2004-03-25                     House Journal                      Page 3081
HB 544                                                                                            
HOUSE BILL NO. 544 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act providing that public members of the Board of Trustees                                 
     of the Alaska Permanent Fund Corporation may be removed only                                   
     for cause; and providing for an effective date."                                               
                                                                                                    
was read the first time and referred to the State Affairs Committee.                                
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Law                                                                              
2.  Zero, Dept. of Revenue                                                                          
                                                                                                    
The Governor's transmittal letter dated March 24, 2004, follows:                                    
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to removal of public                                
members of the Board of Trustees of the Alaska Permanent Fund                                       
Corporation.                                                                                        
                                                                                                    
This bill would provide that public members of the Board of Trustees                                
may be removed only for cause.  The bill would provide grounds for                                  
the removal of public members of the board which includes, neglect of                               
duty, misconduct in office or conviction of certain misdemeanor or                                  
felony charges.  The bill also grants Board members the opportunity to                              
be heard at a public hearing and requires at least ten days notice of the                           
hearing.                                                                                            
                                                                                                    
Under existing law, it is possible to remove all Board members at a                                 
change in administration.  This bill would insulate the Alaska                                      

2004-03-25                     House Journal                      Page 3082
Permanent Fund from partisan politics by making it more likely that                                 
Board members would be retained until the expiration of their terms.                                
The state invests a great deal in the experience and training provided                              
to Board members.  It is in our best interests to reap the full benefit of                          
this investment.  The Alaska Permanent Fund Corporation benefits                                    
from having experienced Board members direct policy for                                             
management of the Permanent Fund.                                                                   
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                Governor"