HB 44: APPROP:  TO PERMANENT FUND PRINCIPAL                                  
                                                                               
  CHAIRMAN VEZEY read the title of HB 44 and invited                           
  Representative Martin, the bill's sponsor, to testify before                 
  the committee.                                                               
                                                                               
  Number 024                                                                   
                                                                               
  REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR of HB 44                          
  discussed his handouts regarding funds within the permanent                  
  fund.  He stated future generations would pay the price in                   
  large taxes if we did not put funds away in reserves.                        
                                                                               
  Number 145                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the handouts and monies within the                  
  fund.                                                                        
                                                                               
  Number 160                                                                   
                                                                               
  REPRESENTATIVE MARTIN discussed the table in the handouts.                   
                                                                               
  CHAIRMAN VEZEY discussed the table in the handouts.                          
                                                                               
  Number 206                                                                   
                                                                               
  JIM KELLY, RESEARCH AND LIAISON OFFICER, PERMANENT FUND                      
  CORPORATION (PFC), explained how the permanent fund related                  
  to legislation for reserves.  He stated it was the                           
  responsibility of the PFC to manage money and maximize                       
  income and the legislature's responsibility to designate                     
  where the income was used.  He explained a chart in the                      
  committee member's packets.                                                  
                                                                               
  Number 260                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the projection made in December for                 
  the end of the year.                                                         
                                                                               
  Number 267                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG asked for clarification of                      
  funds in the account to date.                                                
                                                                               
  Number 268                                                                   
                                                                               
  MR. KELLY explained the funds within the account.                            
                                                                               
  Number 287                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the reinvestment funds were put                     
  into the permanent fund which came from investments out of                   
  Alaska.                                                                      
                                                                               
  Number 306                                                                   
                                                                               
  MR. KELLY discussed investments in Alaska such as the Alaska                 
  Housing Finance Corporation, the Alaska Industrial                           
  Development Association, and Alaskan companies.  He stated                   
  the investments would stay in Alaska when the returns were                   
  comparable and the risk not greater than investments out of                  
  state or the country.                                                        
                                                                               
  Number 326                                                                   
                                                                               
  CHAIRMAN VEZEY discussed investments in Alaska.                              
                                                                               
  Number 330                                                                   
                                                                               
  MR. KELLY discussed investment requirements.                                 
                                                                               
  Number 340                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG stated he had experience in                     
  banking and had never seen anyone go broke from investing.                   
                                                                               
  Number 345                                                                   
                                                                               
  MR. KELLY discussed market assumptions.