Legislature(1997 - 1998)
04/22/1997 09:15 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS for House Bill 208 (L&C) "An Act relating to the board of directors of the Alaska Aerospace Development Corporation." REPRESENTATIVE ALAN AUSTERMAN, SPONSOR, spoke in support of CSHB 208 (L&C). He explained that when the Alaska Aerospace Development Corporation (AADC) was initiated, board members were selected as a scientific team to assure that aerospace development was feasible in Alaska. He commended the work of the board and noted that a number of businesses had started in Fairbanks to support the infrastructure. He felt it was time to change the composition of the board by taking off scientific people and adding business people. Representative Austerman provided the committee with a breakdown of the proposed changes. He detailed that there were four members from the University of Alaska on the current board; the legislation would reduce the number to two. The number of aerospace members would be increased by one commercial space member. In addition, a business-sector state resident would be added. He noted that the only other significant change in the bill was a provision to change the chair of the board from the president of the University of Alaska to choosing the chairman and vice-chairman from the elected board. Senator Adams observed that there would also be a change from two to three out-of-state members. Senator Pearce questioned whether the industry positions (subsection 5) could be filled in-state. She expressed concern with the change from two to three "outside" members and questioned whether the sponsor would object to an amendment that would prevent the three outside members on the board from being elected chair or vice-chair of the board. Representative Austerman responded that he would not have a problem with the proposed amendment. He did not know whether the industry position could be filled in-state; he opined that it could not at the time. Senator Torgerson referred to the $100 per day reimbursement for meeting expenses (Section 3) listed in the fiscal note. He referred to historical costs and thought that a fiscal note should reflect the costs. Representative Austerman explained that the board met four times each year and that much of the work was done by teleconference. The department felt that it could absorb the increase in costs. The $10,000 fiscal note originally attached to the bill was zeroed out because he believed they would not need to bring people to the state. Senator Pearce queried the position of the administration. JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, spoke in support of the changes made in the legislation. He referred to a letter that recommended further changes, including decreasing membership from outside the state. The administration felt that there should be two out-of-state members with aerospace experience instead of three. He also suggested that public representation be increased from one to two. He observed interest by the community of Kodiak for local representation and concluded that Alaskans could have an interest in the board appointments. The department also recommended that the one university member would be sufficient. He emphasized that the recommendations were only suggestions for improvement, and that in general the department approved of the provision. Senator Pearce MOVED to ADOPT conceptual Amendment 1, which would require the board chair and vice-chair to be Alaskan residents. There being NO OBJECTION, conceptual Amendment 1 was adopted. Senator Pearce MOVED to ADOPT conceptual Amendment 2: Page 2, line 6: Delete "three" and insert "two" Page 1, line 8: Delete "two" and insert "three" Senator Pearce explained that there would then be three in-state business members with Alaskan marketing experience and two members with aerospace industry expertise. She observed that the executive director of the aerospace program already had years of experience. She argued for further Alaskan business connections. Representative Austerman did not object to the amendment. There being NO further OBJECTION, conceptual Amendment 2 was adopted. Senator Pearce MOVED to REPORT SCS CSHB 208 (FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SCS CSHB 208 (FIN) was REPORTED out of committee with a "do pass" recommendation and a zero fiscal note, House Labor & Commerce Committee/Department of Commerce and Economic Development, 4/9/97.
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