Legislature(2009 - 2010)

04/14/2010 05:02 PM Senate L&C


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                    HB 363-AIDEA MEMBERSHIP                                                                                 
                                                                                                                                
5:03:52 PM                                                                                                                    
CHAIR PASKVAN announced HB 363 to be up for consideration.                                                                      
[Before the committee was CSHB 363(FIN), version P].                                                                            
                                                                                                                                
5:04:00 PM                                                                                                                    
ROB EARL, staff to Representative Bob Herron, Erin Harrington,                                                                  
staff to Representative Alan Austerman, introduced themselves.                                                                  
                                                                                                                                
5:04:24 PM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
MR. EARL said  that the Alaska Industrial  Development and Export                                                               
Authority  (AIDEA) is  a public  development finance  corporation                                                               
whose  mission  is  to  promote  economic  growth  in  Alaska  by                                                               
providing various  means of financing an  investment. If fulfills                                                               
this  mission  by providing  Alaskan  businesses  with long  term                                                               
financing options at  a reasonable cost. Each  year 25-50 percent                                                               
of the return  on its assets are redistributed back  to the state                                                               
general fund as a dividend; this year it was $23 million.                                                                       
                                                                                                                                
He  said  the  AIDEA  board  also serves  as  the  Alaska  Energy                                                               
Authority (AEA)  Board. Currently there  are five members  on the                                                               
AIDEA Board: the commissioner of  the Department of Revenue (DOR)                                                               
and Department  of Commerce,  Community and  Economic Development                                                               
(DCCED). Those  two commissioners are  on it by statute.  A third                                                               
discretionary  commissioner  is  appointed by  the  Governor  and                                                               
currently he is with the  Department of Transportation and Public                                                               
Facilities (DOTPF); two public members  are also appointed by the                                                               
Governor. This bill  adds three more public members  to the board                                                               
expanding it from  five to seven members. HB  363 also stipulates                                                               
that  public  members  must   possess  business  and/or  industry                                                               
expertise and leadership skills.                                                                                                
                                                                                                                                
The reasons  for expanding  to a seven-member  board are  that it                                                               
would  give  AIDEA  more flexibility  in  forming  subcommittees,                                                               
which  they  have  expressed  a  desire  for,  and  increase  the                                                               
potential  for  more diverse  experience  in  specialties on  the                                                               
board while also increasing the  potential for broader geographic                                                               
and industry representation.  It will also allow  for the general                                                               
thrust  of  the bill,  which  is  to  create a  preponderance  of                                                               
private sector input in AIDEA's governance.                                                                                     
                                                                                                                                
5:06:49 PM                                                                                                                    
MS. HARRINGTON added  that this bill, like SCR 16,  responds to a                                                               
need that was identified through the  course of the Interim to be                                                               
more  proactive   about  the   state's  resources   for  economic                                                               
development  and  to  bring more  private  sector  oversight  and                                                               
guidance in to the way the state deploys its resources.                                                                         
                                                                                                                                
CHAIR PASKVAN asked if they knew of any opposition.                                                                             
                                                                                                                                
MR. EARL answered no; it passed the house with a vote of 40-0.                                                                  
                                                                                                                                
5:07:47 PM                                                                                                                    
TED LEONARD,  Executive Director,  AIDEA, said they  supported HB
363. Getting a  quorum is sometimes a  problem during legislative                                                               
sessions  and  fishing  seasons  with  a  five-member  board,  he                                                               
explained. They  also support having  more private  sector input;                                                               
it   is  necessary   and  important.   He  remarked   that  their                                                               
commissioners have given them very good advice.                                                                                 
                                                                                                                                
5:09:16 PM                                                                                                                    
CHAIR  PASKVAN,  finding  no   further  comments,  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
SENATOR  MEYER  moved  to  report  HB  363  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
were  no  objections  and  it  was  so  ordered.  Therefore  CSHB
363(FIN) moved from committee.                                                                                                  
                                                                                                                                
5:10:28 PM                                                                                                                    
CHAIR PASKVAN announced an at ease from 5:10-5:11 p.m.                                                                          
                                                                                                                                

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