Legislature(2003 - 2004)

04/08/2004 08:07 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HCR 26-PFUND: ENCOURAGE INVESTMENTS IN ALASKA                                                                                 
Number 1796                                                                                                                     
REPRESENTATIVE  HOLM announced  that the  next order  of business                                                               
was HOUSE  CONCURRENT RESOLUTION NO. 26,  Relating to investments                                                               
in  Alaska  by corporate  America  in  which the  permanent  fund                                                               
Number 1815                                                                                                                     
REPRESENTATIVE KELLY  WOLF, Alaska State Legislature,  as sponsor                                                               
of HCR 26, told the  committee that approximately 7,000 nonprofit                                                               
organizations exist  within Alaska.   He stated that Alaska  is a                                                               
young  state  that has  businesses  "starting  and failing  on  a                                                               
regular basis."   He described  HCR 26  as an opportunity  to use                                                               
the power the State of Alaska  has in its Permanent Fund Dividend                                                               
Corporation,  without risking  the  funds in  the permanent  fund                                                               
dividend (PFD).   The proposed  legislation, he  explained, would                                                               
give  the   opportunity  for  a   small  business   or  nonprofit                                                               
[organization], with the support  of the legislature, to approach                                                               
the corporations in which the  permanent fund holds stock and ask                                                               
for  financial support  to  start a  business, or  to  ask for  a                                                               
REPRESENTATIVE  WOLF directed  attention  to  Amendment 1,  which                                                               
read as follows [original punctuation provided]:                                                                                
     After Line 13 Add new section:                                                                                             
          Whereas Alaska's own economic well being is tied                                                                    
     to businesses in Alaska; and                                                                                               
          Whereas Alaska's health and well being of our                                                                       
     communities is  assisted by one  or more of  the nearly                                                                    
     7000 nonprofit organizations in Alaska; and                                                                                
          Whereas by enactment of this resolution we                                                                          
     recognize we,  as members of Alaska's  Legislature, are                                                                    
     providing  opportunity for  Alaska's nonprofit  and for                                                                    
     profit  sectors to  declare their  independence through                                                                    
     encouraging  them  to  recognize  the  powerful  buying                                                                    
     support the $24,000,000,000 permanent fund represents;                                                                     
      Line 15 - after "to encourage investments in" change                                                                      
        Alaska to Alaska's; Then add:  nonprofit and for                                                                        
     profit sectors                                                                                                             
     Page Two - Line 2 - After Corporation, Please delete:                                                                      
     "for public record."  Then add: and make available at                                                                      
     public request.                                                                                                            
Number 2076                                                                                                                     
REPRESENTATIVE  GRUENBERG  moved to  adopt  Amendment  1, with  a                                                               
technical amendment, as follows:                                                                                                
     Between "make" and "available"                                                                                             
     Insert "it"                                                                                                                
REPRESENTATIVE SEATON stated, "I'll object for discussion."                                                                     
Number 2103                                                                                                                     
REPRESENTATIVE SEATON  asked Representative  Wolf to  clarify the                                                               
meaning of "Alaska's nonprofit and  for profit sectors to declare                                                               
their independence".                                                                                                            
REPRESENTATIVE  WOLF  explained   that  the  proposed  resolution                                                               
encourages nonprofit groups to  independently seek private funds,                                                               
without using state  funds.  He revealed that  there are "several                                                               
hundred million dollars" of corporate  monies that go unasked for                                                               
each year.   He stated,  "The opportunity for nonprofits  here in                                                               
the state  of Alaska  to use  the power  of [the]  Permanent Fund                                                               
Dividend Corporation is second to none."                                                                                        
REPRESENTATIVE SEATON said he is  confused by the language and is                                                               
uncertain how to amend it.                                                                                                      
VICE-CHAIR HOLM announced  that HCR 26 would not be  moved out of                                                               
committee today.                                                                                                                
REPRESENTATIVE COGHILL suggested "incorporating the amendment."                                                                 
Number 2220                                                                                                                     
REPRESENTATIVE SEATON removed his objection.                                                                                    
REPRESENTATIVE  GRUENBERG opined  that  representatives from  the                                                               
Alaska Permanent Fund Corporation would  want a chance to respond                                                               
to Amendment 1.                                                                                                                 
VICE-CHAIR HOLM  responded, "It's  my understanding they  did not                                                               
want to testify  on this, because ...  they're testifying through                                                               
their letter  and that's all  they're going to  do."  He  said he                                                               
suspects the corporation will not  change its policies based upon                                                               
[HCR 26].                                                                                                                       
Number 2288                                                                                                                     
REPRESENTATIVE WOLF indicated that  Amendment 1 would include the                                                               
for profit  businesses with the  nonprofit ones in the  chance to                                                               
"reap  the   benefit"  [in  regard   to  requesting   funds  from                                                               
corporations in which the state's permanent fund is invested].                                                                  
REPRESENTATIVE  COGHILL changed  his  earlier  remark to  suggest                                                               
instead that the committee leave the amendment on the table.                                                                    
REPRESENTATIVE   GRUENBERG  asked   that  [Representative   Wolf]                                                               
consult  Legislative Legal  and Research  Services regarding  the                                                               
REPRESENTATIVE  SEATON  announced  that  he  would  maintain  his                                                               
[HCR 26 was heard and held.]                                                                                                    

Document Name Date/Time Subjects