02/06/2006 09:08 AM House W&M
| Audio | Topic |
|---|---|
| Start | |
| HB375 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
February 6, 2006
9:08 a.m.
MEMBERS PRESENT
Representative Bruce Weyhrauch, Chair
Representative Ralph Samuels
Representative Peggy Wilson
Representative Max Gruenberg
MEMBERS ABSENT
Representative Norman Rokeberg
Representative Paul Seaton
Representative Carl Moses
COMMITTEE CALENDAR
HOUSE BILL NO. 375
"An Act relating to the retirement benefit liability account and
appropriations from that account; relating to deposits of
certain income earned on money received as a result of State v.
Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First
Judicial District); and providing for an effective date."
- MOVED CSHB 375(W&M) OUT OF COMMITTEE
HOUSE BILL NO. 374
"An Act relating to establishment of a retirement benefit
liability account in the Department of Revenue and redirecting
deposit of annual dividends of the Alaska Housing Finance
Corporation to that account; and providing for an effective
date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 375
SHORT TITLE: RETIREMENT BENEFIT LIABILITY ACCT/PF
SPONSOR(S): WAYS & MEANS
01/17/06 (H) READ THE FIRST TIME - REFERRALS
01/17/06 (H) W&M, STA, FIN
01/20/06 (H) W&M AT 9:00 AM CAPITOL 106
01/20/06 (H) Heard & Held
01/20/06 (H) MINUTE(W&M)
01/25/06 (H) W&M AT 9:00 AM CAPITOL 106
01/25/06 (H) Heard & Held
01/25/06 (H) MINUTE(W&M)
01/27/06 (H) W&M AT 9:00 AM CAPITOL 106
01/27/06 (H) Heard & Held
01/27/06 (H) MINUTE(W&M)
01/30/06 (H) W&M AT 9:30 AM CAPITOL 106
01/30/06 (H) Heard & Held
01/30/06 (H) MINUTE(W&M)
02/01/06 (H) W&M AT 9:00 AM CAPITOL 106
02/01/06 (H) <Bill Hearing Canceled>
02/03/06 (H) W&M AT 9:00 AM CAPITOL 106
02/03/06 (H) <Bill Hearing Canceled>
02/06/06 (H) W&M AT 9:00 AM CAPITOL 106
WITNESS REGISTER
JERRY BURNETT, Legislative Liaison
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: During hearing of HB 375, answered
questions.
ACTION NARRATIVE
CHAIR BRUCE WEYHRAUCH called the House Special Committee on Ways
and Means meeting to order at 9:08:36 AM. Representatives
Weyhrauch, Gruenberg, Samuels, and Wilson were present at the
call to order.
HB 375-RETIREMENT BENEFIT LIABILITY ACCT/PF
9:08:44 AM
CHAIR WEYHRAUCH announced that the only order of business would
be HOUSE BILL NO. 375, "An Act relating to the retirement
benefit liability account and appropriations from that account;
relating to deposits of certain income earned on money received
as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ.
(Superior Court, First Judicial District); and providing for an
effective date."
9:08:59 AM
REPRESENTATIVE SAMUELS moved to adopt the committee substitute
(CS) for HB 375, Version 24-LS1467\Y, as the working document.
There being no objection, Version Y was before the committee.
CHAIR WEYHRAUCH explained that HB 374 and HB 375 were set up as
separate mechanisms to appropriate money from the Alaska Housing
Finance Corporation (AHFC) dividend, and from the interest on
the Amerada Hess fund and the Alaska Permanent Fund with
dividends from these accounts going into a retirement benefit
liability account. Version Y strips away everything related to
AHFC, Amerada Hess, and the Alaska Permanent Fund and simply
establishes a liability account.
CHAIR WEYHRAUCH pointed out that this account is similar to the
public education account established previously by the
legislature and enables the appropriating authority for the
legislature. He reminded the committee and the public that the
legislature can't establish a dedicated account or dedicate
funds, with the exception of the permanent fund, as this would
be unconstitutional; however, Version Y gives the legislature
the authority to appropriate into this [liability] account for
the Public Employees' Retirement System /Teachers' Retirement
System (PERS/TRS) and set up the mechanisms to make those
appropriations.
CHAIR WEYHRAUCH explained that Version Y addressed a section of
the original bill, which contained language stating that the
money appropriated from the [liability] account would go toward
paying past service liabilities of the PERS/TRS and "for other
purposes" which was not specific enough and so removed.
9:11:25 AM
JERRY BURNETT, Legislative Liaison, Department of Revenue (DOR),
in response to questions by Chair Weyhrauch, said the DOR
doesn't "have a position on whether or not [establishing a
liability account] is a good idea" and, in fact, would suggest
the Finance Committee review the bill to determine the source of
funding. He also said that in terms of a fiscal note, there is
nothing in Version Y that would create a new operating expense.
9:11:56 AM
REPRESENTATIVE GRUENBERG suggested the word "annually", on page
1, line 12, was misleading. He explained it might be
interpreted as meaning once a year.
9:12:36 AM
REPRESENTATIVE GRUENBERG moved to adopt Amendment 1, as follows:
Page 1, line 12:
Delete "annually"
There being no objection, Amendment 1 was adopted.
CHAIR WEYHRAUCH informed Representative Gruenberg the bill would
go next to the House State Affairs Standing Committee.
9:13:36 AM
CHAIR WEYHRAUCH, upon determining no one else wished to testify,
closed public testimony.
9:13:42 AM
REPRESENTATIVE SAMUELS moved to report CSHB 375, Version 24-
LS1467\Y, as amended, out of committee with individual
recommendations.
9:13:52 AM
REPRESENTATIVE GRUENBERG objected, and then asked if there is
any policy reason why the bill is not a good idea.
9:13:59 AM
CHAIR WEYHRAUCH stated his belief that this is an important
policy decision for the legislature to make on an ongoing basis
to help reduce the debt liability.
9:14:21 AM
REPRESENTATIVE GRUENBERG removed his objection.
9:14:29 AM
CHAIR WEYHRAUCH asked if there were any further objections.
There being none, CSHB 375(W&M) was reported from the House
Special Committee on Ways and Means.
9:15:06 AM
CHAIR WEYHRAUCH, in answer to a question asked by Representative
Gruenberg, explained that [HB 374] would not be heard at this
meeting because of the policy implications associated with
taking revenue from the Amerada Hess account and dividend from
the AHFC and transferring these funds into the retirement
benefit liability account. The appropriation mechanisms, he
said, would be dealt with at a later time.
9:15:19 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Ways and Means meeting was adjourned at
9:15 a.m.
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