Legislature(2015 - 2016)HOUSE FINANCE 519

04/16/2015 08:30 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 10:30 a.m. Today --
+ SB 39 REPEAL FILM PRODUCTION TAX CREDIT TELECONFERENCED
Moved CSSB 39(L&C) Out of Committee
+ SB 34 PCE ENDOWMENT FUND INVESTMENT TELECONFERENCED
Moved CSSB 34(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 34                                                                                                            
                                                                                                                                
     "An Act relating to investment of the power cost                                                                           
     equalization endowment fund; and providing for an                                                                          
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
9:49:52 AM                                                                                                                    
                                                                                                                                
Mr. Burnett referred to SB 34,  the companion bill to HB 86.                                                                    
He  relayed that  the  current version  was  changed in  the                                                                    
Senate  Finance  Committee  adding  only  a  few  words.  He                                                                    
reported that  in the  original bill  in lines  9 to  10 the                                                                    
word "seven" was deleted. In  the newest version "seven" was                                                                    
replaced with  "four" and new language  was added specifying                                                                    
"over a five-year  period." The rest of the  language in the                                                                    
bill remained the  same. He conveyed that  DOR supported the                                                                    
changes and offered that the  changes provided an achievable                                                                    
floor and  comfortable risk factor.  He summarized  that the                                                                    
intent of  the bill was to  create a situation in  which the                                                                    
state could invest in a  risk profile sufficient to meet the                                                                    
needs of the program.                                                                                                           
                                                                                                                                
Representative  Edgmon  asked  if  there  would  ever  be  a                                                                    
scenario  in which  the state  would invest  in a  long-term                                                                    
endowment targeting less than 4 percent.                                                                                        
                                                                                                                                
Mr. Burnett  responded that in  the current  environment the                                                                    
department  was looking  at  a  profile in  the  range of  6                                                                    
percent. He suggested that there  could be a situation where                                                                    
the capital  market assumptions were invested  at 4 percent.                                                                    
He indicated that  the state had not had  any capital market                                                                    
assumptions below  4 percent in  the last several  years (30                                                                    
years). He  pointed out that  at present the  Permanent Fund                                                                    
was  invested to  achieve  just  over a  6  percent rate  of                                                                    
return, gross of fees, for a very long-term endowment.                                                                          
                                                                                                                                
Representative  Edgmon thought  that  Mr. Burnett'  response                                                                    
tied into the earlier discussion  about the House vehicle of                                                                    
the bill. He  felt the change was academic in  the scheme of                                                                    
things and  he reported he  would be supporting  the changes                                                                    
to the bill.                                                                                                                    
                                                                                                                                
Representative Wilson wanted to know  if the chair was going                                                                    
to move  the bill. Vice-Chair  Saddler stated that  he would                                                                    
wait until the co-chairmen returned to the committee.                                                                           
                                                                                                                                
9:54:25 AM                                                                                                                    
                                                                                                                                
Vice-Chair Saddler OPENED public testimony.                                                                                     
                                                                                                                                
Vice-Chair Saddler CLOSED public testimony.                                                                                     
                                                                                                                                
9:54:43 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:59:59 AM                                                                                                                    
RECONVEYNED                                                                                                                     
                                                                                                                                
Vice-Chair  Saddler called  the  meeting back  to order  and                                                                    
indicated that he would entertain a motion on SB 34.                                                                            
                                                                                                                                
Representative Wilson  MOVED to  REPORT CSSB 34(FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO  OBJECTION, CHSB 34(FIN) was  REPORTED out of                                                                    
committee  with  a  "do  pass"  recommendation  and  with  a                                                                    
previously published zero fiscal note: FN1 (DOR).                                                                               
                                                                                                                                
10:02:10 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
10:18:53 AM                                                                                                                   
RECONVEYNED                                                                                                                     
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB39 Alaska Film Office Annual Report 2014 with Signed Letter.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Alaska Film Office Annual Report Worksheet.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Department of Revenue Alaska Film Office - Program Status as of 4-1-15.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Legal Services Memo 15-211 and Amendment.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Letters of Opposition from SL&C.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Letters of Support from SL&C.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Public Testimony to SFIN.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Sectional Analysis ver E (L&C CS) (1).pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Sponsor Statement.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Status of Alaska Film Production Incentive Fy 2009-FY 2013.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB39 Summary of Changes from Initial Version.pdf HFIN 4/16/2015 8:30:00 AM
SB 39
SB34 Sponsor Statement.pdf HFIN 4/16/2015 8:30:00 AM
SB 34
SB34 Supporting Document - DOR Bill Summary 4.15.15.pdf HFIN 4/16/2015 8:30:00 AM
SB 34