Legislature(2005 - 2006)CAPITOL 106
02/16/2006 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB238 | |
| SB186 | |
| HB347 | |
| HB344 | |
| SB12 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 344 | TELECONFERENCED | |
| + | SB 12 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 347 | TELECONFERENCED | |
| += | HB 238 | TELECONFERENCED | |
| += | SB 186 | TELECONFERENCED | |
SB 12-LIMIT RELATIONS WITH CERTAIN NATIONS 10:01:57 AM CHAIR SEATON announced that the last order of business was CS FOR SENATE BILL NO. 12(STA), "An Act relating to financial relationships with persons conducting business in or having headquarters in countries that support or ignore slavery and trafficking in persons." 10:02:13 AM SENATOR FRED DYSON, Alaska State Legislature, as sponsor of SB 12, told the committee that late in the Clinton Administration, in response to the international problem of human slavery and trafficking, the [Trafficking Victims Protection Act (TVPA)] was passed, with support from virtually every member of U.S. Congress. He stated, "The present administration has put a lot of teeth in it." He explained that the Department of State produces a report ranking how all the countries in the world are doing in regard to human trafficking and slavery. It is estimated that approximately 4 million people are in involuntary slavery worldwide. SENATOR DYSON spoke of tiers that the Department of State has named to rank each country's efforts in regard to human trafficking. [This information is shown in a handout in the committee packet entitled, "Facts About Human Trafficking," and read as follows, original punctuation provided:] Tier 1: Countries that fully comply with the act's minimum standards for the elimination of trafficking. Tier 2: Countries that do not fully comply with the minimum standards but are making significant efforts to bring themselves into compliance. Tier 2 Watch List: Countries on Tier 2 requiring special scrutiny because of a high or significantly increasing number of victims; failure to provide evidence of increasing efforts to combat trafficking in persons; or an assessment as Tier 2 based on commitments to take action over the next year. Tier 3: Countries that neither satisfy the minimum standards nor demonstrate a significant effort to come into compliance. Countries in this tier are subject to potential non-humanitarian and non-trade sanctions. SENATOR DYSON said he has engaged in extensive conversation with the [Department of State] and has been told that being on "the good guy list" is important in many countries, because there is tremendous pressure to restrict money from international and United Nations funds being sent to those on the Tier 3 list. SENATOR DYSON reported that Alaska is the first state to consider such legislation on a state level. He noted that the [Department of State] is hoping that many other states will follow. The State of Alaska is in a unique position, he said, because of the $32 billion dollars it has in investments [from oil revenue monies]. Furthermore, he said the international petroleum industry is looking for places to invest and often conducts business in Tier 3 countries, and he stated his belief that Alaska's ability to leverage the petroleum companies to "be good citizens" will have a salutary effect. SENATOR DYSON said SB 12 "sailed" through the Senate committees in which it was heard, and has almost every Senator as co- sponsor. The administration issued [Administrative Order No. 227 on December 13, 2005], "to do exactly what this bill requires," which he said he appreciates. He explained that the reason he wants to pass this legislation is so that subsequent legislations do not, because of financial pressure, back off in helping "to solve this." 10:05:16 AM CHAIR SEATON noted that the language regarding procedures is the same for the legislature, the court system, and the administration, but on page 3, line 15, of CSSB 12(STA), the requirement for ["the fiduciary of a state"] adds, "or other list of countries prepared by the United State Secretary of State under 22 U.S.C. 7107(b)(1)(C)." 10:07:29 AM SENATOR DYSON explained: First of all, we included exact language for the permanent fund and the other investment funds, and those guys got pretty concerned, and what you have before us is ... compromise language. Because they are bound by what's called the prudent investor rule, and we have by and large said that the permanent fund investments will not be used for anything except enhancing the investment. So, using - as many of us have thought - the permanent fund for projects in Alaska, for instance, they are encouraged to not do that. So, ... this language you have before you here is trying to take advantage of the prudent investor rule. SENATOR DYSON indicated that the reference to the "other list" is in regard to the Tier 2 Watch List. 10:08:28 AM JASON HOOLEY, Staff to Senator Fred Dyson, Alaska State Legislature, testifying on behalf of Senator Dyson, sponsor of SB 12, stated, "I don't think it was intentional that the language does not match. ... I think that when we drafted this, the reference to the federal code, [22 U.S.C. 7107(b)(1)(C)], ... specifically mentions this trafficking persons report, and the drafter felt that we need to be a little broader just in case they change the name of the list, but it would be the same type of list." 10:09:15 AM CHAIR SEATON asked the sponsor to consider making the language in the bill consistent by removing the additional citation to the "other list". He stated that it could be problematic for there to be more than one list noted. 10:10:08 AM REPRESENTATIVE RAMRAS highlighted the fact that the bill has 17 cosponsors in the other body, and he said he would like to expedite its passage out of committee. 10:10:25 AM REPRESENTATIVE GRUENBERG directed attention to page 3, line 13: "restrict direct financial investments with countries listed in Tier 3". He stated that he doesn't think Alaska has an investment with a country. He said Alaska's investments would normally be with a company or in an asset somewhere, and he recommended looking at that phrase. He added that the bill looks like a good one. 10:11:18 AM CHAIR SEATON stated his appreciation for the handout in the committee packet entitled, "Tier Placements," and he read a selection of countries listed on the page: United Arab Emirates, Venezuela, Saudi Arabia, Qatar, Kuwait from the Tier 3 list; and Russia, People's Republic of China, India, and Mexico from the Tier 2 Watch List. He queried whether the sponsor has asked the Permanent Fund Corporation what the implications would be of having to divest from its dealings with any of those countries listed. He said, "It seems to be that we have half of the world's oil-producing countries there, and ... Mexico, China, India, [and] Russia are huge trading partners. I'm just trying to figure out what the implication of the [bill] is." 10:12:19 AM SENATOR DYSON said SB 12 would only require that Alaska not do business with firms that are headquartered in Tier 3 countries. He stated, "If a country moves from Tier 2 to Tier 3, and that costs us money, I think that that's fine. I am not willing to deal [with], nor am a willing to make money from countries that are trafficking in children, and if that hurts our investment and saves some children the horrendous impact of being prostituted with largely government assent - which is all the Tier 3 countries - I'm glad for us to lose that investment and whatever bit of marginal income that we get from it." He added that he has had pointed discussions with the permanent fund board and its members are in agreement. 10:13:30 AM CHAIR SEATON said the bill, under Section 4, would require restriction of direct financial investments. He echoed Representative Gruenberg's question as to whether that means with the countries, or with companies that have headquarters in those countries. He said, "That's listed out under the administration, under the court, and under the legislature, but that's not listed under the permanent fund, and I'm not sure, as I see it here, that it restricts it that way." 10:14:34 AM MR. HOOLEY told Chair Seaton that he would supply the committee with information from the Permanent Fund Corporation that would answer that question. 10:14:43 AM SENATOR DYSON offered his understanding that in "most of those countries" the petroleum industry has been nationalized. 10:14:48 AM REPRESENTATIVE ELKINS, in response to a question from Representative Gruenberg, said Great Britain is listed [under Tier 1] as "United Kingdom." 10:15:11 AM REPRESENTATIVE GARDNER applauded Senator Dyson for bringing this legislation forward. She stated, "I just want to clarify my understanding that this is not optional; ... it's definitive." [SENATOR DYSON nodded yes.] CHAIR SEATON thanked Senator Dyson for his work on the issue and said the committee would take up SB 12 again as soon as the information that it had requested is received. 10:15:50 AM REPRESENTATIVE GRUENBERG commended Senator Dyson for "coming up with something here that can unite us all." [SB 12 was heard and held.]
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