HB 38-APPROPRIATION LIMIT; GOV BUDGET  1:52:47 PM CHAIR VANCE announced that the next order of business would be HOUSE BILL NO. 38, "An Act relating to an appropriation limit; relating to the budget responsibilities of the governor; and providing for an effective date." 1:53:05 PM BERNARD AOTO, Staff, Representative Will Stapp, Alaska State Legislature, responded to unanswered questions from the previous hearing on HB 38, on behalf of Representative Stapp, prime sponsor. In response to a question regarding an exception that differed from the constitutional proposal detailing appropriations from the mental health trust settlement income account, he indicated that ultimately, what to include or exclude on the list of exceptions was a policy call. He cited the Weiss v. State lawsuit and indicated that Legislative Legal Services, [Legislative Affairs Agency], was unsure as to whether removing this exception would definitively lead to litigation. [Chair Vance passed the gavel to Vice Chair Allard.] 1:54:54 PM REPRESENTATIVE VANCE moved to adopt Amendment 1 to HB 38, [labeled 33-LS0295\A.6, Marx, 2/25/23], which read: Page 2, line 2: Delete the first occurrence of "fiscal" Insert "calendar" REPRESENTATIVE EASTMAN objected for the purpose of discussion. 1:55:06 PM REPRESENTATIVE VANCE explained that Amendment 1 would replace the first occurrence of "fiscal year" on page 2, line 6 of HB 38, with "calendar year" to address the concern regarding the timeliness of the GDP data transmittal to both the legislature and the governor for consideration of the spending cap. This change would make it so the calculation would be available for budget preparations. VICE CHAIR ALLARD asked whether the bill sponsor considered this a friendly amendment. MR. AOTO answered yes. 1:55:41 PM REPRESENTATIVE EASTMAN removed his objection. There being no further objection, Amendment 1 to HB 38 was adopted. 1:55:57 PM The committee took a brief at-ease. [Vice Chair Allard returned the gavel to Chair Vance.] 1:56:12 PM REPRESENTATIVE EASTMAN asked why the language referencing "the federal bureau" was maintained in HB 38 but removed from HJR 2. CHAIR VANCE said she preferred that the state constitution make no reference to the federal government to retain its autonomy. In contrast, she explained that she wanted to maintain the original intent of having a GDP-based calculation in statute, as referenced by law in the constitutional amendment. 1:58:00 PM CHAIR VANCE invited closing remarks from members of the committee. REPRESENTATIVE EASTMAN expressed concern about creating a state spending cap that relied upon data from the federal government. He shared his belief that Alaska should be able to make its own calculations based on statewide economic data. REPRESENTATIVE GROH noted that he stood by his previous comments regarding the constitutional amendment. 1:59:10 PM REPRESENTATIVE ALLARD moved to report HB 38, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 38(JUD) was reported out of the House Judiciary Standing Committee.