Legislature(1995 - 1996)

03/09/1995 03:35 PM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
 SSTA - 3/9/95                                                                 
         SB  89 PERMANENT FUND BOARD MEMBERS & STAFF                         
 SENATOR SHARP brings up SB 89 as the next order of business before            
 the Senate State Affairs Committee and calls the first witness.               
 Number 360                                                                    
 SENATOR RIEGER briefly summarizes the sponsor statement.  Senator             
 Rieger summarizes the feedback from the Alaska Permanent Fund                 
 Corporation (APFC), saying the corporation is neutral on SB 89.  He           
 has received two suggestions for amendments.  The first suggestion            
 was that the language, "recognized competence and wide experience             
 in investment portfolio management" is to demanding a requirement             
 for all members of the board to have.  So Senator Rieger asks that            
 the bill be changed to require just two members of the board to               
 have that kind of experience.  The second suggestion was that the             
 term, "for cause" was very broad and vague.  So in the second                 
 amendment, Senator Rieger attempts to spell out what that term                
 would entail.  He models the definition of "for cause" on other               
 definitions already in Alaska Statutes.                                       
 SENATOR LEMAN wants to know under the term, "for cause" if there              
 would be instances of personal behavior or activities for which a             
 board member could be removed.                                                
 SENATOR RIEGER states the definition is modeled after references to           
 the Commissioner of the Department of Education, and address only             
 performance in office and performance related to the duties in                
 office.  Where "for cause" is spelled out, performance has to do              
 with performance in office, and not performance outside of office.            
 SENATOR LEMAN comments there are some things that are so vile, he             
 thinks everyone would want to see that person removed from office.            
 SENATOR RIEGER states the more broad that definition is, the harder           
 it will be to determine whether the removal really was done for               
 cause.  At some point, the outside action of a member may trigger             
 dismissal under paragraph (1), which addresses inability to perform           
 SENATOR LEMAN comments, such as if the person was in jail.                    
 Number 440                                                                    
 CHAIRMAN SHARP also adds a governor could probably dismiss a member           
 with the reason that there was an overwhelming lack of public                 
 confidence in a member's performance or ability to perform.                   
 SENATOR LEMAN makes a motion to adopt the amendment to SB 89.                 
 CHAIRMAN SHARP, hearing no objection, states the amendment has been           
 Number 450                                                                    
 SENATOR DUNCAN asks if there has been any response requested from             
 the administration.                                                           
 SENATOR RIEGER responds there has been no response requested from             
 the administration, other than the response from APFC.                        
 SENATOR DUNCAN thinks a response should be requested from the                 
 CHAIRMAN SHARP agrees with Senator Duncan.  The chairman asks that            
 a response from the administration be requested so that the next              
 committee of referral (Senate Finance Committee) will have that.              
 Number 470                                                                    
 SENATOR LEMAN makes a motion to discharge SB 89 from the Senate               
 State Affairs Committee with individual recommendations.                      
 Number 472                                                                    
 CHAIRMAN SHARP, hearing no objection, orders SB 89 released from              
 committee with individual recommendations.                                    

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