HB 333-PUBLIC SCHOOL ENDOWMENT                                                                                                
Number 1117                                                                                                                     
                                                                                                                                
CHAIR GATTO announced  that the final order of  business would be                                                               
HOUSE BILL NO.  333, "An Act relating to an  endowment for public                                                               
education; and providing for an effective date."                                                                                
                                                                                                                                
REPRESENTATIVE  OGG moved  to adopt  CS for  HB 333,  Version 23-                                                               
LS01991\X, Bullock, 3/8/04, as the working document.                                                                            
                                                                                                                                
CHAIR GATTO objected.  He asked if  there is a fiscal note on the                                                               
bill.                                                                                                                           
                                                                                                                                
CHAIR GATTO removed his objection.                                                                                              
                                                                                                                                
REPRESENTATIVE OGG moved Conceptual Amendment 1, which read:                                                                    
                                                                                                                                
     Page 7, line 30:                                                                                                           
          Insert new applicability section to read:                                                                             
     "* Sec. 7. Receipts as declared in AS 14.40.505 should                                                                     
      be considered new receipts that begin with or after                                                                       
     the effective date of this act."                                                                                           
                                                                                                                                
     Renumber accordingly.                                                                                                      
                                                                                                                                
REPRESENTATIVE OGG  explained that  this amendment  is consistent                                                               
with  the sponsor  statement in  that  this [legislation]  should                                                               
only affect new receipts and  not the existing streams of revenue                                                               
that presently go to the general  fund.  He told the members that                                                               
the  Department   of  Revenue  asked  that   explicit  clarifying                                                               
language be inserted in the bill.                                                                                               
                                                                                                                                
Number 1494                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON asked for clarification of AS 14.40.505.                                                                  
                                                                                                                                
REPRESENTATIVE OGG explained that AS  14.40.505 [page 5, lines 24                                                               
through 31] is  a provision that provides for the  revenues to be                                                               
transferred to the  principal of the education trust  fund and to                                                               
the University of Alaska endowment  fund.  Conceptual Amendment 1                                                               
provides  that  these  revenues  will  only  be  based  upon  new                                                               
receipts after  the effective  date of this  act.   He emphasized                                                               
that  this  amendment ensures  that  this  legislation would  not                                                               
impact  any existing  streams of  revenues.   He reiterated  that                                                               
currently  state  lands  bring  in  revenues  and  the  amendment                                                               
clarifies  that  there  is  no intent  to  affect  that  existing                                                               
revenue stream.                                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON asked if he  understands correctly that the                                                               
amendment  means   only  revenues  from  new   receipts  will  be                                                               
included.                                                                                                                       
                                                                                                                                
REPRESENTATIVE   OGG  commented   that  this   is  a   conceptual                                                               
amendment.                                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON clarified that  current revenue receipts do                                                               
not fall under this category.                                                                                                   
                                                                                                                                
REPRESENTATIVE OGG replied that is correct.                                                                                     
                                                                                                                                
Number 1615                                                                                                                     
                                                                                                                                
REPRESENTATIVE GARA asked about the wording of the amendment.                                                                   
                                                                                                                                
REPRESENTATIVE OGG  emphasized that the amendment  is conceptual.                                                               
He explained  that the receipts  defined in AS 14.40.505  are new                                                               
receipts, and [the legislation] does not affect existing leases.                                                                
                                                                                                                                
REPRESENTATIVE  GARA asked  if "new  receipts" has  a meaning  in                                                               
law.                                                                                                                            
                                                                                                                                
REPRESENTATIVE OGG  replied that  is why  he made  this amendment                                                               
conceptual.  He  told the members that when the  drafters put the                                                               
next CS together that is something that can be clarified.                                                                       
                                                                                                                                
REPRESENTATIVE GARA commented that  he understands that this will                                                               
only affect  new sources of  revenue after the effective  date of                                                               
this bill.                                                                                                                      
                                                                                                                                
Number 1681                                                                                                                     
                                                                                                                                
CHAIR GATTO announced that the HB 333 will be held in committee.                                                                
                                                                                                                                
REPRESENTATIVE GARA asked if Representative Ogg could compare                                                                   
the two versions of HB 333 and asked if he would point out the                                                                  
differences during the next hearing.