HB 222-PERMANENT FUND/AIDEA FUND INVESTMENTS  2:17:10 PM CHAIR MCKAY announced that the next order of business would be HOUSE BILL NO. 222, "An Act relating to the Alaska permanent fund and the income and investments of the fund; relating to the permanent fund dividend; and providing for an effective date." 2:17:55 PM CODY RICE, Staff, Alaska House Majority, Alaska State Legislature, on behalf of Representative Sumner, noted that using the Alaska Gasline Development Corporation's (AGDC's) most recent assumptions on interest rates would reduce the numbers provided to the committee during the most recent bill hearing. He estimated that equity would be between $800 million and $1 billion, and the debt service would fall somewhere between $120 million and $230 million on an ongoing basis. CHAIR MCKAY sought questions from committee members. 2:19:25 PM REPRESENTATIVE SADDLER recounted a discussion on the House Floor that referenced an argument made by a former legislator and mayor of Anchorage, Tom Fink, against the permanent fund dividend (PFD). In his argument, Mr. Fink posited that the dividend could be better used to build infrastructure; nonetheless, the dividend was established without a specific investment purpose. He shared his understanding that the bill would "turn that back" by saying the PFD should be a means to finance big capital infrastructure development. He asked how Mr. Rice would reconcile that conflict. MR. RICE replied that the legislature has the authority to direct [the Alaska Permanent Fund Corporation] and its investments. 2:20:34 PM CHAIR MCKAY sought to clarify whether the bill would use part of the PFD or the corpus. MR. RICE shared his understanding that its not specific about the location. REPRESENTATIVE MCCABE directed attention to page 1, line 2 and read the title of the bill, "An Act relating to the Alaska permanent fund and the income and investments of the fund; relating to the permanent fund dividend; and providing for an effective date." MR. RICE confirmed that there are two elements of the bill, one of which affects the PFD based on a recovery for the initial investment amount. CHAIR MCKAY shared his understanding that the bill would cap the PFD at $1,000 with anything extra going towards the pipeline. MR. RICE agreed, citing page 1, Section 2. He reiterated that its up to the legislature in terms of how the equity participation is funded. CHAIR MCKAY opined that the financial discussion should be had by the House Finance Committee. As such, he made the following statement: Our focus as the [House Resources Standing Committee] is on resource management policies and as I don't see any objection to bringing our natural gas to the market, I recommend that we allow the [House Finance Committee] to address the financial questions related to this bill. 2:23:52 PM The committee took a brief at-ease at 2:23 p.m. 2:25:15 PM REPRESENTATIVE RAUSCHER began a motion but read the wrong bill number and identifier information. He subsequently stated, "I strike that motion." 2:26:08 PM The committee took a brief at-ease at 2:26 p.m. 2:26:36 PM REPRESENTATIVE RAUSCHER moved to report HB 222 out of committee with individual recommendations and the accompanying fiscal notes, and to authorize Legislative Legal Services to make any necessary technical or conforming changes. 2:27:02 PM REPRESENTATIVE MEARS objected. 2:27:44 PM A roll call vote was taken. Representatives Baker, Rauscher, Armstrong, McCabe, and McKay voted in favor of moving HB 222 out of committee. Representatives Mears voted against it. Therefore, HB 222 was reported from the House Resources Standing Committee by a vote of 5-1.