                                     
                                                                                                                                
     Section  6:  This  section clarifies  that  the  Alaska                                                                  
     Permanent  Fund  Corporation shall  calculate  annually                                                                    
     the  net  income of  the  fund  according to  generally                                                                    
     accepted  accounting   principles  and   excluding  any                                                                    
     unrealized gains or losses.                                                                                                
                                                                                                                                
4:14:06 PM                                                                                                                    
CHAIR SHOWER  noted that he  mentioned the  ERA and asked  him to                                                               
clarify  how  SB  53  and  SJR 6  would  work  separately  or  in                                                               
conjunction.                                                                                                                    
                                                                                                                                
MR. MILKS  explained that  SB 53 proposes  a 50:50  framework for                                                               
spending the permanent fund income  if a constitutional amendment                                                               
such as SJR  6 were to pass.  SB 53 is also trying  to work under                                                               
the  permanent fund  provision  in  existing constitutional  law,                                                               
which maintains  the principal and  income (ERA)  distinction. In                                                               
summary, SB  53 is proposing a  framework to work right  now when                                                               
utilizing the  ERA but also to  be the pathway forward  under SJR
6.                                                                                                                              
                                                                                                                                
MR. MILKS deferred further explanation to Mr. Barnhill.                                                                         
                                                                                                                                
CHAIR  SHOWER   said  he  wanted   the  record  to   reflect  the                                                               
administration's explanation of  how it might work  if both bills                                                               
passed  or if  just  one  or the  other  passed.  SB 53  proposes                                                               
statutory changes  whereas SJR 6 proposes  constitutional changes                                                               
with a vote of the people, which are very different lifts.                                                                      
                                                                                                                                
4:17:43 PM                                                                                                                    
SENATOR COSTELLO mentioned the obligation  to inflation proof and                                                               
directed attention to  Section 3 on page 2, lines  26-27 of SB 53                                                               
that  deletes  the  phrase,   "corporation  shall  transfer"  and                                                               
inserts   the   phrase,   "legislature  may   appropriate."   She                                                               
questioned the  reason for making the  appropriation to inflation                                                               
proof permissive.  She also asked  why the legislature  should be                                                               
able  to  change   the  five  percent  of   market  value  (POMV)                                                               
appropriation if  the people of  Alaska voted for a  five percent                                                               
POMV appropriation. "If the people  of Alaska say five percent, I                                                               
would want  to be  held to  that." She asked  if this  package of                                                               
legislation provides any assurance  that the legislature would be                                                               
held to the POMV appropriation that the people of Alaska choose.                                                                
                                                                                                                                
4:19:42 PM                                                                                                                    
MR.  BARNHILL  answered   that  the  people  only   vote  if  the                                                               
allocation  of  the  distribution   between  government  and  the                                                               
permanent fund  dividend changes. The  people do not get  to vote                                                               
on the distribution percentage that the legislature sets.                                                                       
                                                                                                                                
4:20:44 PM                                                                                                                    
MR. MILKS referenced Senator  Costello's question about inflation                                                               
proofing in  Section 3 and  explained that the practice  has been                                                               
to appropriate the amount for  inflation proofing and that is the                                                               
reason that SB 53 uses the term "appropriate."                                                                                  
                                                                                                                                
SENATOR  COSTELLO  clarified  that  her question  was  about  the                                                               
change  from the  term "shall"  to the  term "may."  Existing law                                                               
says  the  "corporation  shall transfer"  so  they  do  inflation                                                               
proof. She  questioned the  reason for  changing the  language to                                                               
the permissive the "legislature may appropriate."                                                                               
                                                                                                                                
MR. MILKS  answered that  the bill says  that because  the Alaska                                                               
Supreme Court  ruled in Wielechowski  v. Alaska that to  move the                                                               
money it must be by  appropriation. The "shall transfer" language                                                               
is also  in the  permanent fund dividend  section and  the Alaska                                                               
Supreme Court said that is subject to appropriation.                                                                            
                                                                                                                                
CHAIR   SHOWER  said   legislators  get   a  little   antsy  when                                                               
legislation  does  not  appropriately require  adherence  to  the                                                               
intent. He  noted that the  assurances that Senator  Costello has                                                               
asked for are difficult to come by.                                                                                             
                                                                                                                                
4:23:22 PM                                                                                                                    
MR. MILKS continued the sectional analysis for SB 53.                                                                           
                                                                                                                                
     Section  7:  This  section  clarifies  consistent  with                                                                  
     section  2 that  the  legislature places  money in  the                                                                    
     dividend fund by appropriation.                                                                                            
                                                                                                                                
     Section  8: This  section repeals  AS 37.13.145(e)  and                                                                  
     37.13.145(f) which relate  to total appropriations from                                                                    
     the earnings reserve.  The framework for appropriations                                                                    
     from the earnings  reserve are set forth  in Sections 1                                                                    
     and  2  which provide  for  an  appropriation from  the                                                                    
     earnings reserve  account based  on the  average market                                                                    
     value  of  the  fund  and  that  the  money  from  that                                                                    
     appropriation would be  used based on a  50 percent and                                                                    
     50 percent split for dividends and the general fund.                                                                       
     Section 9:  This section provides for  an advisory vote                                                                  
     at a  special statewide election  not less than  90 nor                                                                    
     more  than  120 days  after  adjournment  of the  first                                                                    
     regular legislative session which  would ask the voters                                                                    
     whether  they approve  of this  law providing  that the                                                                    
     legislature may appropriate five  percent of the market                                                                    
     value of  the permanent fund  each year which  would be                                                                    
     used  as  follows:  50 percent  for  dividends  and  50                                                                    
     percent for government services.                                                                                           
                                                                                                                                
     Sections 10 and 11:  These sections repeal the existing                                                                  
     provisions  of SB  26 related  to percentage  of market                                                                    
     value appropriation  from the permanent fund  which are                                                                    
     replaced by  Section 2 of  this bill providing for  a 5                                                                    
     percent of market value appropriation.                                                                                     
                                                                                                                                
     Section  12: This  section provides  that the  advisory                                                                  
     vote  provision (section  9)  takes effect  immediately                                                                    
     under AS 01.10.070(c).                                                                                                     
                                                                                                                                
     Section  13:  This  section provides  that  except  for                                                                  
     section 12, this Act would take effect July 1, 2021.                                                                       
                                                                                                                                
4:25:46 PM                                                                                                                    
CHAIR SHOWER held SB 53 and SJR 6 in committee.                                                                                 

Document Name Date/Time Subjects
SB 53 Bill.PDF SSTA 2/9/2021 3:30:00 PM
SB 53
SB 53 Fiscal Note 21-GOV-Y.PDF SSTA 2/9/2021 3:30:00 PM
SB 53
SB 53 Fiscal Note 981-REV-N.PDF SSTA 2/9/2021 3:30:00 PM
SB 53
SB 53 Fiscal Note 2616-REV-Y.PDF SSTA 2/9/2021 3:30:00 PM
SB 53
SB 53 Sponsor Statement Permanent Fund; Dividend TL.pdf SSTA 2/9/2021 3:30:00 PM
SB 53
SJR 6 Bill.PDF SSTA 2/9/2021 3:30:00 PM
SJR 6
SJR 6 Fiscal Note GOV-N.PDF SSTA 2/9/2021 3:30:00 PM
SJR 6
SJR 6 Sectional Analysis.pdf SSTA 2/9/2021 3:30:00 PM
SJR 6
SJR 1 Bill.PDF SSTA 2/9/2021 3:30:00 PM
SJR 1
SJR 1 Fact Sheet How PFDs Reduce Poverty in Alaska_December 2016.pdf SSTA 2/9/2021 3:30:00 PM
SJR 1
SJR 1 Leg History 1976 HJR39 HFIN & HJUD_Letter of Intent Malone & Gardiner 3-24-76.pdf SSTA 2/9/2021 3:30:00 PM
HJR 39
SJR 1
SJR 1 Leg History 1976 HJR39 State Investment Advisory Committee_Dividend Statements 8-26-76.pdf SSTA 2/9/2021 3:30:00 PM
HJR 39
SJR 1
SJR 1 Sectional Analysis.pdf SSTA 2/9/2021 3:30:00 PM
SJR 1
SJR 1 Sponsor Statement.pdf SSTA 2/9/2021 3:30:00 PM
SJR 1
SJR 1 Leg History 1982 HFIN_Letter of Intent Al Adams 5-14-82.pdf SSTA 2/9/2021 3:30:00 PM
SJR 1