Legislature(1999 - 2000)
05/23/1999 03:40 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| * | HB1001 | ||
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except the Sections 1-7 would be repealed on September 30,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would be repealed unless the Legislature took action.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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