HOUSE FINANCE COMMITTEE SPECIAL SESSION May 23, 1999 3:40 P.M. TAPE HFC SS 99 - 4, Side 1. CALL TO ORDER Co-Chair Mulder called the House Finance Committee meeting to order at 3:40 P.M. PRESENT Co-Chair Mulder Representative Foster Co-Chair Therriault Representative Grussendorf Representative Austerman Representative Kohring Representative Bunde Representative G. Davis Representative J. Davies Representative Williams Representative Moses was not present for the meeting. ALSO PRESENT Gail Fenumiai, Election Program Specialist, Division of Elections, Office of the Lt. Governor. SUMMARY HB 1001 An Act authorizing an advisory vote on a long-term financial plan for the state; and providing for an effective date. CS HB 1001 (FIN) was reported out of Committee with a "do pass" recommendation. HOUSE BILL NO. 1001 An Act authorizing an advisory vote on a long-term financial plan for the state; and providing for an effective date. Co-Chair Therriault MOVED to ADOPT work draft 1-LS1022\G, Cook, 5/23/99, as the version of the bill before the Committee. There being NO OBJECTION, it was adopted. Co-Chair Mulder addressed to the conceptual amendments made that version of the bill. Co-Chair Mulder MOVED a change to Page 3, Lines 2 and 9, deleting "$1540" and inserting "$1549". There being NO OBJECTION, it was adopted. Co-Chair Mulder MOVED a conceptual amendment to Page 5, Line 3, inserting the language: "The remaining annual earnings payment will be prioritized". There being NO OBJECTION, the language was adopted. Co-Chair Mulder MOVED a change to the effective date, Page 5, Line 18, which would remain the same throughout the bill except the Sections 1-7 would be repealed on September 30, 1999. Co-Chair Therriault inquired when the statute's effective date would be enacted. Co-Chair Mulder responded that the net effect would be immediate and that the statute would be repealed unless the Legislature took action. He acknowledged that it would be an "illusionary" effect. Representative J. Davies stated that he would be more comfortable with the original action which would have Sections 1-7 become effective September 29th and then include a repealer for the entire act on September 30th. Co-Chair Mulder WITHDREW the MOTION to move the conceptual amendment. Co-Chair Mulder inquired if two weeks was sufficient time to gather numbers on an advisory election. GAIL FENUMIAI, ELECTION PROGRAM SPECIALIST, DIVISION OF ELECTIONS, OFFICE OF THE LT. GOVERNOR, replied that if the election day stayed at September 14th, absentee ballots could be received until September 24th, if postmarked in the United States and up until September 29th if postmarked outside the United States. Additionally, there would be time for a 10 day State Review Board process before the election is actually certified. She commented that October 8th is the target certification date. Co-Chair Mulder acknowledged that the proposed "timing" schedule is very tight. Representative J. Davies commented that the date could be changed, however, that would effect the payment of the dividend. Co-Chair Mulder interjected that staff from the Permanent Fund has indicated that the first checks are mailed out the first week of October. Representative G. Davis questioned the statistics regarding the margin of error and the process used by the certification board. Ms. Fenumiai replied that the State Review Board guarantees that the process is done properly and that the numbers match the number of ballots issued. Co-Chair Mulder added that the Permanent Fund Division will need some direction when contemplating which deadline would be most difficult to meet. Representative J. Davies asked if there was anything written in statute requiring that checks be mailed out on a specific date. Co-Chair Mulder understood that it was recorded in statute that checks be mailed out by the first week in December. Representative Grussendorf supported that the election be certified. Representative Bunde agreed, pointing out that a number of issues in this State which have been decided by only a few ballot difference. Representative J. Davies suggested that it would be important to have the effective date and the repeal after the election. Representative Grussendorf recommended incorporating the language "upon certification of the election", rather than establishing a date. Co-Chair Mulder noted that statutorily, the dividend amount is announced October 1st and the payout is then made by December 31st. He imagined that the Legislature could go until October 10th or 11th without being in violation of the statute or in conflict with the current timetable used for the Permanent Fund distribution. Ms. Fenumiai commented that October 8th is a target certification date and is not "set in stone". It is the estimated time that it usually takes the State Review Board to provide a statewide canvas. Representative J. Davies questioned if the election process would be effected when the proposed law was enacted or repealed. Ms. Fenumiai did not believe it would affect the Division of Elections. Representative J. Davies recommended leaving the date at September 29th or 30th, with action taken after the election was certified. Representative Bunde understood that the Permanent Fund Corporation would need information regarding the amount of the check. He believed that intent language would address that concern. Representative J. Davies foresaw a problem that the election not be certified until after the Permanent Fund Corporation made payment. He recommended passing the legislation with a combination of effective date and repealer and then attaching a letter, instructing the Permanent Fund Corporation to wait until the election is certified. They could then consult with the Legislature as to when payment should be made. Co-Chair Therriault questioned the Legislature's ability to place a statute on the books and then repeal it. Representative Bunde recommended adding a delayed effective date. Co-Chair Therriault suggested adding a little time between the effective date and the repealer. Co-Chair Therriault MOVED that Sections 1-7 take effect September 29th, 1999, and that Section 8 would have an immediate effective date, followed by a repealer on October 15th, 1999. Representative Bunde suggested that a repealer could be made anywhere from 2 - 30 days after the vote. He noted that a 30-day repealer would provide a little more time given a challenge to the election. Co-Chair Mulder voiced concern that the Permanent Fund Corporation would not be able to take action until the repealer had been enacted. There being NO OBJECTION to the original MOTION, it was adopted. Co-Chair Mulder spoke to the fiscal note. He noted that in the Capital Budget, $839 thousand dollars had been included for a Special Election contingent upon the passage of HB 231. Since that is not the action to be used, the Legislative Body can take corrective action in that budget to amend, and thus, the fiscal note attached to HB 1001 would be the one included in the Capital Budget. Representative Bunde asked if the repealer requires Special Session, would a fiscal note be included to cover those costs. Co-Chair Mulder that funds had been lapsed forward in the budget for a Special Session. Representative Kohring expressed his observation regarding the legislation and his objection to it. He recommended that if the proposed plan is not accepted, Committee members consider further budget cuts. Representative Bunde asked for further information regarding Representative Kohring's overall budget plan and recommended cuts. Representative Kohring requested more time to formulate his plan. When prepared, he would present it to Committee members. Representative Bunde MOVED to report CS HB 1001 (FIIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. CS HB 1001 (FIN) was reported out of Committee with a "do pass" recommendation. ADJOURNMENT The meeting adjourned at 4:10 P.M. H.F.C. Special Session 4 5/23/99 p.m.