SENATE BILL NO. 303 An Act relating to management of the budget reserve fund; and providing for an effective date. Co-chairman Frank directed attention to a draft CSSB 303 (Fin) (9-LS1697\F, Cook, 4/19/96) which he explained allows the Dept. of Revenue to transfer management responsibility over all or part of the budget reserve fund to the permanent fund corporation. It is left to the administration to determine the amount and the appropriateness of the transfers. The Co-chairman voiced his belief that the state could substantially increase its yield by making such transfers without incurring any risk to the state or permanent fund. It is not necessary for the legislature to outline details of the transfer in law. The new draft merely contains permissive language. Co-chairman Frank MOVED for adoption of CSSB 303 (Fin) as a working document. No objection having been raised, CSSB 303 (Fin) was ADOPTED. Co-chairman Halford voiced his understanding that the legislation is permissive rather than a mandate. Senator Donley inquired concerning the administration's position on the bill. Co-chairman Frank acknowledged that representatives of the administration had earlier raised questions about how the transfer would be made and what the impact might be. He further acknowledged that nothing would happen if the department chose not to implement the bill. The Co-chairman expressed his belief that transfer and management by the permanent fund corporation could add $40 million to the state treasury. He then MOVED for passage of CSSB 303 (Fin). No objection having been raised, CSSB 303 (Fin) was REPORTED OUT of committee with a zero fiscal note from the Dept. of Revenue. Co-chairman Frank and Senators Donley, Phillips, Rieger, and Sharp signed the committee report with a "do pass" recommendation. Co-chairman Halford and Senator Zharoff signed "no recommendation."