Legislature(2001 - 2002)
04/26/2001 06:17 PM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 92
"An Act relating to removal of members of the board of
trustees of the Alaska Permanent Fund Corporation; and
providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Amendment # 1: This conceptual amendment changes the effective date
of the legislation to January 1, 2004, both in the language and in
the title of the bill.
Co-Chair Donley moved for adoption.
Senator Austerman objected for an explanation.
Co-Chair Donley explained the delayed effective date gives the
public time to review the issue. He stressed this is because
Governor Tony Knowles "felt so strongly" against it as reflected in
the veto message accompanying earlier legislation passed by the
legislature but vetoed by the governor approximately five years
prior. Co-Chair Donley surmised, "There must be some good
meritorious reason for being so strongly opposed to this."
Co-Chair Kelly opined that Governor Tony Knowles "fought" against
the earlier legislation because he wished to replace the existing
trustees with members he chose. Co-Chair Kelly remarked, now that
the governor's appointees are seated, the governor supports the
current legislation to prevent these trustees from being removed
without just cause. Co-Chair Kelly remarked this amendment allows
the legislation to "start with a clean slate with a new governor."
Senator Wilken expressed concern, saying this amendment politicizes
the matter further, when the intent of the legislation is to remove
politics from the process. He remarked that the current board is a
"functioning board" by all accounts regardless of the governor who
appointed the members.
Co-Chair Kelly commented, "There has never been any way in the
history of the State of Alaska that we could have ever predicted a
governor so political as this. The use of the statutes to gain his
political agenda dealing with the permanent fund board was, I
think, very egregious when he vetoed something that I think was in
the best interest of the state. Now that it protects the people
that he has in place, he wants those people protected." Co-Chair
Kelly said he supports the amendment, as it is enacted for a "new
governor-new rules". He expressed he did not want the dismissal for
just cause provision to apply to "all the people that were in under
the old layers of politics with the guy who pushed the envelope at
every level." He continued, "This is the guy who put his
name/picture on the permanent fund check."
Senator Austerman stated that if the effective date on the bill is
to be so far into the future, why the legislation is not voted
down. He agreed with Senator Wilken, that this amendment would
further politicize the issue. He agreed dismissal for just cause is
a worthy issue.
AT EASE 6:22 PM / 6:22 PM
AT EASE 6:22 PM / 6:24 PM
Senator Hoffman understood the question before the Committee is
whether it is good public policy to remove a trustee only for just
cause. He stated he supports this concept, which he also supported
when the earlier legislation was considered. However, he asserted
he opposes the amendment.
Senator Wilken referred to the Board's membership roster and noted
the terms of all four public members expire by the effective date
of the amendment, thus making the effective date mute.
Co-Chair Donley disagreed and explained that beginning in 2004,
removal of trustees for just cause only, would become law.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Leman, Senator Ward, Co-Chair
Donley and Co-Chair Kelly.
OPPOSED: Senator Austerman, Senator Hoffman, Senator Olson and
Senator Wilken.
The motion PASSED (5-4)
Co-Chair Donley offered a motion to move SB 92, 22-LS0462\A, as
amended, from Committee with accompanying zero fiscal note from the
Department of Revenue.
Senator Austerman objected, saying he thought the bill as amended
is "useless".
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Co-Chair Donley and Co-Chair Kelly
OPPOSED: Senator Hoffman, Senator Olson and Senator Austerman
The motion PASSED (6-3)
The bill MOVED from Committee.
AT EASE 6:27 PM / 6:30 PM
[Note: The following portion of the meeting failed to record on
Committee equipment. The Legislative Information Office made an
alternate recording; see tapes titled SFC-01 #86/II and SFC-01
#86/III. However, the sound quality of these tapes is poor.]
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