Legislature(1999 - 2000)
02/17/2000 08:05 AM House STA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HJR 52-CONFIRM PUBLIC CORP BD MANAGING ASSETS Number 0040 CHAIR JAMES announced the first order of business is HOUSE JOINT RESOLUTION NO. 52, "Proposing an amendment to the Constitution of the State of Alaska relating to certain public corporations." CHAIR JAMES presented the sponsor statement for HJR 52 as follows: Alaska's Constitution currently provides for legislative confirmation of all boards or commissions which are the head of a principal department or a regulatory or quasi-judicial agency. An example would be the Department of Fish and Game. Public corporations, which manage and control billions of dollars of state assets and have a tremendous impact on the economy of our state, are not included in this provision. Their members are not subject to legislative confirmation. An example is the Permanent Fund Corporation. I believe these public corporation boards should also be required to undergo formal appointment and confirmation, thereby making the public and their elected representatives part of the process. House Joint Resolution 52 would amend Alaska's constitution to require this. Number 0215 CHAIR JAMES noted that HJR 52 is the same as the corresponding Senate bill. She stated that the Permanent Fund Board manages the largest single state asset, and it seems to her that board management can change overnight on the whim of a governor, as happened when former Governor Hickel and Governor Knowles took office. She does not think such a procedure is good business policy because it wipes out continuity. Although she does approve the appointments being made by a governor, she wants to see continuity in maintaining expertise. CHAIR JAMES noted that she had tried to change the present manner of appointing board members to the Permanent Fund Corporation [in particular] by statute, but found any change had to be by constitutional amendment. She commented that the factor that determines whether a corporation or board is listed in the constitution is if the legislature confirms the appointees. She explained that the Permanent Fund Corporation is not listed in the constitution; therefore, the legislature does not have jurisdiction to confirm appointees to the board. She indicated HJR 52 is important to her and urged its careful consideration. She emphasized that maintaining continuity does not preclude a change in policy to conform with the ruling administration. She reminded the committee that new board members of any organization have to learn the whole process, so she does not approve of replacing an entire board at the whim of any new administration. She said HJR 52 applies to all boards, commissions and public corporations, not just to the Permanent Fund Corporation. She mentioned that many Alaskans even question the need for all the state boards. Number 0501 REPRESENTATIVE OGAN inquired about the exclusion clause on lines 12-14, page 1, which read: "With respect to public corporations, the legislature may by law exclude the applicability of this section based on the type or value, or both, of the State assets that are managed by the public corporation." CHAIR JAMES replied that the legislature could exclude certain public corporations, not necessarily boards and commissions, if it so desired. For example, the legislature could exclude the Alaska Railroad Corporation (ARRC) or the Alaska Housing Finance Corporation (AHFC) by law. Number 0580 REPRESENTATIVE OGAN requested a list of the public corporations. CHAIR JAMES replied that the list she has is a list of boards and commissions. She wondered if the committee might want to allow certain boards and commissions to be excluded also from legislative confirmation; an example is the occupational licensing boards. She said according to her understanding, industries that are monitored by occupational licensing boards submit candidates for the governor's approval. She reminded the committee that many board candidates are confirmed by the legislature since they are already under legislative authority. REPRESENTATIVE OGAN asked if it was Chair James' intent, in accord with lines 12-14, page 1, of HJR 52, to allow legislators to pick and choose among public corporations the ones that the legislators wanted to confirm. Number 0784 CHAIR JAMES answered yes. However, to do that the committee needs to pass a constitutional amendment, HJR 52. Number 0796 REPRESENTATIVE WHITAKER asked if the Aerospace Development Corporation, the AHFC, the Permanent Fund Corporation, the ARRC and the Student Loan Corporation are the only public corporations not currently subject to legislative approval. CHAIR JAMES replied in the affirmative. She said that by HJR 52 she is adding chief administrators of public corporations to Article III, Section 26, of the state constitution. REPRESENTATIVE WHITAKER asked if the current procedure is "broken" and if there are specific areas that Chair James has identified and wants to change. CHAIR JAMES answered yes and cited the Permanent Fund Board as her specific area of concern. For example, when former Governor Hickel came into office, he dismissed the entire Permanent Fund Board and re-established the board with his own appointees. She said she does not believe partisan people should be managing vast amounts of public funds through public corporations. She reiterated the necessity of maintaining continuity on the public corporations because new board members simply do not have the experience that a productive, older board member has to offer. Number 1019 REPRESENTATIVE WHITAKER voiced his understanding that each member of a board would be subject to approval by the legislature. CHAIR JAMES confirmed that. She acknowledged that sometimes the legislature does deny a confirmation, and offered her belief that most members of boards and commissions are chosen on a partisan basis. REPRESENTATIVE KERTTULA said she is thinking about HJR 52 from a different angle. She wonders why Article III, Section 26, was set up the way it is. Alaska has a "strong governor" administration, and yet the legislature requires all boards and commissions to obtain confirmation from the legislature. She also wonders what, if any, public corporations, existed when the state constitution was written. She suspects that maybe the constitution drafters' intention would have been to include all boards, commissions and public corporations if public corporations had existed at that time. She commented that what bothers her regarding HJR 52 is the exception, because that is when things start getting political. Number 1215 CHAIR JAMES said if she found exceptions were to be made, she would find them in boards and commissions rather than in public corporations. The confirmation process is more than the vote on the floor: it is the public process of the hearing and requiring the candidate to appear before the committee. She reiterated that public process is missing in public corporation appointees. Her reasoning is that if boards and commissions are so important as to be confirmed by the legislature, then certainly public corporations are much more important due to the vast amounts of public funds that they control. She suggested that if there are no exceptions for boards and commissions, then maybe there ought not to be any for public corporations. Number 1387 REPRESENTATIVE OGAN made a motion to move HJR 52 out of committee with individual recommendations and the attached fiscal note. There being no objection, HJR 52 moved from the House State Affairs Standing Committee.
| Document Name | Date/Time | Subjects |
|---|