Legislature(2015 - 2016)BARNES 124
03/30/2016 01:00 PM House RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB125 | |
| HB282 | |
| HB253 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 253 | TELECONFERENCED | |
| *+ | HB 282 | TELECONFERENCED | |
| + | SB 125 | TELECONFERENCED | |
| += | HB 286 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 125-LEGISLATIVE MEMBERS OF AGDC BOARD
1:03:31 PM
CO-CHAIR TALERICO announced that the first order of business is
CS FOR SENATE BILL NO. 125(RES), "An Act adding legislative
nonvoting members to the board of directors of the Alaska
Gasline Development Corporation."
1:04:15 PM
SENATOR MIA COSTELLO, Alaska State Legislature, paraphrased from
her sponsor statement, written as follows [original punctuation
provided]:
Senate Bill 125 amends state law by adding two
legislators as ex-officio (nonvoting) members to the
Board of Directors of Alaska Gasline Development
Corporation (AGDC).
As the AKLNG project moves forward, the State of
Alaska will face increasingly complex financing and
policy decisions. AGDC is the state's primary
representative in the project and will be a focal
point for these discussions in the coming years. It is
essential the state have a transparent, clear decision
making process in place. Senate Bill 125 helps
accomplish this by giving all parties a seat at the
table.
The AGDC Board of Directors currently consists of five
public members appointed by the Governor and two
commissioners of state departments. The commissioners
for the Department of Revenue and Department of
Natural Resources are prohibited from serving on the
board. Having legislators participate in an advisory,
nonvoting capacity adds experience and continuity to
the board. Legislators understand the type of budget
decisions that will be needed to meet the state's cash
calls for a gasline project, and would be helpful for
discussions on project financing. Senate Bill 125 will
also increase collaboration on the project as any
contract over two years in duration must be ratified
by the Legislature.
SENATOR COSTELLO stressed that the importance of the gasline
cannot be understated. Alaskans are following this project and
during the last session the legislature received updates from
AGDC. She described it as a generational project, one of the
largest engineering projects in the world, and said this bill
will help facilitate communication and teamwork between the
legislature and the AGDC Board and move this important project
forward. Given the importance of the project, she said there is
a need for transparent and clear decision making and the best
way to make these decisions is to give all parties a seat at the
state's table. Having legislators will provide perspective,
institutional knowledge, and continuity; for example, six of the
seven AGDC board seats turned over during the past year. The
precedent in legislators serving on the board is that
legislators currently serve on over a dozen state boards and
commissions, including the Knick Arm Bridge Authority, the
Alaska Aerospace Corporation, and the Alaska Seafood Marketing
Institute. Each of those boards has two legislators as
nonvoting ex officio members and serving as nonvoting members
alleviates any constitutional concerns. The AGDC's mission and
authority has expanded greatly during the past six years and has
evolved to be the focal point of state decision making on
developing liquefied natural gas on behalf of the state. It is
important that the structure of organizations such as this are
able to adapt to the types of decision making needed for a
project of this magnitude. Legislators understand the type of
budgeting decisions necessary to meet the state's cash calls and
it would be helpful to have two legislators there to listen and
participate in those discussions. Legislators at the table also
lets policy makers better understand the ADGC Board's view of
the business decisions facing the state. She reiterated that
the gasline is one of the most important projects the
legislature has before it and this bill promotes further
cooperation, teamwork, and collaboration between the members of
the ADGC Board and the legislature.
1:08:35 PM
REPRESENTATIVE SEATON asked how the sponsor addresses the
prohibition of legislators holding dual offices under the
constitution and legislative members being in the executive
branch.
SENATOR COSTELLO responded that the bill was amended to require
that legislators would not be paid per diem or receive any sort
of financial benefit. When looking at the separation of powers
among the branches, it is the judicial branch that would weigh
in as to whether or not there is a constitutionality issue. She
reminded the members of the precedent of members sitting on
boards and corporations and if that is an issue, it may be
something that is taken up as a group.
REPRESENTATIVE SEATON put forth that many of the topics that
would be discussed would require confidentiality. He asked
whether the legislators would be expected to sign
confidentiality statements and how would they share information
back to the legislature.
SENATOR COSTELLO responded that she is aware of only one member
of the AGDC Board, currently, that has signed a confidentiality
statement and, therefore, if it is not an issue for the current
members on the board she does not see why it would be an issue
for ex officio members.
1:11:01 PM
REPRESENTATIVE JOSEPHSON asked whether members of the Alaska
Aerospace Development Corporation and Alaska Seafood Marketing
Institute (ASMI) are appointed by the executive branch.
SENATOR COSTELLO answered that she is uncertain but believes
they are appointed by the leadership in the House and Senate.
REPRESENTATIVE JOSEPHSON inquired whether there are any
competing legal opinions from any source.
SENATOR COSTELLO responded that under [South Carolina v. Public
Interest Foundation and Edward D. Sloan v. South Carolina
Transportation Infrastructure Bank, 379 S.C. 160, 169, 666
S.E.2d 236, 241 (2008)], the court decided in favor of ex
officio members who serve in the legislature also serving on the
board. State courts are currently split on the issue, she said.
1:12:23 PM
REPRESENTATIVE SEATON surmised that in the event the appointees
are challenged, it would probably go through a long legal
process. He asked whether that would mean ADGC would either be
at risk at having any of its decisions overturned or would not
be able to make any decisions until the lawsuit was resolved.
SENATOR COSTELLO reiterated that these ex-officio members would
be nonvoting and if this bill were to pass, any decision made by
the board would be made by the voting members of the board and
not the two listening participating members who are there simply
to have a seat at the table. The spirit in which the bill has
been offered is for cooperation and communication, so she does
not see why that would be an issue.
1:13:33 PM
REPRESENTATIVE JOSEPHSON referred to how the AGDC has evolved,
and asked whether the board in its present iteration happened in
2013 as part of Senate Bill 21. He further asked whether part
of the argument is that that section of Senate Bill 21 needs
reform.
WESTON EILER, Staff, Senator Mia Costello, Alaska State
Legislature, offered his belief that Representative Josephson is
referring to the changes that were made to the Alaska Gasline
Development Corporation with passage of Senate Bill 138 in 2014.
That bill outlined and structured the Alaska Gasline Development
Corporation (AGDC) as it is currently arranged.
1:14:44 PM
REPRESENTATIVE HERRON inquired about the catalyst and need for
this legislation.
SENATOR COSTELLO answered that last session it became evident
that the communication and transparency amongst the interested
parties could be improved. The impetus for this bill is to help
with communication and certainly if there were two legislators
sitting on this board as ex officio listening and participating
members it would add to the conversation. She said she has
heard from members of the legislature, currently sitting on
other boards and corporations, that their participation is
viewed as aiding the discussion and an asset to the corporation.
1:15:58 PM
REPRESENTATIVE JOSEPHSON recalled that Representative Tarr and
he attended an ADGC meeting with a number of senators. He asked
whether there is any reflection in attendance by the 60
legislators of interest in those meetings as they are happening.
SENATOR COSTELLO replied there is extreme interest in what is
happening at AGDC board meetings. However, the board goes into
executive session that cannot be attended by anyone else, and as
the people's branch of government it is incumbent upon the
legislature to be there. She noted the concerns focusing mainly
on the role of the legislature and its participation, but
pointed out that the role and scope of the project is of such
magnitude it warrants a legislative view.
1:18:06 PM
CO-CHAIR TALERICO commented it would appear that with the
nonvoting, uncompensated capacity this does not appear to be
advisory as much as the legislature having a communication line
open for better transparency and communication between the
legislature and the board. He asked whether that was the
sponsor's intent with this legislation.
SENATOR COSTELLO responded yes. She said it is common worldwide
for corporations to have what would be considered viewing
participating members who do not vote but are there as part of
the discussion and listening.
1:19:05 PM
REPRESENTATIVE TARR said she does not have a problem with adding
legislators because the role would be nonvoting members.
However, she noted, if the board goes into executive session and
the legislative members are able to participate, there is no
mechanism for that information to be shared with other
legislators. In the event the legislative members were
participating and there was a clear communication breakdown,
whether or not there is a way to make it a greater asset for the
legislature in the sense that it could then, perhaps through
executive session of the legislature, learn the information.
SENATOR COSTELLO answered that the ex officio nonvoting
legislative participants would be under the same guidelines as
the rest of the board so would not necessarily be able to share
the information. She described it as a confidence building
effort to have the legislative branch in those meetings.
1:20:42 PM
[CSSB 125(RES) was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 253 Version N.pdf |
HRES 3/30/2016 1:00:00 PM |
HB 253 |
| HB 282 Ver. P.PDF |
HRES 3/30/2016 1:00:00 PM |
HB 282 |
| HB 282 Sponsor Statement.pdf |
HRES 3/30/2016 1:00:00 PM |
HB 282 |
| HB 282 Sectional Analysis.pdf |
HRES 3/30/2016 1:00:00 PM |
HB 282 |
| HB282-LEG-OP-02-04-16.pdf |
HRES 3/30/2016 1:00:00 PM |
HB 282 |
| AGDC Board Members.pdf |
HRES 3/30/2016 1:00:00 PM |
HB 282 |
| 2015 12 07 Legal Memo - Leg Members AGDC Board.pdf |
HRES 3/30/2016 1:00:00 PM |
HB 282 |
| SB 125 Sponsor Statement.pdf |
HRES 3/30/2016 1:00:00 PM |
SB 125 |
| SB 125 Fiscal Note.pdf |
HRES 3/30/2016 1:00:00 PM |
SB 125 |
| SB 125 (RES) Version P.pdf |
HRES 3/30/2016 1:00:00 PM |
SB 125 |
| CS HB 253 Amendments Ver. N Packet.PDF |
HRES 3/30/2016 1:00:00 PM |
HB 253 |