Legislature(1999 - 2000)

05/23/1999 03:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
<AT THE CALL OF THE CHAIR>
* HB1001 ADVISORY VOTE LONG-TERM FINANCIAL PLAN
MOVED CSHB 1001(FIN) OUT OF COMMITTEE
txt
                                                                                                                                
HOUSE FINANCE COMMITTEE                                                                                                         
SPECIAL SESSION                                                                                                                 
May 23, 1999                                                                                                                    
3:40 P.M.                                                                                                                       
                                                                                                                                
TAPE HFC SS 99 - 4, Side 1.                                                                                                     
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Mulder  called the House Finance Committee meeting                                                                     
to order at 3:40 P.M.                                                                                                           
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Mulder    Representative Foster                                                                                        
Co-Chair Therriault   Representative Grussendorf                                                                                
Representative Austerman  Representative Kohring                                                                                
Representative Bunde   Representative G. Davis                                                                                  
Representative J. Davies  Representative Williams                                                                               
                                                                                                                                
Representative Moses was not present for the meeting.                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Gail Fenumiai, Election Program Specialist, Division of                                                                         
Elections, Office of the Lt. Governor.                                                                                          
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
HB 1001 An Act authorizing an advisory vote on a long-term                                                                      
financial plan for the state; and providing for an                                                                              
effective date.                                                                                                                 
                                                                                                                                
 CS HB 1001 (FIN) was reported out of Committee                                                                                 
with a "do pass" recommendation.                                                                                                
HOUSE BILL NO. 1001                                                                                                             
                                                                                                                                
An Act authorizing an advisory vote on a long-term                                                                              
financial plan for the state; and providing for an                                                                              
effective date.                                                                                                                 
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT work draft 1-LS1022\G,                                                                       
Cook, 5/23/99, as the version of the bill before the                                                                            
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
Co-Chair Mulder addressed to the conceptual amendments made                                                                     
that version of the bill.  Co-Chair Mulder MOVED a change to                                                                    
Page 3, Lines 2 and 9, deleting "$1540" and inserting                                                                           
"$1549".  There being NO OBJECTION, it was adopted.                                                                             
                                                                                                                                
Co-Chair Mulder MOVED a conceptual amendment to Page 5, Line                                                                    
3, inserting the language:  "The remaining annual earnings                                                                      
payment will be prioritized".  There being NO OBJECTION, the                                                                    
language was adopted.                                                                                                           
                                                                                                                                
Co-Chair Mulder MOVED a change to the effective date, Page                                                                      
5, Line 18, which would remain the same throughout the bill                                                                     
except the Sections 1-7 would be repealed on September 30,                                                                      
1999.  Co-Chair Therriault inquired when the statute's                                                                          
effective date would be enacted.  Co-Chair Mulder responded                                                                     
that the net effect would be immediate and that the statute                                                                     
would be repealed unless the Legislature took action.  He                                                                       
acknowledged that it would be an "illusionary" effect.                                                                          
                                                                                                                                
Representative J. Davies stated that he would be more                                                                           
comfortable with the original action which would have                                                                           
Sections 1-7 become effective September 29th and then                                                                           
include a repealer for the entire act on September 30th.                                                                        
                                                                                                                                
Co-Chair Mulder WITHDREW the MOTION to move the conceptual                                                                      
amendment.  Co-Chair Mulder inquired if two weeks was                                                                           
sufficient time to gather numbers on an advisory election.                                                                      
                                                                                                                                
GAIL FENUMIAI, ELECTION PROGRAM SPECIALIST, DIVISION OF                                                                         
ELECTIONS, OFFICE OF THE LT. GOVERNOR, replied that if the                                                                      
election day stayed at September 14th, absentee ballots                                                                         
could be received until September 24th, if postmarked in the                                                                    
United States and up until September 29th if postmarked                                                                         
outside the United States.  Additionally, there would be                                                                        
time for a 10 day State Review Board process before the                                                                         
election is actually certified.  She commented that October                                                                     
8th is the target certification date.                                                                                           
                                                                                                                                
Co-Chair Mulder acknowledged that the proposed "timing"                                                                         
schedule is very tight.  Representative J. Davies commented                                                                     
that the date could be changed, however, that would effect                                                                      
the payment of the dividend.  Co-Chair Mulder interjected                                                                       
that staff from the Permanent Fund has indicated that the                                                                       
first checks are mailed out the first week of October.                                                                          
                                                                                                                                
Representative G. Davis questioned the statistics regarding                                                                     
the margin of error and the process used by the                                                                                 
certification board.  Ms. Fenumiai replied that the State                                                                       
Review Board guarantees that the process is done properly                                                                       
and that the numbers match the number of ballots issued.                                                                        
                                                                                                                                
Co-Chair Mulder added that the Permanent Fund Division will                                                                     
need some direction when contemplating which deadline would                                                                     
be most difficult to meet.                                                                                                      
                                                                                                                                
Representative J. Davies asked if there was anything written                                                                    
in statute requiring that checks be mailed out on a specific                                                                    
date.  Co-Chair Mulder understood that it was recorded in                                                                       
statute that checks be mailed out by the first week in                                                                          
December.                                                                                                                       
                                                                                                                                
Representative Grussendorf supported that the election be                                                                       
certified.  Representative Bunde agreed, pointing out that a                                                                    
number of issues in this State which have been decided by                                                                       
only a few ballot difference.                                                                                                   
                                                                                                                                
Representative J. Davies suggested that it would be                                                                             
important to have the effective date and the repeal after                                                                       
the election.  Representative Grussendorf recommended                                                                           
incorporating the language "upon certification of the                                                                           
election", rather than establishing a date.  Co-Chair Mulder                                                                    
noted that statutorily, the dividend amount is announced                                                                        
October 1st and the payout is then made by December 31st.                                                                       
He imagined that the Legislature could go until October 10th                                                                    
or 11th without being in violation of the statute or in                                                                         
conflict with the current timetable used for the Permanent                                                                      
Fund distribution.                                                                                                              
                                                                                                                                
Ms. Fenumiai commented that October 8th is a target                                                                             
certification date and is not "set in stone".  It is the                                                                        
estimated time that it usually takes the State Review Board                                                                     
to provide a statewide canvas.  Representative J. Davies                                                                        
questioned if the election process would be effected when                                                                       
the proposed law was enacted or repealed.  Ms. Fenumiai did                                                                     
not believe it would affect the Division of Elections.                                                                          
Representative J. Davies recommended leaving the date at                                                                        
September 29th or 30th, with action taken after the election                                                                    
was certified.                                                                                                                  
                                                                                                                                
Representative Bunde understood that the Permanent Fund                                                                         
Corporation would need information regarding the amount of                                                                      
the check.  He believed that intent language would address                                                                      
that concern.  Representative J. Davies foresaw a problem                                                                       
that the election not be certified until after the Permanent                                                                    
Fund Corporation made payment.  He recommended passing the                                                                      
legislation with a combination of effective date and                                                                            
repealer and then attaching a letter, instructing the                                                                           
Permanent Fund Corporation to wait until the election is                                                                        
certified.  They could then consult with the Legislature as                                                                     
to when payment should be made.                                                                                                 
                                                                                                                                
Co-Chair Therriault questioned the Legislature's ability to                                                                     
place a statute on the books and then repeal it.                                                                                
Representative Bunde recommended adding a delayed effective                                                                     
date. Co-Chair Therriault suggested adding a little time                                                                        
between the effective date and the repealer.                                                                                    
                                                                                                                                
Co-Chair Therriault MOVED that Sections 1-7 take effect                                                                         
September 29th, 1999, and that Section 8 would have an                                                                          
immediate effective date, followed by a repealer on October                                                                     
15th, 1999.                                                                                                                     
                                                                                                                                
Representative Bunde suggested that a repealer could be made                                                                    
anywhere from 2 - 30 days after the vote.  He noted that a                                                                      
30-day repealer would provide a little more time given a                                                                        
challenge to the election.  Co-Chair Mulder voiced concern                                                                      
that the Permanent Fund Corporation would not be able to                                                                        
take action until the repealer had been enacted.                                                                                
                                                                                                                                
There being NO OBJECTION to the original MOTION, it was                                                                         
adopted.                                                                                                                        
                                                                                                                                
Co-Chair Mulder spoke to the fiscal note.  He noted that in                                                                     
the Capital Budget, $839 thousand dollars had been included                                                                     
for a Special Election contingent upon the passage of HB
231.  Since that is not the action to be used, the                                                                              
Legislative Body can take corrective action in that budget                                                                      
to amend, and thus, the fiscal note attached to HB 1001                                                                         
would be the one included in the Capital Budget.                                                                                
                                                                                                                                
Representative Bunde asked if the repealer requires Special                                                                     
Session, would a fiscal note be included to cover those                                                                         
costs.  Co-Chair Mulder that funds had been lapsed forward                                                                      
in the budget for a Special Session.                                                                                            
                                                                                                                                
Representative Kohring expressed his observation regarding                                                                      
the legislation and his objection to it.  He recommended                                                                        
that if the proposed plan is not accepted, Committee members                                                                    
consider further budget cuts.  Representative Bunde asked                                                                       
for further information regarding Representative Kohring's                                                                      
overall budget plan and recommended cuts.                                                                                       
                                                                                                                                
Representative Kohring requested more time to formulate his                                                                     
plan.  When prepared, he would present it to Committee                                                                          
members.                                                                                                                        
                                                                                                                                
Representative Bunde MOVED to report CS HB 1001 (FIIN) out                                                                      
of Committee with individual recommendations.  There being                                                                      
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
CS HB 1001 (FIN) was reported out of Committee with a "do                                                                       
pass" recommendation.                                                                                                           
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 4:10 P.M.                                                                                              
H.F.C. Special Session 4 5/23/99 p.m.                                                                                           

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