Legislature(2009 - 2010)BARNES 124

04/05/2010 01:00 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 416 PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS TELECONFERENCED
Moved Out of Committee
+ HCR 21 ECONOMIC DEVELOPMENT PLANNING COMMISSION TELECONFERENCED
Heard & Held
+ HB 389 COMMERCIAL FISHING LOAN ACT TELECONFERENCED
Heard & Held
+ SB 269 ECON. STIMULUS BONDS: REALLOCATION/WAIVER TELECONFERENCED
Moved Out of Committee
+ SB 272 RENTAL CAR CHARGES TELECONFERENCED
Moved Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         April 5, 2010                                                                                          
                           1:11 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Mike Chenault                                                                                                    
Representative Bob Lynn                                                                                                         
Representative Tammie Wilson                                                                                                    
Representative Robert L. "Bob" Buch                                                                                             
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mark Neuman, Vice Chair                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 416                                                                                                              
"An Act adopting  and relating to the  Uniform Prudent Management                                                               
of Institutional Funds  Act; relating to the  investment of money                                                               
for charitable  purposes by institutions,  including governmental                                                               
institutions; and relating to the University of Alaska."                                                                        
                                                                                                                                
     - MOVED HB 416 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 21                                                                                              
Creating  and  relating  to  the  Economic  Development  Planning                                                               
Commission.                                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 389                                                                                                              
"An Act relating to loans  made to commercial fishermen under the                                                               
Commercial Fishing  Loan Act for energy  efficiency upgrades; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 269(FIN)                                                                               
"An Act  relating to the  waiver of  volume cap of  recovery zone                                                               
economic development  bonds authorized  by 26 U.S.C.  1400U-2 and                                                               
reallocation by the  Alaska Municipal Bond Bank  Authority of the                                                               
waived  volume cap;  relating  to  the waiver  of  volume cap  of                                                               
recovery zone facility bonds authorized  by 26 U.S.C. 1400U-3 and                                                               
reallocation  by the  Alaska  Industrial  Development and  Export                                                               
Authority of the  waived volume cap; increasing  the total amount                                                               
of bonds and notes that  the Alaska Municipal Bond Bank Authority                                                               
may  have   outstanding;  relating   to  revenue  bonds   and  to                                                               
obligations  secured  by lease  that  are  issued by  the  Alaska                                                               
Municipal  Bond Bank  Authority; relating  to allocations  of tax                                                               
credit and bonding limits imposed  by the federal government; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSSB 269(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 272                                                                                                             
"An Act relating to charges  for rented motor vehicles, including                                                               
cost recovery  fees, and making  a violation of the  rented motor                                                               
vehicle charge provisions an unfair trade practice."                                                                            
                                                                                                                                
     - MOVED SB 272 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 416                                                                                                                  
SHORT TITLE: PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS                                                                          
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/17/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/17/10       (H)       L&C, FIN                                                                                               
03/24/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/24/10       (H)       Scheduled But Not Heard                                                                                
04/02/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/02/10       (H)       -- MEETING CANCELED --                                                                                 
04/05/10       (H)       L&C AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HCR 21                                                                                                                  
SHORT TITLE: ECONOMIC DEVELOPMENT PLANNING COMMISSION                                                                           
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
02/23/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/10       (H)       EDT, L&C                                                                                               
03/23/10       (H)       EDT AT 5:15 PM CAPITOL 106                                                                             
03/23/10       (H)       Moved CSHCR 21(EDT) Out of Committee                                                                   
03/23/10       (H)       MINUTE(EDT)                                                                                            
03/25/10       (H)       EDT RPT CS(EDT) 6DP                                                                                    
03/25/10       (H)       DP: TUCK, NEUMAN, CHENAULT, CRAWFORD,                                                                  
                         JOULE, RAMRAS                                                                                          
03/25/10       (H)       FIN REFERRAL ADDED AFTER L&C                                                                           
04/02/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/02/10       (H)       -- MEETING CANCELED --                                                                                 
04/05/10       (H)       L&C AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 389                                                                                                                  
SHORT TITLE: COMMERCIAL FISHING LOAN ACT                                                                                        
SPONSOR(s): SEATON                                                                                                              
                                                                                                                                
02/23/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/10       (H)       FSH, RES                                                                                               
03/16/10       (H)       FSH AT 10:15 AM BARNES 124                                                                             
03/16/10       (H)       Heard & Held                                                                                           
03/16/10       (H)       MINUTE(FSH)                                                                                            
03/22/10       (H)       FSH AT 3:00 PM CAPITOL 106                                                                             
03/22/10       (H)       Moved CSHB 389(FSH) Out of Committee                                                                   
03/22/10       (H)       MINUTE(FSH)                                                                                            
03/23/10       (H)       FSH RPT CS(FSH) NT 3DP 2NR                                                                             
03/23/10       (H)       DP: MUNOZ, BUCH, EDGMON                                                                                
03/23/10       (H)       NR: KAWASAKI, KELLER                                                                                   
03/23/10       (H)       RES REFERRAL REMOVED                                                                                   
03/23/10       (H)       L&C REFERRAL ADDED                                                                                     
04/05/10       (H)       L&C AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB 269                                                                                                                  
SHORT TITLE: ECON. STIMULUS BONDS: REALLOCATION/WAIVER                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/10/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/10       (S)       FIN                                                                                                    
02/15/10       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/15/10       (S)       Heard & Held                                                                                           
02/15/10       (S)       MINUTE(FIN)                                                                                            
03/08/10       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/08/10       (S)       Scheduled But Not Heard                                                                                
03/10/10       (S)       FIN RPT CS   6DP    NEW TITLE                                                                          
03/10/10       (S)       DP: HOFFMAN, STEDMAN, HUGGINS, THOMAS,                                                                 
                         EGAN, ELLIS                                                                                            
03/10/10       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/10/10       (S)       Moved CSSB 269(FIN) Out of Committee                                                                   
03/10/10       (S)       MINUTE(FIN)                                                                                            
03/17/10       (S)       TRANSMITTED TO (H)                                                                                     
03/17/10       (S)       VERSION: CSSB 269(FIN)                                                                                 
03/19/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/19/10       (H)       L&C, FIN                                                                                               
04/02/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/02/10       (H)       -- MEETING CANCELED --                                                                                 
04/05/10       (H)       L&C AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB 272                                                                                                                  
SHORT TITLE: RENTAL CAR CHARGES                                                                                                 
SPONSOR(s): HUGGINS                                                                                                             
                                                                                                                                
02/10/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/10       (S)       TRA, L&C                                                                                               
02/23/10       (S)       TRA AT 1:00 PM BUTROVICH 205                                                                           
02/23/10       (S)       Moved SB 272 Out of Committee                                                                          
02/23/10       (S)       MINUTE(TRA)                                                                                            
02/24/10       (S)       TRA RPT   4DP                                                                                          
02/24/10       (S)       DP: MENARD, MEYER, PASKVAN, DAVIS                                                                      
03/11/10       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/11/10       (S)       Moved SB 272 Out of Committee                                                                          
03/11/10       (S)       MINUTE(L&C)                                                                                            
03/12/10       (S)       L&C RPT   5DP                                                                                          
03/12/10       (S)       DP: PASKVAN, MEYER, THOMAS, BUNDE,                                                                     
                         DAVIS                                                                                                  
03/15/10       (S)       TRANSMITTED TO (H)                                                                                     
03/15/10       (S)       VERSION: SB 272                                                                                        
03/17/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/17/10       (H)       TRA, L&C                                                                                               
03/23/10       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
03/23/10       (H)       Moved Out of Committee                                                                                 
03/23/10       (H)       MINUTE(TRA)                                                                                            
03/24/10       (H)       TRA RPT 2DP 1NR 1AM                                                                                    
03/24/10       (H)       DP: T.WILSON, PETERSEN                                                                                 
03/24/10       (H)       NR: MUNOZ                                                                                              
03/24/10       (H)       AM: GRUENBERG                                                                                          
04/02/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/02/10       (H)       -- MEETING CANCELED --                                                                                 
04/05/10       (H)       L&C AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KONRAD JACKSON, Staff                                                                                                           
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 416 on behalf of the sponsor,                                                               
Representative Kurt Olson, Chair, House Labor & Commerce                                                                        
Committee.                                                                                                                      
                                                                                                                                
JIM LYNCH, Treasurer                                                                                                            
University of Alaska Foundation                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 416.                                                               
                                                                                                                                
GRANT CALLOW, Member                                                                                                            
Alaska Uniform Law Commissioner                                                                                                 
National  Conference  of  Commissioners  on  Uniform  State  Laws                                                               
(NCCUSL)                                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 416.                                                               
                                                                                                                                
ERIC WOHLFORTH, Attorney                                                                                                        
Wohlforth, Johnson, Brecht, Cartledge,  & Brooking A Professional                                                               
Corporation (PC)                                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 416.                                                               
                                                                                                                                
ROB EARL, Staff                                                                                                                 
Representative Bob Herron                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented a  PowerPoint on  behalf of  the                                                             
prime sponsor of HCR 21.                                                                                                        
                                                                                                                                
ERIN HARRINGTON, Staff                                                                                                          
Representative Alan Austerman                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Presented  a   PowerPoint  during   the                                                             
discussion of HCR 21.                                                                                                           
                                                                                                                                
KATIE KOESTER, Staff                                                                                                            
Representative Paul Seaton                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented HB  389 on  behalf of  the prime                                                             
sponsor.                                                                                                                        
                                                                                                                                
GREG WINEGAR, Director                                                                                                          
Division of Investments                                                                                                         
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED)                                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 389.                                                                                                           
                                                                                                                                
DEVEN MITCHELL                                                                                                                  
Alaska Municipal Bond Bank Authority                                                                                            
Department of Revenue (DOR)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of SB 269.                                                                                                           
                                                                                                                                
KATHERINE DODGE                                                                                                                 
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 269.                                                                          
                                                                                                                                
EDRA MORLEDGE, Staff                                                                                                            
Senator Charlie Huggins                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented SB  272 on  behalf of  the prime                                                             
sponsor.                                                                                                                        
                                                                                                                                
SHANE SKINNER, Controller/Business Manager                                                                                      
Enterprise Rental Cars                                                                                                          
Renton, Washington                                                                                                              
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of SB 272.                                                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:11:49 PM                                                                                                                    
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee meeting to order at 1:11 p.m.                                                                                         
                                                                                                                                
1:11:51 PM                                                                                                                    
                                                                                                                                
Representatives  Lynn, Buch,  Holmes, T.  Wilson, and  Olson were                                                               
present at  the call to  order.  Representative  Chenault arrived                                                               
as the meeting was in progress.                                                                                                 
                                                                                                                                
1:11:59 PM                                                                                                                    
                                                                                                                                
        HB 416-PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS                                                                    
                                                                                                                                
1:12:14 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL NO. 416, "An Act  adopting and relating to the Uniform                                                               
Prudent Management  of Institutional  Funds Act; relating  to the                                                               
investment  of money  for  charitable  purposes by  institutions,                                                               
including   governmental  institutions;   and  relating   to  the                                                               
University of Alaska."                                                                                                          
                                                                                                                                
1:12:18 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  Staff, Representative  Kurt Olson,  Alaska State                                                               
Legislature, paraphrased  from the sponsor statement,  which read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     HB 416  would allow  the State of  Alaska to  adopt the                                                                    
     Uniform Prudent  Management of Institutional  Funds Act                                                                    
     (UPMIFA).                                                                                                                  
                                                                                                                                
     UPMIFA   replaces  obsolete   rules  and   concepts  of                                                                    
     investment and management  of endowments and charitable                                                                    
     funds currently  in use. It provides  current, industry                                                                    
     best   practices   guidelines,  essential   to   proper                                                                    
     management.                                                                                                                
                                                                                                                                
     HB  416  is  will  help  administrators  fulfill  their                                                                    
     fiduciary  responsibilities to  the funds  they manage.                                                                    
     Clear definitions  on prudent practices  and applicable                                                                    
     standards   are   laid   out  for   administrators   of                                                                    
     charitable funds and endowments.                                                                                           
                                                                                                                                
     The  UPMIFA   will  assist  nonprofits   and  volunteer                                                                    
     trustees  to minimize  exposure to  disputes and  legal                                                                    
     challenges  over issues  related  to currently  unclear                                                                    
     administrative rules and practices.                                                                                        
                                                                                                                                
     Traditional    trust     principles    regarding    the                                                                    
     distribution of what might  otherwise be considered the                                                                    
     corpus  differ from  the  UPMIFA.  In conjunction  with                                                                    
     Financial  Accounting   Standards  Board  requirements,                                                                    
     UPMIFA allows  advances against future earnings  to the                                                                    
     extent such  advances are  prudent and  consistent with                                                                    
     the mission and purpose of the endowment.                                                                                  
                                                                                                                                
     At present,  only 3  other states  have not  adopted or                                                                    
     introduced UPMIFA legislation.                                                                                             
                                                                                                                                
1:15:23 PM                                                                                                                    
                                                                                                                                
JIM  LYNCH, Treasurer,  University of  Alaska Foundation,  stated                                                               
that he has  managed the endowments for the  University of Alaska                                                               
for the  past 25 years.   He related that he  worked with Senator                                                               
Paskvan on  the companion bill.   This bill sets  out responsible                                                               
practices  for management  of charitable  funds, consistent  with                                                               
what  the legislature  has  previously adopted  for  trusts.   He                                                               
explained that  this legislation has  already been adopted  by 43                                                               
states, including  the District of  Columbia and the  U.S. Virgin                                                               
Islands.      It   essentially  incorporates   requirements   and                                                               
considerations   that   provide    for   accountability   and   a                                                               
determination of  prudent actions.  It  allows administrators the                                                               
flexibility  needed  to  manage endowments  during  the  volatile                                                               
market conditions.   It  is difficult  to manage  endowments when                                                               
income is "jumping up and down"  every year.  He stated he cannot                                                               
tell students who applied for  and were awarded scholarships that                                                               
they are no longer available due to market fluctuations.                                                                        
                                                                                                                                
MR.  LYNCH related  the bill  would clarify  outdated provisions,                                                               
although  most of  the updates  affect East  Coast colleges  that                                                               
have been  operating for several hundred  years, often containing                                                               
some peculiar  provisions.  This  bill would reduce  the exposure                                                               
for  non-profit  entities and  their  trustees  that may  not  be                                                               
familiar with nuances.   In Alaska, without any  laws that apply,                                                               
it is  difficult to  sort out responsibilities.   He  referred to                                                               
two sections  that directly address  the UA Board of  Regents, to                                                               
indicate how the  Board of Regents will follow  the provisions of                                                               
HB  416.    The  bill corrects  unintended  consequence  of  2005                                                               
statutory  changes on  retirement bills.   The  Board of  Regents                                                               
authority for investment of funds  and the endowments came from a                                                               
cross  reference  that allowed  the  Board  of Regents  the  same                                                               
authority for the  endowments as the state  pension committee has                                                               
for   the  pension   funds.     These  represent   the  fiduciary                                                               
responsibilities,  but  when  the  Alaska  Retirement  Management                                                               
Board was created, the new  statute references changed.  Instead,                                                               
this bill would directly address  the responsibilities that apply                                                               
to the  Board of Regents endowment  administration and non-profit                                                               
funds.                                                                                                                          
                                                                                                                                
1:20:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES  referred  to  page 6,  line  19,  to  the                                                               
definition of  "endowment fund ."   She read, "...which  does not                                                               
include assets of an institution  designated by an institution as                                                               
an endowment fund for its own use;."                                                                                            
                                                                                                                                
MR. LYNCH  answered that the  definition of an endowment  fund is                                                               
fairly broad and this definition  would exclude those funds which                                                               
are designated by  the board as endowments.  He  referred to them                                                               
as quasi-endowments,  which are  treated like endowments  but are                                                               
available  to creditors  and are  unrestricted.   The designation                                                               
was set up by the administrative  board and can be changed by the                                                               
board.   That is  the distinction  between the  "true endowments:                                                               
and  "quasi-endowments."    This definition  would  clarify  that                                                               
endowments  created  by  a  board  are  not  controlled  by  this                                                               
statute.   They are  unrestricted funds and  the board  will make                                                               
the  determinations.   The  other  endowments  are restricted  by                                                               
donors  and  the  institution  cannot  change  the  restrictions.                                                               
Thus, when a donor donates  unrestricted funds, the board can use                                                               
the funds  for anything it  chooses, but if the  donor designated                                                               
funds to  be used for the  math department, the UA  would need to                                                               
abide by the restriction.                                                                                                       
                                                                                                                                
1:23:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES referred  to page  4, to  line 7  to gifts                                                               
that  "create an  endowment  fund of  permanent  duration."   She                                                               
asked for clarification.                                                                                                        
                                                                                                                                
MR. LYNCH explained that means "in  perpetuity."  Thus, if the UA                                                               
receives  an   endowment  for  a   specific  purposed   then  the                                                               
restrictions  apply.   If  the funds  are be  used  for the  math                                                               
department.  Otherwise, if the  need over time becomes illegal or                                                               
improper,  the  UA   must  go  back  to  the  court   to  make  a                                                               
determination  on what  happens to  the money.   This  bill would                                                               
also  create  a  provision  for small  endowments  of  less  than                                                               
$50,000 for an  expedited procedure since going back  to court is                                                               
expensive.  Thus,  the UA would go through the  Department of Law                                                               
and this  provision would  allow the endowment  to use  the funds                                                               
for a purpose as closely related  to the purposed intent.  If the                                                               
donor states it is an "endowment" then the funds are permanent.                                                                 
                                                                                                                                
REPRESENTATIVE   HOLMES  related   her  understanding   that  the                                                               
provisions  that  would  apply  are  those on  page  5  under  AS                                                               
13.70.040.                                                                                                                      
                                                                                                                                
MR. LYNCH  agreed that either  the UA would  go back to  court or                                                               
use the expedited procedure in instances of a small endowment.                                                                  
                                                                                                                                
1:26:18 PM                                                                                                                    
                                                                                                                                
MR.  LYNCH pointed  out  the  default nature  of  the  bill.   He                                                               
explained that essentially if other  laws affect endowments, then                                                               
the  other provisions  would  apply first,  followed  by the  the                                                               
UPMIFA.  Thus, a formal  trust would take precedence over UPMIFA.                                                               
The  statute provides  the rules  absent a  donor agreement.   He                                                               
restated  that all  of  the agreements  take  precedent over  the                                                               
statute.                                                                                                                        
                                                                                                                                
1:27:38 PM                                                                                                                    
                                                                                                                                
GRANT CALLOW,  Member, Alaska Uniform Law  Commissioner, National                                                               
Conference  of  Commissioners  on Uniform  State  Laws  (NCCUSL),                                                               
explained that  he could  answer questions on  how the  bill came                                                               
about and could  answer any drafting questions.   He offered that                                                               
Kentucky  just  enacted   UPMIFA,  so  Alaska  is   one  of  five                                                               
jurisdictions that  still not  enacted UPMIFA.   This  bill would                                                               
provide much  more flexibility to persons  managing institutional                                                               
funds, but also  provides some controls on the  delegation of the                                                               
management of  the funds.   This bill encourages  gift-giving and                                                               
charity  since it  provides confidence  and assurances  to donors                                                               
that their charitable contributions wishes will be followed.                                                                    
                                                                                                                                
MR.  CALLOW offered  that many  institutional  advisors were  in.                                                               
Some reference to  the attorney general's office.   Deborah Behr,                                                               
Assistant Attorney  General is also  a Uniform  Law Commissioner.                                                               
The  Attorney General's  (AG) office  has reviewed  the bill  and                                                               
does  not have  any issue  with the  AG's role.   He  offered his                                                               
belief   that  in   Alaska,  it   is  preferable   to  have   the                                                               
institutional   funds  managed   here   rather  than   elsewhere.                                                               
Enacting  UPMIFA will  help  ensure  that goal  is  met and  will                                                               
minimize the  conflict in  instances in  which funds  are managed                                                               
outside the  state, but benefit persons  in the state.   Thus, an                                                               
issue of conflicts  of law could arise.  This  is one reason that                                                               
this  law is  designated  as a  uniform law  and  to provide  for                                                               
consistency  among the  states.   In  addition  to being  adopted                                                               
unanimously by the  states at the Commission on  Uniform Laws, it                                                               
was sent to American Bar  Association House of Delegates where it                                                               
was  approved.   This  bill  has been  a  very  popular bill,  he                                                               
stated.                                                                                                                         
                                                                                                                                
1:31:58 PM                                                                                                                    
                                                                                                                                
ERIC WOHLFORTH, Attorney,  Wohlforth, Johnson, Brecht, Cartledge,                                                               
& Brooking, A Professional Corporation  (PC), asked to add to the                                                               
comments already made and thanked members.                                                                                      
                                                                                                                                
1:32:37 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 416.                                                                                     
                                                                                                                                
1:32:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES  moved to  report HB  416 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 416 was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
1:33:20 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:33 p.m. to 1:35 p.m.                                                                       
                                                                                                                                
        HCR 21-ECONOMIC DEVELOPMENT PLANNING COMMISSION                                                                     
                                                                                                                                
1:35:00 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE CONCURRENT RESOLUTION NO. 21,  Creating and relating to the                                                               
Economic Development Planning Commission.   [Before the Committee                                                               
was the CSHCR 21(EDT).]                                                                                                         
                                                                                                                                
1:35:31 PM                                                                                                                    
                                                                                                                                
ROB  EARL,   Staff,  Representative  Bob  Herron,   Alaska  State                                                               
Legislature, introduced  himself.   He explained that  the bill's                                                               
prime  sponsors   are  Representative   Herron  and   Munoz,  but                                                               
commented that  Representative Austerman's  office has  also been                                                               
instrumental in bringing this issue forward.                                                                                    
                                                                                                                                
1:36:00 PM                                                                                                                    
                                                                                                                                
MR. EARL referred to his PowerPoint.   The bill would create a 10                                                               
member  Economic Development  Planning Commission  (EDPC) in  the                                                               
legislative branch [slide 2].  The  EDPC would act as a bridge to                                                               
synthesize ideas  and make policy  recommendations and  any draft                                                               
legislation necessary for the legislature  to consider.  The EDPC                                                               
would report to  the Legislative Budget and  Audit Committee, the                                                               
Governor,  and Legislative  Council.   The bill  would sunset  on                                                               
June 30, 2012.                                                                                                                  
                                                                                                                                
1:36:49 PM                                                                                                                    
                                                                                                                                
ERIN  HARRINGTON, Staff,  Representative  Alan Austerman,  Alaska                                                               
State Legislature,  reiterated that the  purpose of HCR 21  is to                                                               
integrate  the  legislature into  some  of  the ongoing  economic                                                               
development  planning processes.   She  referred to  a report  by                                                               
Alaska Forward, which was sent to legislators.                                                                                  
                                                                                                                                
MS. HARRINGTON  explained that  this effort has  been led  by the                                                               
Alaska  Partnership   for  Economic  Development,  which   is  an                                                               
umbrella   organization   representing    the   Alaska   Regional                                                               
Development   Organizations    (ARDORs)   [slide   3].       Many                                                               
organizations have  been involved  in the process,  including the                                                               
Alaska  State Chamber  of Commerce.   Alaska  Forward received  a                                                               
$500,000  grant  from  the  Denali Commission  for  its  Phase  I                                                               
effort.  Alaska  Forward is currently working on  funding for its                                                               
Phase  II   tasks,  which  will  likely   result  in  substantive                                                               
recommendations in  the spring.   Another ongoing process  is the                                                               
Governor's  Legacy  initiative,  which   was  established  by  an                                                               
administrative  order  from  the   Palin  Administration.    This                                                               
project is  "morphing" under the  current governor to  align with                                                               
the Alaska Forward  efforts as well as working in  a "work group"                                                               
effort that has resulted in significant work products.                                                                          
                                                                                                                                
MS.  HARRINGTON related  that numerous  entities are  involved in                                                               
effort  directed at  long-term,  strategic  planning included  in                                                               
"Alaska's Economic  Development 'System'" [slide 4].   This slide                                                               
identified  some  of  the  different  organizations  involved  in                                                               
economic  development efforts  at the  state, regional,  borough,                                                               
and   municipal  levels.     Not   all  organizations   have  the                                                               
opportunity to work with the legislature, she stated                                                                            
                                                                                                                                
1:39:01 PM                                                                                                                    
                                                                                                                                
MS.  HARRINGTON asked  the  question,  "Is there  a  need for  an                                                               
Economic  Development  Planning  Commission?  [slide  5]."    The                                                               
ongoing  economic  development  efforts represent  a  significant                                                               
investment of effort  and financial resources by  Alaskans.  This                                                               
commission gives  the legislature  the opportunity to  be engaged                                                               
throughout  the  process,  which ensures  legislative  action  is                                                               
informed by private  sector participation.  The  EDPC responds to                                                               
identified   shortcomings   in  previous   economic   development                                                               
efforts.   In reviewing and  researching economic  development in                                                               
Alaska, it was  found that in some cases  when legislature action                                                               
was  needed,  the  legislature  had not  had  an  opportunity  to                                                               
proactively participate in some of the processes.                                                                               
                                                                                                                                
1:40:57 PM                                                                                                                    
                                                                                                                                
MS. HARRINGTON  listed the kinds of  opportunities the commission                                                               
may identify  such as:  financial tools  that need  to be  set in                                                               
place  by   statutory  action;  targeting   industry  "clusters";                                                               
preparing the  legislature in advance  of the session  to address                                                               
the  needs of  economic development  organizations; restructuring                                                               
of departments that relate to economic development [slide 6].                                                                   
                                                                                                                                
1:41:25 PM                                                                                                                    
                                                                                                                                
MR.  EARL  presented slide  7,  which  displayed the  appointment                                                               
authority for the  membership of the commission.   He pointed out                                                               
that eight  legislators would appoint  six public  members, which                                                               
he   hoped   would   lead  to   a   diversity   of   geographical                                                               
representation,  experience, and  industry  representation.   The                                                               
commissioners  of  the  Department   of  Commerce,  Community,  &                                                               
Economic  Development  (DCCED)  and  the Department  of  Labor  &                                                               
Workforce  Development (DLWD)  are  appointed automatically,  and                                                               
are ex officio, non-voting members.                                                                                             
                                                                                                                                
1:41:56 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked whether the  House Labor and Commerce Committee                                                               
chair has appointment authority.                                                                                                
                                                                                                                                
MR. EARL answered no.                                                                                                           
                                                                                                                                
1:42:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON asked  which appointment would represent                                                               
Interior Alaska.                                                                                                                
                                                                                                                                
MS. HARRINGTON  responded that the  EDPC does not  currently have                                                               
geographic definitions for the appointments.   She explained that                                                               
with the Finance Co-Chairs of  both bodies, the Senate President,                                                               
the  House Speaker,  and the  House and  Senate Minority  Leaders                                                               
making appointments;  the hope  is to achieve  diversity.   As it                                                               
currently stands, there  is not any geographic  definition of the                                                               
membership.                                                                                                                     
                                                                                                                                
1:42:48 PM                                                                                                                    
                                                                                                                                
MR.  EARL continued.    He discussed  a timeline  for  HCR 21  as                                                               
follows: March,  2010, Alaska Forward  Phase I Report;  April 30,                                                               
2010,  or  when  members  are appointed,  whichever  is  earlier,                                                               
commission  begins  work;  January 30,  2011,  first  legislative                                                               
report  deadline;  2011  (tentative),  Alaska  Forward  Phase  II                                                               
report;  December  15, 2011,  second  report  deadline; June  30,                                                               
2012, sunset [slide 8].                                                                                                         
                                                                                                                                
1:43:48 PM                                                                                                                    
                                                                                                                                
MR. EARL observed there is  a consensus in the business community                                                               
that  there  is   a  "lack  of  cohesive   thinking  on  economic                                                               
development  in  Alaska"  [slide   9].    The  Alaska  Industrial                                                               
Development  &  Export  Authority (AIDEA)'s  Strategic  Plan  was                                                               
released  this spring,  the Alaska  Forward's  Phase I  Executive                                                               
Summary, and the  Alaska State Chamber of  Commerce 2010 Position                                                               
Paper all mention the lack of statewide planning.                                                                               
                                                                                                                                
1:44:25 PM                                                                                                                    
                                                                                                                                
MR. EARL reviewed the documents  provided in the committee packet                                                               
[slide  10].   He  referred  to  a Legislative  Research  Report:                                                               
Alaska  Economic  Development Organizations  that  Representative                                                               
Herron's office  recently ordered.   Additionally, Representative                                                               
Austerman has  developed a website  with an  Economic Development                                                               
Library that he characterized as worthwhile.                                                                                    
                                                                                                                                
1:44:54 PM                                                                                                                    
                                                                                                                                
MR.  EARL discussed  a breakdown  of the  fiscal note:   $130,000                                                               
total;  $108,000  for  commission   staff;  $11,000  for  travel;                                                               
$11,000 for  per diem [slide  11].   The fiscal note  was written                                                               
under the following assumptions:   three meetings require travel;                                                               
one Anchorage  meeting and two  Fairbanks meetings; per  diem for                                                               
two days  per travel meeting; three  Anchorage-based members, one                                                               
Fairbanks-based member.                                                                                                         
                                                                                                                                
1:45:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  asked  for the  bill's  purpose.   She                                                               
related her understanding that Alaska  already has ARDORs working                                                               
together on economic development.                                                                                               
                                                                                                                                
1:45:47 PM                                                                                                                    
                                                                                                                                
MS.  HARRINGTON responded  that this  organization does  not have                                                               
any membership from  the ARDORs.  This  proposed commission would                                                               
be comprised of  legislators and private sector  membership.  The                                                               
goal  of  the   proposed  commission  will  be   to  develop  the                                                               
legislative actions that result  from recommendations of a number                                                               
of  processes.   This would  allow the  legislature to  engage in                                                               
these processes  proactively and make recommendations  that could                                                               
be  implemented   through  the  legislative   process,  including                                                               
department  restructuring   if  that   would  be  deemed   to  be                                                               
appropriate.                                                                                                                    
                                                                                                                                
1:46:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T.  WILSON asked who  in the administration  is in                                                               
charge of economic development.                                                                                                 
                                                                                                                                
MS. HARRINGTON answered the Department  of Commerce, Community, &                                                               
Economic Development (DCCED) works  on economic development.  She                                                               
provided some  background information.   Representative Austerman                                                               
chairs  the DCCED  Finance Subcommittee.   During  the course  of                                                               
reviewing  the department  through  his  subcommittee's work,  it                                                               
came  to  his  attention  that inadequate  resources  were  being                                                               
applied to economic  development, with only about  a dozen people                                                               
dedicated to economic development.   During the interim he worked                                                               
with  the Department  of  Labor &  Workforce  Development CRA  to                                                               
increase that  effort.  Thus,  the EDPC is one  recommendation to                                                               
proactively assist with economic development in the state.                                                                      
                                                                                                                                
1:47:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  agreed 100  percent with  knowledge of                                                               
economic development in the state.   She related her concern with                                                               
the political aspect.  She  shared an additional concern that the                                                               
ARDORs,  such as  the one  in Fairbanks,  are not  being utilized                                                               
instead of looking for other recommendations.                                                                                   
                                                                                                                                
1:48:42 PM                                                                                                                    
                                                                                                                                
MS. HARRINGTON explained that the  12 ARDORs in the state receive                                                               
less  than  $60,000 annually  from  the  state.   Ones  that  are                                                               
located in  larger communities  have been able  to draw  on other                                                               
resources, she  stated.   However, a number  of them  only employ                                                               
part-time  staff to  cover significant  geographical areas.   She                                                               
explained that the  ARDORS work with different  resources and are                                                               
not equipped to  draft legislation to implement the  ideas.  This                                                               
commission would be  able to draw on the  legislator resources to                                                               
work  to  implement the  recommendations  made  by the  volunteer                                                               
organization.                                                                                                                   
                                                                                                                                
1:50:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN offered that  all legislative members support                                                               
economic  development.   He thought  it seems  like just  another                                                               
organization.  He  said he can already speak to  anyone who wants                                                               
to   work  on   economic  development   issues  and   many  group                                                               
representatives currently  approach him  with ideas.   He related                                                               
that the  legislature already  has a  House Special  Committee on                                                               
Economic Development,  Trade, and Tourism.   He asked if  this is                                                               
actually  the  EDT  committee's   role  and  wondered  about  the                                                               
necessity  of  a  commission  sharing  the  same  goal  as  other                                                               
committees.                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN asked whether it  is necessary to enhance the                                                               
stage for economic development.   He related that the fiscal note                                                               
is $130,000 for two years, which  is a lot of money for something                                                               
that is already being done.                                                                                                     
                                                                                                                                
REPRESENTATIVE HOLMES agreed.   She offered that  this bill would                                                               
create a  group, with one  staff, comprised of unpaid  people and                                                               
the  volunteers  that  would  meet  three  times  a  year.    The                                                               
volunteers  would  have  outside  jobs.    She  stated  that  she                                                               
appreciates the idea of legislature's  involvement and thinks the                                                               
concept  is great.    However,  she is  worried  this bill  would                                                               
create one  more group  that would  "talk a  little bit"  but she                                                               
offered  that  she was  not  convinced  the commission's  efforts                                                               
would result in a product.                                                                                                      
                                                                                                                                
1:53:53 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON related  that he  did not  intend to  move the  bill                                                               
today.                                                                                                                          
                                                                                                                                
1:54:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES  made  a  motion  to  adopt  Amendment  1,                                                               
labeled 26-LS1446\P.1, Cook, 3/30/10, which read, as follows:                                                                   
                                                                                                                                
     Page 2, line 30, following "designee":                                                                                     
          Insert ";                                                                                                             
               (11)      the   president   of   the   Alaska                                                                    
    Partnership   for   Economic    Development,   or   the                                                                     
     president's designee"                                                                                                      
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
1:54:29 PM                                                                                                                    
                                                                                                                                
MR.  EARL  offered  his  belief  that  president  of  the  Alaska                                                               
Partnership  for Economic  Development would  serve the  proposed                                                               
commission well.                                                                                                                
                                                                                                                                
REPRESENTATIVE T. WILSON asked for  clarification that this is to                                                               
add another person instead of  the Commissioner of the Department                                                               
of Labor & Workforce Development.                                                                                               
                                                                                                                                
MR.  EARL  answered  this  would be  another  person  that  would                                                               
automatically be added to serve on the proposed commission.                                                                     
                                                                                                                                
REPRESENTATIVE HOLMES  assumed the goal was  to further integrate                                                               
ongoing efforts.                                                                                                                
                                                                                                                                
MR. EARL  agreed.  He  stated that this addition  would integrate                                                               
the  work   performed  by  Alaska   Forward  with   the  proposed                                                               
commission.                                                                                                                     
                                                                                                                                
1:55:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  asked whether  the Alaska  Partnership                                                               
for Economic Development is a public or private group.                                                                          
                                                                                                                                
MS. HARRINGTON answered that the  Alaska Partnership for Economic                                                               
Development is  the umbrella organization  formed by ARDORs.   Up                                                               
until the  formation of this group,  the ARDORs did not  have any                                                               
opportunity to  meet and discuss  work.  This bill  would provide                                                               
that ability.   The Alaska  Partnership for  Economic Development                                                               
funds the Alaska Forward project.                                                                                               
                                                                                                                                
CHAIR OLSON removed his objection.                                                                                              
                                                                                                                                
There being no further objection, Amendment 1 was adopted                                                                       
                                                                                                                                
1:56:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES  made  a  motion  to  adopt  Amendment  2,                                                               
labeled 26-LS1446\P.2, Cook, 3/30/10, which read as follows:                                                                    
                                                                                                                                
     Page 3, line 16:                                                                                                           
          Delete "and to the legislative budget and audit                                                                       
     committee"                                                                                                                 
          Insert ", the Legislative Budget and Audit                                                                            
     Committee, the House Labor and Commerce Committee, and                                                                     
     the Senate Labor and Commerce Committee"                                                                                   
                                                                                                                                
CHAIR OLSON objected.                                                                                                           
                                                                                                                                
MR. EARL  related this  was suggested  by a  member in  the other                                                               
body.  The suggestion was  that the proposed commission report to                                                               
both  of the  Labor and  Commerce Committees  in addition  to the                                                               
Legislative Budget and Audit Committee.                                                                                         
                                                                                                                                
There being no objection, Amendment 2 was adopted.                                                                              
                                                                                                                                
[HCR 21 was held over.]                                                                                                         
                                                                                                                                
               HB 389-COMMERCIAL FISHING LOAN ACT                                                                           
                                                                                                                                
1:57:49 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 389, "An Act  relating to loans made to commercial                                                               
fishermen  under  the  Commercial  Fishing Loan  Act  for  energy                                                               
efficiency upgrades; and providing for an effective date."                                                                      
                                                                                                                                
1:58:45 PM                                                                                                                    
                                                                                                                                
KATIE KOESTER,  Staff, Representative  Paul Seaton,  Alaska State                                                               
Legislature,  explained  that this  bill  encourages  the use  of                                                               
Alaska  manufactured  products  in  Alaska's  commercial  fishing                                                               
vessel  fleets.   She  paraphrased  from  the sponsor  statement,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     HB 389 allows the  Department of Commerce Community and                                                                    
     Economic  Development to  give Commercial  Fishing Loan                                                                    
     Fund  borrowers a  reduction in  the  interest rate  on                                                                    
     their loan if  50% of their loan is spent  on a product                                                                    
     produced or  manufactured in the  State of  Alaska. The                                                                    
     Commercial Fishing  Loan Fund was created  by the State                                                                    
     of Alaska  to aid commercial fishermen  in securing new                                                                    
     equipment, quota shares and  upgrades to their vessels.                                                                    
     The  Department already  allows reductions  in interest                                                                    
     rates for  borrowers who pay  on time, make  engine and                                                                    
     fuel   efficiency    upgrades   or    product   quality                                                                    
     improvements.                                                                                                              
     The  Department   needs  to  have  the   discretion  to                                                                    
     institute this  rate reduction program when  the market                                                                    
     allows  it, which  is  why  HB 389  does  not make  the                                                                    
     reduction  mandatory. For  example,  in today's  market                                                                    
     the interest rates  are so low, if  the Department were                                                                    
     required  to issue  the loan  it  would jeopardize  the                                                                    
     solvency of the fund.                                                                                                      
                                                                                                                                
     To be eligible  for the rate reduction under  HB 389 at                                                                    
     least 50%  of borrower's  purchases with the  loan fund                                                                    
     have to  be manufactured  in the  State of  Alaska. The                                                                    
     definition of  manufacture is  "processing, developing,                                                                    
     or  making an  item into  a  new item  with a  distinct                                                                    
     character and use."                                                                                                        
                                                                                                                                
     HB  389  promotes  economic development  in  Alaska  by                                                                    
     encouraging  Alaska  fisherman  to  purchase  equipment                                                                    
     manufactured  in   the  State  of  Alaska   when  using                                                                    
     Commercial Fishing Loan Fund dollars.                                                                                      
                                                                                                                                
MS.  KOESTER explained  that  a two  percent  reduction would  be                                                               
offered.  This would apply to  two or the seven or eight programs                                                               
in the  Commercial Fishing  Loan Fund:   the Product  Quality and                                                               
Engine  Efficiency Replacement  Programs.    The product  quality                                                               
program is for  purchasing items that improve the  quality of the                                                               
catch, such as  "slush bags" or refrigeration units.   The Engine                                                               
Efficiency Replacement Program allows  for engine replacement for                                                               
fuel efficiency.   She  emphasized this  is a  voluntary program.                                                               
When the  market improves the  reductions would be  allowed since                                                               
currently reducing the interest rate would jeopardize the fund.                                                                 
                                                                                                                                
2:02:17 PM                                                                                                                    
                                                                                                                                
GREG WINEGAR,  Director, Division  of Investments,  Department of                                                               
Commerce,  Community,  &  Economic Development  (DCCED),  offered                                                               
that the  DCCED supports the concept.   This would not  "kick in"                                                               
right away,  but anticipates  that at  some point  interest rates                                                               
will go up.  This bill  will allow the department time to develop                                                               
regulations and provide lower rates  for products manufactured in                                                               
the state.                                                                                                                      
                                                                                                                                
2:03:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON asked whether  the two percent reduction                                                               
in  interest rates  would apply  each year  or if  it only  would                                                               
apply to new loans.                                                                                                             
                                                                                                                                
MR. WINEGAR explained  that basically the rate  is established at                                                               
the time  the initial  loan is taken  out.  If  the loan  met the                                                               
criteria at  that point, the  rate would  stay in effect  for the                                                               
life of  the loan.  Additionally,  the division offers a  "Pay on                                                               
Time  Program,  which allows  for  a  one percent  interest  rate                                                               
reduction.                                                                                                                      
                                                                                                                                
2:03:55 PM                                                                                                                    
                                                                                                                                
MR. WINEGAR, in response to  Representative Holmes, answered that                                                               
the one percent  interest rate for the "Pay on  Time Program" and                                                               
the  two  percent proposed  reduction  for  purchasing the  state                                                               
manufactured products would be cumulative.                                                                                      
                                                                                                                                
2:04:20 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 389.                                                                                     
                                                                                                                                
[HB 389 was held over.]                                                                                                         
                                                                                                                                
        SB 269-ECON. STIMULUS BONDS: REALLOCATION/WAIVER                                                                    
                                                                                                                                
2:04:57 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced that the next order of business would be                                                                  
CS FOR SENATE  BILL NO. 269(FIN), "An Act relating  to the waiver                                                               
of  volume  cap  of  recovery  zone  economic  development  bonds                                                               
authorized by  26 U.S.C. 1400U-2  and reallocation by  the Alaska                                                               
Municipal Bond Bank Authority of  the waived volume cap; relating                                                               
to  the waiver  of volume  cap  of recovery  zone facility  bonds                                                               
authorized by  26 U.S.C. 1400U-3  and reallocation by  the Alaska                                                               
Industrial Development and Export  Authority of the waived volume                                                               
cap;  increasing the  total amount  of bonds  and notes  that the                                                               
Alaska  Municipal  Bond  Bank  Authority  may  have  outstanding;                                                               
relating to  revenue bonds  and to  obligations secured  by lease                                                               
that  are issued  by the  Alaska Municipal  Bond Bank  Authority;                                                               
relating to allocations of tax  credit and bonding limits imposed                                                               
by the federal government; and providing for an effective date."                                                                
[Before the Committee was CSSB 269(FIN)]                                                                                        
                                                                                                                                
2:05:29 PM                                                                                                                    
                                                                                                                                
DEVEN MITCHELL, Alaska Municipal  Bond Bank Authority, Department                                                               
of  Revenue  (DOR), related  that  this  bill contains  the  same                                                               
language as the bill the committee previously heard last week.                                                                  
                                                                                                                                
2:05:56 PM                                                                                                                    
                                                                                                                                
KATHERINE  DODGE, Fairbanks  North  Star  Borough (FNSB),  stated                                                               
that the FNSB supports the bill as amended.                                                                                     
                                                                                                                                
2:06:40 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on SB 269.                                                                                     
                                                                                                                                
REPRESENTATIVE T.  WILSON moved  to report  CSSB 269(FIN)  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSSB  269(FIN)  was                                                               
reported from House Labor and Commerce Standing Committee.                                                                      
                                                                                                                                
2:07:27 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:07 p.m. to 2:10 p.m.                                                                       
                                                                                                                                
                   SB 272-RENTAL CAR CHARGES                                                                                
                                                                                                                                
2:10:24 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
SENATE  BILL NO.  272, "An  Act  relating to  charges for  rented                                                               
motor  vehicles,  including  cost  recovery fees,  and  making  a                                                               
violation  of  the  rented motor  vehicle  charge  provisions  an                                                               
unfair trade practice."                                                                                                         
                                                                                                                                
2:10:32 PM                                                                                                                    
                                                                                                                                
EDRA  MORLEDGE,  Staff,  Senator Charlie  Huggins,  Alaska  State                                                               
Legislature, paraphrased  from the sponsor statement,  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     SB  272 is  a technical  bill  that would  allow rental  car                                                               
     companies to  do in  Alaska what they  already do  in thirty                                                               
     other states.  Alaska law is  currently silent on  the issue                                                               
     of separately-listed  charges on  rental car  statements for                                                               
     the recovery of fees. This  bill would require those fees to                                                               
     be listed  separately and clearly  identified on  the rental                                                               
     car agreement.                                                                                                             
                                                                                                                                
     The industry standard  is to turn over the  rental car fleet                                                               
     every twelve months and to  associate the costs of licensing                                                               
     the vehicles,  concessions, and airport  or facility-related                                                               
     costs  with   the  vehicles   themselves.  In   addition  to                                                               
     government  taxes  and   surcharges,  rental  car  companies                                                               
     assess  additional  "cost  recovery fees"  to  offset  those                                                               
     costs. Consumers  should be made  aware, and be able  to see                                                               
     the fees  they are charged, on  both the rental bill  and in                                                               
     an  online quote.  This bill  would provide  full disclosure                                                               
     and transparency of "cost recovery  fees" included in rental                                                               
     car  agreements. In  addition, this  legislation would  make                                                               
     violating the provision an unfair trade practice.                                                                          
                                                                                                                                
                                                                                                                                
MS. MORLEDGE stated that this  bill is a consumer protection bill                                                               
modeled on  car rental  legislation that has  passed in  30 other                                                               
states,  10 of  which  have passed  similar  legislation in  past                                                               
three  years.   The  bill  previously  passed the  Alaska  Senate                                                               
unanimously  and has  industry support  and is  supported by  the                                                               
Department of  Law.  She  encouraged the committee to  support SB
272.                                                                                                                            
                                                                                                                                
2:12:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BUCH  recalled a  disclosure bill that  applied to                                                               
documentation   fees  by   car  dealers   on  sales   of  vehicle                                                               
documentation fee.   It seemed to him that car  dealers were able                                                               
to charge a fee for basically "not doing anything."                                                                             
                                                                                                                                
CHAIR  OLSON  pointed out  the  referenced  bill applied  to  car                                                               
dealers and not car rental agencies.                                                                                            
                                                                                                                                
REPRESENTATIVE   BUCH  suggested   this  bill   requires  similar                                                               
disclosure which would only apply to car rental agencies.                                                                       
                                                                                                                                
MS. MORLEDGE  referred to page  2, line  19 to the  definition of                                                               
car which  read, "(1)  "car" means motor  vehicle."   She related                                                               
that the  bill drafter  indicated this would  apply to  all motor                                                               
vehicle rentals.                                                                                                                
                                                                                                                                
2:13:46 PM                                                                                                                    
                                                                                                                                
SHANE  SKINNER,  Controller/Business Manager,  Enterprise  Rental                                                               
Cars,  clarified  the  car  rental   charges.    He  stated  that                                                               
currently  there is  "nothing  on  the books"  in  Alaska on  car                                                               
rental charges.   This bill  would clarify the  allowable charges                                                               
plus it  would limit the charges  to those remitted to  the state                                                               
for car rental taxes, airport  taxes and fees, which are remitted                                                               
to  airports  to run  the  facilities,  and vehicle  registration                                                               
fees.   This bill would  cap the amount  that is allowable  to be                                                               
collected to the state or airport authority.                                                                                    
                                                                                                                                
2:14:33 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on SB 272.                                                                                     
                                                                                                                                
2:14:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON moved to  report SB 272 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  SB 272 was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
2:15:19 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
2:15 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB416 Supporting Documents-Letter Foreaker Group.pdf HL&C 4/5/2010 1:00:00 PM
HB 416
HB416 Fiscal Note-UA-Sysbra-03-26-10.pdf HL&C 4/5/2010 1:00:00 PM
HB 416
CSHCR21(EDT) Changes from version E.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Draft Amendment P.1 (APED).PDF HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Fiscal Note-LEG-COU-3-29-10.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) ver P.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
CSHCR21(EDT) Draft Amendment P.2 (Report to L&C Committees).PDF HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Legacy outline.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Letters of Support.PDF HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Alaska Forward Project Executive Summary.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 - Other State Incentives.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 Briefing Paper Economic Development in State Government.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
HCR21 Economic Development Commission Powerpoint.pdf HL&C 4/5/2010 1:00:00 PM
HCR 21
Apr 5 Packet Info.pdf HL&C 4/5/2010 1:00:00 PM
CSHB389(FSH) Fiscal Note.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
CSHB389(FSH) Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
CSHB389(FSH) ver C.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 Changes between ver C and ver S.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 Commercial Fishing Loan Fund Home Page.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 DCCED Statistics for Loan Servicing.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 December 2009 Loan Stats.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
HB389 Memo on HB389 to HFSH.pdf HL&C 4/5/2010 1:00:00 PM
HB 389
CSSB269(FIN) ver E.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
HB338-SB269 Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
HB338-SB269 Section Analysis.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
SB269 Fiscal Note-2-1-021010-REV-Y.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
SB269 Fiscal Note-1-2-021010-CED-N.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
HB338-SB269 Supporting Documents Letter-AML 3-3-10.pdf HL&C 4/5/2010 1:00:00 PM
SB 269
SB272 ver A.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Fiscal Note-1-1-022410-LAW-N.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Sponsor Statement.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Supporting Documents - Vehicle Licensing Fee Per State.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
SB272 Supporting Documents - BUSINESSADVISORY re VLF's 083006.pdf HL&C 4/5/2010 1:00:00 PM
SB 272
HB416 Fiscal Note-LAW-CIV-04-02-10.pdf HL&C 4/5/2010 1:00:00 PM
HB 416