04/03/2014 05:00 PM House RULES
| Audio | Topic |
|---|---|
| Start | |
| SB124 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 124 | TELECONFERENCED | |
| + | SB 200 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RULES STANDING COMMITTEE
April 3, 2014
5:00 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Vice Chair
Representative Mike Chenault
Representative Mike Hawker
Representative Bob Herron
Representative Wes Keller
Representative Max Gruenberg
MEMBERS ABSENT
Representative Craig Johnson, Chair
COMMITTEE CALENDAR
SENATE BILL NO. 124
"An Act extending the termination date of the Council on
Domestic Violence and Sexual Assault; and providing for an
effective date."
- MOVED SB 124 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 124
SHORT TITLE: EXTENDING COUNCIL ON DOMESTIC VIOLENCE
SPONSOR(s): SENATOR(s) MEYER
01/22/14 (S) READ THE FIRST TIME - REFERRALS
01/22/14 (S) STA, FIN
02/13/14 (S) STA AT 9:00 AM BUTROVICH 205
02/13/14 (S) Moved SB 124 Out of Committee
02/13/14 (S) MINUTE(STA)
02/14/14 (S) STA RPT 4DP
02/14/14 (S) DP: DYSON, WIELECHOWSKI, COGHILL,
GIESSEL
02/24/14 (S) FIN RPT 5DP
02/24/14 (S) DP: FAIRCLOUGH, DUNLEAVY, BISHOP,
HOFFMAN, OLSON
02/24/14 (S) FIN AT 8:00 AM SENATE FINANCE 532
02/24/14 (S) Moved SB 124 Out of Committee
02/24/14 (S) MINUTE(FIN)
02/26/14 (S) TRANSMITTED TO (H)
02/26/14 (S) VERSION: SB 124
02/28/14 (H) READ THE FIRST TIME - REFERRALS
02/28/14 (H) FIN
03/06/14 (H) FIN RPT 8DP
03/06/14 (H) DP: GARA, GUTTENBERG, HOLMES, MUNOZ,
NEUMAN, T.WILSON, STOLTZE, AUSTERMAN
03/06/14 (H) FIN AT 8:30 AM HOUSE FINANCE 519
03/06/14 (H) Moved Out of Committee
03/06/14 (H) MINUTE(FIN)
04/03/14 (H) RLS AT 5:00 PM CAPITOL 120
WITNESS REGISTER
JOHN BURNS, Chairman
Alaska Gasline Development Corporation (AGDC)
Fairbanks, Alaska
POSITION STATEMENT: During hearing of SB 124, urged passage of
Amendment 1.
DAN FAUSKE, President
Alaska Gasline Development Corporation (AGDC)
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: During hearing of SB 124, spoke in favor of
Mr. Rabinow.
ACTION NARRATIVE
5:00:18 PM
VICE CHAIR OLSON called the House Rules Standing Committee
meeting to order at 5:00 p.m. Representatives Chenault, Hawker,
Herron, and Olson were present at the call to order.
Representatives Keller and Gruenberg arrived as the meeting was
in progress.
SB 124-EXTENDING COUNCIL ON DOMESTIC VIOLENCE
5:00:37 PM
VICE CHAIR OLSON announced that the only order of business would
be SENATE BILL NO. 124, "An Act extending the termination date
of the Council on Domestic Violence and Sexual Assault; and
providing for an effective date."
5:01:22 PM
REPRESENTATIVE CHENAULT moved that the committee adopt Amendment
1, labeled 28-LS1235\A.2, Martin, 3/24/14, which read:
Page 1, line 2, following "Assault":
Insert "; relating to the membership of the board
of the Alaska Gasline Development Corporation"
Page 1, following line 3:
Insert a new bill section to read:
"* Section 1. AS 31.25.020(b) is amended to read:
(b) Public members of the board shall be
appointed by the governor and are subject to
confirmation by the legislature. When appointing a
public member to the board, the governor shall
consider an individual's expertise and experience in
natural gas pipeline construction, operation, and
marketing; finance; large project management; and
other expertise and experience that is relevant to the
purpose, powers, and duties of the corporation. Public
members of the board serve staggered five-year terms.
A public member serves at the pleasure of the
governor. A vacancy shall be filled in the same manner
as the original appointment. Notwithstanding
AS 39.05.100, a public member appointed under (a)(1)
of this section is not required to be a registered
voter or a resident of the state."
Page 1, line 4:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill section accordingly.
VICE CHAIR OLSON and REPRESENTATIVE GRUENBERG objected for
purposes of discussion.
5:01:46 PM
REPRESENTATIVE CHENAULT indicated that he was mistaken in his
understanding that the sponsor of SB 124 had no objection to
amending the legislation per Amendment 1. He then clarified
that he did not intend to place the Council on Domestic Violence
and Sexual Assault at risk. Therefore, he said he would not
force the issue. He explained that he would like to discuss
Amendment 1, withdraw it, and then introduce legislation
tomorrow to address this issue such that AGDC [Alaska Gasline
Development Corporation] statute would be amended in order to
allow for out-of-state board appointments. He expressed hope
that the forthcoming legislation can make it through the process
before the legislature considers the appointments in joint
session. He expressed further hope to be able to vote on the
appointment of Mr. Rabinow of Texas on his merits, and thus Mr.
Rabinow's appointment has to be allowed by statute. However,
regardless of Mr. Rabinow's appointment, Representative Chenault
opined that AGDC statute needs to be amended to fix the
technical oversight and reflect the intent of the legislature.
He recalled that last year testimony was clear that the governor
has the ultimate discretion in appointing the most qualified
individuals to lead AGDC in carrying out its mission to develop
projects that get gas to Alaskans. Currently, the AGDC Board
includes two commissioners and per statute the governor appoints
five public members; the governor is encouraged to appoint
individuals who bring specific qualifications and expertise in
pipeline construction, large project management, and etcetera.
By statute, AGDC's mission requires the board and the
corporation to act in Alaska's best interest. The AGDC Board is
comprised of all Alaskans, save one member. Representative
Chenault opined, "Bear in mind that no matter how hard the board
works to develop a project with Alaskans' interests in mind, if
the board lacks the global expertise to bring a project to
fruition, we risk failing Alaskans. Alaskans loose if the
project is not developed, constructed on time and on budget and
under the terms with the major oil and gas producers." He
questioned who would better understand the way the major [oil
producers] operate than someone with Mr. Rabinow's knowledge and
resume.
REPRESENTATIVE CHENAULT characterized HB 4 as complex
legislation that laid out the structure of AGDC as a corporation
and defined what the legislature wanted as far as board
appointments, which is generally addressed in AS 39.05 - the
existing statute related to public officers and employees. He
highlighted that AS 39.05.100 requires board appointees to be
Alaskans unless otherwise provided for. House Bill 4 laid out
board requirements without specifically stating whether members
had to be an Alaskan or not. Furthermore, legal guidance and
testimony at the time was that HB 4 language allowed for out-of-
state individuals and Alaskans to serve. However, the
legislation neglected to specifically exempt AGDC from AS
39.05.100. Amendment 1 would, therefore, [exempt AGDC from AS
39.05.100 such that an out-of-state individual could serve on
the AGDC Board].
5:08:00 PM
JOHN BURNS, Chairman, Alaska Gasline Development Corporation
(AGDC), began by stating support for proposed Amendment 1 or any
amendment that would achieve the objective Representative
Chenault articulated earlier. Mr. Burns clarified that his
testimony is focused on the substance of Amendment 1, which if
passed would provide legal clarity as well as ensure that the
composition of AGDC's Board is best suited to achieve the
mission and responsibility that this legislature conferred upon
AGDC with the passage of HB 4. The AGDC, he emphasized, is
Alaska's gas pipeline company and is the product of what could
be argued to be the most comprehensive enabling legislation
passed in recent decades. House Bill 4 embodies the hopes of
Alaskans and the commitment of this legislature and
administration to ensure that Alaska's gas is developed and
available to Alaskans. As the chairman of AGDC, Mr. Burns
ensured the committee that AGDC's Board of Directors and staff
is mission oriented and focused on delivering its
responsibility. The passage of SB 138 would likely add to
AGDC's responsibilities as a board, which is to be expected
because it's imperative that any gas project in which this state
participates in an equity basis must be thoroughly evaluated and
analyzed. The passage of SB 138 would likely result in AGDC -
in conjunction with other state agencies - evaluating and
ultimately recommending to the legislature and administration
which of the two projects, the Alaska Stand-alone Pipeline
(ASAP) or the Alaska LNG Project, to sanction and in which to
invest. The legislature conferred tremendous responsibility on
AGDC and imbued AGDC with tremendous authority to achieve its
mission. However, the ability to ensure that AGDC succeeds is
critically dependent upon the composition of a board that has a
passion for the mission as well as the complimentary skill set
to achieve that mission. An effective board of directors, he
opined, must have a strategic perspective as well as the
experience and expertise to formulate and implement that
strategy. To a certain extent, it's unfortunate that Amendment
1 is essentially about one individual, Dick Rabinow. On the
other hand, Mr. Rabinow exemplifies why Amendment 1 makes sense
and why passage of such an amendment is in the state's best
interest, as the owner of AGDC. Mr. Burns said he shares the
comments and observations by Representative Chenault and others
who recognize Mr. Rabinow's four decades of pipeline experience
and his expertise in large project development, implementation,
and management. From a personal perspective, Mr. Burns attested
to Mr. Rabinow's integrity as a board member, his commitment to
AGDC's mission and objectives, and his active participation
during board and subcommittee meetings. Mr. Rabinow, he opined,
provides an owner's perspective and insight about pipeline
construction, operations, management, and financing that is
invaluable in assisting AGDC as it negotiates with potential
pipeline builders and operators as well as gas producers and
purchasers. Similar to the Alaska Aerospace Development
Corporation, AGDC's focus is on a specialized, highly technical,
financially sensitive industry and as such it's critically
important for the AGDC Board to be comprised of individuals with
the expertise and skill set to complement one another as well as
the mission of the corporation. Mr. Burns highlighted that this
nation and the state are founded on the basic principle that
what matters most is the individual and his/her personal
abilities and accomplishments not one's ethnicity, gender,
political affiliation, or residency. The best example of Mr.
Rabinow's commitment to AGDC and the state is found in the March
18, 2014, letter to Governor Parnell as it reflects a pragmatic,
practical, and business-oriented individual who is focused on
the best interest of AGDC and the state and carries an attitude
of service above self. Furthermore, Mr. Rabinow hasn't been
engaged in self-aggrandizement or taken sides in the legal
debate. In order to preserve his volunteer membership board
status, Mr. Rabinow thanked the governor for the opportunity to
have worked toward commercializing Alaska's natural gas
resources and graciously offered to resign his appointment to
the extent this legislature desires he do so. When Mr. Rabinow
volunteered as a board member of AGDC, he like every other AGDC
Board member took an oath of office and signed a confidentiality
agreement; the board's loyalty is to the state and the fiduciary
responsibility is to AGDC. Mr. Burns, speaking as the chairman
of the AGDC Board and an Alaskan, urged the committee to pass
Amendment 1 whether it is to SB 124 or any other [legislation]
that would enable the composition of the AGDC Board to achieve
the objectives of the State of Alaska.
5:15:35 PM
DAN FAUSKE, President, Alaska Gasline Development Corporation
(AGDC), Department of Commerce, Community & Economic Development
(DCCED), drawing from his experience working with Mr. Rabinow,
characterized his depth of experience as a major asset to AGDC's
management team. For example, shortly after his appointment Mr.
Rabinow made it a point to personally interview all of AGDC's
functional managers in order to understand their level of
experience, scope of duties, and project objectives. Mr.
Rabinow, he related, has maintained that level of involvement to
date. He opined that [the state] is fortunate to be able to tap
into his knowledge of regulatory matters, safety compliance,
engineering design, operations, as well as commercial applicants
of the [state's] projects. In conclusion, Mr. Fauske
acknowledged some of the issues at play and expressed the desire
to determine how to maintain someone of Mr. Rabinow's caliber on
the AGDC Board, as AGDC takes on this project. Mr. Fauske
stressed the need to consider that individuals such as Mr.
Rabinow are hard to replace in terms of their talent level and
loyalty. Mr. Fauske closed by thanking the committee for
allowing him to speak in favor of Mr. Rabinow, who has an
impressive resume.
5:17:37 PM
REPRESENTATIVE HAWKER commented that the issue before the
committee is not about Mr. Rabinow; rather the issue is about
clarifying and fixing the legislature's intent in crafting HB 4.
As a joint prime sponsor of HB 4, Representative Hawker said
that he absolutely wants to confirm and endorse Representative
Chenault's statements regarding the intent with HB 4. He
specified that his intent was to empower the governor to select
a board of directors who were the best and brightest people with
the most appropriate and comprehensive experience available for
this type of project. This project, he opined, is so
significant to the state that he expressed the need to be sure
that the best people are brought to the table to guide the
project. As mentioned earlier, the legislature maintains a
strong position in evaluating people appointed by the governor
through the confirmation process. Again, the issue before the
committee is not the confirmation process or Mr. Rabinow, but
the desire for AGDC to be made up of the best and the brightest.
Therefore, he emphasized the need for an amendment or
legislation to that effect to achieve the aforementioned.
5:20:57 PM
VICE CHAIR OLSON mentioned that he and Representative Hawker
just left a House Resources Standing Committee meeting in which
the consultants representing the administration and the
consultants representing the legislature were from outside of
the state. He acknowledged that these consultants are making a
lot of money, but pointed out that Mr. Rabinow will be paid
about $400 per day, which he characterized as a bargain.
5:21:58 PM
REPRESENTATIVE GRUENBERG noted his appreciation for
Representative Chenault's statement. He also noted that
although he doesn't know Mr. Rabinow, he sounds like a very
qualified person. Representative Gruenberg clarified that his
interests are legal because there are potential issues that have
nothing to do with Mr. Rabinow or AGDC, but have to do with
other legal issues that this is presenting. He opined that it's
important to try to work together in order to do what's right
for the state, and therefore he said he looked forward to moving
forward in a positive manner.
5:24:16 PM
REPRESENTATIVE GRUENBERG withdrew his objection to Amendment 1.
VICE CHAIR OLSON [maintained] his objection to Amendment 1.
5:24:45 PM
REPRESENTATIVE HERRON noted his appreciation for the comments by
Representative Chenault and the forthcoming legislation [to
address the subject embodied in Amendment 1].
5:25:00 PM
REPRESENTATIVE KELLER thanked Representative Chenault for
bringing the issue forward as clarification on it is necessary.
He then expressed the desire to have the best [qualified]
individual serve on the AGDC Board. Representative Keller said
that although he doesn't know Mr. Rabinow, his resume seems to
indicate that he'll be hard to match.
5:25:33 PM
REPRESENTATIVE CHENAULT thanked committee members for their
comments. He emphasized that if the best individual for the
position is an Alaskan, then that's who he wants to have.
However, sometimes it doesn't work out that way, he opined.
Representative Chenault echoed earlier remarks that he wants the
best, brightest, and most knowledgeable individuals for the AGDC
Board.
5:27:11 PM
REPRESENTATIVE CHENAULT withdrew Amendment 1.
5:27:32 PM
VICE CHAIR OLSON, upon determining there was no one else who
wished to testify, closed public testimony on SB 124.
The committee took a brief at-ease.
5:28:09 PM
REPRESENTATIVE CHENAULT moved to report SB 124 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, SB 124 was reported from the
House Rules Standing Committee and was available for
calendaring.
5:28:24 PM
ADJOURNMENT
There being no further business before the committee, the House
Rules Standing Committee meeting was adjourned at 5:28 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB0124A.pdf |
HRLS 4/3/2014 5:00:00 PM |
SB 124 |
| SB0124-1-2-021414-DPS-Y.pdf |
HRLS 4/3/2014 5:00:00 PM |
SB 124 |
| Speaker's Memo 3.31.14.pdf |
HRLS 4/3/2014 5:00:00 PM |
SB 124 |
| Amendment 28-LS1235. A.2.pdf |
HRLS 4/3/2014 5:00:00 PM |
SB 124 |