03/08/1996 09:15 AM Senate FIN

                                                                               
       SENATE BILL NO. 89                                                      
                                                                               
       "An Act relating to the members  of the board and staff                 
  of the    Alaska Permanent Fund Corporation."                                
                                                                               
  Senator Rieger  referred to amendments  number 1  and 2  and                 
  addressed  questions  that  came  up  in the  last  meeting.                 
  Amendment number  1 will  make it  clear that all  employees                 
  including the executive  director serves at the  pleasure of                 
  the  board  except that  there  can be  employment contracts                 
  entered  into  as long  as  they  do not  exceed  two years'                 
  duration.   Senator Rieger MOVED amendment number 1 and with                 
  no  objections  it  was  incorporated  as CSSB  89(FIN)  and                 
  ADOPTED.                                                                     
                                                                               
  With  reference to amendment number 2 Senator Rieger said it                 
  was the result  of previous discussion on removal for cause.                 
  This amendment would  make it clear that  the governor shall                 
  appoint a board member solely on the financial best interest                 
  of the fund and shall remove a board  member only for cause.                 
  There  being no  objections  to amendment  number  2 it  was                 
  ADOPTED.                                                                     
                                                                               
  Discussion proceeded between Senators Rieger and Donley with                 
  regards  to amendment  number 3.    Senator Donley  asked if                 
  there  was  an  exception  that  already provided  for  this                 
  amendment,  some sort of  common law.   He felt that  it was                 
  exclusionary in  not allowing  that to  be addressed  unless                 
  someone on  the committee  knew if  there was  some sort  of                 
  common law  provision that would  allow it without  being in                 
  the statute.   Senator  Donley MOVED  amendment number  2 as                 
  directed  by  Senator Rieger  and  without objection  it was                 
  ADOPTED.                                                                     
                                                                               
                                                                               
  Senator Rieger MOVED SB 89 out  of committee and there being                 
  no   objections  it   was  REPORTED   OUT  with   individual                 
  recommendations and  accompanying fiscal note  of $31.5 from                 
  the Department of Revenue.