02/11/1998 08:40 AM Senate FIN

                                                                               
SENATE BILL NO. 234                                                            
"An Act extending the termination date of the Board of                         
Governors of the Alaska Bar Association."                                      
                                                                               
                                                                               
Co-Chair Pearce pointed out to the committee materials                         
before them relating to this bill.  They included a                            
statement from the Board of Governors of the Alaska Bar                        
Association, a Legislative Budget and Audit report and a                       
written response to that report from the Alaska Bar                            
Association.                                                                   
                                                                               
David Bundy, and attorney and member of the ABA, testified                     
in favor of the bill that would extend the sunset deadline.                    
He stated that the current program has been running well for                   
many years and, because of membership dues, no state funding                   
is required to administer.                                                     
                                                                               
When Co-Chair Pearce opened the floor to questioning,                          
Senator Phillips asked if the state was considering changes                    
recommended by the Supreme Court.  Mr. Bundy answered that                     
this bill would approve those changes.                                         
                                                                               
Senator Torgerson announced his membership on a committee of                   
the ABA and asked advice of the chair whether he should be                     
allowed to participate in discussion and voting on this                        
measure.  Co-Chair Pearce ruled that by giving this                            
disclosure, it would be appropriate for him to fully                           
participate.                                                                   
                                                                               
Senator Donley requested an outline of the current budget of                   
the ABA.  He voiced concerns with the amount of spending                       
incurred by the ABA.  He said he would like to see back up                     
material showing justifications for these expenditures.  Co-                   
Chair Pearce offered the option of holding the bill in                         
committee until this information is produced and committee                     
members have a chance to analyze.                                              
                                                                               
She had a question on how excess revenue is administered.                      
Mr. Bundy explained a long-range budget plan in place that                     
raises dues in anticipation of higher budget years.  Extra                     
monies are invested during the first few years after a                         
membership dues hike.  Over the following years, as budget                     
needs increase, funds are taken from those investments thus                    
delaying the next dues increase.  Co-chair Pearce commented                    
that while this is not necessarily a bad system, it does                       
differ from other boards and commissions in the state.                         
                                                                               
Co-Chair Pearce then ordered SB 234 held in committee with a                   
time specific date of February 24.  She asked that Mr. Bundy                   
get the requested information to Senator Donley before this                    
time.                                                                          
                                                                               
                                                                               
ADJOURNMENT                                                                    
                                                                               
Co-Chair Pearce adjourned the meeting at approximately                         
9:25 am.                                                                       
SFC-98 (5) 2/11/98 am